1. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development South African Post Office Bill, [B2-2010] Department of Communications 19 October 2010 PCC 1

2. Delegation  Norman Munzhelele: Acting DDG  Alf Wiltz: Director  Willie Vukela: Director  Dimakatso Mojela: Deputy Director Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 2

3. Clause 2 Objects of Act  Clause 2 (c) has been deleted in light of the fact that clause 4 was deleted  Clause 2(c) provides as follows: “2. The objects of this Act are to- [(c) provide for the separation of accounts of the Post Office between reserved and unreserved postal services]”  Clause 4 provides as follows: “ [4. The reserved and unreserved postal services of the Post Office must be accounted for in separate sets of financial records and accounts.]” Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 3

4. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 5 Duties of SAPO  Clause 5(1)(e) was re-inserted and amended to provide for universal access to postal services  Clause 5(1)(f) was also re-inserted 4

5. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Wording of Clause 5 Duties of SAPO  “5(1) Subject to the Postal Services Act, 1998 (Act No. 124 of 1998) and the licence issued to the Post Office in terms of the said Act, the Post Office must take reasonable measures, within its available resources, to achieve the progressive realisation of the following duties: (e) ensure [greater access to basic services through] the achievement of universal access to postal services, by providing an acceptable level of effective, reliable and regular postal services to all areas, including rural areas and small towns where post offices are not sustainable; 5

6. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Wording of Clause 5 Duties of SAPO “ (f) ensure greater equity in respect of the distribution of services, particularly within the areas of the historically disadvantaged communities, including rural areas;” 6

7. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 9: Board of SAPO  The Committee raised a concern about a new clause 9(6)(a) that was proposed on 14 October 2010 and which provided that the non-executive members of the Board appointed to the Board of the South African Postbank Limited must, before attending any meeting of the Board of that company, obtain a proper mandate from the Board of the Post Office. The concern raised was that the requirement to obtain a mandate before each Postbank Board meeting was too onerous 7

8. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 9: Board of SAPO  Clause 9(6)(a) was deleted since it is sufficient to say that the relevant Board members are accountable to the SAPO Board  The new clause 9(6) provides as follows:  “9(6)The non-executive members of the Board appointed to the Board of the South African Postbank Limited are accountable to the Board of the Post Office in respect of their functions performed as Board members of the South African Postbank Limited” 8

9. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11: Disqualification from membership of Board and disclosure  The Committee pointed out that disclosure provisions seem to be duplicated in clauses 11 and 14. Amendments were made to clause 11(3) and clauses 14(2) to (4) deleted. A consequential amendment was made to clause 30(4) (Offences clause) to remove the reference to the now deleted clause 14(2). The title of clause 14 was amended from “Disclosure and fiduciary duties of Board members” to “Fiduciary duties of Board members” 9

10. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11  The relevant disclosure provisions are therefore now contained in clauses 11(3) to (4) that provide as follows:  “11(3) (a) A person nominated for appointment as a member of the Board must, before appointment and upon a request from the Minister, submit to the Minister a written statement containing— (i)a full disclosure of all his or her financial interests; and (ii) a declaration that he or she has no direct or indirect interests that are in conflict with the business of the Post Office as contemplated in subsection (1) (g) or section 14(1). 10

11. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11  11(3)(b)If, after appointment, a member of the Board acquires any— (i)further financial interest contemplated in paragraph (a)(i), the member must immediately in writing declare that fact to the Minister and the Board; or (ii) direct or indirect interest contemplated in subsection (1)(g) or section 14(1), the member must immediately declare that fact to the Minister and the Board 11

12. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11  (4) (a) Any member of the Board of the Post Office referred to in section 3(2) (c) must as soon as possible after the commencement of this Act, but not later than three months thereafter, submit to the Minister and the Board a written statement containing the disclosure and declaration referred to in subsection (3) (a) 12

13. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11  4(b) Notwithstanding subsection (1)(g), if a member of the Board of the Post Office referred to in paragraph (a) has any direct or indirect interest in conflict with the business of the Post Office as contemplated in subsection (1) (g) or section 14(1), when this Act commences, the member must— (i)immediately declare that fact to the Minister and the Board; and (ii)within three months after the commencement of this Act divest himself or herself of that interest 13

14. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 11  4(c) Subsection (3)(b) also applies to a Board member referred to in section 3(2)(c).” 14

15. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 13:Resignation, removal from office and vacancies  In accordance with a request by the Committee, clause 13(2)(d) was re-inserted as part of clause 13(2)(a). Clause 13(2)(a) now provides as follows:  “13(2) The Minister may, after having afforded the member of the Board concerned a reasonable opportunity to be heard, remove the member from office if that member— (a) acted in conflict with this Act or the articles of association of the Post Office ;” 15

16. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Clause 22: Personnel of Post Office  Clause 22(2)(b) was amended to remove the required concurrence of the Board before the CEO can appoint personnel and now provides as follows:  “22(2) The work relating to the functions of the Post Office is performed by such persons as the chief executive officer may appoint.” 16

17. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development THANK YOU 17