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Reservations over the MPRDA Amendment Bill

Posted By IRMSAInsight, 20 March 2015
IRMSA Breakfast
23 March 2015 

Reservations over the MPRDA Amendment Bill

President Jacob Zuma’s office referred the controversial Minerals and Petroleum Resources Development Act (MPRDA) Amendment Bill back to Parliament in January 2015 because it did not pass constitutional and procedural muster. The President made four recommendations focusing on amendments that need to be made to sections 26 (2b) and 26 (3) of the Bill, the definition of “this Act” and amendment of Section 74 of the Act. Input has also been requested from the National House of Traditional Leaders and the National Council of Provinces. Sections 26 (2b) and 26 (3) appear to be inconsistent with South Africa's obligations under the multilateral international trade regulation agreement, the General Agreement on Trade and Tariffs (GATT), as well as the Trade, Development and Cooperation Agreement (TDCA) signed with the European Union.

The imposition of quantitative restrictions on exports reopens the developmental pricing debate, making South Africa vulnerable to challenges in international forums. Developmental pricing could result in several unintended consequences as the mining sector subsidizes industrial projects, potentially causing manufacturing to grow and mining to shrink. A possible cross industry impact was exacerbated further following Mineral Resources Minister, Ngoako Ramatlhodi’s, statement that legislation governing the oil and gas sector will remain within the Mineral resources and Petroleum Development Act for the time being. Whilst the mining industry does support beneficiation, it appears to be increasingly difficult to separate these efforts from the competitive mining landscape that requires a domestic environment that incentivises the large investment needed.

Questions to Consider as a Risk Manager:

  • Are you worried about how your organisation could be affected by a possible reduction in South African mining sector investment due to policy uncertainty? What are the likely domestic implications?
  • What could the implications be on the international stage should the MPRDA be inconsistent with South Africa's obligations under the multilateral international trade regulation agreement, GATT and the TDCA?
  • What about the cross industry repercussions, considering that the oil and gas provisions in the MPRDA have not been removed and treated in separate legislation?

    To comment, please click here 

 Please have a look at the following link: 

 MPRDA Amendment Bill

Public-sector Wage negotiations could possibly lead to Strike Action

 Public-sector trade unions representing around 1.3 million government employees are demanding a 15% wage increase. On 27 February they rejected an inflation-linked 6.6% increase in public-sector pay announced by Finance Minister Nhlanhla Nene during his budget speech on 25 February. The trade unions are represented by the Congress of South African Trade Unions (COSATU), and include the SA Democratic Teachers Union, National Education Health and Allied Workers Union, Police and Prisons Civil Rights Union, Democratic Nursing Organisation of SA, SA Medical Association, SA State and Allied Workers Union and the Public and Allied Workers Union of SA. The last strike in the South African public service sector took place in August 2010 and lasted for three weeks, costing the economy R50 billion. It is clear that strike action will cause a significant disruption to government administration, as well as public health, policing and emergency services

      Questions to Consider:

  • How could public-sector strike action affect your organisation?

  • Is it likely that the prolonged nature of recent strike action will continue in this case?

    To comment, please click here 

Please have a look at the following links: 

South Africa Faces New Strike Threat

Weakend Cosatu Warns of Strike

Number of protests in South Africa reached an unprecedented high in 2014



The Multi-Level Government Initiative (MLGI) has just released a report analysing data oprotests between 2007 and 2014. The barometer measures annual and monthly trends in protests. The barometer indicates that the broad downward trend for the period 2009 to 2011 had been drastically reversed in 2014 reaching an all-time-high of 218 protests. This surpasses the previously recorded maximum of 204 protests in 2009. An additional concern is that an increasing proportion of protests are turning violent. Just less than 50% of protests in 2007 involved violence, whereas almost 80% of protests in 2014 involved violence on the part of either the protesters or security forces. The report highlights that poor local government service delivery remains the main driver of social unrest, fuelling more protests than all other drivers – including political party grievances and lack of employment opportunities – combined.  

Please have a look at the following link: 

Talking Good Governance

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