Question NW3222 to the Minister of Public Enterprises:

Essack, Mr F to ask the Minister of Public Enterprises:

DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY QUESTION NO.:PQ 3222 QUESTION: 3222. Mr F Essack (DA) to ask the Minister of Public Enterprises:In light of the fact that the National Treasury has cautioned that the Government will have to cut back on spending in order to balance the budget and save the Republic from going over a fiscal cliff, what steps have Denel, the South African Forestry Company SOC Limited and Alexkor taken to ensure that they will rely entirely on their own balance sheets instead of bailouts from the fiscus to fund their own operations? NW4296E REPLY: According to the information received from SOCs: ALEXKOR: Alexkor had good returns from the sale of diamonds in the 2022/2023 reporting period and there are sufficient reserves to continue operating in the next 12 months without reliance from the fiscus. DENEL: Denel has tabled a comprehensive turnaround plan dealing with all aspects of the business with the following objectives: Reduced costs and increased revenue Engaged staff who are performance orientated Increased customer base Ensuring effective supply chain procedures Optimized planning and production Partnerships and joint ventures This plan and actions were underpinned by a recapitalisation programme from Government and Denel is currently executing this plan and will not require any additional bailouts from the Government. SAFCOL: SAFCOL has implemented cost curtailment measures since the start of the second quarter. Through this, revenue-generating and compliance expenditure is prioritised. The impact of these cash preservation measures is closely monitored on a monthly basis. Due to this intervention, SAFCOL’s total expenditure at the end of September 2023, was 16% below budget and continues to show positive variances in the forecast for the remainder of the year. SAFCOL has no government guarantees in place and relies on the robustness of its own balance sheet. Currently, there are no indications that any bailouts would be necessary in the foreseeable future. Remarks: Approved / Not Approved/Comments Jacky Molisane PJ Gordhan, MP Acting Director-General Minister Date: Date: