Question NW81 to the Minister of Planning, Monitoring and Evaluation

Reply:

DEPARTMENT OF PLANNING, MONITORING AND EVALUATION

a) The Consolidated Financial Statements for the Financial Year ending 31 March 2023, which was compiled by the National Treasury show that Contingent Liabilities which emanated out of Legal Court proceedings stood at R21 Billion.

b) Whilst accounting standards require state institutions to make provision for contingent liabilities, details relating to claims against the state are considered confidential as it contains information of claimants. Furthermore, departments cannot disclose the information thereof as it is still subject to court proceedings.

(i) The decision on which case is defensible or not lies with each state institution and is determined on a case by case basis.

a) (ii) TOTAL CLAIMS DUE AND OR OUTSTANDING SUBJECT TO COURT PROCEEDINGS AGAINST STATE OWNED ENTITIES

ALEXKOR:

According to the information received from

a) (ii) All legal matters involving claims against Alexkor and the PSJV are reported in the 2023 Integrated Report

• There are three claims against Alexkor and the PSJV from service providers dating back to 2020 and all three cases are dormant.
• There is one claim against Alexkor and the PSJV dating back to 2022 involving a service provider awarded a contract for training services. An attempt to settle out of court failed and the matter is pending.
• The former CEO who was dismissed in 2020 was awarded R 3 200 000 by the CCMA and this is currently awaiting a date for a hearing of a review application at the Labour Court.

Investigations by the SIU into the allegations of State Capture are ongoing and the final report of the SIU is pending.

b) The full list of legal matters is reviewed quarterly and reported to the Shareholder by the Board.

c) (i)(ii) (bb) The claims made against Alexkor and the PSJV are being opposed.

DENEL:

According to the information received from Denel

Denel SOC Ltd does not have any claims due or outstanding.

ESKOM:

According to the information received from Eskom

a) (ii) (b) (c) (i)(ii) (bb)

Cause Of Loss	Sum of Total Incurred	Sum of Counter
Z24 - Electrical/Mechanical Failure	7 987 066.20	32
Z43 - Human/Operating Error	-	1
Z46 - Low Hanging Conductor	44 306 260.72	43
Z75 - Veld Fire	2 258 612.91	16
Grand Total	54 551 939.83	92

SOUTH AFRICAN AIRWAYS:

According to the information received from SAA

a) (ii)There are two court proceedings dating from 2018 to current against SAA and its subsidiaries in respect of alleged reckless, negligence and misconduct.

(b) There are two. Of the two cases referred above there is only one case wherein there is a contingent liability of R5 Million

(c) (i)The above-mentioned cases are both defensible

(ii)(bb) None of the cases are indefensible.

SAFCOL:

According to the information received from SAFCOL

(a) (ii) SAFCOL – 3

(b) 3 list below

Economistza v KLF (R399 000.00),

Economistsza v KLF – Mr de Villiers appointed his friend’s company (Mike Schuller) without following a fair, competitive, cost-effective and transparent process as per the KLF procurement policy read with the PFMA, PPPFA and Constitution, which constitute a financial misconduct by an official in terms section 83 of the PFMA. Then Mike Schuller sued KLF for payment of their invoices sent to Mr de Villiers, KLF defended the claim as there was no agreement between itself and Economistsza;

Ladz Trading cc vs SAFCOL & Nomkhita Mona (R807 560.04)

Ladz Trading cc vs SAFCOL & Nomkhita Mona - Ms Mona appointed Llyod MacPatie (Ladz Trading cc) without following a fair, competitive, cost-effective and transparent process as per the SAFCOL procurement policy read with the PFMA, PPPFA and Constitution, which constitute a financial misconduct by an official in terms section 83 of the PFMA. Then Llyod MacPatie sued SAFCOL, the latter defended the claim for payment and joined Ms Mona on the matter, there was no agreement between SAFCOL and Ladz Trading cc for the liability of SAFCOL to any payment to Llyod MacPatie.

The iFIRM Trading & Project (Pty) Ltd vs SAFCOL & NP Mona (R873 053.95)

The iFIRM Trading & Project (Pty) Ltd vs SAFCOL & NP Mona – Ms Mona appointed an iFIRM without following a fair, competitive, cost-effective and transparent process as per the SAFCOL procurement policy read with the PFMA, PPPFA and Constitution, which constitute a financial misconduct by an official in terms section 83 of the PFMA. Then The iFIRM Trading sued SAFCOL and Ms Mona, since there was no contract between itself and iFIRM, SAFCOL defended the claim for payment.

(c) (ii)(aa)

(bb) SAFCOL - 3

TRANSNET:

According to the information received from Transnet

(a)(ii) Transnet SOC Ltd (Transnet) has 49 (forty-nine) defended/pending litigious claims against Transnet in respect of alleged recklessness, negligence and misconduct of a functionary or an official of Transnet

(b) The full list and total contingent liability for the 49 matters referred to above are as follows:

	Matter	Transnet Operating Division	Contingent Liability
	“MV SMART” ran aground (Claim by owners of “MV SMART” & claim by owners of the cargo).	TNPA	R2 258 519 846.68
	The vehicle drove off quay wall – 2 Fatalities.	TPT	R3 069 309.60
	The train collided with JK Mashaya – Seriously Injured.	TFR	R4 368 185.64
	“Genco Tiberius” collided with quay wall under pilotage (pilot error).	TNPA	R26 759 268.58
	Train collided with motor vehicles - no injuries.	TFR	R250 000.00
	"Julian" collided with coal-loader on dock under pilotage (property damaged).	TNPA	R6 010 608.53
	Crane damage to “TR Princess” (property damaged).	TPT	R560 000.00
	MSC Vita NZ301R Case no A38/2024 (TPT employees allegedly caused reefer container to be powered off)	TPT	R564 903.30
	MSC Case no A27/2024 (Damaged caused to containers)	TPT	R79 612.80
	MSC Case no A20/2024 (Damage caused to containers)	TPT	R843 569.89
	MSC Caterina Case no A17/2024 (Damage caused to containers)	TPT	R 668 754.52
	MSC Jeongmin Case no A3/2024 (Damage caused to containers)	TPT	R79 737.10
	MSC Samu Case no A1/2024 (Damage caused to containers)	TPT	R252 186.88
	MSC Carouge Case no A79/2023 (Damage caused to containers)	TPT	R56 097.09
	MSC Sarya III Case no A78/2023 (Damage caused to containers)	TPT	R334 432.98
	MSC Case no A77/2023 (Damage caused to containers)	TPT	R891 481.63
	MSC Desiree Case no A75/2023 (Damage caused to containers)	TPT	R28 995.77
	MSC Anzu Case no A74/2023 (Damage caused to containers)	TPT	R33 317.92
	MSC Marianna NZ235A Case number A64/2023 (Damage to containers)	TPT	R1 442 875.21
	Mv Letizia Case No A42/2023 (Damage to containers)	TPT	R1 036 664.08
	MV "MSC Krittika" Case no A24/2023 (Damage to containers)	TPT	R392 633.00
	MV "MSC Meltemi III" Case no A23/2023 (Damage to containers)	TPT	R10 000.00
	MVmv "Seamax Stamford” Ocean Network Express Case no A10/2023 (Damage to containers)	TPT	R26 395.05
	MSC Cape Kortia ZF139A Case no A2/2023 (Damage to containers)	TPT	R9187.00
	MV Conti Chivalry Case no A 57/2022 (Damages to vessel)	TPT	R40 440.00
	MV MSC Branka Case no A55/2022 (Damages to vessel)	TPT	R20 000.00
	MV MSC Jeanne Case no A53/2022 (Damages to vessel cell guides)	TPT	R26 258.00
	MSC Antigua Case no A49/2022 (Damages to containers)	TPT	R680 000.00
	MSC Case no A47/2022 (Damages to container and contents of container)	TPT	R75 904.50
	MSC Chloe Case no A45/2022 (Damages to container and contents of container)	TPT	R286 416.06
	MSC Case no A36/2022 (Damages to container and contents of container)	TPT	R987 232.00
	GSL NINGBO ZF115A Case no A 43/2022 (Damages to container)	TPT	R902 211.67
	MSC Sasha Case no A41/2022 (Damages to container)	TPT	R232 555.00
	MSC Diego Case no A40/2022	TPT	R50 000.00
	TRANSNET FREIGHT RAIL // SAREL LOMBARD (Electrocution on railway track)	TFR	R1 500 000.00
	WILLIAM GEORGE BARNARD // WILLIAM FORD HOWARD (Action for malicious prosecution/unlawful arrest against TFR employee)	TFR	R915 857.93
	MR. S D MAKHANYA // TRANSNET SOC LIMITED (Damages resulting from alleged negligent driving of motor vehicle by Transnet employee).	TFR	R203 662.00
	DANIEL PRETORIUS // TRANSNET FREIGHT RAIL (Claim for damages resulting from collision between motor vehicle and locomotive at railway crossing).	TFR	R2 500 000.00
	MBALENHLE SMARTGIRL NSIBANDE VS TRANSNET FREIGHT RAIL (Claim for loss of support resulting from negligence of Transnet employee in a collision)	TFR	R7 511 850.00
	WALKER MSUKELWA MHLONGO // K MOHAN (Motor vehicle collision allegedly caused by negligent driving of Transnet employee)	TFR	R69 725.00
	TRANSNET FREIGHT RAIL // NP NOTHELE obo SAMKELO (human/train incident)	TFR	R9 100 000.00
	KENNETH CLAUDE OLDWADGE HELENA OLDWADGE // TRANSNET FREIGHT RAIL (Damages to property resulting from fire caused by Transnet employee)	TFR	R179 525.60
	TRANSNET FREIGHT RAIL // SELINAH ZOOWA BUDA & ANOTHER (Electrocution caused by negligence of Transnet employee)	TFR	R20 000 000.00
	VUSUMUZI THOMAS MADI // TRANSNET FREIGHT RAIL (TFR Train hit two bulls)	TFR	R211 500.00
	REMADE HOLDINGS (PTY) LTD // TRANSNET (Collision due to negligent driving by Transnet employee)	TFR	R152 234.00
	TRANSNET FREIGHT RAIL // JOHANNES MADALA MASHEGOANE (Personal injuries resulting from shooting by Transnet security officials)	TFR	R6 300 000.00
	TRANSNET FREIGHT RAIL // MATTHEW RAYNE ELLISH (Claim for damages as a result of collision)	TFR	R12 933.65
	MAFIKA ISAAC MOTLOUNG VS TRANSNET (Claim for damages to Plaintiff’s vehicle)	TFR	R31 753.05
	TRANSNET FREIGHT RAIL // M L MANDHLAZI (Personal injuries when Plaintiff was alighted from moving Train)	TFR	R1 648 850.00
TOTAL CONTINGENT LIABILITY			R2,359,926,971.71

(c) (i) All 49 matters listed herein are defensible.

(ii)(bb) N/A

Thank You