Question NW952 to the Minister of Public Enterprises

Reply:

(1)(a)(i)  

	(1)(a)(iii)(aa)	(1)(a)(i)	(1)(b)
Name	Period	Contract Purpose	Status
TFR Bridging plan	01-Jun-09	30-Nov-10	TFR Bridging plan	Complete
Corridors and Hubs	01-Jan-09	30-Jun-11	Corridor and Hub strategy and execution	Complete
Delivering MDS	01-Jan-12	30-Sep-12	Delivery of the Market Demand Strategy	Complete
TFR Operating model	01-Apr-12	30-Aug-13	Implementation of TFR new operating model	Complete
SWAT 1	02-Feb-13	31-Jan-14	Group capital Integration and optimisation	Completed
Maputo Corridor	01-Nov-13	31-Aug-14	Strategy, design and evaluation of Maputo Corridor	Complete
Capital Rooms and affordability	01-Apr-14	30-Dec-14	Capital structuring and affordability	Complete
TCP - Capital Room	01-Apr-14	31-Mar-15	TCP Project Factory, War Room, Business Case and Resourcing	Complete
Iron Ore	09-Apr-14	08-Apr-15	Renegotiating Iron Ore contract	Complete
Coal	09-Apr-14	30-Sep-15	Support services for coal line increase with a breakthrough of 2mt per week for a period of 17 months	Complete
NMPP	09-Apr-14	08-Oct-15	De-risking and acceleration of the New Multi-Product Pipeline (NMPP) for a period of 18 months	Complete
Defined Benefit Fund	23-Jan-14	30-Jan-16	Defined benefit consulting services	Complete
Results Management Office	15-Jan-13	13-Mar-16	Implementing and embedding a RMO facility	Complete
SWAT II	09-Apr-14	08-Apr-16	Capital optimisation and implementation support services	Complete
Transaction Advisory	15-Jan-13	18-May-16	Acquisition of 1064 locomotives tender	Complete
Manganese	09-Apr-14	08-Oct-16	Manganese execution support for a period of 30 months	Complete
General Freight Business	19-May-15	15-Nov-16	Support Transnet in increasing General Freight Business	Terminated
Liquid Fuel and Gas demand	24-Mar-15	23-Mar-18	Gas demand forecasting	Complete

(1)(a)(ii) Professional business and consulting services to support the short to medium term requirements of Transnet in the delivery of the various strategies over this timeframe, the strategies included the Four Point Turnaround plan, the Quantum leap program and now the Market Demand Strategy (MDS) as well as the Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) risks to the MDS as a result of the economic conditions in the past 3 years.

(1)(a)(iii)(bb) and (1)(b)(ii)

Whilst Transnet is committed to providing as transparent an account of the information requested, Transnet is bound by contractual obligations it owes to these suppliers and the disclosure of the values would be in breach of the confidentiality clauses of the contracts Transnet has with these suppliers and the disclosure of the financial information regarding these contracts would prejudice the commercial interests and rights of these suppliers. Such unauthorised disclosure may expose Transnet to legal proceedings and its directors and officers to charges of failing to comply with their fiduciary duties to the company.

(2)(a) To the best of our knowledge, it appears Transnet complied with the Public Finance Management Act, Act 1 of 1999 in all cases.

(2)(b) Transnet complied with its internal procurement policies and procedures in each case.

(3)(a) In all cases, the contracts were necessary as a result of internal resourcing constraints and the requirement for specialised skills.

(3)(b) The specialised nature of the contracts required specialist skills which were not available within Transnet. These specialised skills were only required for the duration of the contracts.

The appointment complies with paragraph 15.8 of the Transnet Procurement Procedures Manual which refers to the appointment of consultants.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date: