Questions and Replies

Reply:

Financial Periods	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	31/03/2017
Incentive Bonus (Long Term Incentive) in Rands	0	500529.20	459907.4	0	0	0	0	0
The Long Term Incentive Scheme was a Retention scheme that was earmarked for employees whom the company wished to retain.
Eligibility:
High Performers who scored a minimum of 70% in their annual performance.
Mechanics:
The scheme operated on a phenomenon of banking the financial amounts the individuals qualified for each financial year, and only availing the amount at the end of the 3 years. In order to qualify, the individual had to maintain performance of 70% and above.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

No.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

The response below includes the Department of Public Enterprises and its portfolio of State Owned Companies, namely, Alexkor, Denel, Eskom, SAFCOL, SA Express and Transnet:

PUBLIC ENTERPRISES

The Department has not split any tenders between different bidders. Please note that the DPE does not participate in any tenders of SOC’s.

ALEXKOR SOC LIMITED

(a)	(i)	Not applicable
	(ii)	Alexkor SOC Ltd does not split tenders between different bidders
(b)	Not applicable
(c)	Not applicable

DENEL SOC LIMITED

(a)	(i)	Not applicable
	(ii)	Denel SOC Ltd does not split tenders between different bidders
(b)	Not applicable
(c)	Not applicable

ESKOM SOC LIMITED

(a)	(i)	Not applicable
	(ii)	Eskom Holdings SOC Ltd does not split tenders between different bidders
(b)	Not applicable
(c)	Not applicable

SAFCOL SOC LIMITED

(a)	(i)	Not applicable
	(ii)	SAFCOL SOC Ltd does not split tenders between different bidders
(b)	Not applicable
(c)	Not applicable

SA Express SOC LIMITED

For the 2015/16 financial year which has been audited:

(a)	(i)	Not applicable
	(ii)	SA Express Airways SOC Ltd has not awarded any tender during the financial year 2015/2016 between different bidders through a split.
(b)	Not applicable
(c)	Not applicable

TRANSNET SOC LIMITED

SPLIT TENDERS/RFP's
No of split tenders	Tender	Contract Value
(1)(a)(ii)(b)	(1)(b)	(1)(c)
1	Bulk Fuel	15 000 000 000
2	Onroad Fuel	980 000 000
3	Fleet Management Services (Light Commercial and Heavy Commercial Vehicles regional Split	5 929 000 000
4	Insurance (Portfolio split)	24 063 019
5	Stationery Contract: Split award in Gauteng to two suppliers	32 000 000
6	Request for 3 service providers to audit SD & BBBEE improvement commitments	1 951 260
7	Provision for change creative and communication services	16 400 000
8	Waste Management of hazardous & general industrious waste	47 658 018
13	Provision of New Industrial Tyres, Rims &Tubes, Retreading of Tyes/Tubes	168 551 944
14	Provision of Security Service	123 311 872
15	Provision and supply of automotive filters for Transnet SOC Ltd	9 100 000
16	Provision of New Industrial Tyres, Rims &Tubes, Retreading of Tyes/Tubes at Durban, Richards Bay, Eest London, Port Elizabeth , Saldanha & Nqgura	18 164 765
17	Provision of Transportation of Employees in CT	25 104 123
18	Security (Ports)	154 360 702
19	Security (Light houses)	2 872 362
20	Uniforms	47 554 516
21	Supply and Delivery of Bulk Piping Valves and Tightlining Valves for TM1	23 467 774
22	Manufacture, Supply and Delivery of Mechanical Valves for the NMPP Project	92 034 809
23	Security upgrade - construction and new guard houses	7 500 000
24	Axles	2 518 087 801
25	Bearings	1 335 365 962
26	Bogie Castings	1 167 305 346

SPLIT TENDERS/RFP's
No of split tenders	Tender	Contract Value
(1)(a)(ii)(b)	(1)(b)	(1)(c)
27	34" Centes and 36" Centes	3 600 908 620
28	Steel - Carbon	1 631 257 865
29	Steel - 3C12	1 270 631 355
30	Coupling Components	1 333 431 492
31	Spring Steel	131 969 052
32	Security Services	168 002 169
33	Concrete Sleepers	690 000 000
34	Ballast and G-Material	553 036 237
35	Cost Engineering Services - "As and When Required"	350 000 000
36	Physical Guarding Services	1 478 593 169
37	Equestrian Security Services	146 503 485
38	Design, supply, installation, commissioning, configuration and integration of new and existing CCTV surveillance system	38 595 702
39	Traction & Distribution Transformer Repairs - ""As and When Required"	29 089 256
40	1064 Locomotives	48 562 121 000

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(a), A Government Task team comprising of representatives from NT, the DPE and the DoE under the leadership of the Directors-General (DGs) of these Departments, was established with the aim of resolving Eskom’s concerns and agreeing on a proposed solution. After numerous engagements with Eskom and the IPP office, resolutions by the task team was communicated by Minister of Energy as reflected in (“b”) below.

(b)

On Friday 01 September 2017, Government, led by Minister of Energy announced the following:

1. The PPA for Bid Window 3.5 and 4 will be signed by the end of October 2017
2. The Department of Energy (“DoE”) through the IPP office will engage with all affected parties for Bid Windows 3.5 and 4 to re-negotiate not above 77c/kWh. This will assist in reducing the requirements for additional government guarantees which would impact negatively in current economic climate and constraints in the fiscus.
3. Eskom to ensure that all contracts are in place for signing on 28 October 2017
4. Minister of Energy will meet all IPP participants in all Bid Windows to discuss issues and concerns from IPPs and for Government to give feedback on how to address the concerns before the date of signing.
5. With regards to the review of the level of participation by historically disadvantaged, there is work underway in this regard that will inform the implementation of the programme.
6. All future programmes will be put on hold until a proper review is done and to allow the IEP and IRP to be concluded giving an indication of how much capacity the country needs.

1(c)

Eskom has signed 66 IPP projects indicated in the table below:

DoE IPPPP	No. of projects
Renewable Energy IPPs	Bid 1	28
	Bid 2	19
	Bid 3	16
	Bid 3.5	1
Peakers	DoE Peakers	2
	Total	66

(d)

There are 38 Renewable IPP Projects and 1 Cogeneration Project which has been awarded Preferred Bidder Status by the DoE and are awaiting signing by Eskom.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

No. The Board did not issue an instruction to Dentons to curtail the scope of the investigation. Upon receipt of the preliminary findings from Dentons, the Board found that the issues identified by Dentons were not unfamiliar to it. Given the time constraints and running costs, a decision was taken by the Eskom Board to rather curtail the duration of the investigation in order that the report presented so far may be used, to attend to areas of concern. The curtailment was by no means implying that any further investigations in areas of specificity will not in the future be carried out by the Board.

(1)(a)

Not applicable

(1)(b)

Not applicable

(2)

No

(2)(a)

Not applicable

(2)(b)

It is incorrect to state that a version(s) of the Dentons report was destroyed. Based on the need to protect the sanctity of the report during its draft phase against possible leaks (which would have had a devastating impact) copies, and not the actual draft report, were destroyed. While evidence had not been corroborated, people’s names had been mentioned and therefore Eskom provided copies to Board member only. These copies were recalled and destroyed as a form of control to ensure that the copies provided would not be leaked. There is distinct difference between a copy circulated to members to peruse and the actual report itself.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

a) No, the Minister was not aware that a certain official went to Dubai, UAE and was only alerted to this allegation through the media.

b) No, the Minister did not give any permission, instruction or task to the official to meet with any members of such family.

Reply:

1. Denel SOC Ltd has three (3) divisions that do business with VR Laser South Africa: Denel Vehicle Systems (DVS, Denel Land Systems and LMT. The details of the work contracted are indicated in the table attached hereto and marked as Annexure “A”.

2. We confirm all contracts comply with the National Treasury requirements. Placement of each Purchase Order is compliant with the CSD registration processes. As DVS was acquired in the middle of 2015, Denel applied that DVS be exempted from complying to the PFMA for a period of 1 year being until 31 March 2016

Remarks:     Reply: Approved / Not Approved         Mr Mogokare Richard Seleke   Ms Lynne Brown, MP     Director-General     Minister of Public Enterprises Date:     Date:

ANNEXURE “A”
Denel Divisions and Products	Contract Date	Description of Services	Value of the Transaction
Denel Vehicle Systems (DVS) Armoured vehicles (RG31, RG32, N35 and Casspir) and Gear Ratio systems	01/04 to 18/12/2015	Cutting and bending of specialised steel (quenched and tempered) Vehicle sub-assembly fabrication including cutting and bending of specialised still.	R2 175 935.00
	12/2016 to date		R9 797 856.83
	12/2016 to date	Power Pack sub-assembly fabrication –Gear Ratio	R11 594 033.28
Denel Land Systems Casspir vehicle Badger (Hoefyster) Supplier of armoured steel	10/2003 to 05/2017 (historical contracts	Industrialisation of the Casspir vehicle	R176 467 542.79
	2016/2017 (current contracts)	Industrialisation of the Casspir	R16 437 626.62
	05/08/2014 to 21/10/2016	Fabrication of the Badger hulls	R235 858 970.57
	27/08/2009 to 05/06/2017	Approved single source supplier of armoured steel	R98 902 847.38
LMT Products (Pty) Ltd (LMT) Armoured vehicles (LM8, LM13, Ford F550 and armoured vehicle components)	05/2013 to 08/2016	VR provides LMT with: services to cut, bend, tap and drill of components and parts for armoured vehicle Hull assemblies or sub-assemblies of the vehicles Specialised armoured steel supply	R55 148 736.39
T O T A L	R 516 382 785.86

Reply:

DEPARTMENT

(1)	(a)	Not applicable
	(b)	No
		(i)	No
		(ii)	No
			(aa)	None
			(bb)	R NIL
			(cc)	Not applicable
			(dd)	R NIL
			(ee)	Not applicable
			(ff)	Not applicable

ALEXKOR SOC LIMITED:

(1)	(a)	Not applicable
	(b)	No
		(i)	No
		(ii)	No
			(aa)	None
			(bb)	R NIL
			(cc)	Not applicable
			(dd)	R NIL
			(ee)	Not applicable
			(ff)	Not applicable

DENELSOC LIMITED:

(1)	(a)	Not applicable
	(b)	No
		(i)	No
		(ii)	No
			(aa)	None
			(bb)	R NIL
			(cc)	Not applicable
			(dd)	R NIL
			(ee)	Not applicable
			(ff)	Not applicable

ESKOM SOC LTD

(a) For Department of Public Enterprises

(b)(i) No services were procured by Eskom from Bell Pottinger. Eskom has not raised

a need that would require Commercial to procure any services from the Bell Pottinger.

(b)(ii) Eskom procured public relations services and made payments to these four (4)

Public relations firms, namely Global Interface; Grounded Media, Zen One and Edelman.

(b)(ii)(aa) The services procured from Global Interface for each of the three campaigns

were:

• Account management,
• PR strategy,
• Media Relations,
• PR collateral/ content development,
• Social and web based PR,
• Activations and experimental campaigns.

The services procured from Grounded Media for each of the three campaigns were:

• Account management,
• PR strategy, Media Relations,
• PR collateral / content development,
• Social and web based PR,
• Activations and experimental campaigns.

The services procured from Zen One for one campaign was:

• Account management,
• PR strategy, Media Relations,
• PR collateral / content development,
• Social and web based PR,
• Activations and experimental campaigns.

The services procured from Edelman were:

• Account management,
• PR strategy,
• Media Relations,
• PR collateral / content development,
• Social and web based PR,
• Activations and experimental campaigns,
• Reputation Management,
• Stakeholder Management,
• Issues/crisis management,
• Media training,
• Strategic council and advice to board and EXCO,
• Investor relations

(b)(ii)(bb)

The table below shows total budgeted costs per public relation firm for financial year 2016/2017:

Global Interface	Grounded Media	Zen One	Edelman
R 24 583 753.67	R 18 103 032.45	R 8 256 412.91	R 82 992.00

(b)(ii)(cc)

The detailed breakdown of costs per public relation firm per campaign for financial year 2016/2017:

• Global Interface
  • Eskom Brand Campaign - R7 081 402.27
  • Operation Khanyisa – R9 107 796.25
  • EOESLIP (Soweto, Midrand and Sandton smart split metering) – R8 394 555.15
• Grounded Media
  • Eskom Development Foundation (CSI) – R12 422 887.37
  • Public Safety campaign – R2 913 701.08
  • All other campaigns – R2 766 444.00

• Zen One
  • Integrated Demand Management Campaign (including power alert) – R8 256 412.91
• Edelman
  • Speech writing – R82 992.00

(dd)(ii)

The total amounts paid to each public relation firms is as per (bb) above.

(ee)(ii)

The payments were processed in order to reimburse the agencies for the services rendered as described in (b)(ii)(aa) above.

(ff)(ii)

The breakdown of payments is as per (b)(ii)(cc) above.

SAFCOL SOC LIMITED:

(1)	(a)	Not applicable
	(b)	No
		(i)	No
		(ii)	No
			(aa)	None
			(bb)	R NIL
			(cc)	Not applicable
			(dd)	R NIL
			(ee)	Not applicable
			(ff)	Not applicable

SAX SOC LTD

SAX Express has never procured the services of Bell Pottinger and no payments were made thereof. SAX has never required the services of this company.

(b)	No
	(i)	No
	(ii)	No
		(aa)	None
		(bb)	R NIL
		(cc)	Not applicable
		(dd)	R NIL
		(ee)	Not applicable
		(ff)	Not applicable

TRANSNET SOC LTD

(1)(b)(i) Transnet has not made any payment to Bell Pottinger. The company is not on the list of Transnet’s service providers.

(1)(b)(ii) Refer to “Annexure A” for further information on other public relations firms utilized by Transnet. The information provided is for the last three financial years.

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

1. Yes an email was sent by Eskom in 2014, stating that the requirement (sic) of not utilising drivers of foreign nationals is a requirement (sic) as Ankerlig is a NKP.

Eskom would like to add that subsequent emails clarified this position and indicated the below requirements: If the individuals is in the Country legally, has a Work Permit or is a Naturalised citizen and has a driver’s licence that is valid in South Africa, preferably one that has been issued by a South African Authority, he may deliver to Ankerlig. We will require a copy of his Identity Document and driver Licence to submit to the authorities for clearance checks. We will also require him to receive Ankerlig Safety Induction.

(1)(a) The email of April 2014 (and subsequent emails) was a response to

Grindrod’s email request for clarification on the matter of foreign nationals. Grindrod and Eskom had prior to the email exchange had a discussion / meeting on the matter.

(1)(b) Eskom did not at any point instruct nor imply in any way that the drivers

should be dismissed. Eskom’s agreements with suppliers does not include how suppliers should manage / discipline their staff, this is the prerogative of the employer not Eskom.

2. Eskom has made a decision to adopt the requirements of the Services Act of 2014. In addition to the requirements of the Act, Eskom’s Recruitment and Selection Procedure stipulates that where foreign nationals are recruited the following is required :

• Confirmation of citizenship
• Confirmation of SA residency permit
• Security clearance
• Confirmation of a valid permit to work

The requirements of the security vetting policy and the security of information policy also apply when recruiting foreign nationals. Once appointed in Eskom, the Eskom’s conditions of service and other applicable employee policies apply in managing foreign nationals.

Furthermore, Eskom’s Procurement and Supply Chain Management Procedure does not address supplier employment practices. Eskom contracts with suppliers do not stipulate employment practices that must be adhered to by the supplier. The supplier is expected to adhere to the South African laws on employment as well as the Eskom site’s specific access requirements.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Additional Information for the Minister

1. Copy of emails exchanged between Eskom and Grindrod
2. Grindrod Court Judgement
3. Eskom’s Recruitment Procedure (Ref: Section 3.3.5.2 c and g)
4. Services Act of 2014 (Ref: Section 8 & 9)

Reply:

The areas in question are supply areas of the Ekurhuleni Metropolitan Municipality. Eskom provides a 22kV bulk supply to Ekerhuleni Metropolitan through the Germiston North substation.

(1)(a) Eskom did not upgrade any part of its Germiston North substation infrastructure in 2014-15.

(1)(b) Eskom did not upgrade any part of its Germiston North substation infrastructure in 2015-2016.

(1)(c) Eskom did not upgrade any part of its Germiston North substation infrastructure in 2016-17.

The bulk point to the Ekurhuleni Metropolitan Municipality is operating optimally without major interruptions and this performance remains a focus of the Eskom Gauteng Operating unit. This enables the Ekurhuleni Metro in the delivery of local services.

(2) Yes, the Ekurhuleni Metropolitan Municipality has applied for an additional 80 MVA transformer. Construction is scheduled to commence on the fourth quarter of 2017/18.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Additional Information for the Minister

We would like to bring the following to the Minister’s attention:

1. A major long term upgrade took place in 2012/13.

As part of Eskom’s strengthening and refurbishment plans, the substation was refurbished, and a new cable was installed from Croydon to Germiston North during 2012/13, at a total valueR207 (m) Preventative maintenance was performed on this network between 2014 and 2015 and the equipment is planned for another planned maintenance cycle 2017 and 2018 as part of the long term planned maintenance strategy.

2. The Ekurhuleni Metropolitan Municipality has applied for an additional 80MVA transformer, a budget quote of R33.4M has been issued and accepted by the Metro. Construction will start on the fourth quarter 2017/18.

Reply:

1.Eskom has not allowed SARS to share its training facilities in Midrand.

2. Eskom is in discussion with SARS, on the back of facilitating the SARS move from MegaWatt Park and ensurering that additional space can be availed sooner than the current lease agreement, expiring on the 31 March 2019. As the EAL is a training facility available both internally (Eskom) and externally (other organisations), SARS has indicated that they would utilise the facility for training purposes as well and as such, all costs will be recovered from SARS within the current training fee structure.

SARS will compensate Eskom for the utilization of the EAL facility, the rental space, which SARS will occupy on a temporary basis, and the long-term lease that will be concluded on completion of the refurbishment of the Colenso warehouse building at the EAL complex.

Costs associated with the rental of the temporary space of 1318m² and 80 parking bays between July 2017 and January 2018, are as per our contract with SARS and are market-related. An additional 2700m² spaces is to be refurbished by SARS.

The lease terms are still to be determined and agreed to.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

No contracts were signed by Mr Molefe during the period that he was back in office.

(a)

Not applicable

(b)

No Board meetings were held in the period that Mr Molefe was back in the office.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

ALEXKOR SOC LIMITED

(a)	(i)	None
	(ii)	Bursaries for B.Sc. Mine Engineering and Geology
	(iii)	None
(b)	(i)	(aa)	R 640 101
		(bb)	R 600 000
		(cc)	R 519 870
	(ii)	(aa)	4 Students
		(bb)	4 Students
		(cc)	5 Students

DENEL SOC LIMITED

(a)	(i)	Maths and Science enrichment programme
	(ii)	Engineering related (Electronic, Mechanical, Industrial, Software, computer & Mechatronics)
	(iii)	n/a
(b)	(i)	2014/15 - Maths & Science = R2.7m; Bursaries = R 5.2m 2015/16 - Maths & Science = R2.7m; Bursaries = R 8.6m 2016/17 - Maths & Science = R3.4m; Bursaries = R 9.8m
	(ii)	(aa)	2014/15 Programmes (400 learners); Bursaries (52)
		(bb)	2015/16 Programmes (455 learners); Bursaries (82)
		(cc)	2016/17 Programmes (455 learners); Bursaries (85)

ESKOM SOC LIMITED

1. Eskom has Learnerships / Apprenticeship Programmes in the areas of Electrical; Mechanical (HVAC, Welding, Fitters, Fitter and Turners) and Electrical Light current.
2. Eskom Full Bursaries for Universities and University of Technologies, the split of the bursaries is 70% and 30% Non Technical.

       3. Eskom Scholarship programmes are Dr HJ Van der Bijl and Dr RL Strackzacher, for Technical and Non Technical studies. These scholarships are awarded to the dependents of Eskom Employees only.

(b)(i) The table below presents the amount allocated for Learnerships / Apprenticeship Programmes and number of youth that has been brought through the system in the financial years  2014-15, 2015-16 and 2016-17

(b)(i)Learnership/ Apprenticeship	(aa) FY2014/15	(bb) FY2015/16	(cc) FY2016/17
(i) Amount allocated	R28,252,530	R86,602,740	R215,532,480
(ii) Number of youth has been brought through the system	277	929	3062

(b)(ii) The table below presents the amount allocated for Full Bursaries and number of youth that has been brought through the system in the financial years 2014-15, 2015-16 and 2016-17

(b)(ii) Eskom Bursaries	(aa) FY2014/15	(bb) FY2015/16	(cc) FY2016/17
(i) Amount allocated	R162,829,076.58	R94,301,773.38	R46,288,382.88
(ii) Number of youth has been brought through the system	2218	1400	731

(b)(iii) The table below presents the amount allocated for Scholarship and number of youth that has been brought through the system in the financial years  2014-15, 2015-16 and 2016-17

(b)(iii) scholarships	(aa) FY2014/15	(bb) FY2015/16	(cc) FY2016/17
(i) Amount allocated	R9,039,953.12	R11,100,982.25	[1]Scholarship phased out
(ii) Number of youth has been brought through the system	125	158

In 2015/16 Eskom took a decision to run one Bursary scheme for all beneficiaries, as a result Scholarships which were only awarded to dependents of Eskom employees were not awarded from 2016/17, and onwards.

SAFCOL SOC LIMITED

(a)	SAFCOL has the following programmes, bursaries and scholarships in place to develop and provide careers for the youth in South Africa:
	(i)	Programmes: internships in various divisions of SAFCOL learnerships in forestry and processing apprenticeships (boiler maker, electrician, fitter, diesel mechanic, millwright)
	(ii)	Bursaries: Bursaries in the following fields of study: forestry, wood science, engineering, finance, human resource management, construction, architecture, applied mathematics, marketing, tourism, business studies, human settlements and plant science.
	(iii)	Scholarships: None
(b)	The tables below set out the amounts allocated by SAFCOL to the aforesaid types of support and the number of youths that have been brought through the system, for the 2014/15; 2015/16 and 2016/17 financial years:
	(i)	Amounts Allocated:
		(aa)	2014/15	R1 615 000	Internships
				R1 068 000	Learnerships
				R2 145 919	Apprenticeships
				R 488 011	Bursaries
		(bb)	2015/16	R 995 000	Internships
				R1 724 420	Learnerships
				R1 233 099	Apprenticeships
				R1 561 189	Bursaries
		(cc)	2016/17	R 620 000	Internships
				R2 057 600	Learnerships
				R 67 821	Apprenticeships
				R1 029 663	Bursaries
	(ii)	Number of Youth Brought through the System
		(aa)	41 Graduates	Internships
			40 Learners	Learnerships
			20 Learners	Apprenticeships
			11 Bursars	Bursaries
		(bb)	30 Graduates	Internships
			56 Learners	Learnerships
			10 Learners	Apprenticeships
			20 Bursars	Bursaries
		(cc)	27 Graduates	Internships
			60 Learners	Learnerships
			15 Learners	Apprenticeships
			37 Bursars	Bursaries

SAX SOC LTD

 

(a) What (i) programmes, (ii) bursaries and (iii) scholarships is each state owned entity involved in to develop and provide careers for the youth in our country	(aa) 2014/15  Cadets and Apprenticeships	(bb) 2015/16 Cadets and Apprenticeships	(cc) 2016/17 Cadets and Apprenticeships
(b) for each state owned entity reporting to her, what (i) amount was allocated for each type of support and,	Cadets: R3 000 000.00 Apprenticeships R5 724 480.00	Cadets: R3.5m  R3 500 000.00 Apprenticeships R6 224 480.00	Cadets: R4m R4 000 000.00 Apprenticeships R6 724 480.00
(ii) the number of youth has been brought through the system in the(aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years?	11 x Mechanics 1 x Avionic	17 Mechanics	1 x Mechanic 4 x Avionics 61 Cadets were trained since 2014 of which 31 are now Junior First Officers

 

TRANSNET SOC LIMITED

Youth category and programme definition	2014/15	2015/16	2016/17
	Through system	R Value R’000	Through system	R Value R’000	Through system	R Value R’000
Apprentice: A work-based learning under the supervision and guidance of a skilled, qualified artisan with an employer	613	415.7	102	383.8	250	254.0
Technician Learner: An individual who is participating in a practical technical learnership (P1, P2), work-integrated learning in order to obtain qualification.	563	34.8	232	14.4	229	14.2
Engineer Bursars: An individual who is registered for a four-year B Eng. / Bsc Eng. degree to which a full time bursary has been awarded	255	39.0	155	41.6	173	51.6
Protection Officer: an individual participating in a structured learning program to gain theoretical knowledge and practical skills in the workplace leading to acquiring credits that lead to a security qualification registered on the NQF.	988	51.0	508	36.0	0	0
Young Professionals in Training (non-technical): A Transnet structured programme to develop young graudates in non-technical fields by providing them with workplace experience and skills.	201	66.7	135	50.3	240	48.1
Technician in Training: An individual who has successfully completed a National Diploma in Engineering studies at a University of Technology, undergoing an eighteen month structured development programme	205	143.2	74	128.4	116	105.4
Engineer in Training: An individual who has successfully completed an Engineering Degree at a University, undergoing a two-year structured development programme	173	143.3	38	153.5	72	152.2
Trainee Accountant: An individual who has successfully completed an Accounting Degree at a University, undergoing a three-year Chartered Accountant programme.	7	5.2	5	5.6	5	5.4
Marine Cadets: An individual who is participating in a practical learnership in the Marine field.	21	11.5	31	13.1	0	16.7
Learnerships: A structured learning process for gaining theoretical knowledge and practical skills in the workplace leading to a qualification registered on the NQF	81	1.8	122	3.5	264	42.7
Total	3107	913.6	1290	830.2	1349	691.8

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

1. ↑

Reply:

PUBLIC ENTERPRISES

(a) The Minister does make use of security services paid for by the State.

   (i) The Minister uses the security services for herself in the form of Close and Static protection services provided for by the South African Police Services.

  (ii) None of her immediate family members make use of security services paid for by the State.

  (iii) None of the Minister’s staff members make use of security services paid for by the State.

(aa) The reason for the Minister to make use of this form of security services is mainly because it is a standard requirement provided for in terms of the Ministerial handbook.

(bb) Services are paid from both the budget of the Department of Public Enterprises in the form of equipment including cars, as well as from the budget of the South African Police Services in the form of salaries for SAPS members providing security for the Minister.

(cc) The Ministerial handbook prescribes that Ministers and their Deputies be provided with Close Protection services and Static Protection Services on a 24 hours basis. This service is only provided for by the South African Police Services members. The Department provides cell-phones, cars and office space for SAPS members, the department also pays hotel accommodation for these members as and when required.

(b) The Deputy Minister does make use of security services paid for by the State.

 (i) The Deputy Minister uses the security services for herself in the form of Close and Static protection services provided for by the South African Police Services.

 (ii) None of his immediate family members make use of security services paid for by the State.

(iii) None of the Deputy Minister’s staff members make use of security services paid for by the State.

(aa) The reason for the Deputy Minister to make use of this form of security services is mainly because it is a standard requirement provided for in terms of the Ministerial handbook.

(bb) Services are paid from both the budget of the Department of Public Enterprises in the form of equipment including cars, as well as from the budget of the South African Police Services in the form of salaries for SAPS members providing security for the Minister.

(cc) The Ministerial handbook prescribes that Ministers and their Deputies be provided with Close Protection services and Static Protection Services on a 24 hours basis. This service is only provided for by the South African Police Services members. The Department provides cell-phones, cars and office space for SAPS members, the department also pays hotel accommodation for these members as and when required.

ALEXKOR SOC LIMITED
(c)	(i)	No security services provided
	(ii)	No security services provided
	(iii)	No security services provided
		(aa)	Not applicable
		(bb)	Not applicable
		(cc)	Not applicable

DENEL SOC LIMITED
(c)	(i)	Not applicable
	(ii)	Not applicable
	(iii)	Not applicable
		(aa)	Not applicable
		(bb)	Not applicable
		(cc)	Not applicable

SAFCOL SOC LIMITED
(c)	(i)	No security services provided
	(ii)	No security services provided
	(iii)	No security services provided
		(aa)	Not applicable
		(bb)	Not applicable
		(cc)	Not applicable

 

ESKOM SOC LIMITED (Outstanding)

(c)(i)

Security services are provided for the Eskom Group Chief Executive and Chairperson of the Board of Directors are paid for by Eskom.

(c)(ii)

Security services extended to immediate family members of the Eskom Group Chief Executive and Chairperson of the Board of Directors are indirectly paid for by Eskom by virtue of the Chairman and the GCE benefits. The state does not cover any costs.

(c)(iii)

Selected security services for the Eskom staff members who are eligible, and these are paid for by Eskom.

(c)(i)(aa)

Eskom ensures the safety and security of the Group Chief Executive and Chairperson of the

Board of Directors against security threats and risk(s), to which he/she may be exposed to as

a result of their employment with Eskom by providing Residential Protection as well as Personal Protection, the provision of these services are in accordance with the prescripts of the Executive Protection Policy.

(c)(ii)(aa)

Eskom indirectly extends residential security services to the immediate families of the Group Chief Executive and Chairperson of the Board of Directors by virtue of the benefits enjoyed by the GCE or Chairman. The provision of this service is in accordance with the prescripts of the Executive Protection Policy.

(c)(iii)(aa)

Eskom ensures the safety and security of the Senior General Managers and Exco members against security threats and risk(s) to which he/she may be exposed to as a result of their employment with Eskom. This is done by providing Residential Protection for both categories of staff and Personal Protection for Exco members only. The provision of these services is in accordance with the prescripts of the Executive Protection Policy.

(bb)

Residential protection security service is provided for in the Executive’s budget, while Personal Protection security service is provided for centrally in Eskom’s Group Security Division budget.

(cc)

Table 1 : Details of Protection Services Provided for By Eskom

Type of protection	Chairperson & Group Chief Executive (GCE)	Immediate Family	Staff Members
Residential Protection	Standard- Alarms, CCTV and armed security responses team Non Standard- house guarding when away on business	Immediate family members of the Eskom GCE and Chairperson are covered indirectly through the GCE/ Chairman	For Exco members, and Senior General Managers only Standard- Alarms, CCTV and armed security responses team Non Standard- house guarding when away on business
Personal Protection, while on Eskom business	Rendered by nine protection officers employed and paid for from Eskom’s Group Security division budget pool.	None provided	For Exco, Senior General Managers and other staff when they are threatened due to work they do within Eskom

TRANSNET SOC LIMITED (Outstanding)

(c) In terms of the Transnet internal policy on the protection of Group Executives and other employees perceived to be at risk at the time, are assigned a Transnet Driver/Protector.

1. The Cost Centre of each employee under protection carries the cost of such protection.
2. Consistent with the risk profile of the individual at risk.
3. Consistent with the risk profile of employees at risk.

(aa) The primary reason for offering protection to Transnet employees is to protect them against perceived threats as per the findings of the internal personal threat and risk assessment conducted. Such threats are as a result of individual employees’ nature of work at Transnet.

(bb) As far as Transnet is aware protection services for their employees comes from the employees budgeted cost centre and are not paying for the Ministery’s personnel.

(cc) Individual security details remain confidential due to past and present threats identified and cannot be disclosed.

SAX SOC LIMITED (Outstanding)

(c)	(i)	No security services provided
	(ii)	No security services provided
	(iii)	No security services provided
		(aa)	Not applicable
		(bb)	Not applicable
		(cc)	Not applicable

The heads of SAX, staff or their immediate family members have not used any security services during the said period for their own benefit.  

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

1. On 01 August 2014 in respect of Investment Agreement 1A and on 01 October 2015 in respect of Investment Agreement 1B.

(2)(a) The investment manager was paid R 12.8 million or 17 basis points as per the Investment Agreements with the TSDBF. The investment manager was not appointed by the Transport Pension Fund.

(b) The specified amount was determined as per Investment agreements with TSDBF.

(3) The investment manager was appointed following a due tender process and approval by the TSDBF Board of Trustees.

(4) The relevant TSDBF assets is managed by Old Mutual and Colorfield

Asset Managers.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a)

Table 1 below shows quantities of Eskom’s coal supply purchased directly from companies that mine it and from intermediaries over the past four financial years. Information for financial year 2016/17 will be made available once it has been published.

Table 1: Quantities of Eskom’s coal supply (kilo tonnes)

Volumes sourced	2012/13	2013/14	2014/15	2015/16	2016/17
Own supply (i)[1]	119 640	115 343	115 521	111 122	113 385
Intermediary (ii)	4 247	4 443	4 196	3 948	3 841
Own Supply + Intermediary	2 550	2 190	1 951	3 631	3 024
TOTAL	126 437	121 976	121 668	118 701	120 250

(b)

Table 2 below combined total annual payment for Eskom’s coal supply purchased directly from companies that mine it and from intermediaries over the past four financial years. Information for financial year 2016/17 will be made available once it has been published.

Table 2: Combined annual payments of Eskom’s coal supply (Rands)

Annual Payments	2012/13	2013/14	2014/15	2015/16	2016/17
Own supply	28 011 750 253	31 085 536 691	35 145 518 292	36 154 662 673	38 684 634 701
Intermediary	1 417 803 118	1 749 882 580	1 716 350 676	1 518 313 159	1 724 573 826
Own Supply + Intermediary	787 892 666	818 056 450	815 939 974	1 466 286 871	1 331 345 953
TOTAL	30 217 446 037	33 653 475 720	37 677 808 942	39 139 262 702	41 740 554 480

(2)

Yes, Eskom purchases coal from mining companies that are not 50%+1 black owned. (a) Eskom’s procurement is guided by the PPPFA and by Eskom’s internal 32-1034 policy (b) These policies are not prescriptive in stating to which suppliers Eskom must contract.

(3)(a)(b)

Eskom has no policies but has formulated a board-approved strategy to transform black ownership in the coal supply value chain.

This strategy was approved in October 2012 and it articulates an aspiration to procure more coal from suppliers that are 50% + 1 black owned. But if they were unable or unwilling to meet Eskom’s cost and quality targets, the utility would default to other companies that are able to meet these objectives.

Eskom formulates procurement policies that are in line with the rules set out in the PPPFA.

(4)

No, there are no policies to furnish.

 

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

1. Coal supplied directly from the companies that mine it. ↑

Reply:

(a) The post of director-general was advertised in the media, interviews were held, request for appointment was submitted to Minister for Public Service and Administration and Cabinet concurred with the appointment;

(b) Yes, the person (name furnished) formally apply for the position;

(c) No

(d) Motivation as per Cabinet Memorandum submitted to Minister for Public Service and Administration:

“Mr Mogokare Richard Seleke displayed excellent understanding of the role and mandate of the Department of Public Enterprises. He possesses 17 years’ experience in the public service which is needed to be successful in the position. He demonstrated the ability to successfully engage with all relevant stakeholders as required from the incumbent of the position of Director-General of the Department of Public Enterprises. Furthermore the Interview Panel agreed that he will be able to manage relationships between the political leadership and the Department in a mature manner.

The Interview Panel is of the opinion that he will be able to provide excellent leadership to the Department of Public Enterprises on a strategic level.  Mr Seleke understands the compliance matters and processes required in the public service. He also demonstrated the required competencies for the position and during the interview demonstrated innovative ideas, the ability to think out of the box and strong leadership capabilities.”

Remarks: Reply: Approved / Not Approved

Ms. Benedicta Mogaladi Lynne Brown, MP

Act DDG: Corporate Management Minister of Public Enterprises

Date: Date:

Reply:

I am not aware of the person mentioned disclosing sensitive or classified company information to a certain family mentioned in the Honourable Member’s question. I have since made enquiries with said person to respond to me directly on the substance and accuracy of what appears to be allegations. I will act depending on the information provided. 

 

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

The response below is recorded per State Owned Company (SOC), namely, Alexkor, Denel, Eskom, SAFCOL, SA Express and Transnet. It is important to note that all Boards are in place and are able to carry out the functions and responsibilities in terms of the Companies Act, No. 71 of 2008 read with the Memorandum of Incorporation (MOI). All Boards, in terms of each MOI are appointed for a three year term, subject to annual review. The MOI further provides that each Non-Executive Director (NED) may serve up to a maximum of three terms (9 years).

1. ALEXKOR SOC LIMITED

(1)	(a)	Alexkor has a Board in place as appointed by Minister Brown on 14 August 2015.
	(b)	Not applicable
		(i)	(aa)	Ms HB Matseke (Appointed as Non-Executive Director and Chairperson on 14 August 2015) Mr V Bansi (Appointed as Non-Executive Director on 14 August 2015. Appointed Acting CEO and Executive Director on 1 March 2016) Mr Jacques Bonnett (Appointed as Acting CFO and Executive Director on 1 May 2017) Mr JS Danana (Appointed as Non-Executive Director on 14 August 2015) Mr T Haasbroek (Appointed as Non-Executive Director on 14 August 2015) Mr T Matona (Appointed as Non-Executive Director on 14 August 2015) Ms M Lehobye (Appointed as Non-Executive Director on 14 August 2015) Ms Z Ntlangula (Re-appointed as Non-Executive Director for second term 14 August 2015)
			(bb)	Ms HB Matseke – Term ends August 2018 Mr JS Danana – Term ends August 2018 Mr T Haasbroek – Term ends August 2018 Mr T Matona – Term ends August 2018 Mr V Bansi – (Appointed as Acting CEO and Executive Director until the appointment of a new CEO) Mr J Bonnett (Appointed as Acting CFO and Executive Director until the appointment of a new CFO) Ms M Lehobye – Term ends August 2018 Ms Z Ntlangula – Term 2 ends August 2018
		(ii)	(aa)	6 Non-Executive Directors and 2 Acting Executive Directors
			(bb)	3 females
(2)	(a)	Not applicable
	(b)	Not applicable

2. DENEL SOC LIMITED

(1)	(a)	Denel has a Board in place as appointed by Minister Brown on 24 July 2015.
	(b)	Not applicable
		(i)	(aa)	Mr Daniel Mantsha (Appointed as Non-Executive Director and Chairperson of the Board on 24 July 2015) Mr Zwelakhe Ntshepe (Appointed as Interim CEO and Executive Director on 01 September 2015) Mr Odwa Mhlwana (Appointed as Acting GCFO and Executive Director on 1 September 2015) Mr Thamsanqa Msomi (Appointed as Non-Executive Director on 24 July 2015) Mrs Pinkie Martha Mahlangu (Appointed as Non-Executive Director on 24 July 2015) Lt. Gen Themba Michael Nkabinde (Appointed as Non-Executive Director on 24 July 2015) Ms Mpho Kgomongoe (Appointed as Non-Executive Director on 24 July 2015) Ms Khumbudzo Phopi Silence Ntshaveni (Appointed as Non-Executive Director on 24 July 2015)
			(bb)	Mr Daniel Mantsha - Term ends 23 July 2018 Mr Zwelakhe Ntshepe - Appointed as Acting GCEO until the appointment of a new GCEO Mr Odwa Mhlwana - Appointed as Acting GCFO until the appointment of a new GCFO Mr Thamsanqa Msomi - Term ends 23 July 2018 Mrs Pinkie Martha Mahlangu - Term ends 23 July 2018 Lt. Gen Themba Michael Nkabinde - Term ends 23 July 2018 Ms Mpho Kgomongoe - Term ends 23 July 2018 Ms Khumbudzo Phopi Silence Ntshaveni - Term ends 23 July 2018
		(ii)	(aa)	6 Non-Executive Directors and 2 Acting Executive Directors
			(bb)	3 females
(2)	(a)	Not applicable
	(b)	Not applicable

3. SAFCOL SOC LIMITED

(1)	(a)	SAFCOL has a board in place as appointed by Minister Brown on 24 July 2015.
	(b)	Not applicable
		(i)	(aa)	Mr Lungile Rudolph Mabece (Appointed as Non-Executive Director and Chairperson of the Board on 18 August 2015) Mr Gabriel Christian Theron (Appointed as Non-Executive Director on 18 August 2015 and Acting CEO and Executive Director on 16 December 2015) Ms Trishantanie Pillay (Appointed as CFO and Executive Director on 20 July 2016 and placed on suspension on 1 June 2017 pending outcome disciplinary action) Ms Vuyo Tlale (Appointed as Acting CFO from 1 June 2017 until 31 August 2017) Ms Sakekile Baduza (Appointed as Non-Executive Director on 18 August 2015) Mr Maroale Jacob Rachidi (Appointed as Non-Executive Director on 18 August 2015) Mr Mandla Mnguni (Appointed as Non-Executive Director on 18 August 2015) Dr Petros Mbiji Mahlangu (Appointed as Non-Executive Director on 18 August 2015) Ms Phumzile Ngwenya (Appointed as Non-Executive Director on 18 August 2015) Dr Pulane Molokwane (Appointed as Non-Executive Director on 18 August 2015)
			(bb)	Mr Lungile Rudolph Mabece - Term ends 17 August 2018 Mr Gabriel Christian Theron - Appointed as Interim CEO the appointment of a new CEO Ms Vuyo Tlale – Appointed Acting CFO on 1 June 2017 Ms Sakekile Baduza - Term ends 17 August 2018 Mr Maroale Jacob Rachidi - Term ends 17 August 2018 Mr Mandla Mnguni -Term ends 17 August 2018 Dr Petros Mbiji Mahlangu -Term ends 17 August 2018 Ms Phumzile Ngwenya - Term ends 17 August 2018 Dr Pulane Molokwane -Term ends 17 August 2018
		(ii)	(aa)	7 Non-Executive Directors and 2 Acting Executive Directors
			(bb)	3 females
(2)	(a)	Not applicable
	(b)	Not applicable

4. ESKOM

(1)	(a)	Eskom has a Board in place as appointed by Minister Brown on 11 December 2014.
	(b)	Not applicable
		(i)	(aa)	Mr Zethembe Wilfred Khoza (Appointed as Non-Executive Director on 11 December 2014 and Acting Chairperson of the Board on 13 June 2017) Mr Johnny Dladla (Appointed as Acting GCEO and Executive Director on 23 June 2017) Mr Anoj Singh (Appointed as Group CFO and Executive Director on 1 October 2015 on a 5 year contract, subject to annual performance review) Dr Pat Naidoo (Appointed as Non-Executive Director on 11 December 2014) Mr Giovanni Leonardi (Appointed as Non-Executive Director on 25 May 2015) Dr Pulane Molokwane (Appointed as Interim Non-Executive Director on 23 June 2017) Mr Simphiwe Dingaan (Appointed as Interim Non-Executive Director on 23 June 2017) Dr Banothile Makhubela (Appointed as Interim Non-Executive Director on 23 June 2017) Mr Sathiaseelan Gounden (Appointed as Interim Non-Executive Director on 23 June 2017)
			(bb)	Mr Zethembe Wilfred Khoza – First term of three years ends 11 December 2017. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review. Acting Chairperson until the appointment of a new Chairperson Mr Johnny Dladla - Appointed as Acting GCE until the appointment of a new GCE Mr Anoj Singh – appointed GCFO on Dr Pat Naidoo - First term of three years ends 11 December 2017. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review. Mr Giovanni Leonardi - First term of three years ends on 24 May 2018. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review. Dr Pulane Molokwane - Term ends 22 December 2020 Mr Simphiwe Dingaan - Term ends 22 December 2020 Dr Banothile Makhubela - Term ends 22 December 2020 Mr Sathiaseelan Gounden - Term ends 22 December 2020
		(ii)	(aa)	7 Non-Executive Directors and 2 Acting Executive Directors
			(bb)	2 females
(2)	(a)	Not applicable
	(b)	Not applicable

5. South African Express Airways (SAX)

(1)	(a)	SAX has a Board in place as appointed by Minister Brown on 22 May 2015.
	(b)	Not applicable
		(i)	(aa)	Mr George Mothema (Appointed as Non-Executive Director and Chairperson of the Board on 22 May 2015) Mr Victor Xaba (Appointed as Interim CEO and Executive Director on 10 April 2017) Mr Mark Shelley (Appointed as CFO and Executive Director on 26 January 2015 on a 5 year contract, subject to annual performance review) Ms Boni Dibate (Appointed as Non-Executive Director on 22 May 2015) Mr Trevor Abrahams (Appointed as Non-Executive Director on 22 May 2015) Mr Rajesh Naithani (Appointed as Non-Executive Director on 22 May 2015) Mr Phetolo Ramosebudi (Appointed as Non-Executive Director on 22 May 2015) Ms Judith Nomvula Nkabinde (Appointed as Non-Executive Director on 22 May 2015) Mrs Given Refilwe Sibiya (Appointed as Non-Executive Director on 22 June 2015)
			(bb)	Mr George Mothema – Term ends on 21 May 2018 Mr Victor Xaba (Appointed as Acting CEO until the appointment of a new CEO Mr Mark Shelley – CFO Ms Boni Dibate - Term ends 21 May 2018 Mr Trevor Abrahams – Term ends 21 May 2018 Mr Rajesh Naithani – Terms ends 21 May 2018 Mr Phetolo Ramosebudi Terms ends 21 May 2018 Ms Judith Nomvula Nkabinde - Terms ends 21 May 2018 Mrs Given Refilwe Sibiya - Terms ends 21 May 2018
		(ii)	(aa)	7 Non-Executive Directors, 2 Executive Directors (1 Acting)
			(bb)	3 females
(2)	(a)	Not applicable
	(b)	Not applicable

6. Transnet

(1)	(a)	Transnet has a Board in place as appointed by Minister Brown on 11 December 2014.
	(b)	Not applicable
		(i)	(aa)	Ms Linda Carol Mabaso (Appointed as Non-Executive Director and Chairperson of the Board on 11 December 2014) Mr Siyabonga Gama (Appointed as GCEO and Executive Director on 13 April 2016 on a 5 year contract, subject to annual performance review) Mr Garry Pita (Appointed as CFO and Executive Director on 1 March 2016 on a 5 year contract, subject to annual performance review) Dr Gideon Mahlalela (Appointed as Non-Executive Director on 11 December 2014) Ms Potso Elizabeth Mathekga (Appointed as Non-Executive Director on 11 December 2014) Mr Zainul Nagdee (Appointed as Non-Executive Director on 11 December 2014) Mr Vusi Matthew Nkonyane (Appointed as Non-Executive Director on 11 December 2014) Ms Yasmin Forbes (Re-appointed for second term as Non-Executive Director on 11 December 2014) Mr Brett Stagman (Appointed as Non-Executive Director on 11 December 2014)
			(bb)	Ms Linda Carol Mabaso – First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Mr Siyabonga Gama – Permanent GCEO Mr Garry Pita – Permanent GCFO Dr Gideon Mahlalela - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Ms Potso Elizabeth Mathekga - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Mr Zainul Nagdee - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Mr Vusi Matthew Nkonyane - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Ms Yasmin Forbes – First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review. Mr Brett Stagman - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
		(ii)	(aa)	7 Non-Executive Directors, 2 Executive Directors
			(bb)	3 females
(2)	(a)	Not applicable
	(b)	Not applicable
Remarks:			Reply: Approved / Not Approved
Mr. Mogokare Richard Seleke			Ms. Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

(a) 

The latest cost projection for the completion of all units at the Kusile Power Plant is R161.4 billion (excluding Interest During Construction), based on P80 costs.

P80 schedule is a risk-adjusted schedule that caters for the major risks that the projects are currently facing. It is based on the current contractor performance and risk provision for risks outside the control of the project (e.g. industrial action), based on historical events. P80 refers to an 80% chance of these risks materialising.

(b) 

The amount spent on the construction of the specified power plant to date, as at 30 April 2017 is R113.07 billion (excluding Interest During Construction).

(c)(i)

The expected time frames for commercialisation of Kusile Units are based on a P80 schedule, as follows:

Kusile Units	P80 Commercial Operation Dates
Unit 1	31-Jul-18
Unit 2	31-Jul-19
Unit 3	31-Aug-20
Unit 4	31-Mar-21
Unit 5	30-Nov-21
Unit 6	30-Sep-22

(c)(ii)

The expected installed capacity of each of the 6 units at Kusile is 800MW, with a total combined installed capacity of 4,800MW.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a)(b)(c)(d)(e)

Eskom signed contracts with Lurco Coal (Pty) Ltd in financial year 2014/15, and these are presented in Table 1 below.

Table 1: contracts signed with Lurco Coal (Pty) Ltd during 2014/2015 financial year

	Description (a)	Date Signed (b)	Contract Period (c)	Tonnes to be supplied (d)	Total Value of Contract[1] (e)
1	Short Term Contract for the Supply of Coarse Coal to Duvha Power Station	22 Aug 2014	4 Months	150 000 tonnes	R 57 225 000
2	Modification to extend the duration of the contract for the Supply of Coarse Coal to Duvha Power Station by 3 months	26 Nov 2014	3 Months	Not Applicable, only a duration extension	Not Applicable, only a duration extension
3	Modification to the contract for the Supply of Coarse Coal to Duvha Power Station to deliver the coal to alternate power stations, apart from Duvha	08 Jan 2015	Not applicable	Not Applicable, modification of contract clause	Not Applicable, modification of contract clause

Excluding VAT, CPA, quality adjustments and transport

(1)(f)

Coal was procured under the 2008 Medium-Term Mandate.

(2)(a)

Eskom can only provide information on relating to signed agreements/contracts with Lurco Coal (Pty) Ltd and not on any third parties involved with Lurco Coal as it has no knowledge of external advisors assisting Lurco.

(2)(b)

Eskom can only provide information on relating to signed agreements/contracts with Lurco Coal (Pty) Ltd and not on any third parties involved with Lurco Coal as it has no knowledge of consultants assisting Lurco.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

 

1. ↑

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:

Reply:

(1)(a) National Sea Rescue Institute is only one tenant in the Port of Mossel Bay that is charged a non-commercial rental.

(b) Sea and Rescue services

(c) 1967/013618/08

(d) R1782.15

(2) Mossel Bay Yatcht Club (MBYBC) was paying TNPA a commercial rental.

MBYBC are using the facilities including walk-on moorings for commercial purposes. Therefore, the rental charged by TNPA was based on market value as determined by an Independent Qualified Property Valuer.

The rental that was paid by MBYBC is R108 628.51 per month.

(3) Transnet National Ports Authority “TNPA” would not reconsider charging

MBYBC non-commercial rentals. MBYBC were operating the facility on a commercial basis. This is in line with the practice of TNPA, whereby every tenant who has commercial operations within the port system is charged a commercial rental which is market related.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(i) The Department has not procured any services from the Decolonisation Foundation.

(ii) The Department has not made any payments to the Decolonisation Foundation.

 

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

SAX’s Reply:

Aircraft Utilisation Chart list Summary Period 01 January 2016 to 31 January 2017
Registration	Serial Number	Aircraft Type	Out of Service Days	Operational Days
ZS-NMC	7225	CRJ200	365	0
ZS-NMD	7223	CRJ200	346	19
ZS-NME	7240	CRJ200	256	109
ZS-NMF	7287	CRJ200	158	207
ZS-NMH	7787	CRJ200	358	7
ZS-NMI	7153	CRJ200	161	204
ZS-NML	7201	CRJ200	166	199
ZS-NMM	7234	CRJ200	365	0
ZS-NMN	7237	CRJ200	161	204
ZS-NBF	10028	CRJ700	125	240
ZS-NBG	10039	CRJ700	235	130
ZS-NMO	4122	DH8-400	197	168
ZS-NMS	4127	DH8-400	295	70
ZS-YBP	4142	DH8-400	160	205
ZSYBR	4144	DH8-400	167	198
ZS-YBT	4146	DH8-400	365	0
ZS-YBU	4344	DH8-400	201	164
ZS-YBW	4350	DH8-400	136	229
ZS-YBX	4366	DH8-400	95	270
ZS-YBY	4360	DH8-400	138	227
ZS-YBZ	4175	DH8-400	271	94

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

ALEXKOR SOC LIMITED

(a)	NIL
(b)	NIL
(c)	NIL
(d)	NIL
(e)	NIL
(f)	NIL

DENEL SOC LIMITED

(a)	NIL
(b)	NIL
(c)	NIL
(d)	NIL
(e)	NIL
(f)	NIL

SAFCOL SOC LIMITED

(a)	NIL
(b)	NIL
(c)	NIL
(d)	NIL
(e)	NIL
(f)	NIL

SA EXPRESS SOC LIMITED

(a)	NIL
(b)	NIL
(c)	NIL
(d)	NIL
(e)	NIL
(f)	NIL

TRANSNET SOC LIMITED

(a)	NIL
(b)	NIL
(c)	NIL
(d)	NIL
(e)	NIL
(f)	NIL ESKOM SOC LIMITED (a) NIL (b) NIL (c) NIL (d) NIL (e) NIL (f) NIL

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a) The individual was appointed as a Non Executive Director (NED) to the Transnet Board of Directors on 14 December 2014, on a three year term, subject to annual review. By virtue of his appointment as NED, the said Person serves as member and Chairperson of the Board’s Acquisition and Disposal’s Committee and member of the Remuneration, Social and Ethics Committee. He is also Chairperson of the Transnet Second Defined Benefit Fund, the Transport Pension Fund and the Transnet sub-Fund of the Transport Pension Fund.

(b) The terms and conditions of the appointment are governed by the Companies Memorandum of Incorporation (MOI). The Board appointment process, includes sourcing of CVs from the DPE database preceded by the issuing of an advertisement to obtain nominations. At the time, the vetting process included verification of qualifications, disclosure of interests and credit checks. Persons are found to be suitable by virtue of their qualifications, expertise, skills and expertise.

(c) At the time, the vetting process included verification of qualifications, disclosure of interests and credit checks. No conflict was identified. Following approval by Cabinet, appointment by myself, and acceptance by the individual, Transnet’s internal policy of disclosure of interest at each meeting will apply. Should there be any conflict disclosed at any time in the tenure, the Director would need to observe fully and comply with the disclosure and recusal requirements of Transnet’s policies. It is important to note that the disclosure policies of a SOC must be in line with the PFMA 1999 and the Companies Act, 2008.

2. I am not aware of the personal relations of the Director with the name provided by the Member of Parliament. Once they are appointed on the Board, the Companies policies and procedures must be adhered to.

(3)(a-c) As stated above if a conflict is identified or disclosed after appointment the Company is responsible to manage through its applicable policies. Hence, no investigation was done by my Department as there was no cause for one.

4. Should there be any Director who has a conflict and has not properly disclosed, it is the Company who must report to me on the matter. Based on the report, as Executive Authority, I will take a decision on the matter.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

Protection of proprietary rights is a key consideration in Transnet SOC Ltd’s dealing with potential and current suppliers. Transnet is not at liberty to divulge the details of commercially sensitive information belonging to parties we are contracting without written consent. This includes details such as pricing strategies.

Further, I am satisfied that sufficient information was provided and responded to in detail in the response to Parliamentary Question 121.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

Responses to the questions for each State Owned Company (SOC) within the DPE portfolio are recorded separately below as follows:

Alexkor

1. (a)(b)(c)(i)(ii)

The Company has vacancies for the positions of Chief Executive Officer (CEO) and Chief Financial Officer (CFO). The position of Chief Operating Officer (COO) is not vacant. The CEO position has been vacant since 1 April 2016 with Mr Vimal Bansi appointed through an interim contract until the position is filled. The position of CEO became vacant after a restructuring process that was completed on 31 March 2016. The CFO position became vacant on 10 October 2016 and Ms Tsundzukani Mhlanga has been acting since. The position of CFO became vacant as a result of the resignation by the previous incumbent.

2. (a)(b)

Both positions were advertised on 15 January 2017. The interview and selection process for both positions has commenced and it is anticipated that the process will be finalised in the first quarter of the current financial year.

3(a)(b)(c)

As stated above, there are two people appointed to act in each position separately. The Acting CEO has been in place for a year, while the acting CFO for the past 6 months. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Denel

(1)(a)(b)(c)(i)(ii)

The Company has vacancies for the positions of Group Chief Executive Officer (GCEO) and Group Chief Financial Officer (GCFO). The position of Chief Operating Officer (COO) is not vacant. The position of the GCEO became vacant on 9 November 2016 and Mr Z Ntshepe has been acting in the position since. The position of GCFO became vacant on 1 September 2016 and Mr O Mhlwana has been acting in the position since. Both positions became vacant as result of separation agreements with the previous incumbents.

(2)(a)(b)

The vacant positions have been advertised and it envisaged that these vacancies will be filled by the end of May 2017.

3(a)(b)(c)

As indicated above, there are two Executives acting in the positions of GCEO and GCFO, separately. Both acting incumbents have been acting for 1 year and 6 months, respectively. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Eskom

(1)(a)(b)(c)(i)(ii)

The company has a vacancy for the position of Group Chief Executive Officer (GCEO). The Group Chief Financial Officer (GCFO) is Mr Anoj Singh. The Company does not have a position of Chief Operating Officer (COO) in its structure. Due to the resignation of the previous incumbent, the position of GCEO became vacant on 1 January 2017 and Mr Matshela Koko has been acting in the position since.

(2)(a)(b)

The advertisement for the position of GCEO was published on 5 March 2017 and the recruitment process is underway with the intent that the process will be finalised before the end of May 2017.

3(a)(b)(c)

As indicated above one Executive is acting in the position of GCEO. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

SA Express

(1)(a)(b)(c)(i)(ii)

The Company only has vacant position of a CEO. The position of CFO is held by Mr Mark Shelley and the organisational structure of SA Express does not have a COO. The position of the CEO has been vacant from 1 April 2017 as a result of the resignation by the previous incumbent.

(2)(a)(b)

Mr Victor Xaba has been appointed to act in the position of CEO. Now that the position is vacant I am taking cognisance of the announcement by the Minister of Finance in the National Budget on 22 February 2017 that Advisors are assisting government with a review of the state’s aviation assets with the goal of developing a stronger, more efficient and sustainable state aviation sector. The possibility of consolidation of SAA with SA Express, and introducing a strategic equity partner, will be considered. In light of these developments I am of the view that the position of CEO of SA Express will not be advertised pending finalisation of the government process.

3(a)(b)(c)

One person is acting in the position of CEO and it is envisaged that the recruitment process will be held in abeyance until the government process mentioned above is finalised.

SAFCOL

(1)(a)(b)(c)(i)(ii)

The Company has vacancies of Chief Executive Officer (CEO) and Chief Operating Officer (COO). Ms Trish Pillay is the Chief Financial Officer (CFO); hence the position is not vacant. The position of CEO has been vacant since 15 December 2015 and the position of COO has been vacant since 18 February 2016. Both positions became vacant as result of resignation by the previous incumbents.

(2)(a)(b)

The CEO position will be advertised by the end April 2017, whereas the COO position was advertised on 15 February 2016. As part of the CEO recruitment plan, it is anticipated that interviews with potential candidates will be held during May and June 2017. Applicants were initially interviewed for the COO vacancy but no suitable candidate was found. SAFCOL is taking further steps in the recruitment process to identify suitable candidates. It is anticipated that the CEO vacancy will be filled by July 2017 and COO vacancy will be filled by June 2017.

3(a)(b)(c)

There are two Executives acting in the positions of GCEO and GCFO, separately. The acting CEO, Mr Harvey Theron has been acting in this position since 16 December 2015 to date and Mr Klaas Makobane has been acting COO from 19 February 2016 to date. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Transnet

(1)(a)(b)(c)(i)(ii)

Transnet does not have vacancies in these positions. The Group Chief Executive is Mr Siyabonga Gama, the Group Chief Financial Officer is Mr Garry Pita and Group Chief Operations Officer is Mr Mlamuli Buthelezi

(2)(a)(b)

Not applicable

3(a)(b)(c)

Not applicable

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

(a)(i) & (a)(ii) Ms Verna Durand is both the Director and Shareholder of this company.

(b) The monthly rental paid by the current operator is R108 628.51

(c) The successful bidder will pay a monthly rental fee of R118 200.00

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a) Transnet awarded the tender on 01 December 2016.

(1)(b) The tender was awarded to Mossel Bay Waterfront (Pty) Ltd.

(1)(c) 01 January 2017, however, occupation was not taken because the current operator, MBYBC refused to vacate the premises.

(2)(a) The current operator at the time was up to date with no arrears.

(2)(b)(i) Its business operations were and remain vitally important to Transnet.

(2)(b)(ii) Transnet appreciates the contribution of this business operation in growing the domestic economy, attracting tourism and creation of employment opportunities for the community of Mossel Bay.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)

Solenta: see the link: https://pmg.org.za/files/RNW585Solenta-170411.docx

SKA: see the link: https://pmg.org.za/files/RNW585SKA-170411.docx

 

(2) Yes there are contracts in place for both entities and the SLA’s are contained in both contracts.

Solenta: Contract Period: 01 Feb 2017 to 31 July 2017

SKA: Contract Period: 06 December 2016 to 31 March 2017

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

Mango Airlines is a subsidiary of SAA which is within the oversight of the Minister of Finance.

Part (i) of the question with reference to SA Express:

Charter Airline Operation Jan 2016 - Jan 2017	JNB-BFN	JNB-KIM	JNB-RCB	JNB-HDS	JNB-GRJ	JNB-PLZ	JNB-ELS	JNB-FBM	JNB-GBE	JNB-WVB	JNB-NTY	JNB-MBD
Solenta	180	115		12	64	26	33		228		43	122
StarAir Cargo	384	141		86	399	18	94	235	100	245
CemAir	26	32		6	8	4	13		36	2	4	39
Global Aviation	86			1	23	3	11		2	4
Golden Wings/SKA	26	8		2	4	2	2		2
Flyfofa- Sahara	10	10	4						2		6	22
Africa Charter Airline	54	4		2	148			228	24

Charter Airline Operation Jan 2016 - Jan 2017	DUR-PLZ	DUR-ELS	DUR-CPT	DUR-HRE	DUR-LUN
Solenta	1025	564	269	36	8
StarAir Cargo	1	2	1	4	1
CemAir	20	14	6	2
Global Aviation
Golden Wings/SKA
Flyfofa- Sahara
Africa Charter Airline

Charter Airline Operation Jan 2016 - Jan 2017	CPT-BFN	CPT-ELS	CPT-PLZ	CPT-HDS	CPT-NTY	CPT-WVB
Solenta	38	122	137		10
StarAir Cargo		4	12			1
CemAir	15	41	22	4	8	12
Global Aviation						8
Golden Wings/SKA
Flyfofa- Sahara
Africa Charter Airline

Part (vi) of the question with reference to SA Express:

Supplier	Actual
MATEKANE	50 278 977.86
GLOBAL AVIATION	5 697 784.23
SOLENTA AVIATION	120 141 296.91
STAR AIR CARGO	86 802 316.02
AFRICA CHARTER	28 740 805.08
CEM AIR	10 558 845.02
GOLDEN WINGS	1 339 489.92
	303 559 515.04

Part (ii, iii, iv, v, vii) of the question attached as Annexure A.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a) Yes. For the 2015/16 financial year, 99.2% of the employees required to declare completed declarations of interest. The 0.75% did not declare, because they were on suspension or extended sick leave. Employees from TASK grade 09 and above are required to complete annual declaration forms either electronically or manually (depending on the circumstances). Employees from TASK grade 08-04 must declare interest if there is a conflict.

1(a)(i) Line managers check the declarations.

1(a)(ii) Employees are required to declare interests every financial year, whether an

interest exist or not. Employees are also required to immediately declare whenever a conflict arises, the annual declaration for that employee will then be amended.

1(b) Yes

1 (b)(i) The Chairman, assisted by the Group Company Secretary, administers the filing

of declarations of interest for Board members. The annual declarations are presented to the shareholder at the AGM.

1(b)(ii) Directors are required to declare interests every financial year, whether an

interest exist or not. Directors are also required to immediately declare whenever a conflict arises, the annual declaration for that directors will then be amended.

1(c) Yes

1(c)(i) Declarations of interest submitted by the Executive Management Committee

Members (EXCO) is approved by the Group Chief Executive and administered by the Group Company Secretary.

1(c)(ii) All Eskom Executive Committee (EXCO) members are Eskom Employees.

Employees are required to declare interests every financial year, whether an interest exist or not. Employees are also required to immediately declare whenever a conflict arises, the annual declaration for that employee will then be amended.

(2) Yes, for Board and EXCO

The management of conflict of interest is governed by the Eskom Conflict of Interest (COI) Policy and Procedure, which is applicable to the Board and employees. The Policy and Procedure address noncompliance and the consequences of noncompliance.

Further to this for Board and EXCO meetings probity checks in respect of commercial transactions are conducted prior to circulation of meeting agendas. In the event that there is a potential, perceived or actual conflict of interest, the chairman of the meeting and the Group Company Secretary are advised. Should a conflict be identified the member will not be provided with the information pertaining to that matter and will be required to recuse him/herself from the proceedings when the matter is discussed.

The attending members are required to declare that they do not have any conflict in relation to matters being discussed in the meeting.

Declaration of interest is a standing agenda item of all Board and EXCO meetings. Any conflicts are recorded as part of the proceedings. The relevant member is then required to recuse him or herself at the time when the particular agenda item is discussed.

Yes, for employees.

Where there is a conflict of interest, the employee must refrain from being part of any deliberations, document preparation, execution or meetings and must not have access that deals with that particular matter.

In addition, cases reported through the Forensic Investigation department, the Eskom disciplinary process was followed. For the 2015/16 financial year, there were 10 cases of actual conflict emanating from the outcome of forensic investigations.

(3) Emanating from the results the forensic investigations for the 2015/16 financial for employees (including Exco), there were 10 cases where actual conflict was identified.

(4) The Eskom Sponsorship Committee is delegated to approve all sponsorship up to

R3 million with sponsorships above R3 million being approved by the Executive Committee (EXCO). During the previous and current financial year all approved sponsorships were less than R3 million and was therefore approved by the Eskom Sponsorship Committee in the Corporate Affairs Division. 

Sponsorships are proactively planned and targeted on an annual basis, with input from all Divisions, as it enables the organisation to meet its strategic objectives.

Table 1 and Table 2 below presents the name and designation of the Eskom employees who decide on sponsorship allocations.

Table 1Name and designation of Executive Management Committee Members (EXCO) who decide on sponsorship allocations

Group Executives​ ​ ​
Name	Designation
​Mr Matshela Koko	Interim Group ​Chief Executive
​Mr Anoj Singh	​Chief Finance Officer
Mr Willy Majola	​Group Executive Generation (Acting)
Mr Thava​ Govender	​Group Executive Transmission
​Mr Mongezi Ntsokolo	​Group Executive Distribution
Ms ​Ayanda​ Noah	​Group Executive Customer Services
​Mr Abram Masango	Group Executive Group Capital
Ms ​Elsie Pule	​Group Executive Human Resources
​Mr Sean Maritz	​Group Executive Information Technology
​Mr Freddy Ndou	Divisional Executive Strategy Support
​Brigadier General (Ret.) Tebogo	​Divisional Executive Security
Mr ​Chose Choeu	​Divisional Executive Corporate Affairs
​Ms Suzanne Daniels	Group Company Secretary

Table 2 Name and designations of the Sponsorship Committee

Sponsorship Committee
Name	Designation
Chose Choeu	​ Divisional Executive Corporate Affairs
Ruwaida (Ra’eesah) Waja	General Manager: Internal and External Communication
Marion Hughes	General Manager: Stakeholder Relations
Pieter Pretorius	General Manager Strategic Marketing and Branding (Acting)
Cecil Ramonotsi	CEO Eskom Development Foundation (Acting)
Natasha Sithole	Senior Manager: Business Enablement
Nto Rikhotso	Eskom Media Desk Manager

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

ALEXKOR SOC LIMITED
(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

DENEL SOC LIMITED
(a)	None
(b)	Yes
(c)	None
(d)	None
(e)	None b(i)-(vi)

Year	Description	Amount
2014	Annual Membership fees Denel SOC Ltd	R 96 300.00
2015	Annual Membership fees Denel SOC Ltd	R 101 115.00
2016	Annual Membership fees Denel SOC Ltd	R106 200.00
TOTAL AMOUNT		R 303 615.00

ESKOM SOC LTD

(a)

No, Eskom has not procured any services from the Afrikaanse Handelsinstituut. However Eskom has made payments to the Afrikaanse Handelsinstituut.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(a)(i)

No applicable

(a)(ii)

Not applicable

(a)(iii)

Not applicable

(a)(iv)

Eskom is a member of the Afrikaanse Handelsinstituut and from time to time supports events by the organisation.

(a)(v)

Total payments is R74 563

(a)(vi)

Year	Description	Amount
2016	Annual Corporate Membership Fee	R66 863
2016	Annual Conference and Gala Dinner	R7 700
TOTAL AMOUNT		R 74 563

(b)

No, Eskom has not procured any services from the SA Chamber of Commerce and Industry. However Eskom has made payments to the SA Chamber of Commerce and Industry.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(b)(i)

No applicable

(b)(ii)

Not applicable

(b)(iii)

Not applicable

(b)(iv)

Eskom is a member of the SA Chamber of Commerce and Industry and from time to time supports events by the organisation.

(b)(v)

Total payments is R563 000

(b)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R113 000
2016	Gala Dinner	R450 000
TOTAL AMOUNT		R 563 000

(c)

No, Eskom has not procured any services from the Black Management Forum. However Eskom has made payments to the Black Management Forum.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(c)(i)

No applicable

(c)(ii)

Not applicable

(c)(iii)

Not applicable

(c)(iv)

Eskom is a member of the Black Management Forum and from time to time supports events by the organisation.

(c)(v)

Total payments is R74 200

(c)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R34 200
2016	Annual Conference and Gala Dinner	R40 000
TOTAL AMOUNT		R 74 200

(d)

No, Eskom has not procured any services from the Black Business Council. However Eskom has made payments to the Black Business Council

Eskom has not raised a need that would require Commercial to procure services from the entity.

(d)(i)

No applicable

(d)(ii)

Not applicable

(d)(iii)

Not applicable

(d)(iv)

Eskom is a member of the Black Business Council and from time to time supports events by the organisation.

(d)(v)

Total payments is R 350 000

(d)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R200 000
2016	AGM and Gala Dinner	R150 000
TOTAL AMOUNT		R 350 000

(e)

No, Eskom has not procured any services from the Business Unity South Africa. Eskom did not make any payments in 2016. Eskom has not raised a need that would require Commercial to procure services from the entity.

(e)(i)

No applicable

(e)(ii)

Not applicable

(e)(iii)

Not applicable

(e)(iv)

Not applicable

(e)(v)

Not applicable

(e)(vi)

Not applicable

SAFCOL SOC LIMITED
(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

SAX SOC LTD

South African Express Airways did not procure any services from and/or make any payments to the

(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

The airline is presently facing challenges pertaining to both its liquidity and profitability. As a result, the airline is currently not in a financial position to support expenditure that does not directly support the airline’s core functionality.

TRANSNET SOC LTD

a) Transnet has not procured any services from and/or made any payments to the Afrikaanse Handelsinstituut. The company is not in the list of Transnet’s service providers.

b) Transnet has made payments totaling R2 859 009 (excl. VAT) to SA Chamber of Commerce and Industry in the past three years.

 (i) Detailed breakdown of costs, refer to table below:

Year	Description	Amount
	SPONSORSHIPS	ANNUAL /GALA DINERS	MEMBERSHIP/ SUBSCRIPTION	MARKETING	STAKEHOLDER ENGAGEMENT	CONFERENCES	TRAINING
	1 994 182	129 839	550 079	81 589	30 996	57 368	14 965	2 859 009
2014	438 596	-	27 337	81 579	8 996	57 368	702	614 578
2015	482 456	51 066	-	-	22 000	-	-	555 523
2016	531 902	33 750	366 147	-	-	-	8 298	940 097
2017	541 228	45 023	156 595	-	-	-	5 965	748 811
Total Amount								R 2 859 009.00

(c) Transnet has made payments totaling R1 077 193.00(excl. VAT) to Black Management Forum in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Sponsorship	R 200 000.00
2016	Sponsorship	R 877 193.00
TOTAL AMOUNT		R 1 077 193.00

(d) Transnet has made payments totaling R700 000 (excl. VAT) to the Black Business Council amounting in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Annual/ Gala Dinners	R 500 000.00
2015	Annual/ Gala Dinners	R 50 000.00
2017	Stakeholder Engagement	150 000.00
TOTAL AMOUNT		R 700 000.00

(e) Transnet has made payments totaling R22 800 (excl. VAT) to Business Unity South Africa in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Annual/ Gala Dinners	R 22 800.00
TOTAL AMOUNT		R 22 800.00

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

ALEXKOR SOC LTD
(a)	None
(b)	R NIL

DENEL SOC LTD
(a)	None
(b)	R NIL

ESKOM SOC LTD

(a)	None
(b)	R NIL

SAFCOL SOC LTD
(a)	None
(b)	R NIL

SAX SOC LTD

(a)	None
(b)	R NIL

TRANSNET SOC LTD

(a)	None
(b)	R NIL

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

DEPARTMENT OF PUBLIC ENTERPRISES

(1)	(b)	Department of Public Enterprises did not participate in the event
(2)	(b)	Department of Public Enterprises did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL
ALEXKOR SOC LTD
(1)	(b)	Alexkor did not participate in the event
(2)	(b)	Alexkor did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

DENEL SOC LTD
(1)	(b)	Denel did not participate in the event
(2)	(b)	Denel did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

ESKOM SOC LTD

(1)	(b)	Eskom did not participate in the event
(2)	(b)	Eskom did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

SAFCOL SOC LTD
(1)	(b)	SAFCOL did not participate in the event
(2)	(b)	SAFCOL did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

SAX SOC LTD

(1)	(b)	SA Express did not participate in the event
(2)	(b)	SA Express did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

TRANSNET SOC LTD

(1)	(b)	Transnet did not participate in the event
(2)	(b)	Transnet did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date: