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26 September 2017 - NW1014

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

With reference to the recent Cabinet reshuffle and the fact that there is much uncertainty over whether the renewable independent power producers (IPPs) projects will be signed off by Eskom, (a) why has there been such a long delay in signing off the remaining IPPs, (b) what are the exact dates on which they will be signed off, (c) how many IPPs have been signed off by Eskom in total and (d) how many projects are outstanding due to the delay in signing? NW1142E

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:

26 September 2017 - NW2645

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

What (a) are the names of the current coal suppliers for each of Eskom’s coal power stations, (b) is the quantity of coal assigned to each supplier and (c) is the length of the contract in each case

Reply:

The majority of coal supply agreements (CSA) are contracted on an energy basis (Giga joules). Some CSAs including the cost-plus, and a few fixed-price are already on a volume basis (Tonnes). In order to provide the quantity of coal, CSA’s on an energy basis had to be converted to tonnes, using the contracted and expected calorific value.

Furthermore, terms and conditions of the CSA provide flexibility in the volumes delivered to each power station, accommodating operational requirements such as the actual power station’s burn requirements.

Table 1: Names of the current coal suppliers for each of Eskom’s coal power station, quantities of coal assigned and the length of each contract.

(a) Supplier Name

(a) Power Station Name

(c) Contractual Volumes Per Annum (Mt)

(d) Length of the contract (Years)

Umsimbithi Mining (Pty) Ltd - Wonderfontein

Arnot

2.4

3

Exxaro Coal Mpumalanga (Pty) Ltd - NBC

Arnot/Komati/Tutuka

2.88

8

Vunene Mining (Pty) Ltd – Usutu

Camden

1.20

5

Silverlake Trading 447 (Pty) Ltd - Uitgevalen

Camden

0.60

5

Sudor Coal (Pty) Ltd - Halfgewonnen

Camden

2.16

10

South 32 (Pty) Ltd (BECSA) - Middelburg Mine Services

Duvha

10.00

41

Liketh Investments (Pty) Ltd - Tavistock/Tweefontein

Duvha/Komati

1.30

7

HCI Khusela Coal (Pty) Ltd – Palesa

Grootvlei

1.92

8

Optimum Coal Holdings – Optimum

Hendrina

5.50

26

Liketh Investments (Pty) Ltd - KK Pit 5

Hendrina

2.40

9

South 32 (Pty) Ltd (BECSA) - Khutala

Kendal

13.30

40

African Exploration Mining and Finance Company - Vlakfontein

Kendal

1.50

5

Tshedza Mining Resources (Pty) Ltd - Manungu

Kendal/Kusile

1.62

15

Lurco Mining Services (Pty) Ltd - VDD

Komati

0.48

7

Koornfontein Mines (Pty) Ltd - Koornfontein

Komati

2.40

7

Anglo American Inyosi Coal SA (Pty) Ltd - Kriel

Kriel

8.50

40

African Exploration Mining and Finance Company - Chilwavhusiku

Kusile

0.9

10

African Exploration Mining and Finance Company - Mzimkhulu

Kusile

2.48

10

Universal Coal Development I (Pty) Ltd - Wolvenfontein

Kusile/Kendal

2.00

9

Anglo American Thermal Coal SA (Pty) Ltd - New Vaal

Lethabo

17.80

40

(a) Supplier Name

(a) Power Station Name

(c) Contractual Volumes Per Annum (Mt)

(d) Length of the contract (Years)

Glencore (Xstrata) / African Rainbow Minerals JV - Goedgevonden

Majuba

2.80

17

Izimbiwa Coal (Pty) Ltd (previously Shanduka) - Graspan

Majuba

2.10

8

Kuyasa Mining (Pty) Ltd – Delmas

Majuba

1.68

8

Tegeta Exploration and Resources (Pty) Ltd - Brakfontein

Majuba

1.36

11

Wescoal Mining (Pty) Ltd - Elandspruit (Majuba)

Majuba

0.42

5

Ntshovelo Mining Resources (Pty) Ltd - Vlakvarkfontein

Majuba

1.20

3

Iyanga Mining (Pty) Ltd – Klipfontein

Majuba/Kendal/Kusile

1.80

3

Perisat Investments (Pty) Ltd - Rirhandzu

Majuba/Kusile

1.20

5

Exxaro Coal (Pty) Ltd – Grootegeluk

Matimba

15.30

45

Exxaro Coal (Pty) Ltd – Matla

Matla

10.10

40

Welgemeend Colliery (Pty) Ltd - Welgemeend

Matla

0.84

8

HCI Coal (Pty) Ltd – Mbali

Matla

0.24

4

Universal Coal Development (Pty) Ltd - New Clydesdale Complex

Matla

1.20

7

Izimbiwa Handling Systems (Pty) Ltd - Doornrug

Matla

0.60

5

Overlooked Colliery (Pty) Ltd - Overlooked

Matla

1.29

6

Exxaro Coal (Pty) Ltd – Grootegeluk

Medupi

15.10

49

Anglo American Thermal Coal SA (Pty) Ltd - New Denmark

Tutuka

5.10

40

Keaton Mining (Pty) Ltd - Vanggatfontein

Tutuka

1.92

11

Stuart Coal (Pty) Ltd - East Block

Tutuka

1.44

8

Wescoal Mining (Pty) Ltd - Elandspruit (Tutuka)

Tutuka

1.14

5

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2591

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Public Enterprises

When are the application dates (a) opening and (b) closing for the board positions of all entities and councils reporting to her?

Reply:

(a) – (b): The advertisement for the nomination or application of potential candidates to update the DPE database was issued on 23 August 2017 with the closing date of 8 September 2017.

The six (6) State Owned Companies (SOCs) within the DPE portfolio, are Alexkor, Denel, Eskom, Safcol, SA Express and Transnet. The DPE portfolio does not have councils as referred to in the Honourable Member’s question.

Remarks:

   

Reply: Approved / Not Approved

Mr Mogokare Richard Seleke

   

Ms Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

26 September 2017 - NW2492

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises:

(1) Whether a certain complaint by a certain person (name and details furnished) against Eskom for alleged intimidation and lack of service delivery has been resolved; if not, (a) why not and (b) by when will the complaint be resolved; if so, (i) on which date was the complaint resolved and (ii) what are the details of the outcomes; (2) whether any disciplinary action has been taken against any Eskom employees involved in this complaint; if not, in each case, why not; if so, what are the relevant details in each case; (3) whether an independent loss adjudicator determined the extent of the losses incurred by the specified person as a result of the cases stipulated in the complaint; if not, why not; if so, (a) what is the extent of the losses incurred and (b) how much did Eskom pay out? NW2749E

Reply:

The reference number provided is not an Eskom reference number. However Eskom is familiar with Mr van Heerden’s complaints. The 2014 complaint relates to a claim submitted for damages suffered due to repeated power interruptions. Subsequent to the 2014 complaints, Eskom is aware of other complaints by Mr van Heerden. For the purposes of this question, the 2014 complaint is most relevant.

(1)

No, the 2014 complaint for damage to electrical appliances and goods, as a result of repeated power interruption, has not been resolved.

(1)(a)

Eskom’s settlement offer was rejected by Mr van Heerden.

(1)(b)

The complaint will be resolved when Eskom and Mr van Heerden reach an agreement

(1)(i)

Not applicable

(1)(ii)

Not applicable

(2)

No disciplinary action has been taken against any Eskom employee regarding this complaint. Eskom did not find reason to take disciplinary action against any Eskom employee.

(3)

An independent professional assessor determined the extent of the losses incurred.

(3)(a)

The extent of the losses incurred according to the professional assessor amount to R264 740,97 incl VAT.

(3)(b)

No money has been paid out since Mr van Heerden rejected Eskom’s settlement offer.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2722

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(a) What is the total amount of bonuses paid to a former official of SA Express (name and details furnished) during the specified person’s tenure and (ii) breakdown of the total amount of bonuses in terms of amount paid in each case, (b) on what dates were bonuses paid and (c) whey were they paid?

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:

26 September 2017 - NW1822

Profile picture: Ketabahle, Ms V

Ketabahle, Ms V to ask the Minister of Public Enterprises

(a) What number of times has (i) her department and (ii) each entity reporting to her split tenders between different bidders, (b) what was each tender for and (c) what was the total cost of each specified tender?

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:

13 September 2017 - NW2117

Profile picture: Mhlongo, Mr P

Mhlongo, Mr P to ask the Minister of Public Enterprises

(a) Whether she is aware that a certain person in her Ministry went to Dubai, UAE to meet with a member(s) of a certain family (name furnished) in December 2015 and (b) gave permission, an instruction or a task to the specified official when she went to meet with member(s) of the specified family?

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.

13 September 2017 - NW1653

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1) Whether there was an instruction by the Eskom Board to curtail the scope of the Dentons Report; if so, (a) why and (b) what are the further relevant details in this regard; (2) Whether any interim reports from Dentons were collected and destroyed by the Eskom Board; if so, (a) why they destroyed and (b) what are the further relevant details in this regard?

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:

06 September 2017 - NW1569

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)   What are the full details of each contract that Denel signed with a certain company namely VR Laser South Africa in terms of (a) the contents, (b) the date on which each contract was signed, (c) what each contract is for and (d) what amount each contract is worth; (2) Whether each contract complied with the National Treasury requirements; if not, in each case, why not; if so, what are the relevant details in each case?

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

06 September 2017 - NW1498

Profile picture: Masango, Ms B

Masango, Ms B to ask the Minister of Public Enterprises

(1)    Whether (a) her department and (b) each entity reporting to her procured any services from and/or made any payments to (i) a certain company namely Bell Pottinger or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?

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:

28 August 2017 - NW2159

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)      Whether an email was sent by Eskom in 2014, allegedly stipulating that foreign nationals that are drivers of heavy vehicles were not allowed to deliver fuel to Eskom’s Ankerlig site in Atlantis, Cape Town; if so, (a) why was the email sent and (b) did Eskom allegedly request that three drivers from a certain company (name furnished) be dismissed; (2) what are the full details of Eskom’s human resources policy on foreign national workers?

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)

28 August 2017 - NW2214

Profile picture: Lotriet, Prof  A

Lotriet, Prof A to ask the Minister of Public Enterprises

(1)    Whether Eskom has upgraded any part of its infrastructure in the Sunnyridge, Marlands and Elandsfontein areas of the Ekurhuleni Metropolitan Council in the (a) 2014-15, (b) 2015-16 and (c) 2016-17 financial years; if not, why not; if so, what was the (i) nature of the upgrades and (ii) cost in each case; (2) whether Eskom intends to upgrade its infrastructure in the specified areas; if not, why not; if so, on what date(s)?

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.

28 August 2017 - NW1302

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Why has Eskom allowed the SA Revenue Service (SARS) to share its training facilities in Midrand; (2) whether SARS is compensating Eskom for the use of its facilities; if not, why not; if so, what amount is Eskom charging SARS in this regard?

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:

17 August 2017 - NW1654

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Ms N W Mazzone (DA) to ask the Minister of Public Enterprises:

Whether a certain person (name and details furnished) signed any contracts during the two weeks in which the specified person was appointed; if so, what (a) contracts were signed and (b) board decision were made during this time that has an impact on the specified entity’s business practices?

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:

17 August 2017 - NW2025

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(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 and (b) for each state owned entity reporting to her, what (i) amount was allocated for each type of support and (ii) number of youth has been brought through the system in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years?

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:

17 August 2017 - NW1766

Profile picture: Mhlongo, Mr TW

Mhlongo, Mr TW to ask the Minister of Public Enterprises

Does (a) she, (b) her Deputy Minister or (c) any of the heads of entities or bodies reporting to her make use of security services paid for by the State for (i) him/herself, (ii) his/her immediate family members or (iii) any of their staff members; in each case (aa) what are the reasons for it, (bb) from which department or entity’s budget is the security services being paid, and (cc) what are the relevant details?

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:

17 August 2017 - NW1081

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

On what date a certain company (name furnished) was appointed as investment manager for the Transnet Second Defined Benefit Fund (TSDBF); (2) (a) what amount the specified company was paid for services rendered, since it was appointed as investment manager for the TSDBF and the Transport Pension Fund and (b) how the specified amount was determined; (3) Why a company, admitting it previously donated money to a political grouping (name furnished), was placed at the helm of managing the income of pensioners; (4) In view of the fact that the company’s advisory business was transferred to a certain company (name furnished), what company is currently the real investment manager for the TSDBF and other pension funds for which the company was appointed? NW1213A

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:

28 July 2017 - NW952

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) With regard to the contracts that Transnet concluded with certain companies (names furnished) since 2009, (a)(i) what was the purpose of each contract, (ii) what services and/or goods were procured and (iii) what was the (aa) period and (bb) financial value paid out in respect of each contract and (b) if the contracts are still current, (i) what are the payments that still need to be made and (ii) under what circumstances does the payment still need to be made; (2) Whether Transnet in each case complied with the (a) Public Finance Management Act, Act 1 of 1999, as amended, and (b) Transnet’s internal tender requirements; if not, why is it not considered necessary to follow the tender process in terms of Transnet’s rules; (3) Whether the contracts were necessary in each case and (b) why the services could not be handled internally by Transnet?

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:

28 July 2017 - NW1271

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises:

(1) Whether Eskom signed any contracts with Lurco Coal (Pty) Ltd to supply it with coal in each of the past five financial years; if not, why not; if so, what are the details of each contract signed with the specified company, including (a) a description, (b) date on which the contract was signed, (c) period which the contract covers, (d) the amount of coal to be supplied, (e) the total value of the contract and (f) the details of all tender procedures followed; (2) Whether any (a) external advisors and/or (b) consultants working on behalf of the specified company were involved in the awarding of any of the specified contracts; if not, what is the position in this regard; if so, what are the relevant details in each case?

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:

 

28 July 2017 - NW1841

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Lekota, Mr M to ask the Minister of Public Enterprises

(a) What processes were followed in filling the position of the newly appointed director-general, (b) did a certain person (name furnished) formally apply for the position, (c) was she in any way instructed from within or outside the Cabinet into appointing the specified person and (d) what was the rationale in appointing the specified person to this position given his qualifications and experience?

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:

28 July 2017 - NW1835

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Madisha, Mr WM to ask the Minister of Public Enterprises

Whether she intends to take any action against a certain person (name and details furnished) for disclosing sensitive and classified company information to a certain family (name furnished); if not, why not; if so, what action does she intend to take?

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:

28 July 2017 - NW1810

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Public Enterprises

(1)    Which entities reporting to her (a) have a board in place and (b) do not have a board in place, (i) of those that have a board, (aa) when was each individual board member appointed and (bb) when is the term for each board lapsing and  (ii) how many (aa) board members are there in each board and (bb) of those board members of each entity are female; (2) With reference to entities that do not have boards in place, (a) who is responsible for appointing the board and (b) when will a board be appointed?

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)

  1. Ms HB Matseke (Appointed as Non-Executive Director and Chairperson on 14 August 2015)
  1. Mr V Bansi (Appointed as Non-Executive Director on 14 August 2015. Appointed Acting CEO and Executive Director on 1 March 2016)
  1. Mr Jacques Bonnett (Appointed as Acting CFO and Executive Director on 1 May 2017)
  1. Mr JS Danana (Appointed as Non-Executive Director on 14 August 2015)
  1. Mr T Haasbroek (Appointed as Non-Executive Director on 14 August 2015)
  1. Mr T Matona (Appointed as Non-Executive Director on 14 August 2015)
  1. Ms M Lehobye (Appointed as Non-Executive Director on 14 August 2015)
  1. Ms Z Ntlangula (Re-appointed as Non-Executive Director for second term 14 August 2015)
     

(bb)

  1. Ms HB Matseke – Term ends August 2018
  1. Mr JS Danana – Term ends August 2018
  1. Mr T Haasbroek – Term ends August 2018
  1. Mr T Matona – Term ends August 2018
  1. Mr V Bansi – (Appointed as Acting CEO and Executive Director until the appointment of a new CEO)
  1. Mr J Bonnett (Appointed as Acting CFO and Executive Director until the appointment of a new CFO)
  1. Ms M Lehobye – Term ends August 2018
  1. 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)

  1. Mr Daniel Mantsha (Appointed as Non-Executive Director and Chairperson of the Board on 24 July 2015)
  1. Mr Zwelakhe Ntshepe (Appointed as Interim CEO and Executive Director on 01 September 2015)
  1. Mr Odwa Mhlwana (Appointed as Acting GCFO and Executive Director on 1 September 2015)
  1. Mr Thamsanqa Msomi (Appointed as Non-Executive Director on 24 July 2015)
  1. Mrs Pinkie Martha Mahlangu (Appointed as Non-Executive Director on 24 July 2015)
  1. Lt. Gen Themba Michael Nkabinde (Appointed as Non-Executive Director on 24 July 2015)
  1. Ms Mpho Kgomongoe (Appointed as Non-Executive Director on 24 July 2015)
  1. Ms Khumbudzo Phopi Silence Ntshaveni (Appointed as Non-Executive Director on 24 July 2015)
     

(bb)

  1. Mr Daniel Mantsha - Term ends 23 July 2018
  1. Mr Zwelakhe Ntshepe - Appointed as Acting GCEO until the appointment of a new GCEO
  1. Mr Odwa Mhlwana - Appointed as Acting GCFO until the appointment of a new GCFO
  1. Mr Thamsanqa Msomi - Term ends 23 July 2018
  1. Mrs Pinkie Martha Mahlangu - Term ends 23 July 2018
  1. Lt. Gen Themba Michael Nkabinde - Term ends 23 July 2018
  1. Ms Mpho Kgomongoe - Term ends 23 July 2018
  1. 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)

  1. Mr Lungile Rudolph Mabece (Appointed as Non-Executive Director and Chairperson of the Board on 18 August 2015)
  1. Mr Gabriel Christian Theron (Appointed as Non-Executive Director on 18 August 2015 and Acting CEO and Executive Director on 16 December 2015)
  1. 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)
  1. Ms Vuyo Tlale (Appointed as Acting CFO from 1 June 2017 until 31 August 2017)
  1. Ms Sakekile Baduza (Appointed as Non-Executive Director on 18 August 2015)
  1. Mr Maroale Jacob Rachidi (Appointed as Non-Executive Director on 18 August 2015)
  1. Mr Mandla Mnguni (Appointed as Non-Executive Director on 18 August 2015)
  1. Dr Petros Mbiji Mahlangu (Appointed as Non-Executive Director on 18 August 2015)
  1. Ms Phumzile Ngwenya (Appointed as Non-Executive Director on 18 August 2015)
  1. Dr Pulane Molokwane (Appointed as Non-Executive Director on 18 August 2015)
     

(bb)

  1. Mr Lungile Rudolph Mabece - Term ends 17 August 2018
  1. Mr Gabriel Christian Theron - Appointed as Interim CEO the appointment of a new CEO
  1. Ms Vuyo Tlale – Appointed Acting CFO on 1 June 2017
  1. Ms Sakekile Baduza - Term ends 17 August 2018
  1. Mr Maroale Jacob Rachidi - Term ends 17 August 2018
  1. Mr Mandla Mnguni -Term ends 17 August 2018
  1. Dr Petros Mbiji Mahlangu -Term ends 17 August 2018
  1. Ms Phumzile Ngwenya - Term ends 17 August 2018
  1. 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)

  1. Mr Zethembe Wilfred Khoza (Appointed as Non-Executive Director on 11 December 2014 and Acting Chairperson of the Board on 13 June 2017)
  1. Mr Johnny Dladla (Appointed as Acting GCEO and Executive Director on 23 June 2017)
  1. Mr Anoj Singh (Appointed as Group CFO and Executive Director on 1 October 2015 on a 5 year contract, subject to annual performance review)
  1. Dr Pat Naidoo (Appointed as Non-Executive Director on 11 December 2014)
  1. Mr Giovanni Leonardi (Appointed as Non-Executive Director on 25 May 2015)
  1. Dr Pulane Molokwane (Appointed as Interim Non-Executive Director on 23 June 2017)
  1. Mr Simphiwe Dingaan (Appointed as Interim Non-Executive Director on 23 June 2017)
  1. Dr Banothile Makhubela (Appointed as Interim Non-Executive Director on 23 June 2017)
  1. Mr Sathiaseelan Gounden (Appointed as Interim Non-Executive Director on 23 June 2017)
     

(bb)

  1. 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
  1. Mr Johnny Dladla - Appointed as Acting GCE until the appointment of a new GCE
  1. Mr Anoj Singh – appointed GCFO on
  1. 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.
  1. 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.
  1. Dr Pulane Molokwane - Term ends 22 December 2020
  1. Mr Simphiwe Dingaan - Term ends 22 December 2020
  1. Dr Banothile Makhubela - Term ends 22 December 2020
  1. 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)

  1. Mr George Mothema (Appointed as Non-Executive Director and Chairperson of the Board on 22 May 2015)
  1. Mr Victor Xaba (Appointed as Interim CEO and Executive Director on 10 April 2017)
  1. Mr Mark Shelley (Appointed as CFO and Executive Director on 26 January 2015 on a 5 year contract, subject to annual performance review)
  1. Ms Boni Dibate (Appointed as Non-Executive Director on 22 May 2015)
  1. Mr Trevor Abrahams (Appointed as Non-Executive Director on 22 May 2015)
  1. Mr Rajesh Naithani (Appointed as Non-Executive Director on 22 May 2015)
  1. Mr Phetolo Ramosebudi (Appointed as Non-Executive Director on 22 May 2015)
  1. Ms Judith Nomvula Nkabinde (Appointed as Non-Executive Director on 22 May 2015)
  1. Mrs Given Refilwe Sibiya (Appointed as Non-Executive Director on 22 June 2015)
     

(bb)

  1. Mr George Mothema – Term ends on 21 May 2018
  1. Mr Victor Xaba (Appointed as Acting CEO until the appointment of a new CEO
  1. Mr Mark Shelley – CFO
  1. Ms Boni Dibate - Term ends 21 May 2018
  1. Mr Trevor Abrahams – Term ends 21 May 2018
  1. Mr Rajesh Naithani – Terms ends 21 May 2018
  1. Mr Phetolo Ramosebudi Terms ends 21 May 2018
  1. Ms Judith Nomvula Nkabinde - Terms ends 21 May 2018
  1. 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)

  1. Ms Linda Carol Mabaso (Appointed as Non-Executive Director and Chairperson of the Board on 11 December 2014)
  1. Mr Siyabonga Gama (Appointed as GCEO and Executive Director on 13 April 2016 on a 5 year contract, subject to annual performance review)
  1. Mr Garry Pita (Appointed as CFO and Executive Director on 1 March 2016 on a 5 year contract, subject to annual performance review)
  1. Dr Gideon Mahlalela (Appointed as Non-Executive Director on 11 December 2014)
  1. Ms Potso Elizabeth Mathekga (Appointed as Non-Executive Director on 11 December 2014)
  1. Mr Zainul Nagdee (Appointed as Non-Executive Director on 11 December 2014)
  1. Mr Vusi Matthew Nkonyane (Appointed as Non-Executive Director on 11 December 2014)
  1. Ms Yasmin Forbes (Re-appointed for second term as Non-Executive Director on 11 December 2014)
  1. Mr Brett Stagman (Appointed as Non-Executive Director on 11 December 2014)
     

(bb)

  1. 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.
  1. Mr Siyabonga Gama – Permanent GCEO
  1. Mr Garry Pita – Permanent GCFO
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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:

28 July 2017 - NW1655

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises:

What (a) is the latest cost projection for the completion of all units of the Kusile Power Plant, (b) amount has been spent on the construction of the specified power plant to date and (c)(i) are the expected time frames for the commercialisation and (ii) is the expected quantity of power output of each outstanding unit?

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:

28 July 2017 - NW1270

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises

(1) (a) What quantities of Eskom’s coal supply were purchased (i) directly from companies that mine it and (ii) from intermediaries in each of the past five financial years and (b) what were the combined annual total payments made in each case; (2) whether Eskom purchases coal from any mining companies that are not 50% + 1 Black Economic Empowerment (BEE)-owned; if not, what is the position in this regard; if so, (a) on which grounds and (b) what are the further relevant details; (3) whether Eskom has put any policies in place to regulate the purchasing of coal from companies that (a) are and (b) are not 50% + 1 BEE-owned; if not, why not; if so, (4) will she furnish Mr J R B Lorimer with copies of the specified policies; if not, why not; if so, by what 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.

08 June 2017 - NW1246

Profile picture: Rabotapi, Mr MW

Rabotapi, Mr MW to ask the Minister of Public Enterprises

Whether her department has (i) procured any services from and/or (ii) made any payments to the Decolonisation Foundation; if not, in each case, what is the position in this regard; if so, what (aa) services were procured, (bb) were the total costs, (cc) is the detailed breakdown of the costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of the payments in each case?

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:

08 June 2017 - NW1089

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

Whether her department can provide information on (a) the operational flight days and (b) days out of service of the specified aircraft (details furnished) in the SA Express fleet during the period 1 January 2016 to 31 January 2017?

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:

08 June 2017 - NW1103

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(1)     Whether any entities leasing property or facilities from the National Ports Authority in the Mossel Bay harbor pays non-commercial rentals; if so, what are the (a) names, (b) nature of operations, (c) incorporation details and (d) monthly rentals in each case; (2) Whether the Mossel Bay Yacht Club pays non-commercial rentals; if not, why not; if so, what is the specified yacht club’s monthly rental; (3) Whether the National Ports Authority will reconsider charging commercial rentals for the yacht club facility; if so, what are the relevant details?

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:

06 June 2017 - NW1251

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

(1)(a)What positions a certain person (name furnished) currently holds in Transnet and in related Transnet companies and other entities, (b) how said person obtained the positions in each case, (c) what processes her department followed in order to ensure that no conflict of interest exists between the person concerned and third parties and (d) what agreements were reached 9i) at the time of and (ii) after finalization of that person’s appointment to Transnet and/or related entities; (2) Whether she is aware of the personal relationship between that person and a certain person (name and details furnished) who did work for Transnet; if so, (3) Whether her department conducted an investigation in order to prevent a conflict of interests; if so, (a) who conducted the investigation, 9b) on what date the investigation was carried out and (c) what was its result; if not, (4) Whether she will order such an investigation where evidence of a possible conflict of interest is submitted to her; if not so, what are the relevant details? NW1392E

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:

06 June 2017 - NW977

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Public Enterprises

Whether any state-owned company reporting to her procured any services from and/or made any payments to the Decolonisation Foundation; if not, in each case, why not; if so, what (a) services were procured, (b) was the total cost, (c) is the detailed breakdown of such costs, (d) was the purpose of the payments, (e) was the total amount paid and (f) is the detailed breakdown of such payments in each case?

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:

24 April 2017 - NW774

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

With reference to her reply to question 121 on 28 February 2017, on what basis are the minutes of each meeting of the Transnet Board, where the decision was taken to award the specified contracts, considered commercially sensitive?

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:

19 April 2017 - NW931

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Public Enterprises

(1) Whether there is any position of (a) chief executive officer, (b) chief financial officer and/or (c) chief operating officer that is currently vacant in each entity reporting to her; if so, (i) how long has each specified position been vacant and (ii) what is the reason for each vacancy; (2) Have the vacancies been advertised; if so, (a) were interviews done and (b) on what date will the vacancies be filled; (3) (a) what is the total number of persons who are currently employed in the specified positions in an acting capacity; (b) For what period has each person been acting in each position and (c) has any of the specified persons applied for the positions?

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:

11 April 2017 - NW440

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Public Enterprises

Whether any state-owned companies reporting to her procured any services from and/or made any payments to the Decolonisation Fund if not, in each case, why not; if so, what (a) services were procured, (b) was the total cost, (c) is the detailed breakdown of such costs, (d) was the purpose of the payments, (e) was the total amount paid and (f) is the detailed breakdown of such payments in each case?

Reply:

ALEXKOR SOC LTD

No services were procured as there were no specific needs.

(a) NIL

(b) NIL

(c) NIL

(d) NIL

(e) NIL

(f) NIL

DENEL SOC LTD

No services were procured as there were no specific needs.

(a) NIL

(b) NIL

(c) NIL

(d) NIL

(e) NIL

(f) NIL

ESKOM

Eskom has not procured any services from nor made any payments to the Decolonisation Fund.

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

(a) NIL

(b) NIL

(c) NIL

(d) NIL

(e) NIL

(f) NIL

SAFCOL SOC LTD

No services were procured as there were no specific needs.

(a) NIL

(b) NIL

(c) NIL

(d) NIL

(e) NIL

(f) NIL

SAX SOC LTD

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

The airline’s 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.

(a) NIL

(b) NIL

(c) NIL

(d) NIL

(e) NIL

(f) NIL

TRANSNET

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

(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:

11 April 2017 - NW738

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(1)Whether the (a) community and (b) Mossel Bay Local Municipality were consulted before the issuing of a tender by Transnet for conducting activities on portions of Erf 12459 and Erf 12460, known as the Mossel Bay Yacht and Boat Club, including the walk-on-moorings; if not, in each case, why not; if so, what are the full details of the public participation process that was followed in each case; (2) What (a) are the full details of the business plan of the successful bidder and (b) is the current status of the transfer of operations to the successful bidder; (3) Whether she will make a statement regarding the matter? NW797E

Reply:

(1)(a) The advert was placed in the local newspaper (Mossel Bay Advertiser) on the 06 May 2016.

(1)(b) It is not part of Transnet leasing Policy to consult the Local Municipalities when Transnet premises are advertised for leasing. The premises were advertised for leasing in an open, fair, equitable and transparent process.

(2)(a) As this is commercially sensitive information to the successful bidder, consent must first be sought prior to disclosing this information.

(2)(b) No transfer of operations has materialized because the current operator MBYBC refused to vacate the premises.

(3) No. Sufficient information are provided in the above answer. However interested parties are welcome to ask for additional information through the relevant offices.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

11 April 2017 - NW629

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

Whether a new tender has been awarded for Transnet activities on Erf 12459 and Erf 12460 in Mossel Bay; if so, what (a) are the names of the (i) directors and (ii) shareholders of the company that has been awarded the tender, (b) is the monthly rental paid by the current operator and (c) rental will be paid by the successful bidder;

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:

11 April 2017 - NW628

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(1)Whether a tender was recently awarded for conducting work on portions of Erf 12459 and Erf 12460, known as Mossel Bay yacht and boat Club, including the walk-on-moorings; if so, (a) what date was the tender awarded, (b) who is the current operator on the premises and (c) since what date has the current operator been operating on the premises; (2) Whether the current operator at any time (a) was in arrears with its monthly rental and/or (b) operated in such a way that its activities could be regarded as (i) a liability to Transnet and (ii) not being in the interests of the Mossel Bay community; if not, why was it necessary to award a new tender; if so, what are the relevant details I each case? NW686E

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:

11 April 2017 - NW585

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

(1)With reference to SA Express’ frequent use in 2016 of chartered planes provided by Solenta Aviation and SKA Aircraft Leasing amongst others to cover its route between (a) Bloemfontein and Johannesburg, (b) George and Johannesburg and (c) Kimberley and Johannesburg, what is the total amount of chartering a flight to cover an ordinary route that is supposed to be operated by SA Express; (2) Whether there is a service level agreement in place between SA Express and the specified companies; if not, why not; if so, what are the relevant details?

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:

11 April 2017 - NW483

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

Whether her department will provide a schedule of all chartered flights for (a) SA Airways, (b) SA Express and (c) Mango Airlines for the period 1 January 2016 to 28 February 2017, for all routes with details of (i) each route, (ii) the date of each flight, (iii) the time of each flight, (iv) the number of passengers, (v) the occupancy rate of each flight, (vi) the total amount paid in respect of each chartered flight and (vii) the details of each service provider?

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:

11 April 2017 - NW550

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Whether the (a) employees, (b) directors and (c) management of Eskom filed declarations of interests; if not, in each case, why not; if so, (i) who checks the specified declarations and (ii) what are the further relevant details in this regard; (2) has any action ever been taken for a conflict of interest arising from the declarations; if so, what are the relevant details; (3) how many of the specified persons have business dealings with Eskom; (4) what are the names and designations of each Eskom employee who decides on sponsorship allocations?

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:

11 April 2017 - NW441

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Public Enterprises

Whether any state-owned companies procured any services from and/or made any payments to the (a) Afrikaanse Handelsinstituut, (b) SA Chamber of Commerce and Industry, (c) Black Management Forum, (d) Black Business Council and (e) Business Unity South Africa; if not, in each case, why not, if so, what (i) services were procured, (ii) was the total cost, (iii) is the detailed breakdown of such costs, (iv) was the purpose of the payments, (v) was the total paid and (vi) is the detailed breakdown of such payments in each case?

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:

11 April 2017 - NW807

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Public Enterprises

(a) How many tenders have state-owned entities reporting to her awarded to a certain company (name furnished) in the period 1 January 2013 to 31 December 2016 and (b) what was the value of the tenders in each case?

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:

11 April 2017 - NW698

Profile picture: Hadebe, Mr TZ

Hadebe, Mr TZ to ask the Minister of Public Enterprises

(1)Did (a) her department or (b) any entity reporting to her participate in the Dialogue with the President: unpacking of the SONA 2017 on Radical Economic Transformation Implementation event hosted at the Oyster Box Hotel in Umhlanga, Durban, on 25 February 2017; if so, what amount was spent in each case; (2) Did (a) her department or (b) any entity reporting to her participate in the auction of the (i) souvenirs or (ii) personal belongings of the President of the Republic, Mr Jacob G Zuma; if so, (aa) which items were purchased and (bb) at what cost, in each case:

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:

05 April 2017 - NW592

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Public Enterprises

Whether Eskom’s management has put any plans in place to approach National Treasury for financial assistance in the foreseeable future; if so, (a) what is the estimated amount involved and (b) for what specific purpose will the financial assistance be required?

Reply:

As at the date of this response there are no plans for Eskom to request additional financial support from National Treasury

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

04 April 2017 - NW484

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

Noting that over the past year the SA Express made frequent use of chartered aircraft, resulting in adverse effects for its employees, can her department provide (a) an inventory of (i) all aircraft owned by SA Express, (ii) all aircraft grounded and the reason for the aircraft being grounded (iii) the period that each aircraft has been grounded and (iv) the expected cost to get the grounded aircraft operational and (b) a schedule of (i) flight hours per pilot in the employ of SA Express for the period 1 March 2016 to 1 March 2017 and (ii) flights for each cabin crew in the employ of SA Express for the period 1 March 2016 to 1 March 2017?

Reply:

Part (a) of the question:

i) Inventory of all aircraft owned by SA Express

Bombardier Aircraft Type

Quantity Aircraft

Capacity - Seats

Ownership

Average Fleet Age - Years

Q400

10

74

Operating Lease

6.5

CRJ200

6

50

Operating Lease

18

CRJ200

4

50

SA Express Owned

18

CRJ700

2

70

Operating Lease

12ii

ii) All aircraft grounded and the reason for the aircraft being grounded. Status as at January 2017:

  • Qty 3, Bombardier CRJ200 – Engines and APU require overhaul.
  • Qty 1, Bombardier Q400 – Fuel defect.
  • Qty 1, Bombardier Q400 – Engine repair and Nose landing gear overhaul required.
  • Austerity measures resulted in restricted funding impacting the fleet (engine overhauls).

iii) The period that each aircraft has been grounded:

Aircraft

Out Of Service date

Out of service days

Aircraft Grounded

ZS-NMC (200)

16-Dec-15

455

ZS-NMD (200)

10-Mar-15

358

ZS-YBT (Q400)

25-Jan-16

415

ZS-NMS (Q400)

5-Jul-16

253

Scheduled Maintenance

ZS-NME (200)

7-Oct-16

159

       

iv) The expected cost to get the grounded aircraft operational

  • Engines requiring overhaul typically $1 500 000 per engine. Leasing options have however been exercised.
  • APU overhaul typically $220 000 per APU
  • Q400 Nose Landing gears supply typically $100 000 per NLG
  • Cost to get aircraft operational approx. was $11 668 000. Options of leasing engines have been adopted in late 2016/2017 to save cost. This reduced the amount to $6 508 000
  • The above excludes monthly cost to service specified component exchange and Q400 engine support agreements. This amounts to approx.$600 000 per month

Status as at 14 March 2017:

    • NMD Returned to service,
    • YBT in final stages of Return to Service
    • The cost to return the remaining aircraft (NMC, NMS) to service is $2 049 000

Part (b) of the question

Annexure B Attached                      

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW462

Profile picture: De Freitas, Mr MS

De Freitas, Mr MS to ask the Minister of Public Enterprises

Whether her department procured any services from and/or made any payments to (a) Mr. Mzwanele Manyi, (b) the Progressive Professionals Forum, (c) the Decolonisation Fund and/or (d) the Black Business Council; if not, in each case, why not; if so, what (i) services were procured, (ii) was the total cost, (iii) is the detailed breakdown of such costs, (iv) was the total amount paid, (v) was the purpose of the payments and (vi) is the detailed breakdown of such payments in each case?

Reply:

a) The Department has not procured any services or made any payments to Mr Mzwanele Manyi.

b) The Department has not procured any services or made any payments to the Progressive Professionals Forum.

c) The Department has not procured any services or made any payments to the Decolonisation Fund.

d) The Department has not procured any services or made any payments to the Black Business Council.

The Department has not received such requests.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW343

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

What surplus is required in the (a) Transport Pension fund and (b) Transnet Second Defined Benefit Fund to pay put a bonus of 10% to all pensioners where the rules make provision for that; (2) Whether considerations will be given to pay between two and four bonuses per year to pensioners, given their high age and low life expectancy; if not, why not; if so, (a) what consideration is currently being given to that and (b) when this will happen; (3) Whether the present pending group action against the respective pension funds and Transnet play any role in this consideration; if so, what are the relevant details? NW396E

Reply:

1. The cost/surplus required of two bonuses of 10% for the Transnet Second Defined Benefit Fund is R326m, and R43m for the Transport Pension Fund respectively. The trustees determine bonus payouts.

2. The respective Board of Trustees of both Funds have not given consideration to pay more than 2 bonuses per year. The current policy of the Funds aims to pay 2 bonuses per financial year. 
 

3. The payment of bonuses is non-vesting in terms of the Rules of the Funds, and is considered on an annual basis subject to actuarial certification and the overall risk environment facing the Funds at the time (including the pending class action). The class action is not the only factor considered in the payment of bonuses. The other factors that play a critical role in the consideration of paying bonuses are, amongst others, the following:

  • The investment performance of the assets.
  • Impact on the actuarial surplus. 
  • Impact on the solvency reserves. NW396E

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW482

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

With reference to SA Express’ frequent use in 2016 of chartered planes provided by Solenta Aviation and SKA Aircraft Leasing, amongst others, to cover its route between (a) Bloemfontein and Johannesburg, (b) George and Johannesburg and (c) Kimberley and Johannesburg, (i) what is the reason for making use of chartered flights and (ii) how often were flights chartered for the (aa) Bloemfontein-Johannesburg route, (bb) George-Johannesburg route and (cc) Kimberley-Johannesburg route; which (a) other routes also make use of chartered flights and (b) companies, besides Solenta Aviation and SKA, are being used to operate the chartered flights?

Reply:

SA Express lease charters in order to maintain the schedule, protect market share as well as revenue. The airline also charter aircraft due to aircraft constraints.

Charter Airline Operation
Jan 2016 - Jan 2017

(aa)

JNB-BFN

(bb)

JNB-KIM

(cc)

JNB-GRJ

       

Solenta

180

115

64

Golden Wings/SKA

26

8

4

  • The number of flights chartered between JNB-BFN, JNB-KIM and JNB-GRJ are 397 from Jan 2016 – Jan 2017

Total Number of Charter Airline Operation Jan 2016 2017
Jan 2016 - Jan 2017

 

Solenta

3,032

StarAir Cargo

1,728

CemAir

314

Global Aviation

138

Golden Wings/SKA

46

Flyfofa- Sahara

54

Africa Charter Airline

460

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

     
  • Break-Down of all charters

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

 

 

 

 

 

 

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW552

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)Whether the (a) employees, (b) directors and (c) management of SA Express filed declarations of interests; if not, in each case, why not; if so, (i) who checks the specified declarations and (ii) what are the further relevant details in this regard; (2) Has any action ever been taken for a conflict of interest arising from the declarations; if so, what are the relevant details; (3) How many of the specified persons have business dealings with SA Express; (4) What are the names and designations of each SA Express employee who decides on sponsorship allocations?

Reply:

1. All SA Express Employees, Directors and Management are required to declare their interests by filling in the appropriate form highlighting conflict of interests accordingly. These will then be verified and approved by the General Managers of each Business Unit. This is in line with the requirements of the Airlines Code of Ethics Policy.

The Internal Audit department reviews compliance to ensure that the Code of Ethics adhered to and thereafter. The Auditor General then audits the above mentioned as an External Auditor.

(2) No – no conflict of interest has ever come to the fore.

3. No SA Express employee has business dealings with SA Express.

4. The Chief Executive Officer, Mr Inati Ntshanga decides on sponsorship allocations.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW553

Profile picture: Mackenzie, Mr C

Mackenzie, Mr C to ask the Minister of Public Enterprises

(1)Whether the (a) employees, (b) directors and (c) management of Mango Airlines filed declarations of interests; if not, in each case, why not; if so, (i) who checks the specified declarations and (ii) what are the further relevant details in this regard; (2) Has any action ever been taken for a conflict of interest arising from the declarations; if so, what are the relevant details; (3) How many of the specified persons have business dealings with Mango; (4) What are the names and designations of each Mango employee who decides on sponsorship allocations?

Reply:

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

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 March 2017 - NW555

Profile picture: Mackenzie, Mr C

Mackenzie, Mr C to ask the Minister of Public Enterprises

(1)Whether the (a) employees, (b) directors and (c) management of Transnet filed declarations of interests; if not, in each case, why not; if so, (i) who checks the specified declarations and (ii) what are the further relevant details in this regard; (2) Has any action ever been taken for a conflict of interest arising from the declarations; if so, what are the relevant details; (3) How many of the specified persons have business dealings with Transnet; (4) What are the names and designations of each Transnet employee who decides on sponsorship allocations?

Reply:

(1)(a) Employees, (b) directors and (c) management of Transnet SOC Ltd (“Transnet”) are required in terms of the Declaration of Interests and Related Party Disclosures Policies to file their declaration of interests annually, and as and when changes occur.

 (i) Transnet Group Company Secretary will check Transnet Corporate Centre and each Operating Division (OD) has their Divisional Company Secretary conducting this function.

 (ii) Declaration of Interests are compulsory for Managers (Levels A - F) and any other employee who has an interest or is related to a person with actual or potential interest in doing business with Transnet or any of its subsidiaries. It is also compulsory for all employees involved in Transnet Procurement related activities to declare their interests regardless of their level. 

Reminders and campaigns on the Declaration of Interests and Related Party Disclosures are undertaken prior to the beginning a new financial year so as to ensure adherence to the process.

The Declaration of Interest (“DoI”) are filed electronically and the notifications thereof are routed to the relevant Company Secretary for acknowledgement and stored accordingly by the Document Management Function.

The DOI’s fraud compliance reviews are conducted by Transnet Internal Audit (“TIA”). The purpose of these reviews is to determine compliance with the Declaration of Interest and Related Party Disclosures Policy with a view to identifying whether a selected sample employees declared their interests accurately and in full. Review by TIA, forensics assessments, and consequence management as applicable is followed in cases where wrong doing has been identified.

The Company also has a Code of Ethics in place which guides the conduct of Directors, Management and Employees.

(2) Transnet is currently dealing with three employee cases: two from Transnet Pipe Lines and one from Transnet Freight Rail.

(3) The Audit Report is still being finalised and necessary disciplinary action will be taken. Any companies involved are provisionally black listed and final blacklisting is pending the disciplinary hearing of the employees.

(4) The following Transnet Corporate Centre (TCC) Employees have Delegated Authority to sign off on sponsorships and may sub-delegate same to the Company’s Operating Divisions/Specialists Units:

Mr Siyabonga Gama – Group Chief Executive

Mr M Buthelezi – Chief Operating Officer

Mr Garry Pita – Chief Financial Officer

Mr Thamsanqa Jiyane – Chief Officer Advanced Manufacturing

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

15 March 2017 - NW366

Profile picture: Stubbe, Mr DJ

Stubbe, Mr DJ to ask the Minister of Public Enterprises

What is the (a) make, (b) model, (c) price and (d) date on which each vehicle was purchased for use by (i) her and (ii) her deputy (aa) in the (aaa) 2014-15 and (bbb) 2015-16 financial years and (bb) since 1 April 2016?

Reply:

(i) Minister

The vehicles purchased are as follows:

(a) Make

(b) Model

(c) Price

(d) Date of purchase

(aaa) FY 2014/2015

(bbb) FY 2015/2016

(bb)FY Since 1 April 2016/2017

Place

Lexus

LEXUS ES HYBRID ES 300H EX C21E

514 649.74

2014/09/26

Yes

N/A

N/A

CPT

Lexus

ES350 EX 36Z

464 819.04

2016/04/20

N/A

N/A

Yes

PTA

(ii) Deputy Minister

(a) Make

(b) Model

(c) Price

(d) Date of purchase

(aaa) FY 2014/2015

(bbb) FY 2015/2016

(bb)FY Since 1 April 2016/2017

Place

Audi

AUDI A8 4H20BA TDI Q TIP

881 629.99

2014/06/05

Yes

N/A

N/A

CPT

Lexus

LEXUS 460 16 G

808 279.00

2016/09/14

N/A

N/A

YES

PTA

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date: