Questions and Replies

Filter by year

29 November 2016 - NW2347

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Mr J R B Lorimer (DA) to ask the Minister of Public Enterprises

(1) With reference to her reply to question 847 on 11 April 2016, (a) what is the total amount of the fine imposed by Eskom on Optimum Colliery for the delivery of substandard coal, (b) what amount owed for the specified fine has been paid to date, (c) what are the terms of the repayment agreement and (d) by which date will the fine be paid in full; (2) whether any other fines have been imposed on any other coal suppliers for similar reasons; if not, why not; if so, in each case, (a) what are the relevant details, (b) how much did Eskom fine the specified coal suppliers, (c) when were such fines levied and (d) on what date will the fines be paid in full? NW2682E

Reply:

(1) (a) R2, 176 530 611.99 accrued as at August 2015.

(1)(b) This penalty has not been paid by Optimum to date.

(1) (c) No agreement has been reached.

(1) (d) The matter is still the subject of arbitration, no agreement has been reached.

(2) Yes.

(2)(a) Fines normally referred to as penalties have been levied in all instances where coal quality is at the bottom end of the expected range. A coal penalty regime is a standard condition of Eskom contracts.

(2)(b) For Eskom’s long-term coal suppliers, excluding Optimum Colliery which supplies Hendrina Power Station, a total of R90 million in penalties was levied for the period 01 April 2015 to 30 September 2016.

(2)(c) The price adjustments are effected in the month that payment for the respective coal supply was made and are reflected in both the invoice and in Eskom’s payment assessment.

(2)(d) The price adjustments are effected in the month that payment for the respective coal supply was made.

29 November 2016 - NW2426

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Public Enterprises

Whether she has taken any steps to secure investment in green independent power production in the country after Eskom’s Chief Executive Officer, Mr Brian Molefe, refused to sign a purchasing agreement with the independent power producers; if not, why not; if so, what are the relevant details? NW2808E

Reply:

The Department of Energy (DoE) takes the lead in the domestic IPP strategy including the sourcing and contracting component of these arrangements. This strategy is driven by the Integrated Resource Plan (IRP) which is the country’s plan for electricity. The IRP is currently in review and will provide appropriate guidance on technology, scale and timing of the electricity requirements for the country with the objective of meeting energy security and diversifying the energy mix.

The key assumptions in the IRP need to be updated to provide a robust plan. In the last month, Eskom presented its Interim Results which shows that year on year demand for electricity only grew 1.2%. In fact demand for electricity has been fairly flat for the last decade.

The current capacity being added on the grid is based on the IRP 2010 which projected higher demand for electricity based on the economy growing close to 6%. This means that we are currently adding on capacity to the grid at rate higher than what is required. The biggest risk with having too much capacity is what happens to the plants that will potentially become stranded. While Eskom can push for a more aggressive export strategy to mitigate this, it comes with its own limitations including Transmission capacity. The challenge then becomes that Eskom would still need to collect the same level of revenue to cover the incurred costs. This is particularly critical at a time where Eskom balance sheet is highly indebted due to the build cycle. So with low volumes, the price of electricity will have to rise to sustain the required level of revenue, meaning consumers will have to pay more for electricity. These Eskom assets belong to the South African public, I have a responsibility to safeguard these and ensure that South African derive maximum value. The current trajectory will potentially be detrimental to consumers and it is critical that the IRP is concluded so we can have plan that offers maximum protection for consumers

ADVISORY NOTE TO THE MINISTER:

DEAR Minister,

Eskom has written to yourself, ministers finance and energy as signatories to the Government Support Framework Agreement (GFSA). Even though some of the arguments raised can be seen as survivalist, there are some valid arguments raised that warrant the attention of the government as a shareholder and policy maker. Specifically the fact that there is no new demand for electricity in South Africa, and therefore the addition of new power is likely to result in the shutdown of Eskom plants to create space for renewables resulting in lower revenue. The challenge is that in the cycle of build where Eskom is, the balance sheet is highly indebted and Eskom requires the correct revenue to be able to pay its debt obligation and in the absence of demand prices will have to rise to sustain the revenue level resulting in negative impact on consumers. Alternatively Eskom could write off the assets and have the National Treasury honor its debt obligations linked to those assets (which, at 60% debt the fiscus can barely afford which means more taxes to raise the cash). So an evolutionary approach is required in the addition of new capacity to ensure maximum protection for consumers.

22 November 2016 - NW2381

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

(1)     Whether a certain company (TRILLIAN ASSET MANAGEMENT) was appointed or used as a provider-developent partner for another company (REGIMENTS); if not, (a) wat is the (i) nature and (ii) extent of the appointment, (b) who was the chairperson of the acquisition committee or body of Transnet during the contracting of the company and (c) whether the chairperson has any links with the directors and/or shareholders of the company; (2) (a) Whether the chairperson of the acquisition committee and/or body of Transnet during the contracting of the companies delcared any links with the directors and/or shareholders of the companies and (b) what steps were taken to prevent biased decisions; (3) Whether Transnet itself conducted a feasibility study in this regard; if not, why not; if so, what are the relevant details?

Reply:

(1)(a)(i) Trillian Asset Management was introduced to Transnet as a subcontractor to Regiments and as part of the latter’s supplier development obligations to Transnet. Trillian Asset Management was the lead manager on the ZAR Club Loan.

(ii) The extent of the appointment was to only lead the ZAR Club Loan.

(b) Mr. Stanley Shane was the Chairperson of the Acquisitions and Disposals Committee.

(c) Based on information supplied to us by Trillian, the Directors of Trillian Assets Management at that point in time were:

  • Mr. Daniel Roy and
  • Mr. Janfaure.

The Shareholders were:

  • Mr. Daniel Roy 30%
  • Mr. Jan Faure 20%, and
  • Trillian Holdings 50% (which is wholy owned by Mr. Sallim Essa)

2(a) Mr Shane, a non-executive director of the Transnet Board of Directors since December 2014, and Chairperson of the Acquisition and Disposal Committee, declared all his interests in line with Transnet’s policies and procedures. According to these declarations there were no conflict of interests.

(b) Transnet assesses its need for specialised services on an ongoing basis and awards work to external parties based on these assessments, ensuring that there is no conflict of interest with Transnet employees.

The grounds for utilising external services providers may range from level of expertise/skills required, to capacity to execute etc. This is also enshrined within the Transnet procurement processes which also prescribe the appropriate delegations or appoval requirements for such engagements.

3. Refer to 2(b) above.

16 November 2016 - NW2376

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

(1)     What is the nature of Transnet’s relationship with a certain company (Oyster Box); (2) Whether the company was appointed to provide services without going through the normal acquisition and/or tender procedures; if not, what procedure was followed; if so, (a) why and (b) what is the legal basis for the acquisition procedure without a tender; (3) (a) who were the (i) directors and (ii) shareholders of the company at the time of contracting and (b) what is the current status of the directors and shareholders; (4) Whether the company has been paid for services provided; if not, why were the services of the company contracted at all; if so, what are (a) the nature of the services and (b) relevant amounts paid? NW2719E

Reply:

1. Transnet has used The Oyster Box Hotel in Durban for accommodation and conferencing, in the past.

2. The services were sourced in line with Transnet’s normal and approved processs for conferencing and accommodation.

(3) (a)(i) There is no requirement for Transnet to determine directorships of each hotel they use in executing the duties. Transnet is a state owned company and it does not use specific hotels.

(b) Transnet is not in a position to provide commentary on the status of directors of any hotel.

(4) (a) The Oyster Box Hotel provides accomodation, restaurant and conference services. It would be paid by the travel agency.

    (b) The amount Transnet paid in the current financial year was R13 500 (thirteen thousand five hundred rand). Over the past 15 years Transnet has paid R351 335 (three hundred and fifty one thousand three hundred and thirty five rand) for services rendered to Transnet.

01 November 2016 - NW2176

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Whether she will provide Ms N W A Mazzone with Eskom’s detailed strategic plan of action to generate R15 billion in cash reserve revenue for each of the next 10 years to be utilised for Government’s nuclear build programme; if not, why not; if so, by when; (2) how will Eskom manage to generate the total R 150 billion cash reserve revenue in the next 10 years to fund Government’s nuclear build programme, given that Eskom’s current and non-current borrowings is R 322 billion?

Reply:

  1. ESKOM has not finalised its strategic plan for each of the next ten years. However, it is expected that its EBITDA margins will continue to improve, capital expenditure will decrease over the next ten years as the current built programme winds down, costs continue to be reduced and debt repayments become lower.
  2. The measures mentioned in (1) will result in an increase in available free cash.

31 October 2016 - NW2130

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Public Enterprises

What are the full relevant details of all air charter agreements entered into between SAX and Star Air Cargo for all domestic routes in the past five financial years, in each case indicating the (a) duration, (b) reason for entering into and (c) cost implications of the specified agreements; (2) What are the relevant details of the responsibility of oversight in respect of each charter flight flown under the specified agreements? NW2444E

Reply:

1. SA Express has lease Agreements with multiple leasing companies. The preferred lease structure by the airline is Wet Lease Agreement on an ad hoc basis. One of the advantages for leasing aircraft on an ad hoc basis is that the relationship is determined by the airline’s schedule requirement at a specific time. This structure is more cost effective.

As mentioned above, there is more than one leasing company the airline has a relationship with and Star Air Cargo is one of them.

For a lease company to qualify to be in the pool of preferred vendors for aircraft to be leased to SA Express, the airline conducts internal safety audits to ensure compliance with all legislative requirements. Furthermore, the SACAA also conducts independent audits. This is done to ensure safety of the passengers is not compromised and this is in line with one of the Airline’s values.

(1)(a) South African Express has a Wet Lease Agreement on an ad hoc basis with Star Air Cargo which was signed in February 2015 and the contract expires in April 2017.

(1) (b) Star Air Cargo was engaged to mitigate the inherent challenges of an aging fleet and scheduled and unscheduled maintenance of aircraft.

(1)(c) Due to the nature of the Wet Lease Agreement, SA Express signs Non-Disclosure Agreement with respective lessors in order to protect each parties’ “Intellectual Property”.

2. Same as (1) (c) above

 

26 October 2016 - NW2177

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

What are the (a) full terms, (b) timelines, (c) costs and (d) other conditions of the latest credit agreement to the amount of US$500 million that was signed between the China Development Bank and Eskom recently; (2) whether the specified terms will be the same for the next expected instalment of US$4,5 billion from the specified bank; if not, (a) why not and (b) what terms will change; if so, what are the relevant details?

Reply:

(1) The purpose of the loan is to finance the Capital Expenditure Programme.

(a) The amount of the loan is US$500 million. The loan will be disbursed in US dollars in one single disbursement after the fulfilment of conditions precedent to the drawdown.

(b) The loan is a Three (3) year facility with the last repayment of capital on the 3rd October 2019 (3 years from the signing date of the credit agreement – 3rd October 2016). Repayments are quarterly starting from the 3rd January 2017.

(c) This information is confidential as it contains commercial terms between the parties and therefore it cannot be disclosed.

(d) This information is confidential as it contains commercial terms between the parties and therefore it cannot be disclosed.

(2) This facility is currently under negotiation between the parties. The details of the commercial terms and conditions of the loan will however remain confidential between the parties.

 

13 October 2016 - NW2030

Profile picture: Brauteseth, Mr TJ

Brauteseth, Mr TJ to ask the Minister of Public Enterprises

What formal qualifications does each of her department’s (a)(i) Chief Financial Officers and/or (ii) acting Chief Financial Officers and (b)(i) Directors-General and/or (ii) acting Directors-General possess?

Reply:

(a) (i) The Chief Financial Officer post is currently vacant.

(ii) Acting Chief Financial Officer’s Qualifications:

  • Bachelor of Arts in Political Science and Economics.
  • Bachelor of Arts Honours in Economics (Monetary, International and Developmental).
  • Diploma in Financial Marketing.

(b) (i) Director-General’s Qualifications:

  • Bachelor of Science in Agricultural Economics Management.
  • Bachelor of Science in Agricultural Economics Management.
  • Post Graduate Diploma in Agricultural Economics Management.

(ii) Acting Director-General’s Qualifications: No acting appointment.

 

13 October 2016 - NW2065

Profile picture: Horn, Mr W

Horn, Mr W to ask the Minister of Public Enterprises

(1)Whether each Head of Department (HOD) of her department signed a performance agreement since their appointment; if not, (a) what is the total number of HODs who have not signed performance agreements, (b) what is the reason in each case, (c) what action has she taken to rectify the situation and (d) what consequences will the specified HOD face for failing to sign the performance agreements; if so, (i) when was the last performance assessment of each HOD conducted and (ii) what were the results in each case; (2) whether any of the HODs who failed to sign a performance agreement received a performance bonus since their appointment; if not, what is the position in this regard; if so, (a) at what rate and (b) what criteria were used to determine the specified rate; (3) whether any of the HODs who signed a performance agreement received a performance bonus since their appointment; if so, (a) at what rate and (b) what criteria were used to determine the rate?

Reply:

1. The Director-General of the Department of Public Enterprises (DPE) has entered and signed a Performance Agreement for 2016/17 financial year with the Minister.

   (a) There is no HOD of the Department of Public Enterprises who has not signed or entered into a Performance Agreement;

   (b) Not applicable based on question 1 above

    (c) Not applicable based on question 1 above

    (d) This is not applicable to DPE case however Chapter 4, of SMS Handbook stipulate that SMS members including HOD must enter into a Performance Agreement within the first three months of appointment.

2.None

3. DPE HOD has been appointed on 01 December 2015.

    (a) Not applicable based on 3 above

    (b)Not applicable based on 3 above

05 October 2016 - NW2100

Profile picture: Majola, Mr TR

Majola, Mr TR to ask the Minister of Public Enterprises

What amount did (a) her department and (b) each entity reporting to her spend on advertising on the (i) Africa News Network 7 channel, (ii) SA Broadcasting Corporation (aa) television channels and (bb) radio stations, (iii) national commercial radio stations and (iv) community (aa) television and (bb) radio stations (aaa) in the 2015-16 financial year and (bbb) since 1 April 2016?

Reply:

(a)

DPE

spend

period

 (i) ANN7

Nil

 

 (ii) SABC

(aa)

(bb) Ukhozi FM

Nil

R174 676.50

(aaa)

(bbb)

 (iii) National commercial radio stations

Ukhozi FM

R174 676.50

(bbb)

 (iv) Community

(aa) Cape TV

B (bb) Radio Teemaneng

Capricorn FM

Nongoma FM

Nkomazi FM

Radio KC

Radio NFM

Barberton CR

Radio Riverside

R91 200

R11 750

R120 270

R35 416.65

R22 500

R15 700

R28 462

R25 000

R34 200

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

 

(b)

SAX

Spend

Period

 (i) ANN7

SA Express did not pay for advertising on the channel

(aaa) & (bbb

 (ii) SABC

(aa)

(bb) Motsweding FM

SAfm

RSG

SA Express did not advertise on SABC television channels

R208 980

R15 255

R92430

(aaa)

Current financial year

Current financial year

(iii) National commercial radio stations

North West FM

702

R118 260

R124 814

(aaa)

Current Financial year

Transnet

Spend

Period

 (i) ANN7

Nil

(aaa) and (bbb)

 (ii) SABC

(aa)

(bb)

Nil

R384 082.42

R1 951 130

(aaa) and (bbb)

(aaa)

(bbb)

 (iii) National commercial radio stations

Nil

R469 440

(aaa)

(bbb)

 (iV0 Community

(aa)

(bb)

Nil

R111 937.44

Nil

(aaa)-(bbb)

(aaa)

(bbb)

Eskom

Spend

Period

 (i) ANN7

Nil

 

 (ii) SABC

(aa)

(bb)

R16 million

R8 million

R2.4 million

R5.5 million

(aaa)

(bbb)

(bbb)

(aaa)

 (iii) National commercial radio stations

R9.8 million

R6.24 million

(aaa)

(bbb)

 (iv) Community

(aa)

R3.5 million

R1.1 million

(aaa)

(bbb)

Alexkor

Spend

Period

  1. ANN7

Nil

 
  1. (aa)

(bb)

Nil

Nil

 

 (i) National commercial radio stations

Nil

 

 (ii) Community

(aa)

(bb)

Nil

Nil

Nil

(aaa)

(bbb)

Denel

Spend

Period

 (i) ANN7

Nil

 

 (ii) Sabc

(aa)

(bb)

Nil

R363 327.35

 

 (iii) National commercial radio stations

R363 327.35

 

 (iv) Community

(aa)

(bb)

Nil

R140 520

R74 646.96

(aaa)

(bbb)

Safcol

Spend

Period

 (i) ANN7

Nil

 

 (ii) Sabc

(aa)

(bb)

Nil

Nil

 

 (iii) National commercial radio stations

Nil

 

 (iv) Community

(aa)

(bb)

Nil

Nil

(aaa)

(bbb)

06 June 2016 - NW1520

Profile picture: Bergman, Mr D

Bergman, Mr D to ask the Minister of Public Enterprises

(1) Whether her department was approached by any political party for any form of funding (a) in the (i) 2013-14, (ii) 2014-15 and (iii) 2015-16 financial years and (b) since 1 April 2016; if so, what are the relevant details in each case; (2) Whether her department provided any form of funding to any political party (a) in the (I) 2013-14, (ii) 2014-15 and (iii) 2015-16 financial years and (b) since 1 April 2016; if not, what is the position in this regard; if so, what are the relevant details in each case?

Reply:

1. (a) (i) 2013-14 None

(ii) 2014-15 None

(iii) 2015-16 None

(b) The Department of Public Enterprises has never been approached by
any political party for any form of funding.

2. (a) (i) 2013-14: None

(ii) 2014-15: None

(iii) 2015-16: None

(b) The position of Department of Public Enterprises with regards to political
party funding is aligned to the National Treasury prescripts which
prohibits the funding of political parties from the fiscus.

 

06 June 2016 - NW1555

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Public Enterprises

(a) What amount did (i) her department and (ii) each entity reporting to her spend on advertising in the 2015-16 financial year and (b) how much has (i) her department and (ii) each entity reporting to her budgeted for advertising in the 2016-17 financial year?

Reply:

 

(a)

(i)

DPE

R 2 326 000.00

   

(ii)

Alexkor

R 545 825.40

     

Denel

R 1 660 410.65

     

Eskom

R 54 016 282.81

     

SAFCOL

R 172 873.00

     

SAX

R 1 159 118.00

     

Transnet

R 47 991 571.86

         
 

(b)

(i)

DPE

R 2 379 000.00

   

(ii)

Alexkor

R 115 000.00

     

Denel

R 3 000 000.00

     

Eskom

R 67 000 000.00

     

SAFCOL

R 3 500 000.00

     

SAX

R 4 800 00000

     

Transnet

R 43 333 820.82

 

06 June 2016 - NW1486

Profile picture: Maimane, Mr MA

Maimane, Mr MA to ask the Minister of Public Enterprises

With reference to her reply to question 942 on 6 May 2016 and in pursuance of her constitutional obligation as outlined by section 92 of the Constitution of the Republic of South Africa, 1996, which states that members of the Cabinet are accountable collectively and individually to Parliament for the performance of their functions, has (a) she and/or (b) her Deputy Minister ever (i) met with any (aa) member, (bb) employee and/or (cc) close associate of the Gupta family and/or (ii) attended any meeting with the specified persons (aa) at the Gupta’s Saxonwold Estate in Johannesburg or (bb) anywhere else since taking office; if not, what is the position in this regard; if so, in each specified case, (aaa) what are the names of the persons who were present at each meeting, (bbb)(aaaa) when and (bbbb) where did each such meeting take place and (ccc) what was the purpose of each specified meeting?

Reply:

The duties of Ministers and Deputy Ministers are outlined in the Ministerial Handbook.

25 May 2016 - NW1461

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)    Whether Mr S.Shane was appointed as a director and chairperson of Transnet’s Board of Directors; if so, (a) why was he appointed to the specified positions, (b) what are the qualifications that make the specified person suitable for apppointment to the specified positions, (c) what process was followed for appointing the specified person to the specified positions and (d) whether the specified person’s connection to the Gupta family played any part in the appointment; (2) Whether the specified person is a trustee and chairperson of the board of trustees of the Transnet Pension Fund and the Transnet Second Defined Benefit Fund; if so, (a) why was the specified person appointed to the specified positions, (b) what are the qualifications that make the specified person suitable for appointment to the specified positions, (c) what process was followed in appointing the specified person to the specified positions and (d) whether the specified person’s connection with the Gupta family played any part in the appointment?

Reply:

(1). Mr Stanley David Shane was appointed to the Transnet Board on 14 December 2014 as a Non-Executive Director, on a three year term, subject to annual review. Mr Shane is not appointed as Chairperson of the Board, nor has he acted in the position to date. In terms of Board Committee membership, Mr Shane serves as member and Chairperson of the Board’s Acquisition and Disposal’s Committee, and member of the Remuneration, Social and Ethics Committee.

(a) Mr Shane possesses financial and economic competencies and business acumen.

(b) Mr Shane holds a B.Com degree (Finance) from the University of Witwatersrand obtained in 1993, completed the Regulatory Examinations at the Financial Services Board in 2012 and has been a Member of the South African Institute of Stockbrokers since 1996. He has extensive experience in Investment Banking, capital raising, insurance and structuring.

(c) The appointment of Board members is regulated by the Memorandum of Incorporation (MOI) of each State Owned Company and is the purview of the Shareholder Representative, after consultation with Cabinet. The Department is guided by a board appointment methodology which sets out the process of sourcing potential candidates for the appointment to Boards. Persons are found to be suitable by virtue of their qualifications, expertise, skills and experience.

(d) It is not known what connection Mr Shane has to the Gupta family, nor was this the reason for his appointment to the Transnet Board.

(2) Yes, he is a Trustee and the Chairperson of the Boards of Trustees of the Transnet Second Defined Benefit Fund and Transport Pension Fund.

(a) His academic qualifications and experience in economics and investment banking made him suitable for appointment.

(b) See 2(a) above.

(c) He was appointed by the Board of Transnet which is normal practice when Employer Trustees are appointed to these two Funds.

(d) The appointment is based on academic qualifications, experience and ability.

 

25 May 2016 - NW1342

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1) (a) How many residents are receiving electricity from Eskom in each suburb of Soweto, Gauteng, and (b) how many of these residents are paying for the services rendered by Eskom; (2) whether there are any plans to waive debts owed by residents of Soweto to Eskom for services rendered; if not, what is the position in this regard; if so, what are the relevant details; (3) whether any agreements have been signed with the City of Johannesburg to take over the supply of electricity to Soweto through City Power; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

(1)(a) 180 000 customers receive electricity from Eskom in Soweto, however, this translates into more residents which Eskom is not in a position to quantify (as more people reside in a given home). Eskom keeps customer data per customer category and network, and it would take a while for this to be provided per suburb.

(b) Of the 180 000 customers, our current payment levels are at 48% average for the current financial year to date, compared to an average of 40% in the previous financial year. Eskom has replaced 40 000 old meters of which 18 000 customers are on prepaid already and buying electricity and the balance is being converted to prepaid daily. The programme of installing the meters is continuing and plans are to convert all customers to prepaid within five years.

(2) Yes, Eskom has an incentive programme in place where customers converted to prepaid meters are monitored over a period of three years to establish if the behaviour of buying electricity becomes entrenched. Writing off the historical debt is considered if good behaviour is sustained during the monitoring period. Each customer is dealt with on an individual basis.

(3) No. There are no agreements in place for the City of JHB to take over Eskom Soweto supply areas. Eskom works very closely with the Municipality to address the issue of non-payment and the rolling out of the prepaid meters. Engagements with the community are conducted with the support of the leadership of the Municipality and alignment on issues such as dealing with the poor and debt issues are continuously discussed and agreed upon.

 

20 May 2016 - NW1259

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(1)     Whether, with reference to the unveiling of a new arms factory in the Kingdom of Saudi Arabia on 27 March 2016 in partnership with South Africa, (a) the National Treasury and/or (b) Parliament were advised of the new arms merger between Denel SOC Ltd and the Saudi Military Industries Corporation; if not, why not, in each case; if so, on which dates in each case; (2) whether (a) she and/or (b) Denel SOC Ltd (i) notified and/or (ii) consulted the SA National Defence Force for recommendations prior to the specified merger; if not, why not; if so, what are the relevant details; (3) (a) which countries will use the armaments produced by the specified factory, (b) how much money was put forward by South Africa towards this merger and (c) what is the estimated financial return that this merger will generate?

Reply:

 

1. (a)(b) No merger or any kind of joint venture has been formed between Denel SOC Ltd, its subsidiaries or associated companies and the Military Industries Corporation (MIC) in relation to the new arms factory in the Kingdom of Saudi Arabia. However, Rheinmetall Denel Munition (Pty) Ltd, an associate of Denel, has designed and built the plant on a turnkey solution basis, as part of the supplier customer transaction arrangement. Therefore, there was no need to either inform or seek approval from Government or Parliament.

   
 

2. (a)(b)(i)(ii) As indicated above in (1)(a) and (b), there was no requirement to notify or consult the SANDF.

 
 

3 (a) Denel is not privy to the information.

 

    (b) No funds from South Africa were put into the project.

 

    (c) See (1) and (2) above.

20 May 2016 - NW1458

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Public Enterprises

(a) How many (i) Chief Executive Officers and (ii) Chief Financial Officers has the SA Airways (SAA) had since 1 January 2005, (b) who are the persons in each case, (c) what is the date on which each specified person (i) assumed duty and (ii) left duty, (d) what is/are the reason/reasons that each specified person left the service of the SAA, (e) (i) which persons did not complete their periods of service and (ii) what was/were the reason/reasons in this regard, (f) what was the remuneration package of each specified person, (g) what remuneration did each specified person receive upon leaving each post and (h) what was the reason that each specified person received the specified remuneration?

Reply:

SAA currently reports to National Treasury. The Honorable Member is advised to direct his question to the Minister Finance.

 

20 May 2016 - NW1203

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)     (a) On what grounds was the contract of employment of a suspended Chief Executive Officer (Mr Riaz Saloojee) terminated on or around 14 April 2016 and (b) what are the further relevant details in this regard; (2) whether any investigation into the specified person’s suspension was conducted; if not, why not; if so, what are the detailed outcomes of the specified investigation?

Reply:

(1) (a) The contract of employment of the Chief Executive Officer was due to terminate on 31 January 2017. The Board decided to bring forward the termination date and pay out the balance of the contract. The decision was precipitated by the fact that the relationship between the Board and CEO was irreconcilable and had irretrievably broken down.

(b) None

(2) Yes, there was an investigation. I am not in a position to share the results of the investigation as there are disciplinary hearings involving other employees unfolding and at this stage there is a likelihood of further legal action.

19 May 2016 - NW1085

Profile picture: Rawula, Mr T

Rawula, Mr T to ask the Minister of Public Enterprises

(a) Has any of her senior officials met with certain persons (Atul Gupta, Ajay Gupta, Rajesh Gupta and Duduzane Zuma) during the period 1 January 2009 up to 31 December 2015 and (b) Has any of the entities reporting to her awarded any contracts to Sahara Holdings, Comair, Oakbay Investmnets, Islandsite Investments, Afripalm Horizons Stakes, The New Age Media, JIC Mining Services and Vusiwe Media in the specified period; if so, what (i) are the relevant details and (ii) is the amount of each specified contract?

Reply:

(a) Since my appointment to date as the Minister of Public Enterprises by the President, I have not officially tasked, directed or instructed directly or indirectly any of the officials in the Department of Public Enterprises to meet with any of the individuals mentioned in the question.

(b) The awarding of contracts between our State Owned Companies (SOCs) and different companies, the nature of these contracts, and the contractual relationships between SOCs and different companies are commercially sensitive.

 

11 May 2016 - NW1204

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)  What amount is the subcontract for cutting steel for 238 Badger vehicles awarded by Denel to a certain company (VR Lazer) worth; 2) did she approve the subcontract; if not, (a) why not and (b) who approved the subcontract; if so, why was it approved?

Reply:

(1) The orders placed on VR Laser as of 29 April 2016 on the Badger vehicle programme amount to R236 646 034.

(2) I do not approve sub-contracts

 (a) Awarding of contracts is a business operational matter within the mandate of Management and the Board of Directors, depending on Delegations of Authority.

(b) Management awarded the contract in line with Denel’s procurement prescripts. The contract was awarded to VR Lazer as it presented the best value proposition to Denel for the services required.

 

10 May 2016 - NW1144

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)Which are the other companies, apart from a certain company (Regiments), that participated in the tender process for making investments on behalf of the Transnet Second Defined Benefit Fund and the Transport Pension Fund; (2) What was the motivation for appointing the specified company; (3) What are the specified company’s relevant background and achievement that make the company the most suitable entity for making investments on behalf of the specified pension funds?

Reply:

  1. The companies that participated in the tender process were Regiments, Old Mutual and Colourfields.
  2. The Board of Trustees appointed Regiments based on the outcome of the technical evaluation process during the tender process.
  3. The company’s background and achievements were evaluated and scored during the tender process conducted by a technical task team consisting of the Chairperson of the Board of Trustees, Principal Officer, Trustee, Actuary, Investment Consultant and a Transnet Representative.
  4. The appointment of the specified company was based, inter alia, on the fact that they are well established as a financial company managing this specific type of liability-driven mandate and the team executing the mandate are all experts in their field. In addition, during the due diligence process carried out by the technical team, their risk management structure and practices were found to be compliant with industry standards.

 

10 May 2016 - NW1156

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(a)When the changes in the 2%- rule, which limit the annual pension fund increases of the Transport Pension Fund and the Transnet Second Defined Benefit Fund to 2%, will be approved by her and the Minister of Finance, (b) what steps need to be taken in order to implement the changes and (c) what is the nature of the changes in the rule?

Reply:

(a) The matter is still in progress and engagements in respect of the proposed rule amendments are currently underway. The process will be finalised as soon as consultation between the relevant parties have been completed.

(b) Once the issues surrounding the proposed amendments have been resolved and the rule amendments are approved by me, with the concurrence of the Minister of Finance, they can be immediately implemented by the Transport Pension Fund: Transnet Sub Fund and the Transnet Second Defined Benefit Fund in line with their governance processes.

(c) In terms of the proposed amendment to the Special Rules of the Transport Pension Fund: Transnet Sub Fund and the Rules of the Transnet Second Defined Benefit Fund provision will be made for the granting of additional pension increases (over and above the statutory 2%) from time to time, subject to affordability, certification by the relevant Fund’s actuary and approval by the Employer.

 

10 May 2016 - NW1157

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) (a)How many trustees of the Transport Pension Fund and the Transnet Second Defined Benefit Fund respectively are required to be present in order to form a quorum and (b) whether a requirement exists that any of the elected pensioner-trustees also need to be present in order to constitute a quorum; if so, (2) whether (a) a decision was taken recently by the board not to pay a bonus to pensioners in April and (b) any of the elected pensioner-trustees was present at the meeting where the specified decision was taken; if not, (i) why decisions can be taken when the elected pensioner-trustees are not present and (ii) how this agrees with the principles of transparency, representivity and democracy in the two specified pension funds; (3) (a) what is the reason for the decision not to pay bonuses in April and (b) when will the bonuses actually be paid; (4) (a) what are the names of such pensioner-trustees and (b) did each of the persons vote in favour of or against the decision; (5) with reference to her reply to question 732 on 11 April 2016, what is the official current surplus in each fund

Reply:

1. (a) The Rules of the Transport Pension Fund and the Transnet Second Defined Benefit Fund provide that the majority of the Trustees be present to form a quorum.

(1) (b) There is no further requirement for the constitution of a quorum other than the majority of Trustees be present.

2. (a) No decision was taken not to pay a bonus in April. A proposal was prepared for approval by the Boards of Trustees, however, the pensioner trustees did not approve the resolution and queried the proposed bonus. This required additional calculations and reports to be prepared by the actuary, as well as a further resolution for approval, which delayed the submission of a proposed bonus for approval to the Transnet Board of Directors.

(b) As no such decision was taken, the question is not applicable.

(3) (a) As no such decision was taken, the question is not applicable.

(b) The ad hoc bonuses proposed by the Board of Trustees of the Transport Pension Fund: Transnet Sub Fund and the Transnet Second Defined Benefit Fund may be paid after the necessary governance process has concluded, with the final approval by the Transnet Board of Directors.

(4) (a) As no such decision was taken, the question is not applicable.

(b) As no such decision was taken, the question is not applicable.

(5) The Transport Pension Fund surplus per the latest actuarial valuation report as at 31 March 2015 was R3 644 million. The Transnet Second Defined Benefit Fund surplus per the latest actuarial valuation report as at 31 March 2015 was R3 145 million.

 

10 May 2016 - NW1202

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)What is the total cost of maintenance backlog accumulated at the (a) Medupi and (b) Kusile power stations since construction started at the specified stations; (2) what is the line item breakdown of cost overruns incurred at the (a) Medupi and (b) Kusile power stations (i) including capitalised interest, (ii) excluding interest and (iii) only construction overruns? NW1342E

Reply:

(1)(a) Medupi power station units 1-5 are not yet in operation, therefore there is no cost of accumulated maintenance backlog. Unit 6 is in operation and there is no maintenance backlog.

(1)(b) Kusile power station is not yet in operation, therefore there is no cost of accumulated maintenance backlog.

(2)(a)(i) & (ii) Medupi Power Station Project cost make up is R 134.20 billion including capitalised interest. The key cost components are: Total Value of Packages, Owner’s Development Cost, Escalation, Cost of Cover, Contingencies and Rate of Exchange Adjustment as indicated below:

Cost to completion component

R’billion

Total value of construction packages

74.15

Owners Development Cost (ODC)

11.19

Escalation

12.69

Cost of Cover

3.97

Contingencies

3.00

Total project cost (excluding interest during construction)

105.00

Interest during construction

29.20

Total project cost (including interest during construction)

134.20

(2)(a)(iii) Medupi Construction cost escalations are currently going through the Eskom governance process.

(2)(b)(i) & (ii) Kusile Power Station Project cost make up is R 167.20 billion including capitalised interest. The key cost components are: Total Value of Packages, Owner’s Development Cost, Escalation, Cost of Cover, Contingencies and Rate of Exchange Adjustment as indicated below:

Cost to completion component

R’billion

Total value of construction packages

66.9

Owners Development Cost (ODC)

12.9

Escalation

22.7

Cost of Cover

5.6

Contingencies

10.4

Total project cost (excluding interest during construction)

118.5

Interest during construction

48.7

Total project cost (including interest during construction)

167.2

(2)(b)(iii) Kusile construction cost escalations are currently going through the Eskom governance process.

10 May 2016 - NW1220

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

(1)Whether the catering contracts (R1.4 billion accrodng to media reports) that were awarded by Eskom to Lephalale Site Services and RoyalMnandi Duduza to ensure that Medupi and Kusile workers were adequately fed are still in place; (2) what is the total number of employees that the specified contracts feed; (3) when will the specified contracts terminate; (4) what is the current total costs of these contracts to Eskom?

Reply:

1. Yes

2. Note that these numbers vary on a daily basis depending on contract mobilization or demobilization:

  • Medupi: 6 995 employees
  • Kusile: 12 951 employees

3. Medupi: 31 January 2017

Kusile: 30 September 2018

4. Medupi R221 046 709.94 excluding VAT (Contract concluded value)

R109 569 792.75 excluding VAT (Contract value spent to date)

Kusile R639 193 482.00 excluding VAT (Contract concluded value) R354 822 598.00 excluding VAT (Contract value spent to date)

 

Ms. Lynne Brown, MP

Minister of Public Enterprises

Date:

10 May 2016 - NW1298

Profile picture: Redelinghuys, Mr MH

Redelinghuys, Mr MH to ask the Minister of Public Enterprises

Whether a certain person (name furnished) (a) was and/or (b) still is on the SA Airways no-fly list; if so, what are the relevant details?

Reply:

As the Honorable Member is aware, SAA currently reports to National Treasury. The Honorable Member is thus advised to redirect his question to the Minister Finance.

 

06 May 2016 - NW942

Profile picture: Cassim, Mr Y

Cassim, Mr Y to ask the Minister of Public Enterprises

Has (a) she and/or (b) her Deputy Minister ever (i) met with any (aa) member, (bb) employee and/or (cc) close associate of the Gupta family and/or (ii) attended any meeting with the specified persons (aa) at the Gupta’s Saxonwold Estate in Johannesburg or (bb) anywhere else since taking office; if not, what is the position in this regard; if so, in each specified case, (aaa) what are the names of the persons who were present at each meeting, (bbb)(aaaa) when and (bbbb) where did each such meeting take place and (ccc) what was the purpose of each specified meeting?

Reply:

(a)(b) (i)(aa)(bb)(cc)(ii)aa)(bb)(aaa)(bbb)(ccc) The duties of Ministers and Deputy Ministers are outlined in the Ministerial Handbook.

06 May 2016 - NW910

Profile picture: Rawula, Mr T

Rawula, Mr T to ask the Minister of Public Enterprises

(1)     Has she earned any additional income from businesses, in particular businesses doing work for the Government, since her appointment as Minister; if so, (a) when, (b) how much did she earn, (c) from which businesses and (d) for what work; (2) Whether her (a) spouse, (b) children and (c) close family earned income from businesses, in particular businesses doing work for the Government, through her appointment as Minister; if so, in respect of each case, (i) when, (ii) how much did each earn, (iii) from which businesses and (iv) for what work? NW1036E

Reply:

  1. (a)(b)(c)(d) The Member is referred to the Parliamentary process where Members annually declare their interests.
  2. (a)(b)(c) (i)(ii)(iii)(iv) The lives of family members of the Executive are not regulated by the Ministerial Handbook or any act of Parliament.

04 May 2016 - NW867

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) Whether Eskom previously (a) purchased software from or (b) licensed software with Microsoft; if so, (i) what was the purpose of the purchasing of the software, (ii) whether it was taken into use, (iii) when it was taken into use, (iv) whether it is still being used and (v) what are the further relevant particulars; (2)(a) which purchase process was used for the previous software and (b) whether this complied with all the legal requirements; if so, what are the further relevant particulars?

Reply:

(1) (a) Eskom purchased software from Microsoft through a contract which followed Eskom’s commercial process.

(b) Yes, all purchased software is licensed.

(b) (i) The purpose of purchasing Microsoft software was based on the following factors:

  • To meet Eskom business requirements
  • Mitigate desktop risk on Office and Operating Systems.
  • To implement a best of suite strategy to lower the operational cost in terms of license expense
  • Support resource cost across Desktop, Messaging, Security
  • Ensure the Management and Windows Server Towers.

(b) (ii) Yes, the software is being used by the entire Organisation.

(b) (iii) A contract was entered into between Eskom and Microsoft in July 2010 prior to this Eskom purchased products including Microsoft software from third party suppliers.

(b) (iv) Yes, Eskom only maintains Microsoft Software that is in current use.

(b) (v) Eskom’s current contract with Microsoft is due to expire on 29 May 2016. A commercial process is currently underway for the renewal of the support and maintenance of the current contract. It must be noted that the bulk of this renewal is to maintain the current investment and ensure adequate maintenance and support.

(2) (a) Eskom’s commercial process which forms part of Eskom’s Procurement and Supply Chain Management Policy and Procedure was followed. The commercial process that was followed is in alignment with Eskom’s Procurement and Supply Chain Management Policy and Procedure and Public Finance Management Act.

(b) Yes, Eskom’s process followed regarding the Microsoft transaction satisfied all prescribed legal requirements. The details are that the commercial process which is provided for in Eskom’s supply chain policies is aligned to the Public Finance Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA).

04 May 2016 - NW1039

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)With reference to her reply to question 855 on 13 April 2015, does the SA Broadcasting Corporation (SABC) choir still exist; if so, (a) is it paid for by the SABC and (b) how much was budgeted for the specified choir in the (i) 2015-16 and (ii) 2016-17 financial years; (2) does the choir still sing songs about the SABC Chief Operations Officer, Mr Hlaudi Motsoeneng, during staff meetings if not, what is the position in this regard; if so, what are the words of the songs that the choir sings?

Reply:

I have not responded to question 855 on 13 April 2015 as no such question was not posed to me as it does not fall within the scope of the Department of Public Enterprises.

04 May 2016 - NW1037

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

With reference to the impending grain imports as a result of the current drought in the country, and assurances by her department given in the Portfolio Committee on Public Enterprises that all ports were ready to receive the grain imports, (a) what is (i) her department and (ii) Transnet doing to ensure that each port is ready for the massive expected influx of grain imports, (b) how many ships carrying grain are expected to dock at each of the ports, (c) which ports will be used and (d) what is the capacity of each port to accommodate the (i) ships and (ii) grain.

Reply:

(1) (a) Transnet has formed a working group represented by Transnet National Ports Authority (“TNPA”), Transnet Port Terminals (“TPT”) and Transnet Freight Rail (“TFR”) in ensuring that any challenges that may ensue are addressed by all affected operating divisions to ensure an efficient, effective and consistent safe operation. The import programme is coordinated by Grain South Africa’s Logistics and Planning Committee (SACOTA) and comprises of representatives from all the ports, railways, traders, silo owners and millers.

(b) The total number will be driven by the commercial agreements between the shippping lines and the cargo owners. In terms of berth availability, vessels will be allocated berths according to vessels length, parcel size, draft, method of handling and safety considerations.

(c) The ports that have the capacity to handle grain are listed as follows :

  • Port of Durban,
  • Port of Cape Town,
  • Port of East London, and
  • Port of Port Elizabeth

(d) (i) Ships

PORTS

AVAILABLE BERTHS

East London

2 Berths (T & S berth)

Port Elizabeth

4 Berths (Berth 8,9,10,11)

Cape Town

3 Berths (Multi-Purpose Terminal)

 

3 Berths (Fruit Purpose Terminal

Durban

3 Berths (Island View, Maydon Wharf, Maydon Wharf)

(ii) Grain

PORTS

CAPACITY (tons)

East London

1,344,000

Port Elizabeth

1,344,000

Cape Town

2,016,000

Durban (Agriport, SABT)

2,016,000

 

3,360,000

 

2,016,000

 

11 April 2016 - NW732

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) Why has the Transnet Second Defined Benefit Fund (TSDBF) and the Transport Pension Fund only paid out a bonus of 8.33% in December 2015 while the fund, in particular the TSDBF, had a surplus of R3,9 billion and actuaries indicated that a 10% bonus was affordable; (2) Why has the next bonus, which is payable in the middle of 2016, been limited to 8.33% despite the affordability of a 10% bonus; (3) Whether a certain investment firm (name furnished) currently has any links with the specified pension funds; if so, what is (a) the nature, (b) the extent thereof and (c) reason was the specified firm appointed?

Reply:

1. The surplus is based on an actuarial valuation of a guaranteed statutory increase of 2% per annum, as the bonuses are not guaranteed.

While the actuary had indicated that a 10% bonus was affordable the actuarial surplus would reduce to a very insignificant amount or to nil should a CPI linked pension increase (in addition to the statutory increase of 2% per annum) be implemented in future together with a 13th cheque. To improve the affordability of implementing such an increase policy, the Board of Trustees resolved to pay a 13th cheque (8.33%) as per the practice of the Board of Trustees since 2010.

2. The Board of Trustees has not taken a resolution proposing payment of a further bonus in 2016.

3. (a) The firm was appointed by the Board of Trustees to implement a Liability

Driven Investment mandate with the objective to enhance investment returns;

(b) An amount of R 9 billion was allocated by the Board of Trustees; and

(c) The firm was appointed by the Board of Trustees based on the outcome of a

tender process.

 

11 April 2016 - NW860

Profile picture: Dlamini, Ms L

Dlamini, Ms L to ask the Minister of Public Enterprises

(1)What incentives have Eskom and her department put in place to encourage legal use of electricity and discourage electricity theft beside the threats to criminalise illegal use; (2) what (a) amount is Eskom losing in revenue as a result of electricity theft (b) is the breakdown of the amount in each province?

Reply:

(1) There are no incentives provided to encourage the legal use of electricity. Eskom makes use of the Operation Khanyisa Campaign to inform and educate customers about how to better manage electricity usage.

(2)(a) We assume all non-technical energy loss to be attributed to theft. Non-technical losses in Eskom amounted to R4.7bn for 2014/15 FY.

(b) The amount stated in (2)(a) above represents the collective loss across all provinces. Eskom estimates non-technical losses at a national level, a breakdown per province therefore not available.

11 April 2016 - NW847

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises

(1) With reference to the deal between Eskom and Optimum Colliery to supply coal to the Hendrina Power Station, (a) what grade of coal (i) was contracted for, (ii) was actually received by Eskom at the specified power station prior to the fine imposed against the specified colliery by the specified entity, and (iii) is currently being received by Eskom at the specified power station and (b) at what (i) price or (ii) prices;(2) why was the coal received from the specified colliery unsuitable for use by the specified power station prior to the imposition of the fine; (3) is the coal currently received from the specified colliery suitable for use by the specified power station; (4)did the use of unsuitable coal supplied by the specified colliery cause any damage to the specified power station; if so, (a) what damage was done, (b) what was the value of the damage caused to the specified power station and (c) has this damage been repaired; (5) is the poor quality coal still causing damage to the specified power station; if not, (a) was the grade of coal changed or (b) was the specified power station adapted to use a different grade of coal; if so, why is the specified power station still using this coal?

Reply:

(1)(a)(i) In terms of the Coal Supply Agreement, Optimum Coal Mine (Proprietary) Limited ("Optimum") was obliged to supply and deliver to the Hendrina power station coal which complies with, amongst others, the following quality specification:

  • All coal must have an ash content which shall not exceed 28.8% in order to ensure that the calorific value of the coal is not less than 23.0MJ/kg (calculated on a moisture free basis);
  • a monthly average size distribution of:
  • not more than 55% of coal supplied will be smaller than 6mm;
  • not more than 35% of coal supplied will be smaller than 2.38mm; and
  • not more than 15% of coal supplied will be smaller than 0.81mm.
  • The Second Addendum amended the quality parameters in respect of the Abrasiveness Index (pursuant to an arbitration with Optimum) to be <423 mgFe on a 7 day weighted rolling average basis.

(ii) The coal that was received by Eskom was within contractual specifications with regard to the Calorific Value but out of specification in respect of Abrasive Index and Sizing.

(iii) The coal currently being received by Eskom meets the contractual specifications with regard to the Calorific Value except for Abrasive Index.

(b) The price of coal paid by Eskom is R174.41/ton as at February 2016.

(2) The coal supplied by Optimum Coal prior to the imposition of the fine was outside the quality specification for Hendrina Power Station in terms of Abrasive Index and Sizing. For the 1 March 2012 to 31 May 2015, Optimum Coal, failed to supply and deliver to Eskom coal which meets the quality parameter as set out in the Coal Supply Agreement. The coal supplied and delivered to Eskom, amongst others, failed to comply with the sizing specification, in that 20% to 45% of the coal supplied and delivered to Eskom by Optimum on a monthly basis, during the period of supply was smaller than 0.81mm. Despite this failure by Optimum, Eskom has, without prejudice to its right in terms of clause 3.6 of the First Addendum, paid Optimum for such coal, without applying any adjustment or reduction to the payment, for Optimum's failure to comply with the quality parameters.

(3) The coal currently received by Hendrina Power Station is within the contractual specifications in respect of Calorific Value except for the Abrasive Index and the Sizing. Since Optimum is currently under business rescue, the parties have in terms of the interim agreement agreed to suspend the application of penalties until the business rescue process is finalised. Of critical importance to note is that Eskom has issued Summons against Optimum for failing to supply coal that meets the quality specification of the station. Optimum has since disputed the penalties. Once the business rescue process has been finalised, the legal proceedings will continue to run its course.

(4) High Abrasive Index causes high wear rate of the plant and sizing affects the material flow frequency causing hang-ups which results in load losses. The wear rate causes accelerated wear of parts. This negatively affects the energy output from the station thus the total energy capacity available for dispatch into the grid. In order to compensate Eskom for the capacity loss occasioned as a result of these quality parameters being out of specification, penalty provisions in terms of the contract apply.

(5) (a) Since Optimum is currently under business rescue, the parties have in terms of the interim agreement agreed to suspend the application of penalties until the business rescue process is finalized.

(b) No. Not applicable.

 

11 April 2016 - NW846

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises

(1)With reference to the deal between Eskom and Exxaro-owned Arnot Colliery to supply coal to the Arnot Power Station, (a) what grade of coal was (i) contracted for and (ii) actually received by Eskom, (b) at what price, and (c) why was the contract cancelled; (2)with reference to the current deal between Eskom and Optimum Colliery to supply coal to the specified power station, (a) what grade of coal (i) was contracted for and (ii) is actually being received by Eskom, (b) at what price and (c) why is it suitable for use by Arnot Power Station?

Reply:

(1)(a)(i)

  • Calorific value (moisture free): 24,3 Mj/kg (base value) and between 23,3 and 25,4 Mj/kg
  • Total moisture: 7,0 – 9,0% (range) and between 7,0 and 9,0%
  • Ash content (moisture free): 23,0% (base value) and between 17,0 and 31,0%
  • Volatile content (moisture free): 24,0% (base value) and between 21,0 and 29,0%
  • Abrasiveness index: 375 mg Fe (base value) and between 325 and 425 mg Fe

(ii) The coal received by Eskom was within the contractual specifications range as per (i) above.

(b) The price of coal paid by Eskom at the expiry of the Agreement was R944.61/ton.

(c) The contract was not cancelled but expired on 31 December 2015.

(2)(a)(i) The coal contracted for Arnot Power Station is a better quality specification compared to the Arnot expired contract and is as follows:

Quality parameter

Unit

Quality Expected

Quality Specifications

Quality Rejection Limit

Measurement basis

Calorific Value

MJ/kg

24.0

≥22.5

<22.5

Air Dried

Total Moisture

%

8

≤9.0

>9.0

As Received

Inherent Moisture

%

4.1

 

 

As Received

Ash

%

20.2

≤24.3

>24.3

Air Dried

Abrasive Index (Eskom Mining House Method)

mgFe/4kg

<450

<450

>450

Air Dried

Sulphur

%

1.19

≤1.19

>1.19

Air Dried

Volatiles

%

21.7

≥19.5

<19.5

Air Dried

AFT (Initial deformation)

ºC

1380

>1380

<1380

N / A

Sizing: (cumulatve) %

     

 

N / A

 

+60mm

0

0

>0

 
 

+50mm

-6.35mm

5

50

5

50

>5

>50

 
 

-3.35mm

30

30

>30

 
 

-1mm

15

15

>15

 

(ii) The coal received by Eskom is within the contractual specifications as per (i) above.

(b) The contractual price is R470/ton to Arnot Power Station.

(c) The coal is suitable for Arnot Power Station as it meets the quality specification for the station.

11 April 2016 - NW753

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Public Enterprises

(1) With reference to the cancelled contract with Airbus in respect of eight A400M military transport aircraft, the fact that Airbus agreed to refund the sum of €835 million to the Armaments Corporation of South Africa (ARMSCOR), and that an indemnity was subsequently provided to Denel by the Government – (a) why was an indemnity provided to Denel? (b) what were Denel’s obligations to – (aa) Airbus; (bb) ARMSCOR and (cc) the Government in respect of the specified contract. (2) (a) how many more such claims are outstanding from Denel; and (b) what – (i) are the details of each one of the eleven claims made to date by Denel in terms of the indemnity; and (ii) amount was paid to Denel in respect of each claim; (3) has oversight taken place in respect of each of the eleven claims submitted by Denel; if not, why not; if so, in respect of each claim – (a) (i) when; and (ii) where did such oversight take place, (b) who conducted such oversight; and (c) has such oversight resulted in a reduction of the relevant claim. (4) what is the breakdown of the current R63,1 million claim made by Denel? NW871E

Reply:

 

 

(1)

(a)

  • Denel SAAB Aerostructures (“DSA”) was a joint venture formed out of an equity partnership between SAAB and Denel Aerostructures (“DAe”) in January 2007.
  • Prior to the formation of the partnership, DAe entered into two off-set contracts following the eight (8) A400m aircraft order by ARMSCOR. The offset packages with Airbus were to supply airframe structures namely, the Wing-to-Fuselage Fairing (“WFF”) and the Top Shells (“TS”) for the A400M military aircraft.
  • As a result of the exposures with regard to these contracts, a condition precedent to the joint venture was that the Government indemnifies DSA in order to de risk the contracts. The indemnity is for a maximum amount of R1.6 billion (ONE POINT SIX BILLION RANDS) over a fifteen year period. The Indemnity Agreement was concluded on 21 May 2007.
   

(b)

(aa)

As a program partner on the A400M, Denel has the obligation of the design, development, manufacture, and sole supply of the WFF and TS structures.

     

(bb)

Denel has no obligation to ARMSCOR. DAe is directly contracted by Airbus to deliver the WFF and TS structures to their assembly lines.

     

(cc)

As contracted through the Indemnity Agreement, Denel submits a claim to the Department on an annual basis, supported by an audited financial report, fully governed risk mitigation plan and a program report.

 

(2)

(a)

From the R1.6 billion (ONE POINT SIX BILLION RANDS) indemnity cover, there is a balance of R359 million (THREE HUNDERED AND FIFTY NINE MILLION RANDS) remaining over the next 5 years.

 

Amount

Capped Claim Value

R 1,600,000,000

Claim YTD

R 1,240,676,952

Balance

R 359,323,048

         
   

(b)

(i)

To date there has been 10 (TEN) claims submitted by Denel. Details of the claims are on the table below.

     

(ii)

Amounts paid to Denel are shown on the table below.

     
   

Claim Number

Date Claim Submitted

(DD/MM/YY)

Period

(MM/YY)

Amount of Claim

Amount Paid

Balance of the Full Indemnity

(over 15 years)

R 1 600 000 000

Date of Payment

(MM-YY)

Status

1

31/07007

04/06 –06/07

R 222,290,420

R 220,980,584

R 1,379,019,416

Nov 07

Paid

2

22/08/08

07/07-07/08

R 259,516,131

R 257,639,637

R 1,121,379,779

Dec 08

Paid

3

20/05/09

08/08 – 03/09

R 191,865,684

R 191,865,684

R 929,514,095

Dec 09

Paid

4

28/10/09

04/09 –07/09

R 103,500,000

R 103,501,382

R 826,012,713

Dec 09

Paid

5

30/06/10

08/09 – 0310

R 96,000,000

R 78,155,111

R 747,857,602

Dec 10

Paid

6

13/06/11

04/10 – 03/11

R 116,634,725

R 116,254,986

R 631,602,616

Dec 11

Paid

7

28/05/12

04/11 – 03/12

R 118,782,844

R 118,782,844

R 512,819,772

Dec 12

Paid

8

18/05/13

04/12 – 03/13

R 57,249,797

R 57,249,797

R 455,569,975

Dec 13

Paid

9

29/05/14

04/13 – 03/14

R 63,140,844

R 63,140,844

R 392,429,131

Dec 14

Paid

10

25/05/15

04/14 – 03/15

R 33,106,083

R 33,106,083

R 359,323,048

Mar 16

Paid

 

(3)

Yes oversight has taken place.

   

(a)

(i)

  • As contracted in the Indemnity Agreement, Denel submits a claim to the Department on an annual basis, supported by an audited financial report, fully governed risk mitigation plan and a program report.
  • When a claim is received, the Department appoints its own independent auditors to authenticate the claim as submitted by Denel.
     

(ii)

The Department’s auditors physically go and verify relevant documentation and Enterprise Resource Planning (ERP) systems.

   

(b)

The Department through its independent auditors. The Department conducts DAe plant visits at least twice a year to appraise itself of the A400M programme status.

   

(c)

  • In instances where discrepencies were discovered, the claimed amounts were reduced accordingly, as indicated on the table above.
  • The value of the annual claims over the past 10 years has reduced from R221 million (TWO HUNDRED AND TWENTY TWO MILLION RANDS) to R33.1 million (THIRTY THREE POINT ONE MILLION RANDS). Furthermore, for the past 4 (FOUR) years there has been no errors between the amount claimed by Denel and the audited amounts by the Department.
     
 

(4)

The recent 2015 claim amounted to R33.1 million (THIRTY THREE POINT ONE MILLION RANDS). The R63.1 million (SIXTY THREE POINT ONE MILLION RANDS) was claimed and paid during 2014.

 

Earned Sales

Cost

Commitments

Claim

Serial Production and Ramp-up

R184,943,445

R210,517,440

(R15,988,815)

(R9,585,180)

Jigs/Tooling

RNIL

R1,726,787

RNIL

(R1,726,787)

ILS & Freight

R NIL

R5,288,869

R NIL

(R5,288,869)

ENG & MODS

R NIL

R16,505,247

R NIL

(R16,505,247)

T O T A L

(R33,106,083)

ACRONYMS:

ILS

:

Integrated Logistics Support

ENG & MODS

:

Engineering and Modifications

 

11 April 2016 - NW734

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) Whether Eskom (a) is currently engaged in conversation with Microsoft or (b) has already contracted with Microsoft for the (i) purchasing or (ii) licensing of software to the value of R500 million or any other amount;  if so, (aa) what is the purpose of the purchasing of the software, (bb) when this will be taken into use, (cc) which purchasing process was followed and (dd) what are the further relevant particulars; (2)  whether the purchase process meets all the legal requirements; if so, what are the relevant particulars; (3) why open source software was not considered in this case? (2) whether the purchase process meets all the legal requirements; if so, what are the relevant particulars; (3) why open source software was not considered in this case? NW850E

Reply:

(1)(a) Eskom is in constant interaction with various suppliers for the required goods and services. This interaction includes Microsoft.

(b)(i) Eskom currently has an existing contract that is due to expire on 29 May 2016. A commercial process is currently underway for the renewal of the support and maintenance of the current contract. It must be noted that the bulk of this renewal is to maintain the current investment and ensure adequate maintenance and support of software.

(ii) The current contract with Microsoft expires on 29th May 2016. Please note that price is a confidential matter.

(aa) The current commercial process is to do the renewal of licences, subscription and maintenance.

(bb) The software is already in use as per the existing contract, except for the additional licenses. The additional licence is for functionality requirements from the business aligned to the digitisation strategy which will be deployed via approved projects once contract is approved.

(cc) Eskom’s commercial process which forms part of Eskom’s Procurement and Supply Chain Management Policy and Procedure was followed.

(dd) The commercial process that was followed is in alignment with Eskom’s Procurement and Supply Chain Management Policy and Procedure and Public Finance Management Act.

(2) Yes, Eskom’s process followed on the Microsoft transaction satisfied all prescribed legal requirements. The details are that the commercial process which is provided for in Eskom’s supply chain policies, is aligned to the Public Finance Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA).

(3) There are currently no email capabilities with open source and a number of our critical systems are integrated to our email application (exchange), using open source therefore is not possible. Eskom’s applications are extremely critical, given the nature of our business, use of open source will cause vulnerabilities and security is a risk that cannot be tolerated. Furthermore, using open source will have too many incompatibility issues between different word processing applications. There is also a massive proliferation of excel macros across the organisation which will lead to different version that we will have to manage hence there will be an increase in costs (support and maintenance required).

01 April 2016 - NW801

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

During the period 1 December 2014 to 31 January 2016, (a) what was the reduction, if any, in the consumption of electricity across the country, (b) what amount was electricity consumption reduced by in (i) households and (ii) industries and (c) how many new residential connections were made during the specified period?

Reply:

(a) There was an increase of 367 GWh nationally over the specified period.

(b)(i) There was an increase of 262 GWh across the household sector over the specified period.

(ii) A decline of 334 GWh across the industrial sector over the specified period.

(c) There was a total of new 225 785 residential connections during the specified period. New connections refers to new grid connections and excludes customers who have migrated from conventional to prepaid, or who have terminated and subsequently reconnected their services.

 

30 March 2016 - NW646

Profile picture: Ntlangwini, Ms EN

Ntlangwini, Ms EN to ask the Minister of Public Enterprises

In view of Eskom’s announcement in August that it is seeking a R2 billion penalty from Glencore’s Optimum Coal, which is now bought by a certain company (name furnished), for supplying poor quality coal which has resulted in poor performance, whether Eskom initiated processes to penalise Optimum Coal; if not, why not; if so, how far is the process? NW761E

Reply:

Yes, Eskom initiated a process to penalise Optimum Coal (OC). Eskom issued a summons against OC on 5 August 2015 whereupon OC’s attorneys informed Eskom that OC commenced business rescue proceedings on 1 August 2015. Eskom’s claim for penalties remains valid and enforceable upon the close of transaction whereafter it will enforce all the remedies open to its ex lege to enforce the claim. Eskom’s position has been made clear to all parties in the business rescue proceedings.

 

11 March 2016 - NW216

Profile picture: Ketabahle, Ms V

Ketabahle, Ms V to ask the Minister of Public Enterprises

Has her department awarded any contracts to companies indirectly or directly owned by certain persons (names furnished) in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years; if so, in each specified financial year, (i) how many times were such contracts awarded and (ii) for what amount?

Reply:

The Department of Public Enterprises awarded contracts to The New Age (TNA) as follows:

a) 2012-13: No award

b) 2013-14: One award for R153 900.00 for an advertisement placed in The New Age

c) 2014-15: One award for R213 921.00 for a business briefing session which we hosted and that I addressed on the 24 April 2014

 

11 March 2016 - NW561

Profile picture: Stander, Ms T

Stander, Ms T to ask the Minister of Public Enterprises

(1) How many hectares of land does the SA Forestry Companies Ltd (SAFCOL)- (a) currently own; and (b) how many hectares of the specified land are under claim in terms of the Restitution of Land Rights Act, Act 22 of 1994, as amended; (2) Of the hectares of SAFCOL land under claim- (a) how many claims have been lodged since 1994?; (b) who is/are the claimants? (c) how many hectares of the specified land are under claim by each claimant?; and (d) Under which- (i) Town?; and (ii) Province does each claim fall? (3) (a) How many of the specified land claims have been successfully transferred to each claimant? and (b) What are the reasons for each claim that has been successful but not yet transferred to the claimants?; (4) Whether any other - (a) schemes and/or (b) agreements have been put in place with each successful claimant whose land has not yet been transferred; if not, why not; if so, what are the relevant details? NW667E

Reply:

   

(1)

(a)

The land on which SAFCOL operates is owned by the state, through the Department of Agriculture, Forestry and Fisheries (DAFF). SAFCOL, through its subsidiary, Komatiland Forests operates on a land area covering 187 320 ha of which 121 000 ha is planted.

 

(b)

61% of 187 320 ha is under claim. This works out to roughly 114 265 ha.

(2)

(a)

   
 

Limpopo

Mpumalanga

KwaZulu Natal

Total

No. of claims

14

17

1

32

Research

1

13

0

14

Gazette/Negotiation

13

4

1

18

Settled

3

0

0

3

Transferred

0

0

0

0

 

(b)

Claimants

Province / Municipality

Affected Plantation/ Hectares

Status of the claim

Ludlambedlwini Community

MP – Gert Sibande (GS)

Jessievale (still to confirm)

Further research, claimant verification.

Enikwakuyengwa Tribal Authority

MP

Redhill (2751 ha)

Currently being researched

Esandleni Community

MP

Redhill (14 472 ha)

Requires further research

Dladla Community

MP

Robernia (900.53)

Further research

Enkhaba Community

MP

Redhill (933.18)

Negotiations stage

Makhubu Family

MP

Blairmore (256.95)

Negotiations

Dladla Community

MP

Robernia (2320)

Research is being conducted.

Dladla & Thanjekwayo Communities (2 KRP)

MP

Robernia (5168)

These are competing claims (Claims are being researched)

Claimants

Province / Municipality

Affected Plantation/ Hectares

Status of the claim

Dladla & Thanjekwayo Community

MP

Robernia (1997.49)

Competing claims, research is being conducted.

Dladla Community

MP

Robernia (1419)

Research being conducted

Dladla Community

MP

Robernia (2482ha)

Research being conducted

Kaapschehoop Community

MP

Berlin (to be confirmed)

Negotiations

Mawulu Community

MP

Berlin (to be confirmed)

Partially settled

PDT & Mapulana Tribe

MP (Ehlanzeni Municipality)

Bergvliet (4621 ha)

Research

Pilgrims Rest Dev Trust & Mapulana Tribe

MP

Blyde (6600 ha)

Research

PDT & Marole Communities

MP

Frankford (4322 ha)

Research

Morgenzon Community

MP

Morgenzon (5356 ha)

Research

Mnisi Clan/Umjindi Community/Hlatshwayo

MP

Nelshoogte (9716)

Research

Witklip Community

MP

Witklip (2311 ha)

Gazetted

Sgudla Family

MP

Zwartfontein (to be confirmed)

Research

Tshakhuma Phase 1

Limpopo

Entabeni (516 34 & 553 56))

Settled

Ravele Phase 1

Limpopo

Entabeni (502 93 & 5553.56)

Settled

Ravele Phase 2

Limpopo

Entabeni (3876.94)

Negotiation

Ratombo Phase 1

Limpopo

Entabeni (271.84)

Settled

Makgoba

Limpopo

Woodbush (to be confirmed)

Research

Tshakhuma Phase 2

Limpopo

Entabeni (3876 ha)

Gazetted

Vuvha

Limpopo

Entabeni (3876)

Gazetted

Maguada

Limpopo

Entabeni (3876)

Gazetted

Lwamondo

Limpopo

Entabeni (3876)

Gazetted

Vhutshavhelo

Limpopo

Entabeni (3876)

Gazetted

Claimants

Province / Municipality

Affected Plantation/ Hectares

Status of the claim

Shanzha

Limpopo

Entabeni (3876)

Gazetted

Songozwi

Limpopo

Hanglip (693.18 & 130.21)

Near approval by RLCC

Matidza

Limpopo

Hangklip (1851)

Valuation stage

Vondo

Limpopo

Entabeni (1326)

Gazetted, referred to Court.

Tshiheni

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Mukumbani

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Tshidzhivhe

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Fondwe

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Murangoni

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Khalavha

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Vondo la Thavha

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

Lutanze

Limpopo

Entabeni (tbc)

Gazetted, referred to Court.

 

(c)

as per the table in 2(b) above.

 

(d)

as per the table in 2(b) above.

   

 

 
   

 

 

(3)

(a)

The Shannon properties, totaling 12 503 9657ha has been transferred to Kalanyandza Trust in Mpumalanga.

 

(b)

The Department of Rural Development and Land Reform (DRDLR) is best positioned to answer this question, as they are managing the process.

(4)

The Department of Rural Development and Land Reform (DRDLR) is best positioned to answer this question, as they are managing the process.

     

11 March 2016 - NW514

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(a)(i) How many local South African jobs and (ii) jobs for foreigners have been created from the construction of the Kusile power plant in Limpopo and (b) what is their occupational title in each case?

Reply:

(a)(i) 16 814

(a)(ii) 1345

(b)(i) 3282 are unskilled workers; 5069 workers are semi-skilled; 6258 workers are skilled; and 2205 workers are supervisory and/or management.

(b)(ii) 0 unskilled workers; 0 semi-skilled workers; 1087 skilled workers; and 258 workers are supervisory and or management.

11 March 2016 - NW480

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Public Enterprises

Whether, with regard to Eskom’s strained financial position, any plans are in place to allow independent power producers to supply coal-fired electricity on behalf of Eskom to the national grid in order to reduce the need for Eskom to raise the cash needed to fulfil its commitments of supplying electricity to the country; if not, why not; if so, what are the relevant details?

Reply:

The Department of Energy (DOE) IPP office takes the lead in the domestic IPP strategy, including the sourcing and contracting component of these arrangements. This strategy is driven by the Integrated Resource Plan (IRP). The DOE bidding process for the coal base load IPPs is still in progress.

Once the participants are selected by DOE, the time lines are such that this programme will not affect Eskom’s financial position in the next 5 years. When the decisions have been made, there will be clarity on energy prices from these IPPs as well as the cost of connecting them which will be budgeted for accordingly.

10 March 2016 - NW377

Profile picture: Hunsinger, Mr CH

Hunsinger, Mr CH to ask the Minister of Public Enterprises

With reference to President Jacob G Zuma’s undertaking in his State of the Nation Address delivered on 12 February 2015, that the Government will set aside 30% of appropriate categories of state procurement for purchasing from Small, Medium and Micro-sized Enterprises (SMMEs), co-operatives, as well as township and rural enterprises, what percentage of the total procurement of (a) her department and (b) every entity reporting to her went to (i) SMMEs and (ii) co-operatives from 1 April 2015 up to the latest specified date for which information is available?

Reply:

From 1 April 2015 to date, the Department used the Preferential Procurement Regulations 2011 for procuring goods, which does not make provision for set aside towards the targeted suppliers for procurement of goods, services and works. The Preferential Procurement Regulations 2011 makes provision for the award of the contract after technical evaluation (where required), price and BBBEE status and therefore procurement was not done in terms of the Small, Medium and Micro-sized Enterprises (SMMEs), co-operatives, as well as township and rural enterprises based on set aside provision.

 

01 March 2016 - NW401

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Public Enterprises

Whether, in the face of Eskom’s debts exceeding R350 billion, the utility will continue to be able to provide almost all of the country’s electricity requirements through the acquisition of additional coal-fired and nuclear power stations; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

Yes, Eskom will be in a position to acquire additional coal fired power station capacity.

Eskom’s current level of debt at 31 December 2015 is R333 billion. The approved borrowing program contained in the 2015/16 Corporate Plan amounts to R237 billion. Consequently it is envisaged that the Eskom debt will exceed R350 billion over the next 5 years.

The 2015/16 Corporate Plan in addition makes provision for Eskom to continue with the Medupi, Kusile and Ingula Build Program that will add in excess of 9600 megawatt of additional capacity into the electricity grid.

The future nuclear build program will be dependent on an appropriate funding model being developed by Eskom and Government.

01 March 2016 - NW252

Profile picture: Mente-Nqweniso, Ms NV

Mente-Nqweniso, Ms NV to ask the Minister of Public Enterprises

Whether she and/or her department has bought advertising space in The New Age in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years; if so, (i) what number of times and (ii) for what amount in each specified financial year. NW 256E

Reply:

The Department of Public Enterprises has not bought advertising space in The New Age in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years.

(a) 2012-2013

(i) None

(ii) None

(b) 2013-2014

(i) None

(ii) None

(c) 2014-2015

(i) None

(ii) None

 

 

26 February 2016 - NW93

Profile picture: Hadebe, Mr TZ

Hadebe, Mr TZ to ask the Minister of Public Enterprises

Whether she has entered into a performance agreement with the President, Mr Jacob G Zuma, with regard to the implementation of the Medium-Term Strategic Framework (MTSF) 2014-2019; if not, why not; if so, (a) which key indicators and targets from the MTSF are reflected in the agreement, (b) how many performance assessments has she undertaken in consultation with the President since the agreement was signed, (c) what progress has been made in meeting the key indicators and targets from the MTSF, (d) what are the key obstacles to implementation and (e) what is the plan to address such obstacles?

Reply:

Yes, all Ministers are subject to Performance Agreements with the President.

(a) The Performance Management Framework for Ministers is the Medium-Term Strategic Framework (MTSF) for 2014-2019, which is the first 5-year implementation plan of the National Development Plan (NDP) 2030. The performance targets and indicators are derived from the 14 Outcomes which government seeks to achieve. These outcomes and targets constitute government’s Programme of Action (POA), against which performance is tracked and reported at least on a quarterly basis. POA reports are publically available on the government’s website.

(b) - (e) Cabinet closely monitors the implementation of the NDP 2030/MTFS 2014-2019 through POA Reports. These reports are tabled before an Implementation Forum of a Cluster of Ministers collectively responsible for MTSF outcomes, and then submitted to Cabinet, where progress is noted, bottlenecks to implementation are discussed, and recommendations to address bottlenecks are considered and approved.

 

24 February 2016 - NW22

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

Whether her Ministry has frozen vacancies positions, if so, (a) how many of the specified positions are vacant, (b) what are the designations of the specified positions and (c) for how long have the specified positions been vacant? NW 22 E

Reply:

  1. None
  2. Not applicable
  3. Not applicable

 

08 December 2015 - NW4213

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Public Enterprises

What has been the demand for electricity in each month since March 2015 up to the latest specified date for which information is available?

Reply:

In responding to the question the assumption is made that the Honourable Member is referring to daily maximum demand. The table below indicates the customer daily energy demand from 1 March 2015 to 29 November 2015.

Date

Customer Demand

MWh

2015/03/01

615 989

2015/03/02

669 051

2015/03/03

674 638

2015/03/04

675 675

2015/03/05

678 546

2015/03/06

678 138

2015/03/07

644 353

2015/03/08

622 464

2015/03/09

677 087

2015/03/10

685 801

2015/03/11

687 776

2015/03/12

688 292

2015/03/13

689 000

2015/03/14

650 059

2015/03/15

625 750

2015/03/16

677 776

2015/03/17

684 592

2015/03/18

686 001

2015/03/19

687 755

2015/03/20

682 914

2015/03/21

644 010

2015/03/22

630 664

2015/03/23

683 404

2015/03/24

687 956

2015/03/25

685 945

2015/03/26

690 873

2015/03/27

669 502

2015/03/28

632 650

2015/03/29

608 103

2015/03/30

661 626

2015/03/31

669 967

2015/04/01

668 627

2015/04/02

651 398

2015/04/03

594 235

2015/04/04

590 128

2015/04/05

579 514

2015/04/06

589 727

2015/04/07

655 740

2015/04/08

666 176

2015/04/09

672 502

2015/04/10

672 108

2015/04/11

637 678

2015/04/12

619 241

2015/04/13

663 577

2015/04/14

677 597

2015/04/15

677 271

2015/04/16

679 907

2015/04/17

671 634

2015/04/18

645 426

2015/04/19

630 322

2015/04/20

669 247

2015/04/21

679 860

2015/04/22

683 606

2015/04/23

679 504

2015/04/24

680 109

2015/04/25

635 071

2015/04/26

611 130

2015/04/27

624 250

2015/04/28

666 329

2015/04/29

668 547

2015/04/30

663 547

2015/05/01

617 955

2015/05/02

612 217

2015/05/03

617 004

2015/05/04

662 729

2015/05/05

679 554

2015/05/06

675 633

2015/05/07

686 368

2015/05/08

683 972

2015/05/09

653 427

2015/05/10

630 569

2015/05/11

680 763

2015/05/12

684 688

2015/05/13

683 584

2015/05/14

683 452

2015/05/15

680 843

2015/05/16

652 459

2015/05/17

627 987

2015/05/18

672 777

2015/05/19

682 316

2015/05/20

680 819

2015/05/21

684 597

2015/05/22

678 270

2015/05/23

649 686

2015/05/24

636 941

2015/05/25

680 562

2015/05/26

691 093

2015/05/27

689 785

2015/05/28

687 883

2015/05/29

678 297

2015/05/30

636 299

2015/05/31

624 217

2015/06/01

663 832

2015/06/02

678 966

2015/06/03

687 834

2015/06/04

699 092

2015/06/05

702 533

2015/06/06

677 867

2015/06/07

653 802

2015/06/08

694 948

2015/06/09

703 928

2015/06/10

716 499

2015/06/11

716 836

2015/06/12

714 953

2015/06/13

661 765

2015/06/14

640 077

2015/06/15

673 059

2015/06/16

650 032

2015/06/17

706 515

2015/06/18

711 768

2015/06/19

705 245

2015/06/20

669 921

2015/06/21

650 940

2015/06/22

697 149

2015/06/23

706 460

2015/06/24

706 658

2015/06/25

706 221

2015/06/26

697 005

2015/06/27

672 992

2015/06/28

651 838

2015/06/29

688 460

2015/06/30

698 407

2015/07/01

692 949

2015/07/02

693 312

2015/07/03

690 260

2015/07/04

653 354

2015/07/05

637 854

2015/07/06

679 880

2015/07/07

698 275

2015/07/08

692 722

2015/07/09

686 403

2015/07/10

682 469

2015/07/11

655 458

2015/07/12

635 239

2015/07/13

685 843

2015/07/14

698 754

2015/07/15

695 409

2015/07/16

691 166

2015/07/17

696 565

2015/07/18

660 855

2015/07/19

646 471

2015/07/20

683 527

2015/07/21

690 396

2015/07/22

699 851

2015/07/23

708 383

2015/07/24

701 131

2015/07/25

670 257

2015/07/26

651 721

2015/07/27

694 919

2015/07/28

700 715

2015/07/29

704 311

2015/07/30

698 663

2015/07/31

703 594

2015/08/01

661 007

2015/08/02

636 444

2015/08/03

682 407

2015/08/04

689 477

2015/08/05

692 994

2015/08/06

690 907

2015/08/07

678 144

2015/08/08

638 883

2015/08/09

614 219

2015/08/10

628 776

2015/08/11

681 094

2015/08/12

685 460

2015/08/13

679 649

2015/08/14

677 149

2015/08/15

634 823

2015/08/16

607 120

2015/08/17

652 403

2015/08/18

660 354

2015/08/19

657 677

2015/08/20

657 116

2015/08/21

647 200

2015/08/22

617 489

2015/08/23

604 102

2015/08/24

644 647

2015/08/25

645 891

2015/08/26

646 045

2015/08/27

644 655

2015/08/28

634 684

2015/08/29

601 424

2015/08/30

591 426

2015/08/31

632 223

2015/09/01

669 042

2015/09/02

676 263

2015/09/03

682 373

2015/09/04

700 260

2015/09/05

661 441

2015/09/06

636 233

2015/09/07

675 372

2015/09/08

687 079

2015/09/09

677 477

2015/09/10

678 821

2015/09/11

678 059

2015/09/12

653 847

2015/09/13

629 895

2015/09/14

670 489

2015/09/15

679 680

2015/09/16

675 104

2015/09/17

676 985

2015/09/18

682 142

2015/09/19

653 659

2015/09/20

637 410

2015/09/21

688 762

2015/09/22

683 341

2015/09/23

673 321

2015/09/24

633 573

2015/09/25

650 464

2015/09/26

629 960

2015/09/27

617 185

2015/09/28

661 945

2015/09/29

675 770

2015/09/30

675 378

2015/10/01

662 080

2015/10/02

665 036

2015/10/03

630 343

2015/10/04

611 024

2015/10/05

658 813

2015/10/06

669 966

2015/10/07

670 396

2015/10/08

668 657

2015/10/09

670 214

2015/10/10

633 378

2015/10/11

615 977

2015/10/12

662 540

2015/10/13

671 910

2015/10/14

673 013

2015/10/15

667 974

2015/10/16

666 560

2015/10/17

633 974

2015/10/18

608 772

2015/10/19

660 891

2015/10/20

666 228

2015/10/21

668 833

2015/10/22

673 724

2015/10/23

665 720

2015/10/24

629 230

2015/10/25

608 906

2015/10/26

660 869

2015/10/27

664 197

2015/10/28

669 483

2015/10/29

674 863

2015/10/30

668 504

2015/10/31

627 524

2015/11/01

604 362

2015/11/02

645 209

2015/11/03

656 034

2015/11/04

653 911

2015/11/05

659 857

2015/11/06

659 962

2015/11/07

628 519

2015/11/08

609 244

2015/11/09

664 576

2015/11/10

666 367

2015/11/11

671 344

2015/11/12

676 683

2015/11/13

673 616

2015/11/14

632 639

2015/11/15

603 480

2015/11/16

652 420

2015/11/17

654 575

2015/11/18

655 851

2015/11/19

642 153

2015/11/20

645 569

2015/11/21

610 940

2015/11/22

588 569

2015/11/23

641 785

2015/11/24

660 352

2015/11/25

665 091

2015/11/26

663 060

2015/11/27

657 316

2015/11/28

615 845

2015/11/29

607 541

19 November 2015 - NW3910

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

(1) whether she will take action against the reckless and wasteful expenditure of taxpayers’ money by parastatals that have entered into an agreement to sponsor The New Age breakfast briefings; if not, why not; (2) What are the (a) names of the parastatals that have entered into the specified agreement and (b) costs incurred in respect of the specified agreement? NW4766E

Reply:

(1) Only Eskom in its 2015 Annual Financial Statements reported an amount of R4 million as irregular expenditure relating to the SABC/The New Age business breakfast briefings. This amount was incurred within the contract period but prior to the Board’s ratification. The R4 million amount was only paid over to TNA after the Board’s ratification.

Regarding irregular, fruitless and wasteful expenditure in general, I am assured that the Boards and Management regularly review the SOCs internal control environment to minimise the risk, and where an incident occurs appropriate measures are taken to deal with the matter, including disciplinary action and/or criminal or civil action against those involved, as considered appropriate. Reporting in respect of financial misconduct has also improved in compliance with the PFMA to ensure that incidents are detected early.

(2)(a) Alexkor, Denel, SAFCOL and SA Express have not entered into an agreement with SABC/The New Age on the business breakfast briefings; Eskom and Transnet have existing contracts.

(2)(b) With regard to Eskom, the SABC/The New Age breakfast briefings contract is R43.2 million, effective 1 May 2014 to 30 April 2017 with 36 briefings planned for the period of the contract. Transnet has contracted for R20 million effective 1 April 2015 to March 2016 with 20 briefings planned for the period. In both SOCs, the Boards have assured me that these agreements have been concluded in line with SOC’s governance processes and that the required approvals are in place.