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05 December 2017 - NW3682

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Whether, with reference to her reply to question 1569 on 6 September 2017, Denel Vehicle Systems deviated from any provisions of the Public Finance Management Act, Act 1 of 1999, on any contracts and/or procurements during the period 1 April 2015 to 31 March 2016; if not, what is the position in this regard; if so, what are the relevant details of each case?

Reply:

Yes, all procurement for Denel Vehicle Systems during the period 01 April 2015 to 31 March 2016 deviated from the Public Finance Management Act, Act 1 of 1999.

Denel Vehicle Systems (DVS), formerly Land Systems South Africa (LSSA) procurements were made as per LSSA company policies which did not fully comply and was not required to comply with the Public Finance Management Act, Act 1 of 1999 (PFMA). When LSSA was acquired by Denel it was acquired as a going concern and procurement contracts were already in place as was required by operations. Many of these contracts were based on formal supplier agreements and as such it could not be converted to comply with PFMA provisions until such time that these contracts were concluded in terms of its execution and processes and systems are in place which we have achieved. On this basis exemption were requested from National Treasury. Concurrent to the above, new procurement policies compliant with PFMA provisions were instituted at DVS.

 

 

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

   

Ms Lynne Brown, MP

   

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

05 December 2017 - NW3386

Profile picture: Purdon, Mr RK

Purdon, Mr RK to ask the Minister of Public Enterprises

INFORMATION MEMORANDUM TO:Mogokare Richard Seleke DIRECTOR-GENERAL FROM :Justin De Allende RE:PARLIAMENTARY QUESTION NO. 3385 DATE:27 OCTOBER 2017 ================================================================ COVER MEMO AND THE PACKAGING OF PQ BY: Department of Public Enterprises ………………………………. Acting Deputy Director-General Date: COMMENTS: ……………………………………….. ………………………………… Mogokare Richard Seleke Director-General Date: APPROVED/DECLINED/COMMENTS ………………………………………….. ………………………………………….. …………………………………………. DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY QUESTION NO.:PQ 3386 DATE OF PUBLICATION: 27 October 2017 Mr R K Purdon (DA) to ask the Minister of Public Enterprises: What number of tons of coal were burned at each power station by Eskom (a) in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years and (b) since 1 April 2017?   REPLY: (a)(i)(ii)(iii) and (b) The table below lists number of tons of coal were burned at each power station by Eskom from (a)(i) 2014-15, (a)(ii) 2015-16, (a)(iii) 2016-17 financial years and (b) since 1 April 2017. Financial Year (a)(i) FY 2014-15 (a)(ii) FY 2015-16 (a)(iii) FY2016-17 (b) Sept 17 YTD Total Coal Burnt ( Kton) 119 179 114 806 113 737 57 803 Kusile       223 Medupi - 1 362 1 944 2 201 Duvha 7 260 7 600 8 487 4 325 Kendal 14 029 14 813 13 607 7 836 Lethabo 16 207 14 942 15 592 7 911 Majuba 12 938 11 457 11 676 6 717 Financial Year (a)(i) FY 2014-15 (a)(ii) FY 2015-16 (a)(iii) FY2016-17 (b) Sept 17 YTD Matimba 14 227 12 718 13 228 6 379 Matla 11 483 11 649 10 941 5 335 Tutuka 11 599 10 448 9 279 4 744 Arnot 5 595 5 865 5 707 2 462 Camden 5 074 4 561 4 493 1 943 Grootvlei 3 965 3 294 2 821 1 264 Hendrina 6 479 4 958 5 366 2 399 Komati 2 482 2 495 2 500 693 Kriel 7 841 8 644 8 096 3 371 Remarks: Reply: Approved / Not Approved Mr. Mogokare Richard SelekeMs. Lynne Brown, MP Director-General Minister of Public Enterprises Date:Date:

Reply:

(a)(i)(ii)(iii) and (b)

The table below lists number of tons of coal were burned at each power station by Eskom from (a)(i) 2014-15, (a)(ii) 2015-16, (a)(iii) 2016-17 financial years and (b) since 1 April 2017.

Financial Year

(a)(i)

FY 2014-15

(a)(ii)

FY 2015-16

(a)(iii)

FY2016-17

(b) Sept 17 YTD

Total Coal Burnt ( Kton)

119 179

114 806

113 737

57 803

Kusile

 

 

 

223

Medupi

-

1 362

1 944

2 201

Duvha

7 260

7 600

8 487

4 325

Kendal

14 029

14 813

13 607

7 836

Lethabo

16 207

14 942

15 592

7 911

Majuba

12 938

11 457

11 676

6 717

Financial Year

(a)(i)

FY 2014-15

(a)(ii)

FY 2015-16

(a)(iii)

FY2016-17

(b) Sept 17 YTD

Matimba

14 227

12 718

13 228

6 379

Matla

11 483

11 649

10 941

5 335

Tutuka

11 599

10 448

9 279

4 744

Arnot

5 595

5 865

5 707

2 462

Camden

5 074

4 561

4 493

1 943

Grootvlei

3 965

3 294

2 821

1 264

Hendrina

6 479

4 958

5 366

2 399

Komati

2 482

2 495

2 500

693

Kriel

7 841

8 644

8 096

3 371

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 November 2017 - NW3278

Profile picture: Gqada, Ms T

Gqada, Ms T to ask the Minister of Public Enterprises

Whether, with reference to the reply to question 2967 on 12 October 2017 by the Minister of Energy, her department has a policy in place by which Eskom charges a 5 hectare smallholding over R1 300 per day extra for electricity lines between 1 500 meters and 3 500 meters from the outskirts of towns, as if they were rural lines; if not, (a) what is the position in this regard and (b) on what statutory grounds is Eskom relying to treat the specified smallholdings on the outskirts of towns as if they were big commercial farms; if so, what are the (i) details of the policy and (ii) reasons for having put the policy in place?

Reply:

No, Department of Public Enterprises does not have such a policy in place allowing Eskom to charge 5 hectare smallholdings over R1 300 per day extra for electricity lines between 1 500 meters and 3 500 meters from the outskirts of towns, as if they were rural lines.  

(a)

Based on the information provided in the question it is assumed that this customer resides on a small holding outside town which would be classified as rural. Rural are areas where there is low density typically one or a few customers per transformer and the Eskom “Rural” tariffs apply, whereas “Urban” refers to high density areas where transformers are shared by many customers, within towns or villages. These villages can be in remote areas, and typically are funded through the Integrated Electrification Programme.

Eskom has no tariff that charges R1300 per day for small power customers. The Eskom tariff does not specify a specific fixed charge for the size of the property, but rather based on the size of the supply and whether the area in which the connection takes place is classified as rural or urban for pricing purposes.

Eskom has urban residential tariffs with no fixed charges (Homelight) and rural tariffs that have no fixed charge (Landlight) and with fixed charges (Landrate).  Refer to Appendix 1 for an extract of Eskom’s tariff book with regard to Homelight, Landrate and Landlight.

  • Homelight would be applied in villages where the cost of connection is funded by the DoE electrification programme or in towns.  If a customer is outside of the village and as far away as 1500m to 3500m, the cost of connection is not covered by the electrification programme, and so the customer would have to pay this cost.
  • Rural tariffs are applied where Eskom has to build long lines to supply one or few customers, and these tariffs are not based on the commercial activity of the customer, but rather on the density. This would include individual customers in remote areas that have not been electrified as part of the Electrification Programme. There are customers that are excluded from being connected as part of the Electrification programme as they are too far away and the cost of the connection is too high. In this case, when they apply for a connection, the rural tariffs may be applicable. It is possible that over time the density of connections increase and then the customer would be converted at no cost to the most suitable urban tariff. The rural tariffs provide a rebate of this connection cost so that the customer can afford to be connected, but this does not mean that the rural tariff is more expensive. 
  • Eskom recently introduced the Landlight tariffs for rural areas, which provide a more affordable tariff than Landrate for lower consumption supplies than Landrate. Landlight does not have fixed charges, but still allows for a rebate of the connection costs.
  • Landrate is for single and three-phase supplies with higher consumption.

(b)

The Eskom tariffs are based on cost of supply studies, however it should be noted that Eskom tariffs and the application of rural and urban definition are approved by NERSA. 

(i)

Not applicable

(ii)

Not applicable

 

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 November 2017 - NW3277

Profile picture: Gqada, Ms T

Gqada, Ms T to ask the Minister of Public Enterprises

(1) With reference to the Minister of Energy’s reply to question 2966 on 12 October 2017, (a) why does Eskom disagree with the creation of a national basket for maintenance that will require a percentage from municipality revenue as stipulated by her department, (b) what is the alternative plan from Eskom in this regard, (c) how does Eskom intend to deal with the maintenance backlog that the national basket for maintenance attempts to address, (d) what is the total cost of the backlog and (e) what percentage of the tariff increase requested by Eskom will be allocated to maintenance; (2)what is the current allocation of revenue that is allocated to Eskom for maintenance?

Reply:

(1)(a)

Eskom disagreed to being part of the national basket for the following reasons:

  • Eskom does not require additional funding outside the tariff increases to do maintenance of its Distribution infrastructure
  • Eskom has stated its ambition in its corporate plan to reduce its financial loans and government guarantees in the next five years
  • Eskom believes that Distribution should be a self-funding business.

 

(1)(b)

Based on the reasons in (1)(a) Eskom does not require an alternative plan

(1)(c)

From an Eskom perspective, there is no maintenance (repairs and preventative) backlog. Eskom Distribution has a preventative work order compliance rate of 99%.

(1)(d)

Not applicable, as Eskom does not have a backlog.

The maintenance budget (repairs and preventative) for the next 5 years is R25 484m.

(1)(e)

Looking at the make-up of the Eskom’s revenue application, this cannot be specifically broken down as the percentage, due to the application structure being expressed as the c/kwh and driven by the specific cost base

(2)

The 2017/2018 MYPD 3 Determination for the revenue allocation is R205 215m. The allocation for the total maintenance at Eskom level is R14 813m, of which R7 407m is the allocation for Distribution licence maintenance.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 November 2017 - NW2964

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Whether a certain company (name and details furnished) entered into any contracts with (a) Eskom and/or (b) Transnet; if so, in each case, (i) what is the purpose of each specified contract, (ii) what is the value of each contract, (iii) on what date was it signed, (iv) who approved the contract, (v) what was the outcome of the contract and (vi) what is the length of the contract?

Reply:

(a)

ESKOM SOC LTD

No, Eskom does not have a contract with Oliver Wyman. However Eskom has four contracts with Marsh (Pty) Ltd, a sister company to Oliver Wyman.

(i), (ii), (iii), (iv), (v) and (vi)

Not applicable

(b)

TRANSNET SOC LTD

(1)(b)(i)

(1)(b)(ii)

(1)(b)(iii)

(1)(b)(iv)

(1)(b)(v)

(1)9b)(vi)

What is the purpose of the said contract

What is the value of the contract

When was it signed?

Who approved the contract?

What was the outcome of the contract?

What is the length of the contract?

Development of a Zero Based Operating Plan

$2 470 000 or R12 015 000

14 December 2007

CE: TFR at the time

Successful implementation of a Zero Based Train Operating Plan

28 weeks

MultiRail Software agreement – annual licence fees

$880 000 (R4 294 500) once off initial payment – thereafter annual licence fee of $112 000 (R537 402) pa increasing at CPI of New York City index – plus once off expenses of $50 000 (R239 697)

1 July 2008

Chief Information Officer at the time

Successful implementation of the MultiRail Software system

Ongoing annual licence fee until the MultiRail software system is discontinued at TFR

The member should note that as the Shareholder I receive this information in good faith from SOC’s and therefore submit them as such. Should the member have any information to the contrary it would be appreciated if such can be provided.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 November 2017 - NW1731

Profile picture: Kopane, Ms SP

Kopane, Ms SP to ask the Minister of Public Enterprises

Whether any staff of (a) her department and (b) each entity reporting to her were awarded any contracts or agreements to conduct business with any state entity in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years; if so, what are the (aa)(aaa) names and (bbb) professional designations of the staff members and (bb)(aaa) details of the contract(s) and/or agreement(s) awarded and (bbb) amounts in each case?

Reply:

a) DEPARTMENT OF PUBLIC ENTERPRISES

Financial Year

(aa)(aaa) Names

(bbb) Designations

(bb)(aaa) Details of contract

(bbb) Amount

i) 2014/15

Matsietsi Mokholo

Deputy Director General: Legal & Governance.

 

1. Supply Stationary twice to

Transnet Freight Rail.

2. Alexkor Limited

R 5 988.42

R 17 995.63

ii) 2014/15

Christo Loots

Director: Legal & Governance.

10 year Lease Agreement with DPW to rent an Office Block to the NPA in Pietermaritzburg –

Commenced July 2007- End - May 2017

Gross Value of Ten Year lease: R3 413 619, 84 Annual Value:

R 341,316.19

iii) 2015/16

Christo Loots

Director: Legal & Governance

10 year Lease Agreement with DPW to rent an Office Block to the NPA in Pietermaritzburg –

Commenced July 2007- End - May 2017

Gross Value of Ten Year lease: R3 413 619, 84 Annual Value:

R 341,316.19

iv) 2016/17

Christo Loots

Director: Legal counsel

10 year Lease Agreement with DPW to rent an Office Block to the NPA in Pietermaritzburg –

Commenced July 2007- End -May 2017

Gross Value of Ten Year lease: R3 413 619, 84 Annual Value:

R 341,316.19

It should be noted that Ms. Mokholo had applied for permission to perform remuneration work outside the public service.

ALEXKOR SOC LIMITED

   

2014-15

Alexkor awarded no contract or agreement with other state-owned entity in the mentioned period.

2015-16

 

2016-17

 

(aaa)

NIL

(bbb)

NIL

(aaa)

NIL

(bbb)

NIL

DENEL SOC LIMITED

   

2014-15

Due to the decentralised nature of Denel SOC and its divisions as well the archiving processes within those divisions, we are unable to provide the responses required for the two years prior to 2016/17.

2015-16

 

2016-17

None

(aaa)

NIL

(bbb)

NIL

(aaa)

NIL

ESKOM SOC LTD

(b)

Yes, a total of 24 Eskom employees were identified by Sizwe Ntsaluba Gobodo who are Eskom’s external auditors. The 24 Eskom employees were identified to be directly conducting business with Eskom, as directors of companies awarded Eskom contracts or agreements. Eskom does not have information on Eskom employees who were awarded contracts or agreements to conduct business with other state entities.

(aa)(aaa); (bbb); (bb)(aaa); (bb)(bbb)

We attach the information on the 24 employees in Annexure A.

Annexure A

The table below provides detailed information as follows

 

(aa)(aaa)

Names

(aa)(bbb)

Professional designations

(bb)(aaa) Contract / agreement details

(bb)(bbb)

Amount

(b)(i)

2014 - 2015

(b)(ii)

2015 - 2016

(b)(iii)

2016 - 2017

1

Sew Marinda

Learner Plant Operator

Supply of Material

R 48 420.00

Yes

Yes

Yes

       

R3 837 809.52

Yes

Yes

Yes

2

Moeti M V Louisa

HR Officer

Gas Testing Service

R 583 340.00

Yes

No

No

3

Mofokeng N Octavia

Snr Controller Technical

Minor reticulation

R15 000 000.00

No

Yes

No

4

Maseko Noxolo

Snr Clerk – Support Services

Supply of equipment and material

R 50 000.40

No

No

Yes

5

Seangego L Samson

Driver Operator

Supply of material and catering

R97 418.00[1]

No

No

Yes

6

Maisele M Frans

Assistant Officer: Security

Cleaning services

R 40 776 057.60

Yes

Yes

Yes

       

R6 803 372.81

Yes

Yes

Yes

       

R 658 515.00

No

No

Yes

       

R12 379 511.78

Yes

Yes

No

7

Stevens Andre

Officer: Technical Training

Accommodation

R 3 350.00 (2016/17)

R35929.83

(2014/15)

Yes

No

Yes

8

Koekemoer C Iris

Snr Advisor: Programme management Office

Electrical Maintenance service

R 8 552 529.14

Yes

No

No

 

(aa)(aaa)

Names

(aa)(bbb)

Professional designations

(bb)(aaa) Contract / agreement details

(bb)(bbb)

Amount

(b)(i)

2014 - 2015

(b)(ii)

2015 - 2016

(b)(iii)

2016 - 2017

9

Khumalo N N Happy

HR Bursars

Mill Cleaning Company

R 9 870 704.88

No

Yes

No

10

Munyadziwa Hulisani

Snr Supervisor Technical Contracts

Maintenance services

R 10 755.72

No

No

Yes

11

Makhubu M Cypruice

Snr Plant Operator

Supply of Material

R 519 381.70

No

Yes

Yes

12

Mukhoro M Donald

Learner Non-Technical Logistics

Supply of material

R 937 194.84

No

No

Yes

13

Shobede M N Siphamandla

Technical C & I

Supply of material

R 355 519.78

No

Yes

Yes

15

Williams M D

Assistant officer: Live Line

Supply of equipment and material

R3 661 227.76

No

No

Yes

       

R7 153 747.01

No

No

Yes

15

Mmutle D Rasego

Merit Bursar

Supply of printing material

R 161 642.52

Yes

Yes

Yes

16

Lusenga V Trevor

Principal Technician

Supply of material

R 401 845.00

Yes

Yes

Yes

17

Mabena S Gladwin

HR EAL – Etdp Technical

Electrical maintenance Service

R6 049 928.31

Yes

Yes

Yes

18

Siluma P Patience

Snr Clerk: Support Services

Supply of office equipment

R 165 173.04

No

No

Yes

19

Malomane Ntiyiso

Learner: Cer Engineer

Supply of equipment and material

R 270 443.60

No

Yes

Yes

 

(aa)(aaa)

Names

(aa)(bbb)

Professional designations

(bb)(aaa) Contract / agreement details

(bb)(bbb)

Amount

(b)(i)

2014 - 2015

(b)(ii)

2015 - 2016

(b)(iii)

2016 - 2017

20

Mashaba S Sheron

Senior Plant Operator

Supply of material

R 176136.96

No

No

Yes

21

Kraai N Daliah

Middle Manager: Project Account

Supply of material

R 3 886 272.00

Yes

Yes

Yes

22

De Villiers Francois

Officer: Talent and Skill Manager

Technical Training

R 165 173.04

Yes

Yes

No

23

Maduna W Billy

Officer Technical Training

Technical Training

R 2 052 298.11

Yes

Yes

No

24

Ntsokolo M Mongezi

Group Executive

Energy supply service

R26 843 680 000.00[2]

No

Yes

Yes

SAFCOL SOC LIMITED

  1. Not applicable.

(i)

2014-15

According to the records of SAFCOL, and to our knowledge, no staff member of SAFCOL was awarded any contract or agreement to conduct business with any state entity in the (i) 2014 – 15; (ii) 2015 – 16 and (iii) 2016 – 17 financial years.

(ii)

2015-16

 

(iii)

2016-17

 

(aa)

(aaa)

Not applicable.

 

(bbb)

Not applicable.

(bb)

(aaa)

Not applicable.

 

(bbb)

Not applicable.

     

(i)

2014-15

 

(ii)

2015-16

 

(iii)

2016-17

 

(aa)

(aaa)

 
 

(bbb)

 

(bb)

(aaa)

 
 

(bbb)

 

SA EXPRESS LTD

b) No employees of SAX Express were awarded contracts or agreements to conduct business with the state during the said period.

(b)

(i)

2014-15

No employees of SAX Express were awarded contracts or agreements to conduct business with the state during the said period (i) 2014 – 15; (ii) 2015 – 16 and (iii) 2016 – 17 financial years.

 

(ii)

2015-16

 
 

(iii)

2016-17

 
 

(aa)

(aaa)

Not applicable.

   

(bbb)

Not applicable.

 

(bb)

(aaa)

Not applicable.

   

(bbb)

Not applicable.

(a)

     

(b)

(i)

2014-15

 
 

(ii)

2015-16

 
 

(iii)

2016-17

 
 

(aa)

(aaa)

 
   

(bbb)

 
 

(bb)

(aaa)

 
   

(bbb)

 

TRANSNET SOC LIMITED

             
                 

 

 

 

(b)(aa)(aaa)

(b)(aa)(bbb)

(b)(i)

(b)(ii)

(b)(iii)

(b)(bb)(aaa)

(b)(bb)(bbb)

 

OD

Names

Professional designations

2014-15

2015-16

2016-17

Details of contract/agreements

Amounts

Declarations

TFR

Darren Reddy

Employee - dismissed

x

x

x

Small purchases < R50 000

1 400 000

Non-declaration of interest

GSS

Pheladi Xaba

Commodity Manager: Group Strategic Sourcing (51% shareholder in husbands business KOPAX Consulting) - does not get involved in this business on a day to day basis

 

x

 

B-BBBEE Mock audit and training

3 232 057

Declared interest

 

Note: External audit, as part of the year-end audit, performed CAATS audit procedures using the entire Transnet employee population (with ID numbers) to check against a Database owned by the Auditor General of all contracts across all SOCs – issues where Transnet’s employees have done business with these companies will come up and need to be cleared with the auditors.  No issues have been reported for the 31 March 2017 audit.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

  1. Employee is a member of EXCO and the ccontract expires in September 2035.

30 October 2017 - NW2798

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)Whether, given the fact that (a) the (i) Transnet Second Defined Benefit Fund and (ii)Transport Pension Fund have a considerable surplus, (b) a large number of pensioners die in poverty each year and (c) the 2% rule has not yet been adapted, she will consider encouraging the trustees of the various funds to pay more that two ad hoc bonuses to the pensioners who are permitted to receive bonuses; if not, (aa) why not and (bb) what are the full relevant particulars and reasons in this regard; if so, (2) Whether some motivation will be given for paying an extra bonus as early as 2017; if not, what are the full reasons why this will not be done? NW3105E

Reply:

1. Any resolution taken by the Funds for payment of an ad hoc bonus in line with the Rules of the Funds will be considered for approval. There is no provision in the Rules of the Transnet Second Defined Benefit Fund and Transport Pension Fund (”the Funds”), that limits the number of bonuses payable. Ad hoc bonus payments are subject only to affordability, as certified by the Funds’ actuary. The payment of an ad hoc bonus is initiated by the Funds.

2. All requests from the Funds for approval of any ad hoc bonus payment are considered in a timely manner.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

30 October 2017 - NW2803

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Public Enterprises

(1)What are the (a) relevant details of all aircraft forming part of the SA Express fleet as at 31 August 2017 and (b) which of the aircraft are serviceable; (2) Were any of the SA Express’ aircraft out of service in the 2016-17 financial year; if so, what are the reasons for the unserviceability in each case; (3) (a) On how many occasions did the SA Express charter aircraft from other airlines honour its commitments from 1 April 2015 to 31 August 2017, (b) what are the details of (i) the type of aircraft chartered and (ii) the airline from which the aircraft was chartered and (c)(i) for what period and (ii) at what cost was each aircraft chartered

Reply:

(1)

SA Express Aircraft

Reg. No

Aircraft Type

Status

ZS - NMI

CRJ200

In Service

ZS - NML

CRJ200

In Service

ZS – NMM

CRJ200

Out of Service

ZS - NMN

CRJ200

In Service

ZS – NMC

CRJ200

Out of Service

ZS - NMD

CRJ200

In Service

ZS - NME

CRJ200

In Service

ZS - NMF

CRJ200

In Service

ZS – NBF

CRJ700

Out of Service

ZS - NBG

CRJ700

In Service

ZS- NMO

Q400

Out of Service

ZS – NMS

Q400

Out of Service

ZS - YBP

Q400

In Service

ZS - YBR

Q400

In Service

ZS - YBT

Q400

In Service

ZS – YBU

Q400

Out of Service

ZS - YBW

Q400

In Service

ZS - YBX

Q400

In Service

ZS – YBY

Q400

Out of Service

ZS - YBZ

Q400

In Service

(2)The following aircraft were out of service:

Aircraft

Aircraft Type

Reason for Out of Service

NMO

Q400

NLG, Engines, Propellers, Engine mounts and robbed spares

NMS

Q400

NLG, Engines, Propellers, Engine mounts and robbed spares

YBU

Q400

NLG, Engines, Propellers, Engine mounts and robbed spares

YBY

Q400

NLG, Propellers, Engine mounts and robbed spares

NMC

CRJ200

Engines, Spares

NMM

CRJ200

Aircraft is robbed spares beyond economic repair.

(3) See below the link for  Annexure A.

 

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2803Annexure-171030.pdf

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

 

30 October 2017 - NW2802

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Public Enterprises

Whether progress had been made with the introduction of the maintenance, repari and overhaul facility for South Africa, as set out in the Strategy Statement of the 2016-17 Annual Report of SA Express; if not, what are the reasons for the failure; if so, what are the full relevant details?

Reply:

The formation of a Maintenance Repair and Overhaul facility to service the aircraft maintenance needs of the state is currently being considered through the development of an Optimal Corporate Structure for the realignment of the State Owned Airlines.


Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

30 October 2017 - NW3057

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Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)      With reference to the appointment of a certain company (name furnished) as investment adviser to the Transnet Second Defined Benefit Fund (TSDBF), (a) for what reason(s) the specified company paid a certain company (name furnished), (b) what services were rendered in this regard and (c) what total amount was paid; (2) Why the TSDBF’s board of trustees gave a blank mandate to the specified company as investment adviser to make investments according to its best judgement on behalf of the TSDBF without consulting the board of trustees; (3) Whether the trustees were authorised to take the specified decision to give such mandate to the company; if not, whether she has found that their deicision was ultra vires; if so, on what legal grounds they could depend in order to take this decision; (4) What are the names of the trustees who (a) voted in favour of the appointment of the company as investment adviser and (b)(i) are currently and/or (ii) were previously directors on the Transnet Board; (5) In what respect the Transnet Board played a role in having the company appointed as the investment advisor of the TSDBF?

Reply:

The TSDBF is a separate legal entity and the following answers were obtained from the TSDBF Principal Officer:

1(a) TSDBF had a fund management contract with Regiments as the investment advisor of the TSDBF and no contract with Trillian.  The question on the reasons for Regiments paying Trillian should be addressed to Regiments.

(b) Please refer to (a) above

(c) Regiments effected about R228 million transfer out of the Funds bank account. For the amount paid to Trillian by Regiments, please contact Regiments

2 The TSDBF Board of Trustees did not give a blank mandate to Regiments to make investments according to its best judgement on behalf of TSDBF without consulting the Board of Trustees.

The appointment and investment mandate was regulated and governed in terms of a legal investment mandate agreement as is standard practice.

3 The Trustees acted within the statutory authority vested in terms of the Rules of the Transnet Second Defined Benefit Fund.

4(a) It was a unanimous decision of the board of Trustees.

(b)(i) Brett Stagman; Yasmina Forbes;

(ii) Ellen Tshabalala; Herman Gazendam; Yasmina Forbes and Stanley Shane.

5 The Transnet Board played no role in having Regiments appointed. The members of the TSDBF board of trustees who were/are also directors of the Transnet Board acted in their capacity as the TSDBF board of trustees in appointing Regiments as the investment advisor of the TSDBF. NW3373E

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

30 October 2017 - NW3149

Profile picture: Madisha, Mr WM

Madisha, Mr WM to ask the Minister of Public Enterprises

(a) What are the root causes of the quadrupling of Eskom’s cost of electricity generation since 2007 which translates to an increase of 400% and (b) has she found that this has negatively affected the development and growth prospects of the country, in view of the fact that Eskom generates as much as 95% of the country’s electricity supply and, therefore, plays a critical role in our wellbeing and economic development?

Reply:

(a)

The average Eskom electricity price in 2007/8 financial year was 19.4c/kWh and in 2017/18 financial year it is around 85c/kWh. In nominal terms it represents an increase of 339% over the 10 years. The annual rate of inflation over this period averaged around 5.9%, therefore in real terms the current average price reflects an increase of 148% over the ten years.

It was widely reported in the media ten years and more ago, that Eskom’s price at that stage did not reflect the long run sustainable price. In essence the price mostly reflected fuel and operating/maintenance cost, with very little provision for the cost of the assets. This was mainly due to two reasons: firstly, a 24-year period of annual decreases in real terms in the price of electricity, taking it to a level that was the lowest in the world by a significant margin.

Secondly, the fact that the newest existing assets at that time were already around 16 years old and the average age of the assets much older. Therefore, the cost components of depreciation and cost of capital were inherently low – however at that stage Eskom’s average price had over the 24 years drifted down to a level that did not even reflect the full cost of that relatively low capital.

It is recognised that in the long run the capital-intensive nature of electricity generation and transmission implies that the capital cost usually comprises more than 50% of the total cost of electricity; however in 2007 it was very much lower than that. In addition, with the commencement of the build programme, it became evident that international prices for new power plant had nearly doubled in real terms over the preceding ten years. Hence media reports at the time quoted independent electricity experts that Eskom’s average price will have to treble over the next ten years, to enable Eskom to access the capital required for the new investments – therefore, for Eskom to be able to raise the debt and thereafter to honour the debt commitments in terms of repayment of debt principal and payment of debt interest.

At an average of 85c/kWh including transmission and distribution, Eskom’s current price translates to around 6.3c/kWh in US$ terms – far lower than any comparable international price for a coal-based system, including transmission and distribution, which generally starts at around 9.5c/kWh and higher. Eskom’s average price is therefore still quite competitive internationally and would still be so even after the requested increases, which are required because Eskom’s current 85c/kWh still does not fully reflect a level of prudent and efficient cost, as confirmed by any credible international comparison.

Clearly, electricity intensive industries would prefer lower prices. However if the price is below any credible international reference based on efficient cost, then it implies someone else would have to pay the difference. In the short term the annual revenue shortfall could be temporarily made up with additional borrowing, however in the longer term someone would have to pay to enable such borrowed capital to be repaid, including the interest. Economic theory and modelling conducted by independent specialist economic consultancies have confirmed numerous times that the overall economy would be worse off in terms of growth and job creation if the approach is followed to provide electricity at below its true efficient cost, with the shortfall being made up by the central fiscus thus by taxpayers.

(b)

No. Having engaged with the Departments leading in economic policy, planning and assessment; electricity is one of the various factors that potentially have adverse downstream impact on economic development. However, a thorough assessment into the wellbeing and development of the economy requires that a comprehensive assessment be done by the relevant Department(s) and must consider the impact of rising labor costs, electricity, lack of investment, and the structure of the economy among other factors.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

30 October 2017 - NW3033

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

(1) (a) What matters has she requested that the Special Investigating Unit (SIU) investigate with regard to Eskom and (b) over what period; (2) Whether she has requested that the SIU investigation should cover the emergency coal and diesel contracts that Eskom had entered into since 1 January 2001; if not, why not?

Reply:

1. (a) The motivation submitted to the Honourable President Jacob Zuma requests a proclamation to be issued in order to authorize the SIU to among others investigate the following:

(i) Practices in the procurement of coal from various coal suppliers (inter alia, Tegeta Mining and Exploration: Brakfontein Colliery, Tshedza Mining Manungu Colliery, Keaton Mining Manungu Colliery and Universal Coal Kangala Colliery); coal transportation services and diesel;

(ii) Procurement by Eskom and Transnet and payments made in respect thereof in a manner that was not fair, equitable, transparent, competitive or cost-effective contrary to legislation, National Treasury instructions as well as Eskom’s and Transnet policies and procedures respectively;

(iii) Irregular payments or procurement that were facilitated through the improper conduct of employees of Eskom and Transnet with undisclosed or unauthorised conflicts of interest or any other person or entity in order unduly benefit themselves or others through corrupt or fraudulent means;

(iv) Mal-performance and/or maladministration in relation to projects in Eskom’s Build Programme;

(v) Any related unauthorised, irregular or fruitless and wasteful expenditure incurred by Eskom and Transnet;

(vi) The procurement of locomotives and other related tenders by Transnet SOC Limited and payments made in respect thereof in a manner that was not fair, equitable, transparent, competitive or cost-effective contrary to contrary to legislation, National Treasury instructions as well as Transnet’s policies and procedures;

(vii) The appointment of McKenzie, Trillian and Regiment Capital to render services to Eskom Holdings SOC Limited and payments made in respect thereof in a manner that was not fair, equitable, transparent, competitive or cost-effective contrary to applicable legislation, instructions issued by the National Treasury as well as Eskom’s policies and procedures; and

(v) iiiAny improper or unlawful conduct by any person or entity, in relation to the allegations set out in paragraphs 1 to 5 above.

(b) Please refer to motivation for the period under point 2 below.

(2) A decision was taken to undertake a complete review of Eskom’s procurement process and contracting requirements for the conclusion of coal supply contracts for the period October 2008 up to 21 July 2016. Therefore, the review by SIU is informed by the need to determine if there were unfair practices in awarding contracts and whether decisions taken by the board and/or the executives were always made in the interest of deriving the best value for money.

The period of review is informed by the fact that the emergency diesel and coal procurements were heighted between the period 2008 and 2016. Therefore, as a matter of priority, there is a need to determine if some of the emergency procurement were warranted. Furthermore, as mentioned in point 1 above, various investigation reports concerning Eskom and Transnet have been issued to date, however, it appears that not all findings have been adequately addressed hence it is important to independently review the reports and ensure that all recommendations contained therein are fully dealt with.

It is also important to note that if there are specific allegations that fall outside of this period, the Proclamation authorising the SIU to conduct investigations into the affairs of Eskom and Transnet may be amended to include those allegations. In this regard, I invite anyone who is aware of any allegations against any SOC to bring them forward so that they can be investigated.

Remarks:

   

Reply: Approved / Not Approved

       

Mr. Mogokare Richard Seleke

   

Ms. Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

30 October 2017 - NW2850

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)     Whether, with reference to her reply to question 1569 on 6 September 2017, Denel Vehicle Systems, a division of Denel, was given permission to be exempt from the provisions of the Public Finance Management Act, Act 1 of 1999, for the year ending 31 March 2016; if so, (a) who granted the exemption and (b) why was it granted; (2) whether the exemption was gazetted; if not, why not; if so, what are the relevant details; (3) why was the exemption not tabled in Parliament?

Reply:

DENEL SOC LIMITED

INTRODUCTION

Please note that PQ 1569 was referring to contracts awarded to VR Laser by Denel. The issue of PFMA exemption relates to transactions entered into by Denel Vehicle Systems’ predecessor, BAE Systems Land Systems South Africa (LSSA), prior to the acquisition by Denel. Therefore, these are distinct matters which are unrelated.

In relation to the DVS application for exemption from the PFMA, the following responses are applicable to PQ 2850:

(1)

Denel SOC Ltd has not yet received a response to its application for the exemption from the National Treasury (NT).

 

(a)

NT would be the authority for granting exemptions; however, no response has been received as yet. Therefore, this question should be directed at NT as the authority and custodian of the process and in view of the exemption not having been granted, this question is premature.

 

(b)

See response in (a) above.

(2)

See response in (a) above.

(3)

The tabling, presumably, should be preceded by the Gazetting. Therefore, depending on the outcome of NT’s consideration, it is expected that the tabling in Parliament of the exemption shall be effected.

 

   

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

 

Ms Lynne Brown, MP

   

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

09 October 2017 - NW1823

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Moteka, Mr PG to ask the Minister of Public Enterprises

Whether she has found that it is common practice for the subcommittees of the boards within entities reporting to her to make final decisions on tenders; if so, which entities have board subcommittees that make final decisions on tenders?

Reply:

In terms of the governance framework, particularly the Significance and Materiality Framework which cascades into each Company’s Delegation of Authority Framework, qualitative and quantitative thresholds are set and may be delegated to a Committee by the main Board.

ALEXKOR SOC LIMITED

The Alexkor Board is responsible for final decisions on tenders, as recommended by the Tender committee for Tenders above R 10 million.

DENEL SOC LIMITED

The Sub Committees of the Denel SOC Ltd Board do not make final decisions on tenders.

ESKOM SOC LTD

Yes, the Eskom Board Tender Committee (BTC) makes final decisions on tenders.

Eskom BTC assists Board in discharging their duties regarding procurement. This authority is delegated to the Eskom Board Tender Committee (BTC) by Eskom Board, in terms of the Eskom Delegation of Authority Policy as well as the mandate as contained in the Terms of Reference of the Committee approved by the Board.

SAFCOL SOC LIMITED

The South African Forestry Company SOC Limited has as at date of this response not had any Board Subcommittee carrying this responsibility.

SAX SOC LIMITED

The Procurement Committee/ Board Sub-Committee recommends all tender submissions to the Board for final approval.

TRANSNET SOC LTD

There are delegated authorities relating to limits that can be approved at various levels.

Remarks: Reply: Approved / Not Approved

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

09 October 2017 - NW2088

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Public Enterprises

Whether (a) her department and/or (b) any entities reporting to her are funding, including by way of discretionary funding, any institution of research and development (i) domestically and/or (ii) internationally; if so, (aa)(aaa) what are the names of the specified institutions and (bbb) what are their functions, (bb) from what date has her department or any entity reporting to her been funding them and (cc) what amount has her department contributed towards such funding? NW2310E

Reply:

DPE RESPONSE

a) (i) Yes

(ii) No, DPE is not funding, including by way of discretionary funding, international Research and Development institutions.

b) Not applicable

(aa) (aaa) (bbb) (bb)

See summary below, of the institutions which DPE has collaborative agreement with:

 

(i)

LOCAL OR DOMESTIC INSTITUTIONS

   

Institutions

Date of Reporting

Relation with DPE Functions of Entities

Estimated amount

   

(aa)(aaa)

(bb)

(bbb)

(cc)

   

University of Johannesburg

March 2017

To provide with the knowledge and skills needed in the workplace.

R 2 528 976.00

   

WITS University

March 2017

To provide with the knowledge and skills needed in the workplace.

R 1 429 275.00

ALEXKOR SOC LIMITED

(a)

Not Applicable

(b)

(i)

No

 

(ii)

No

   

(aa)

(aaa)

Not applicable

     

(bbb)

Not applicable

   

(bb)

Not applicable

(cc) Not applicable

DENEL SOC LIMITED

(a)

Not Applicable

(b)

(i)

No

 

(ii)

No

   

(aa)

(aaa)

Not applicable

     

(bbb)

Not applicable

   

(bb)

Not applicable

   

(cc)

Not applicable

     

ESKOM SOC LTD

(b)

Yes, Eskom has a multitude of memberships, joint development and bilateral agreements with both Domestic and International Research Testing & Development bodies and Institutions of Higher Learning.  These agreements are for definitive scopes of work and are relevant to Eskom’s operational and strategic imperatives. Intellectual Property and Royalty agreements are in place where joint development work is undertaken.

(b)(i)

Yes, Eskom is funding, including by way of discretionary funding, domestic Research, Testing and Development institutions

(b)(ii)

No, Eskom is not funding, including by way of discretionary funding, international Research, Testing and Development institutions

(b)(i)(aa)(aaa)(bbb)(bb)(cc)

See summary below, of the institutions which Eskom funded including their function, date from which funding commenced and amounts funded for financial year 2016/17.

 

Name of the institution (aa)(aaa)

Function done by the institutions (bbb)

Date from which Eskom funded the institution (bb)

Amount that Eskom has contributed in financial year 2016/17 (cc)

Council for Scientific and Industrial Research

South Africa's central and premier scientific research and development organisation

2012.12.04

R 5 168 153.00

Universities

Study and research centers

2015.11.30

R22 905 507.00

The detail on research done per institution is included in Annexure A & B.

Annexure A

 

Name of the institution (aa)(aaa)

Research done by the institutions (aa)(bbb)

1

Council for Scientific and Industrial Research

Turbine Blade Refurbishment II

2

 

Load Forecasting

3

 

Laser Shock Peening

4

 

Vibe

5

 

Camera I+I+III

6

 

NDT of Laser-enabled refurbishment

7

 

CAE Capability

8

 

Camden Ash Utilisation

9

 

Rotor Refurbishment

10

 

Solar PV Economics

11

 

Home Energy Management & Optimisation

11

 

Test beds for reliable smart city Machine-to-Machine Communication (TRESCIMO)

12

 

Thermal Desalination

13

 

Turbine Blade Refurbishment

14

 

Regional Air Quality Modelling

15

 

Wave Energy Site Selection Study

16

University of the Witwatersrand

Bhugwandin-Strat Impl & Exe

17

 

Bisnath-HV Overhead

18

University of Western Cape

Gericke-Capacitive Deionization

19

 

Reynolds-Mine Backfill GeoHydro

20

 

Reynolds-Lab Test Geochem Kinetic Leaching

21

 

Reynolds-Lab Test Hydraulics

22

 

Reynolds-Simulation of mod test result

23

 

Reynolds-Numerical Geochem reaction model

24

 

Reynolds-Integrated num flow and trans model

25

 

Reynolds-Reporting

26

Stellenbosch University

Gericke-counter flow cooling tower

27

 

Westhuyzen-PV Penetration W Cape

28

 

Bischoff-Lightning & Power Frequency

29

 

Westhuyzen-SAURAN

30

University of the Witwatersrand

Gericke-Groundwater Reports

31

University of Cape Town

Gericke-Multi Effect Distribution

32

 

Newby-Boiler Heat Exchanger

33

 

Gericke-Saline Streams

34

North-West University

Mbedzi-Baseline Assessment Sharpville

35

 

Gericke-characteristics of water

36

 

Fipaza-nuclear High T Reactor

37

 

Monametsi-Black C & Hg

38

 

Mbedzi-Source Apport Vaal

39

University of Johannesburg

Moodley-Water Samples

40

Nelson Mandela University

Newby-Course on ASMEVIII

41

 

Scheepers-Charact of WB36

42

 

Serameng-LCOE on the Solar PV Plants

43

University of Pretoria

Reynolds-ash - soil amelioration

44

 

Reynolds-Kruger Ment; Surridge Micro

45

 

Reynolds-Ash Rubber Extention

46

University of the Free State  

Reynolds-bioremediation

Annexure B

Name of the institution (aa)(aaa)

Research done by the institutions (aa)(bbb)

Amount that Eskom has committed in financial year 2016/17 (cc)

Council for Scientific and Industrial Research

Camera I+I+III

To be paid

 

Rotor Refurbishment

To be paid

 

Solar PV Economics

To be paid

 

Test beds for reliable smart city Machine-to-Machine Communication (TRESCIMO)

To be paid

 

Regional Air Quality Modelling

 To be paid

Eskom is exploring a R2.8 million collaborative development agreement with the CSIR for the establishment of a national Non-Destructive Testing (NDT) facility.  The need for a facility of this nature stems from the need to develop local NDT skills and capacity, NDT procedure qualifications and having qualified independent oversight on contractors undertaking NDT work at Eskom sites.   The application for this funding is currently pending internal approval and is being channeled through the Eskom governance process.

Furthermore, we attach Annexure B which detail includes work carried out although Eskom has not yet made payment.

The following Eskom policies support the manner in which collaborative R&D agreements are managed:

  • Eskom IP management policy,
  • Procurement & Supply Chain Management Policy,
  • Eskom’s Legal Policies governing MOAs/MOUs.

Annexure B

Name of the institution (aa)(aaa)

Research done by the institutions (aa)(bbb)

Amount that Eskom has committed in financial year 2016/17 (cc)

Council for Scientific and Industrial Research

Camera I+I+III

To be paid

 

Rotor Refurbishment

To be paid

 

Solar PV Economics

To be paid

 

Test beds for reliable smart city Machine-to-Machine Communication (TRESCIMO)

To be paid

 

Regional Air Quality Modelling

 To be paid

SAFCOL SOC LIMITED

(a)

Not applicable

(b)

SAFCOL does not have any specific institution that it is funding by way of collaborative discretionary funding. However, SAFCOL has relationships with the following institutions as members and paying a membership fee, or paying on project basis:

 

(i)

LOCAL OR DOMESTIC INSTITUTIONS

   

Institutions

Date of Reporting

Relation with SAFCOL / Functions of Entities

Estimated amount

   

(aa)(aaa)

(bb)

(bbb)

(cc)

   

University of Pretoria

2008 - current

SAFCOL has a forestry Chair programme with the University of Pretoria to train students and improve post graduate research

R1 200 000 p.a.

(including Bursaries)

   

University of Stellenbosch

Unknown - current

Tertiary Forestry Education – training students

Unknown

Bursaries vary per year.

R454 441 in 2016

   

Nelson Mandela Metropolitan University (NMMU)

Unknown - current

Tertiary Forest Education – training students

Unknown

Bursaries vary per year.

R260 586 in 2016

   

Institutions

Date of Reporting

Relation with SAFCOL / Functions of Entities

Estimated amount

   

(aa)(aaa)

(bb)

(bbb)

(cc)

   

FABI / TPCP (Tree Protection COOP, University of Pretoria

1990 - current

Tree protection (pests and diseases)

R500 000 p.a.

   

National Forestry Research Forum (NFRF)

2016 – current

The institution does research for the forestry industry

No membership fees

   

Forestry South Africa (FSA)

Unknown - current

South African Professional Forestry Association membership

R2.50 per ton sold

   

ICFR (Institute of Commercial Forestry Research)

1980 – current

Siviculture research 1980

R400 000 p.a.

   

CSIR

20160- current

Research

Currently no funding (future projects)

   

Forest Molecular Group (FMG), University of Pretoria

2016 – current

Research (genetic research on trees)

Currently no funding (future projects)

   

Baboon Damage Working Group

2000 – current

Research (on animals causing damage to SAFCOL trees)

R200 000 p.a.

   

South African Sirex Control Programme

2010 - current

Research and tree protection (pest control for better tree survival)

R 200 000 p.a.

   

Timber Industry Pesticide Working Group(TIPWG)

Unknown - current

Pesticide environmental control

R100 000 per project

   

Institutions

Date of Reporting

Relation with SAFCOL / Functions of Entities

Estimated amount

   

(aa)(aaa)

(bb)

(bbb)

(cc)

   

Seedling Growers Association of South Africa (SGASA)

Unknown - current

Latest technology on nurseries

R 20 000 p.a.

 

(ii)

INTERNATIONAL INSTITUTIONS

   

Institutions

Date of Reporting

Relation with SAFCOL / Functions of Entities

Estimated amount

   

(aa)(aaa)

(bb)

(bbb)

(cc)

   

CAMCORE (Camcore Cooperation)

1983 – current

Conservation, testing and breeding of forest tree species in the Tropics and Sub-Tropics

R400 000 p.a.

   

IUFRO (International Union of Forest Research Organisations)

1980 - current

Research

R 30 000 p.a.

SAX SOC LIMITED

South African Express does not provide funding to any institution/s for any research and development purposes.

TRANSNET SOC LIMITED

  1. N/A

(b)(i) Transnet has partnerships and sponsorships with various Universities to conduct research and development.

University of Cape Town (UCT):

  • Sponsorship: Research and Education Programme in Rail Engineering, faculty Building Environment, Engineering and Information technology
  • Duration: 2013-2018
  • Value: R6 000 000.00

 

University of Pretoria (UP):

  • Sponsorship: Chair in Railway faculty Building Environment, Engineering and Information technology
  • Duration 2013-2018
  • Value: R12,6m

University of the Witwatersrand (WITS):

  • Sponsorship: Systems Engineering
  • Duration: 2012-2017
  • Value: R58,762 000.00

University of Stellenbosch (US)

  • Sponsorship: Port and Coastal Engineering
  • Duration: 2015-2020
  • Value R9 400 00.00

(b) (ii) None

(bb) None

(bbb) None

(cc) N/A

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

09 October 2017 - NW2161

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

Given the qualified audit opinion of R 2996 million in irregular expenditure shown on page 22 of Eskom’s 2016/17 annual financial statements, (a) what is the itemised cost breakdown of this irregular expenditure with supplier names for each item, (b) how was the R2996 million expenditure processed without supporting documentation given that the systems do not allow it, (c) what disciplinary measures have been instituted against individuals implicated in this irregular expenditure and (d) what measures is Eskom implementing to prevent this from reoccurring? TO:Mogokare Richard Seleke DIRECTOR-GENERAL FROM :Justin De Allende RE:PARLIAMENTARY QUESTION NO 2161 DATE:4 August 2017 ================================================================ To provide the Minister with a response to Parliamentary Question Number 2161 COVER MEMO AND THE PACKAGING OF PQ BY: Department of Public Enterprises ………………………………. Acting Deputy Director-General Date: COMMENTS: ……………………………………….. ………………………………… Mogokare Richard Seleke Director-General Date: APPROVED/DECLINED/COMMENTS ………………………………………….. ………………………………………….. …………………………………………. DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY QUESTION NO.:PQ 2161 DATE OF PUBLICATION: 4 August 2017 Mr E J Marais (DA) to ask the Minister of Public Enterprises: Given the qualified audit opinion of R 2996 million in irregular expenditure shown on page 22 of Eskom’s 2016/17 annual financial statements, (a) what is the itemised cost breakdown of this irregular expenditure with supplier names for each item, (b) how was the R2996 million expenditure processed without supporting documentation given that the systems do not allow it, (c) what disciplinary measures have been instituted against individuals implicated in this irregular expenditure and (d) what measures is Eskom implementing to prevent this from reoccurring?       REPLY: (a) Eskom has provided this detail in the Annual Financial Statements issued for the year ended 31 March 2017. Please refer to Note 52 on page 113. (b) Please refer to the attached note for details of the irregular expenditure. (c) A recovery plan has been developed, which includes instituting disciplinary measures and is in the process of execution. (d) Eskom has developed an improvement plan with the aim of addressing PFMA compliance. Please refer to Directors report on Page 13 to 14 of the Annual Financial Statements issued for the year ended 31 March 2017. Remarks: Reply: Approved / Not Approved Mr. Mogokare Richard SelekeMs. Lynne Brown, MP Director-General Minister of Public Enterprises Date:Date: Annexure to PQ 2162 (B) 52.Information required by the Public Finance Management Act Any losses due to criminal conduct or irregular or fruitless and wasteful expenditure that individually (or collectively where items are closely related) exceed R25 million must be reported in terms of the significance and materiality framework agreed with the shareholder. 52.1Irregular expenditure Group and company Note 2017 Rm 2016 Rm Balance at beginning of the year 348 418 Current year expenditure 4 043 106 Amounts condoned (1 084) (146) Amounts not recoverable (not condoned) (311) (30) Balance at end of the year 2 996 348 Age analysis 2 996 348 Current year 2 992 38 Prior years 4 310 Comprising – 310 B2B engineering tools expenditure incurred without PFMA approval(a) Balance at beginning of the year 310 310 Amounts not recoverable (not condoned) (310) – Purchase of land without investment committee approval(b) – – Balance at beginning of the year – 108 Amounts condoned – (108) Breach of PPPFA: monetary thresholds – incorrect tender process applied(c) 92 11 Balance at beginning of the year 11 – Current year expenditure 95 41 Amounts condoned (13) – Amounts not recoverable (not condoned) (1) (30) Breach of the NEMA(d) – 7 Balance at beginning of the year 7 – 7 – Current year expenditure – Amounts condoned (7) Use of labour broker – internal processes not followed(e) – 10 Balance at beginning of the year 10 – Current year expenditure – 10 Amounts condoned (10) – Professional services contract – internal processes not followed – – Current year expenditure – 36 Amounts condoned – (36) Tender processes not adhered to – commitments made before approval(f) 56 1 Balance at beginning of the year 1 – Current year expenditure 549 3 Amounts condoned (494) (2) Procurement of services – incorrect classification as an emergency(g) 8 4 Balance at beginning of the year 4 – 4 Current year expenditure 4 Quality management – tender process not followed and insufficient delegation of authority 1 560 – Current year expenditure(h) Breach of PPPFA – tax clearance certificates(i ) 987 – Current year expenditure 1 453 – Amounts condoned (466) – Non-compliance with CIDB regulations( j) 8 – Current year expenditure 97 – Amounts condoned (89) – Breach of PFMA – use of sole source 96 – – 5 Current year expenditure(k) Breach of PFMA – tender processes not adhered to Current year expenditure(l) 189 Various other instances – Balance at beginning of the year 5 – 5 – Current year expenditure – Amounts condoned (5) Irregular expenditure (continued) B2B engineering tools expenditure incurred without PFMA approval The matter regarding the expenditure incurred on the B2B Engineering Tools project of R310 million before PFMA approval was reported in 2015. The expenditure was subsequently derecognised by the board in accordance with the National Treasury Guideline issued on 19 April 2016. Purchase of land without investment committee approval The matter regarding the purchase of land without investment committee approval was reported in 2015. The irregular expenditure incurred has been condoned by the relevant authority and has therefore been removed from the register of irregular expenditure. Breach of PPPFA: monetary thresholds – incorrect tender process applied Irregular expenditure of R95 million was incurred in breach of the Preferential Procurement Policy Framework Act (PPPFA) as follows: the PPPFA requires that monetary thresholds to determine the appropriate point-scoring criteria applicable to specific transactions be considered inclusive of VAT. Eskom erroneously applied the thresholds exclusive of VAT. Certain procurement was therefore done using the incorrect point-scoring criteria and resulted in a breach of PPPFA. Irregular expenditure incurred on affected transactions amounted to R95 million (2016: R11 million) of which R13 million was condoned in 2017, including R11 million reported in 2016. An amount of R92 million was awaiting condonation at 31 March 2017. Eskom is ensuring that regular reviews are conducted and that buyers are made aware and retrained on the supply chain management procedure Eskom’s exemption from the PPPFA expired on 7 December 2012. Eskom paid R0.4 million (2016: R30 million) during the year on contracts that were entered into between 8 December 2012 and 31 March 2013 that were inconsistent with the requirements of the PPPFA. These contracts were not recalled or corrected at the time and Eskom continued to meet its obligations in terms of these contracts. All the affected transactions took place in the normal course of business and were subject to Eskom’s approved procurement policy in force at the time Breach of NEMA Eskom unlawfully commenced with construction activities for a 132 kV power line in the Eastern Cape Province along a route that was not authorised by the Department of Environmental Affairs (DEA). An amount of R7 million was incurred on the portion of the line constructed in contravention of the National Environmental Management Act (NEMA). Eskom rectified the breach and received the required authorisation from DEA on 2 September 2016. Eskom paid a penalty of R1 million imposed by DEA. Disciplinary action was concluded against three employees involved. Use of labour broker – internal processes not followed Eskom processes were not followed for the procurement of certain goods and services through a labour broker. The senior managers concerned were disciplined and the labour broker instructed to discontinue sundry payments. The expenditure was condoned and no further action is required. Tender processes not adhered to – commitments made before approval Irregular expenditure of R549 million comprising 245 incidents was incurred as a result of non-adherence to internal procurement processes and employees contravening the Eskom Delegation of Authority. Incidents totalling R56 million are awaiting condonation. Procurement of services – incorrect classification as an emergency Services procured to the value of R4 million (2016: R4 million) were incorrectly classified as an emergency in the procurement process. This matter will be submitted for condonation in 2018. Quality management – tender process not followed and insufficient delegation of authority Irregular expenditure estimated at R1 560 million was incurred because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years. Multi-disciplinary investigations were conducted into indications of mismanagement and allegations of irregularities in the quality management department. Possible fruitless and wasteful expenditure of R886 million regarding this matter was reported in 2016. A further investigation was recently finalised by an independent external company with the following outcome: identification of irregular expenditure of R1 560 million because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years with the bulk of the payments made on these contracts occurring in the 2013 and 2014 financial years estimated fruitless and wasteful expenditure of R510 million compared to the original estimate of R886 million reported in 2016. Refer to 52.2(a) losses due to criminal conduct of R2 million. Refer to 52.3(b) Actions taken to date include the following: two employees have been dismissed (one is a senior manager) a criminal case was opened with the South African Police Service to investigate possible fraudulent transactions civil action against Eskom by one of the main suppliers is being defended a fidelity claim has been lodged in terms of a commercial crime insurance policy with a cover limit of R3 billion for losses arising from fraudulent or dishonest acts committed by employees. This claim will be concluded once the legal matters have been finalised Further disciplinary, civil and/or criminal action as appropriate will be considered against other parties involved, including action to recover losses. The following contract management process improvements have been implemented: improvement in the monitoring of performance by the SHEQ panel service providers with regular inspections and enforcement of consequence management for poor or ineffective delivery effective segregation of duties reconciliation of task orders to scope, budget, timesheets, invoices and payments, with approval of timesheets by project managers on site limiting of long-term task orders and close monitoring of performance to ensure resources are not idle nor unproductive training of employees on effective electronic documentation management Breach of PPPFA – tax clearance certificates PPPFA regulations require that tenders may only be awarded to a person whose tax matters have been declared to be in order by SARS. SARS only issues such a confirmation to a person registered as a taxpayer. Three contracts with an award value of R340 million were reported as being under investigation in 2016. A further R126 million was incurred on these contracts during the year. They were confirmed as irregular in 2017 since no SARS declaration was found to be obtained at the time of award and were condoned during the year. There were 59 contracts that were similarly affected during 2017. Irregular expenditure of R987 million was incurred on these contracts during the year and is awaiting condonation. Non-compliance with CIDB regulations Construction Industry Development Board (CIDB) regulations specify the different levels of grading that contractors must have based on the value of the contracts to be awarded (not a requirement for World Bank-funded contracts). Expenditure of R89 million was identified and condoned during the year on two foreign contracts awarded in terms of World Bank funding where the grading level was not in line with CIDB regulations. A further R8 million was incurred on a contract for which tender invitations were not advertised on the CIDB website as per the CIDB Regulation 24. Breach of PFMA – use of sole source There were three incidents of irregular expenditure totalling R96 million where the use of sole sources could not be adequately justified. Breach of PFMA – tender processes not adhered to There were 11 incidents of irregular expenditure totalling R189 million where approved supply chain management processes were not adhered to. Irregular expenditure under investigation There are numerous additional instances of procurement that are subject to investigation, namely: tender processes not adhered to including breaches of delegation of authority incorrect PPPFA points thresholds applied non-compliance with CIDB regulations lack of supporting documentation including tax clearance certificates award made to a company on a sole source basis which might not comply with the criteria of sole source and contract amount determined on a contingency fee basis non-declaration of conflicts of interest by employees and tenderers giving rise to a risk of undue influence contract information not reflected correctly in the reporting system These matters are being investigated and will be disclosed in a subsequent period should they prove to be irregular. Relevant authority for condonations Condonations are currently approved by the relevant internal governance committee unless it is specifically required to be approved by National Treasury. Eskom is awaiting clarification from National Treasury on whether a relevant government department responsible for a particular piece of legislation must approve condonation of a breach relating to that legislation. Fruitless and wasteful expenditure Incidents of fruitless and wasteful expenditure above the materiality threshold There was one (2016: one) major incident of fruitless and wasteful expenditure incurred by the group during the year that exceeded the materiality threshold of R25 million. This matter is carried forward from 2016. Fruitless and wasteful expenditure incurred by the quality management department An investigation by an independent external party confirmed fruitless and wasteful expenditure estimated at R510 million compared to the original estimate of R886 million reported in the previous financial year. Refer to 52.1(h). Incidents of fruitless and wasteful expenditure below the materiality threshold Total fruitless and wasteful expenditure which individually or collectively (where items are closely related) were below the materiality threshold was R37 million (2016: R93 million) comprising 210 (2016: 655) incidents of which 10 incidents accounted for R22 million. Management continues to institute preventive and corrective measures, including disciplinary action, as considered appropriate. Fruitless and wasteful expenditure under investigation There are currently 84 incidents of alleged fruitless and wasteful expenditure under investigation, of which none is expected to exceed the materiality threshold of R25 million. The nature and extent of potential losses incurred cannot be reasonably ascertained at this stage. It is important to note that these are allegations and many of these occurrences may not qualify as fruitless and wasteful expenditure upon conclusion of the investigations. Criminal conduct Theft of conductors, cabling and related equipment Losses due to conductor theft, cabling and related equipment totalled R70 million (2016: R85 million), involving 5 734 incidents (2016: 5 161 incidents). Actions to combat these losses are managed by the Eskom Network Equipment Crime Committee in collaboration with other affected state-owned companies and the South African Police Services. The combined effort resulted in 235 (2016: 229) arrests and R5 million (2016: R5 million) worth of stolen material was recovered. Fraud Eskom concluded 15 (2016: 14) investigations into fraud during the reporting period involving R24 million (2016: R33 million), including a R2 million loss due to criminal conduct on the quality management matter. Refer to note 52.1(h). The existing internal control measures in the affected areas as well as similar areas have been reviewed and enhanced. Disciplinary, criminal as well as civil proceedings have been instituted against those involved. Non-technical revenue losses Non-technical losses are estimated at R1.3 billion (2016: R1.2 billion). These arise mainly from meter tampering and bypasses, illegal connections to the electricity network and illegal vending of electricity. Interventions to reduce non-technical energy losses: implementation of technologies in the form of smart/split meters with protective enclosures to prevent access to the meter disconnection of illegal connections, meter tampers and imposition of penalties (tamper fines) estimation and recovery of revenue for historic unaccounted energy where tampered metering installations are encountered revision of supply group codes on prepaid meters to prevent the use of illegal prepaid vouchers investigations and prosecution of criminals perpetrating electricity theft through the sale of illegal prepaid vouchers, illegal electrification and meter tampering services customer education, social mobilisation and partnership campaigns to drive behaviour change

Reply:

(a)

Eskom has provided this detail in the Annual Financial Statements issued for the year ended 31 March 2017. Please refer to Note 52 on page 113.

(b)

Please refer to the attached note for details of the irregular expenditure.

(c)

A recovery plan has been developed, which includes instituting disciplinary measures and is in the process of execution.

(d)

Eskom has developed an improvement plan with the aim of addressing PFMA compliance. Please refer to Directors report on Page 13 to 14 of the Annual Financial Statements issued for the year ended 31 March 2017.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Annexure to PQ 2162 (B)

52. Information required by the Public Finance Management Act

Any losses due to criminal conduct or irregular or fruitless and wasteful expenditure that individually (or collectively where items are closely related) exceed R25 million must be reported in terms of the significance and materiality framework agreed with the shareholder.

52.1 Irregular expenditure

Group and company

Note

2017

Rm

2016

Rm

Balance at beginning of the year

348

418

Current year expenditure

4 043

106

Amounts condoned

(1 084)

(146)

Amounts not recoverable (not condoned)

(311)

(30)

Balance at end of the year

2 996

348

Age analysis

2 996

348

Current year

2 992

38

Prior years

4

310

Comprising

310

B2B engineering tools expenditure incurred without PFMA approval (a)

   

Balance at beginning of the year

310

310

Amounts not recoverable (not condoned)

(310)

Purchase of land without investment committee approval (b)

Balance at beginning of the year

108

Amounts condoned

(108)

Breach of PPPFA: monetary thresholds – incorrect tender process applied (c)

92

11

Balance at beginning of the year

11

Current year expenditure

95

41

Amounts condoned

(13)

Amounts not recoverable (not condoned)

(1)

(30)

Breach of the NEMA (d)

7

Balance at beginning of the year

7

– 7

Current year expenditure

 

Amounts condoned

(7)

 

Use of labour broker – internal processes not followed (e)

10

Balance at beginning of the year

10

Current year expenditure

10

Amounts condoned

(10)

Professional services contract – internal processes not followed

Current year expenditure

36

Amounts condoned

(36)

Tender processes not adhered to – commitments made before approval (f)

56

1

Balance at beginning of the year

1

Current year expenditure

549

3

Amounts condoned

(494)

(2)

Procurement of services – incorrect classification as an emergency (g)

8

4

Balance at beginning of the year

4

– 4

Current year expenditure

4

 

Quality management – tender process not followed and insufficient delegation of authority

1 560

Current year expenditure (h)

   

Breach of PPPFA – tax clearance certificates (i )

987

Current year expenditure

1 453

Amounts condoned

(466)

Non-compliance with CIDB regulations ( j)

8

Current year expenditure

97

Amounts condoned

(89)

Breach of PFMA – use of sole source

96

– 5

Current year expenditure (k)

   

Breach of PFMA – tender processes not adhered to

   

Current year expenditure (l)

189

 

Various other instances

 

Balance at beginning of the year

5

– 5

Current year expenditure

 

Amounts condoned

(5)

 

52.1 Irregular expenditure (continued)

a) B2B engineering tools expenditure incurred without PFMA approval

The matter regarding the expenditure incurred on the B2B Engineering Tools project of R310 million before PFMA approval was reported in 2015. The expenditure was subsequently derecognised by the board in accordance with the National Treasury Guideline issued on 19 April 2016.

b) Purchase of land without investment committee approval

The matter regarding the purchase of land without investment committee approval was reported in 2015. The irregular expenditure incurred has been condoned by the relevant authority and has therefore been removed from the register of irregular expenditure.

c) Breach of PPPFA: monetary thresholds – incorrect tender process applied

Irregular expenditure of R95 million was incurred in breach of the Preferential Procurement Policy Framework Act (PPPFA) as follows:

    • the PPPFA requires that monetary thresholds to determine the appropriate point-scoring criteria applicable to specific transactions be considered inclusive of VAT. Eskom erroneously applied the thresholds exclusive of VAT. Certain procurement was therefore done using the incorrect point-scoring criteria and resulted in a breach of PPPFA. Irregular expenditure incurred on affected transactions amounted to R95 million (2016: R11 million) of which R13 million was condoned in 2017, including R11 million reported in 2016. An amount of R92 million was awaiting condonation at 31 March 2017. Eskom is ensuring that regular reviews are conducted and that buyers are made aware and retrained on the supply chain management procedure
    • Eskom’s exemption from the PPPFA expired on 7 December 2012. Eskom paid R0.4 million (2016: R30 million) during the year on contracts that were entered into between 8 December 2012 and 31 March 2013 that were inconsistent with the requirements of the PPPFA. These contracts were not recalled or corrected at the time and Eskom continued to meet its obligations in terms of these contracts. All the affected transactions took place in the normal course of business and were subject to Eskom’s approved procurement policy in force at the time

d) Breach of NEMA

Eskom unlawfully commenced with construction activities for a 132 kV power line in the Eastern Cape Province along a route that was not authorised by the Department of Environmental Affairs (DEA). An amount of R7 million was incurred on the portion of the line constructed in contravention of the National Environmental Management Act (NEMA). Eskom rectified the breach and received the required authorisation from DEA on 2 September 2016. Eskom paid a penalty of R1 million imposed by DEA. Disciplinary action was concluded against three employees involved.

e) Use of labour broker – internal processes not followed

Eskom processes were not followed for the procurement of certain goods and services through a labour broker. The senior managers concerned were disciplined and the labour broker instructed to discontinue sundry payments. The expenditure was condoned and no further action is required.

f) Tender processes not adhered to – commitments made before approval

Irregular expenditure of R549 million comprising 245 incidents was incurred as a result of non-adherence to internal procurement processes and employees contravening the Eskom Delegation of Authority. Incidents totalling R56 million are awaiting condonation.

g) Procurement of services – incorrect classification as an emergency

Services procured to the value of R4 million (2016: R4 million) were incorrectly classified as an emergency in the procurement process. This matter will be submitted for condonation in 2018.

h) Quality management – tender process not followed and insufficient delegation of authority

Irregular expenditure estimated at R1 560 million was incurred because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years.

Multi-disciplinary investigations were conducted into indications of mismanagement and allegations of irregularities in the quality management department. Possible fruitless and wasteful expenditure of R886 million regarding this matter was reported in 2016.

A further investigation was recently finalised by an independent external company with the following outcome:

    • identification of irregular expenditure of R1 560 million because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years with the bulk of the payments made on these contracts occurring in the 2013 and 2014 financial years
    • estimated fruitless and wasteful expenditure of R510 million compared to the original estimate of R886 million reported in 2016. Refer to 52.2(a)
    • losses due to criminal conduct of R2 million. Refer to 52.3(b)

Actions taken to date include the following:

    • two employees have been dismissed (one is a senior manager)
    • a criminal case was opened with the South African Police Service to investigate possible fraudulent transactions
    • civil action against Eskom by one of the main suppliers is being defended
    • a fidelity claim has been lodged in terms of a commercial crime insurance policy with a cover limit of R3 billion for losses arising from fraudulent or dishonest acts committed by employees. This claim will be concluded once the legal matters have been finalised

Further disciplinary, civil and/or criminal action as appropriate will be considered against other parties involved, including action to recover losses.

The following contract management process improvements have been implemented:

    • improvement in the monitoring of performance by the SHEQ panel service providers with regular inspections and enforcement of consequence management for poor or ineffective delivery
    • effective segregation of duties
    • reconciliation of task orders to scope, budget, timesheets, invoices and payments, with approval of timesheets by project managers on site
    • limiting of long-term task orders and close monitoring of performance to ensure resources are not idle nor unproductive
    • training of employees on effective electronic documentation management

i) Breach of PPPFA – tax clearance certificates

PPPFA regulations require that tenders may only be awarded to a person whose tax matters have been declared to be in order by SARS. SARS only issues such a confirmation to a person registered as a taxpayer. Three contracts with an award value of R340 million were reported as being under investigation in 2016. A further R126 million was incurred on these contracts during the year. They were confirmed as irregular in 2017 since no SARS declaration was found to be obtained at the time of award and were condoned during the year. There were 59 contracts that were similarly affected during 2017. Irregular expenditure of R987 million was incurred on these contracts during the year and is awaiting condonation.

j) Non-compliance with CIDB regulations

Construction Industry Development Board (CIDB) regulations specify the different levels of grading that contractors must have based on the value of the contracts to be awarded (not a requirement for World Bank-funded contracts). Expenditure of R89 million was identified and condoned during the year on two foreign contracts awarded in terms of World Bank funding where the grading level was not in line with CIDB regulations. A further R8 million was incurred on a contract for which tender invitations were not advertised on the CIDB website as per the CIDB Regulation 24.

k) Breach of PFMA – use of sole source

There were three incidents of irregular expenditure totalling R96 million where the use of sole sources could not be adequately justified.

l) Breach of PFMA – tender processes not adhered to

There were 11 incidents of irregular expenditure totalling R189 million where approved supply chain management processes were not adhered to.

m) Irregular expenditure under investigation

There are numerous additional instances of procurement that are subject to investigation, namely:

    • tender processes not adhered to including breaches of delegation of authority
    • incorrect PPPFA points thresholds applied
    • non-compliance with CIDB regulations
    • lack of supporting documentation including tax clearance certificates
    • award made to a company on a sole source basis which might not comply with the criteria of sole source and contract amount determined on a contingency fee basis
    • non-declaration of conflicts of interest by employees and tenderers giving rise to a risk of undue influence
    • contract information not reflected correctly in the reporting system

These matters are being investigated and will be disclosed in a subsequent period should they prove to be irregular.

n) Relevant authority for condonations

Condonations are currently approved by the relevant internal governance committee unless it is specifically required to be approved by National Treasury. Eskom is awaiting clarification from National Treasury on whether a relevant government department responsible for a particular piece of legislation must approve condonation of a breach relating to that legislation.

 

52.2 Fruitless and wasteful expenditure

a) Incidents of fruitless and wasteful expenditure above the materiality threshold

There was one (2016: one) major incident of fruitless and wasteful expenditure incurred by the group during the year that exceeded the materiality threshold of R25 million. This matter is carried forward from 2016.

Fruitless and wasteful expenditure incurred by the quality management department

An investigation by an independent external party confirmed fruitless and wasteful expenditure estimated at R510 million compared to the original estimate of R886 million reported in the previous financial year. Refer to 52.1(h).

b) Incidents of fruitless and wasteful expenditure below the materiality threshold

Total fruitless and wasteful expenditure which individually or collectively (where items are closely related) were below the materiality threshold was R37 million (2016: R93 million) comprising 210 (2016: 655) incidents of which 10 incidents accounted for R22 million. Management continues to institute preventive and corrective measures, including disciplinary action, as considered appropriate.

c) Fruitless and wasteful expenditure under investigation

There are currently 84 incidents of alleged fruitless and wasteful expenditure under investigation, of which none is expected to exceed the materiality threshold of R25 million. The nature and extent of potential losses incurred cannot be reasonably ascertained at this stage. It is important to note that these are allegations and many of these occurrences may not qualify as fruitless and wasteful expenditure upon conclusion of the investigations.

 

52.3 Criminal conduct

a) Theft of conductors, cabling and related equipment

Losses due to conductor theft, cabling and related equipment totalled R70 million (2016: R85 million), involving 5 734 incidents (2016: 5 161 incidents). Actions to combat these losses are managed by the Eskom Network Equipment Crime Committee in collaboration with other affected state-owned companies and the South African Police Services. The combined effort resulted in 235 (2016: 229) arrests and R5 million (2016: R5 million) worth of stolen material was recovered.

b) Fraud

Eskom concluded 15 (2016: 14) investigations into fraud during the reporting period involving R24 million (2016: R33 million), including a R2 million loss due to criminal conduct on the quality management matter. Refer to note 52.1(h). The existing internal control measures in the affected areas as well as similar areas have been reviewed and enhanced. Disciplinary, criminal as well as civil proceedings have been instituted against those involved.

c) Non-technical revenue losses

Non-technical losses are estimated at R1.3 billion (2016: R1.2 billion). These arise mainly from meter tampering and bypasses, illegal connections to the electricity network and illegal vending of electricity.

Interventions to reduce non-technical energy losses:

    • implementation of technologies in the form of smart/split meters with protective enclosures to prevent access to the meter
    • disconnection of illegal connections, meter tampers and imposition of penalties (tamper fines)
    • estimation and recovery of revenue for historic unaccounted energy where tampered metering installations are encountered
    • revision of supply group codes on prepaid meters to prevent the use of illegal prepaid vouchers
    • investigations and prosecution of criminals perpetrating electricity theft through the sale of illegal prepaid vouchers, illegal electrification and meter tampering services
    • customer education, social mobilisation and partnership campaigns to drive behaviour change

09 October 2017 - NW1582

Profile picture: Madisha, Mr WM

Madisha, Mr WM to ask the Minister of Public Enterprises

In view of her appointment of a certain person namely Mr Thamsanqa Msomi to the Board of Denel, (a) did she know of the specified person, (b) who introduced the person to her, (c) who recommended the appointment of the person to the board of the specified institution and (d) what criteria did she use to appoint the person to the specified board?

Reply:

a) I did not know of the specified person.

b) Please refer to the answer (a) above. The person was identified through the Board appointment process specified in (d).

c) Please refer to the answer (a) above. The person was recommended/nominated by Mr Bayanda Qiniselani Mzoneli.

d) The Board appointment process is as follows:

(i) An advertisement is issued inviting nominations of suitable persons for appointment to the Boards of the SOC within the DPE portfolio. In this instance, the advertisement went out in October 2014.

  1. Suitable candidates are decided on the basis of qualifications and expertise, skills, experience and business acumen.
  2. A nomination form must be filled in with personal information, qualifications, skills, experience, and the sector of interested indicated.
  3. All people that have responded are put on a database maintained by the Department. The database is consulted whenever a vacancy arises on any of the DPE SOC Boards. The list is updated every two years through a call for nominations, in the media.

(ii) The advertisement is followed by evaluation of the candidates against the criteria of qualifications, skills and experience specified and a long list is determined to determine the people who qualify for consideration.

(iii) The short list is then presented to the Minister for her consideration and approval. In this regard, the list can be revised depending on the Minister’s satisfaction with list provided.

(iv) Finally, the proposed short list of candidates approved by the Minister is presented to Cabinet for approval.

 

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

   

Ms Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

26 September 2017 - NW2723

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

Whether SA Express made payments to a certain company (name furnished) (a) in each of the past three financial year and (b) since 1 April 2017; if so, (i) on what dates were the payments made, (ii) what is the total amount that was paid, (iii) who authorised the payment and (iv) what was it for?

Reply:

   

REGIMENTS

TRILLIAN

FY

Amount (R)

Authorised by

Purpose

 

Amount (R)

Authorised by

Purpose

2013/14

3 648 000.00 

CEO/CFO 

 Funding plan and balance sheet optimisation. 

 

 

 

CEO/CFO 

 Funding plan and balance sheet optimisation. 

 

2014/15

1 777 123.00 

 

   

 

 

 

2015/16

2 793 000.00 

 

 

2016

5 700 000.00  

   

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW1014

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

(b)

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

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

1(c)

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

DoE IPPPP

No. of projects

Renewable Energy IPPs

Bid 1

28

 

Bid 2

19

 

Bid 3

16

 

Bid 3.5

1

Peakers

DoE Peakers

2

 

Total

66

(d)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW1822

Profile picture: Ketabahle, Ms V

Ketabahle, Ms V to ask the Minister of Public Enterprises

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

Reply:

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

PUBLIC ENTERPRISES

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

ALEXKOR SOC LIMITED

(a)

(i)

Not applicable

 

(ii)

Alexkor SOC Ltd does not split tenders between different bidders

(b)

Not applicable

(c)

Not applicable

DENEL SOC LIMITED

(a)

(i)

Not applicable

 

(ii)

Denel SOC Ltd does not split tenders between different bidders

(b)

Not applicable

(c)

Not applicable

ESKOM SOC LIMITED

(a)

(i)

Not applicable

 

(ii)

Eskom Holdings SOC Ltd does not split tenders between different bidders

(b)

Not applicable

(c)

Not applicable

SAFCOL SOC LIMITED

(a)

(i)

Not applicable

 

(ii)

SAFCOL SOC Ltd does not split tenders between different bidders

(b)

Not applicable

(c)

Not applicable

SA Express SOC LIMITED

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

(a)

(i)

Not applicable

 

(ii)

SA Express Airways SOC Ltd has not awarded any tender during the financial year 2015/2016 between different bidders through a split.

(b)

Not applicable

(c)

Not applicable

TRANSNET SOC LIMITED

SPLIT TENDERS/RFP's

No of split tenders

Tender

Contract Value

(1)(a)(ii)(b)

(1)(b)

(1)(c)

1

 Bulk Fuel

15 000 000 000

2

Onroad Fuel

980 000 000

3

Fleet Management Services (Light Commercial and Heavy Commercial Vehicles regional Split

5 929 000 000

4

Insurance (Portfolio split)

24 063 019

5

Stationery Contract: Split award in Gauteng to two suppliers

32 000 000

6

Request for 3 service providers to audit SD & BBBEE improvement commitments

1 951 260

7

Provision for change creative and communication services

16 400 000

8

Waste Management of hazardous & general industrious waste

47 658 018

13

Provision of New Industrial Tyres, Rims &Tubes, Retreading of Tyes/Tubes

168 551 944

14

Provision of Security Service

123 311 872

15

Provision and supply of automotive filters for Transnet SOC Ltd

9 100 000

16

Provision of New Industrial Tyres, Rims &Tubes, Retreading of Tyes/Tubes at Durban, Richards Bay, Eest London, Port Elizabeth , Saldanha & Nqgura

18 164 765

17

Provision of Transportation of Employees in CT

25 104 123

18

Security (Ports)

154 360 702

19

Security (Light houses)

2 872 362

20

Uniforms

47 554 516

21

Supply and Delivery of Bulk Piping Valves and Tightlining Valves for TM1

23 467 774

22

Manufacture, Supply and Delivery of Mechanical Valves for the NMPP Project

92 034 809

23

Security upgrade - construction and new guard houses

7 500 000

24

Axles

2 518 087 801

25

Bearings

1 335 365 962

26

Bogie Castings

1 167 305 346

SPLIT TENDERS/RFP's

No of split tenders

Tender

Contract Value

(1)(a)(ii)(b)

(1)(b)

(1)(c)

27

34" Centes and 36" Centes

3 600 908 620

28

Steel - Carbon

1 631 257 865

29

Steel - 3C12

1 270 631 355

30

Coupling Components

1 333 431 492

31

Spring Steel

131 969 052

32

Security Services

168 002 169

33

Concrete Sleepers

690 000 000

34

Ballast and G-Material

553 036 237

35

Cost Engineering Services - "As and When Required"

350 000 000

36

Physical Guarding Services

1 478 593 169

37

Equestrian Security Services

146 503 485

38

Design, supply, installation, commissioning, configuration and integration of new and existing CCTV surveillance system

38 595 702

39

Traction & Distribution Transformer Repairs - ""As and When Required"

29 089 256

40

1064 Locomotives

48 562 121 000

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2492

Profile picture: Mazzone, Ms NW

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

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

Reply:

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

(1)

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

(1)(a)

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

(1)(b)

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

(1)(i)

Not applicable

(1)(ii)

Not applicable

(2)

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

(3)

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

(3)(a)

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

(3)(b)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2591

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Public Enterprises

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

Reply:

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

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

Remarks:

   

Reply: Approved / Not Approved

Mr Mogokare Richard Seleke

   

Ms Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

26 September 2017 - NW2645

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

(a) Supplier Name

(a) Power Station Name

(c) Contractual Volumes Per Annum (Mt)

(d) Length of the contract (Years)

Umsimbithi Mining (Pty) Ltd - Wonderfontein

Arnot

2.4

3

Exxaro Coal Mpumalanga (Pty) Ltd - NBC

Arnot/Komati/Tutuka

2.88

8

Vunene Mining (Pty) Ltd – Usutu

Camden

1.20

5

Silverlake Trading 447 (Pty) Ltd - Uitgevalen

Camden

0.60

5

Sudor Coal (Pty) Ltd - Halfgewonnen

Camden

2.16

10

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

Duvha

10.00

41

Liketh Investments (Pty) Ltd - Tavistock/Tweefontein

Duvha/Komati

1.30

7

HCI Khusela Coal (Pty) Ltd – Palesa

Grootvlei

1.92

8

Optimum Coal Holdings – Optimum

Hendrina

5.50

26

Liketh Investments (Pty) Ltd - KK Pit 5

Hendrina

2.40

9

South 32 (Pty) Ltd (BECSA) - Khutala

Kendal

13.30

40

African Exploration Mining and Finance Company - Vlakfontein

Kendal

1.50

5

Tshedza Mining Resources (Pty) Ltd - Manungu

Kendal/Kusile

1.62

15

Lurco Mining Services (Pty) Ltd - VDD

Komati

0.48

7

Koornfontein Mines (Pty) Ltd - Koornfontein

Komati

2.40

7

Anglo American Inyosi Coal SA (Pty) Ltd - Kriel

Kriel

8.50

40

African Exploration Mining and Finance Company - Chilwavhusiku

Kusile

0.9

10

African Exploration Mining and Finance Company - Mzimkhulu

Kusile

2.48

10

Universal Coal Development I (Pty) Ltd - Wolvenfontein

Kusile/Kendal

2.00

9

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

Lethabo

17.80

40

(a) Supplier Name

(a) Power Station Name

(c) Contractual Volumes Per Annum (Mt)

(d) Length of the contract (Years)

Glencore (Xstrata) / African Rainbow Minerals JV - Goedgevonden

Majuba

2.80

17

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

Majuba

2.10

8

Kuyasa Mining (Pty) Ltd – Delmas

Majuba

1.68

8

Tegeta Exploration and Resources (Pty) Ltd - Brakfontein

Majuba

1.36

11

Wescoal Mining (Pty) Ltd - Elandspruit (Majuba)

Majuba

0.42

5

Ntshovelo Mining Resources (Pty) Ltd - Vlakvarkfontein

Majuba

1.20

3

Iyanga Mining (Pty) Ltd – Klipfontein

Majuba/Kendal/Kusile

1.80

3

Perisat Investments (Pty) Ltd - Rirhandzu

Majuba/Kusile

1.20

5

Exxaro Coal (Pty) Ltd – Grootegeluk

Matimba

15.30

45

Exxaro Coal (Pty) Ltd – Matla

Matla

10.10

40

Welgemeend Colliery (Pty) Ltd - Welgemeend

Matla

0.84

8

HCI Coal (Pty) Ltd – Mbali

Matla

0.24

4

Universal Coal Development (Pty) Ltd - New Clydesdale Complex

Matla

1.20

7

Izimbiwa Handling Systems (Pty) Ltd - Doornrug

Matla

0.60

5

Overlooked Colliery (Pty) Ltd - Overlooked

Matla

1.29

6

Exxaro Coal (Pty) Ltd – Grootegeluk

Medupi

15.10

49

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

Tutuka

5.10

40

Keaton Mining (Pty) Ltd - Vanggatfontein

Tutuka

1.92

11

Stuart Coal (Pty) Ltd - East Block

Tutuka

1.44

8

Wescoal Mining (Pty) Ltd - Elandspruit (Tutuka)

Tutuka

1.14

5

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2680

Profile picture: Mbatha, Mr MS

Mbatha, Mr MS to ask the Minister of Public Enterprises

Whether she made a phone call to a certain person on a certain date (name and details furnished) to instruct, order or request the specified person not to proceed with the special board meeting to suspend a certain person (name furnished); if so, who informed her about the special board meeting (details furnished)?

Reply:

No.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

 

26 September 2017 - NW2681

Profile picture: Mbatha, Mr MS

Mbatha, Mr MS to ask the Minister of Public Enterprises

Did a member of a certain family (name furnished), any of their associates and/or employees and/or the President, Mr Jacob G Zuma, call to instruct, order or request her to intervene on behalf of a certain person (name furnished) to prevent the specified person’s suspension?

Reply:

No.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2722

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

Financial Periods

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

31/03/2017

Incentive Bonus (Long Term Incentive) in Rands

0

500529.20

459907.4

0

0

0

0

0

                   

The Long Term Incentive Scheme was a Retention scheme that was earmarked

for employees whom the company wished to retain.

                   

Eligibility:

               

High Performers who scored a minimum of 70% in their annual performance.

   
                   

Mechanics:

               

The scheme operated on a phenomenon of banking the financial amounts

the individuals qualified for each financial year, and only availing the amount

at the end of the 3 years. In order to qualify, the individual had to maintain

performance of 70% and above.

   

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

26 September 2017 - NW2024

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1) Whether Transnet entered into any contracts with certain companies (names furnished); if so, what (i) were the costs involved and (ii) are the further relevant details; (2) Whether the report on the irregularities between certain companies (names furnished) will be made available; if not, why not; if so, on what date will it be made available?

Reply:

1(a) Transnet has not entered into any contracts nor paid any amounts to Homix Enterprises.

1(b) Transnet entered into a contract with Cutting Edge Commerce for the provision of a solution for a systems analytical tool and capability to report on key procurement metrics and analysis.

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

1(b)(ii) None.

2 TMST took Transnet to Court after Transnet cancelled the Contract between the parties. Transnet won the case at both the Durban High Court as well as the Supreme Court of Appeal.

TMST requested the Group Chief Executive and Chairperson of Transnet to test various allegations pursuant to the failure of their Court Case. Transnet engaged an external service provider to investigate same and the findings were communicated to TMST.

TMST then instituted arbitration proceedings against Transnet which are still underway. In view of the proceedings being incomplete, Transnet is not in a position to furnish the report because the matter is subjudice. Once the proceedings are completed, Transnet will have no objection to release such a report, provided it will be treated as confidential or discussed in a closed session.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

13 September 2017 - NW1653

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

(1)(a)

Not applicable

(1)(b)

Not applicable

(2)

No

(2)(a)

Not applicable

(2)(b)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

13 September 2017 - NW2117

Profile picture: Mhlongo, Mr P

Mhlongo, Mr P to ask the Minister of Public Enterprises

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

Reply:

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

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

06 September 2017 - NW1569

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

 

   

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

 

Ms Lynne Brown, MP

   

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

ANNEXURE “A”

Denel Divisions and Products

Contract Date

Description of Services

Value of the Transaction

Denel Vehicle Systems (DVS)

  • Armoured vehicles (RG31, RG32, N35 and Casspir) and Gear Ratio systems

01/04 to 18/12/2015

  • Cutting and bending of specialised steel (quenched and tempered)
  • Vehicle sub-assembly fabrication including cutting and bending of specialised still.

R2 175 935.00

 

12/2016 to date

 

R9 797 856.83

 

12/2016 to date

Power Pack sub-assembly fabrication –Gear Ratio

R11 594 033.28

Denel Land Systems

  • Casspir vehicle
  • Badger (Hoefyster)
  • Supplier of armoured steel

10/2003 to 05/2017

(historical contracts

Industrialisation of the Casspir vehicle

R176 467 542.79

 

2016/2017

(current contracts)

Industrialisation of the Casspir

R16 437 626.62

 

05/08/2014 to

21/10/2016

Fabrication of the Badger hulls

R235 858 970.57

 

27/08/2009 to 05/06/2017

Approved single source supplier of armoured steel

R98 902 847.38

LMT Products (Pty) Ltd (LMT)

  • Armoured vehicles (LM8, LM13, Ford F550 and armoured vehicle components)

05/2013 to 08/2016

VR provides LMT with:

  • services to cut, bend, tap and drill of components and parts for armoured vehicle
  • Hull assemblies or sub-assemblies of the vehicles
  • Specialised armoured steel supply

R55 148 736.39

T O T A L

R 516 382 785.86

06 September 2017 - NW1498

Profile picture: Masango, Ms B

Masango, Ms B to ask the Minister of Public Enterprises

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

Reply:

DEPARTMENT

(1)

(a)

Not applicable

 

(b)

No

   

(i)

No

   

(ii)

No

     

(aa)

None

     

(bb)

R NIL

     

(cc)

Not applicable

     

(dd)

R NIL

     

(ee)

Not applicable

     

(ff)

Not applicable

ALEXKOR SOC LIMITED:

(1)

(a)

Not applicable

 

(b)

No

   

(i)

No

   

(ii)

No

     

(aa)

None

     

(bb)

R NIL

     

(cc)

Not applicable

     

(dd)

R NIL

     

(ee)

Not applicable

     

(ff)

Not applicable

DENELSOC LIMITED:

(1)

(a)

Not applicable

 

(b)

No

   

(i)

No

   

(ii)

No

     

(aa)

None

     

(bb)

R NIL

     

(cc)

Not applicable

     

(dd)

R NIL

     

(ee)

Not applicable

     

(ff)

Not applicable

ESKOM SOC LTD

(a) For Department of Public Enterprises

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

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

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

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

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

were:

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

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

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

The services procured from Zen One for one campaign was:

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

The services procured from Edelman were:

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

(b)(ii)(bb)

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

Global Interface

Grounded Media

Zen One

Edelman

R 24 583 753.67

R 18 103 032.45

R 8 256 412.91

R 82 992.00

(b)(ii)(cc)

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

  • Global Interface
    • Eskom Brand Campaign - R7 081 402.27
    • Operation Khanyisa – R9 107 796.25
    • EOESLIP (Soweto, Midrand and Sandton smart split metering) – R8 394 555.15
  • Grounded Media
    • Eskom Development Foundation (CSI) – R12 422 887.37
    • Public Safety campaign – R2 913 701.08
    • All other campaigns – R2 766 444.00
  • Zen One
    • Integrated Demand Management Campaign (including power alert) – R8 256 412.91
  • Edelman
    • Speech writing – R82 992.00

(dd)(ii)

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

(ee)(ii)

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

(ff)(ii)

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

SAFCOL SOC LIMITED:

(1)

(a)

Not applicable

 

(b)

No

   

(i)

No

   

(ii)

No

     

(aa)

None

     

(bb)

R NIL

     

(cc)

Not applicable

     

(dd)

R NIL

     

(ee)

Not applicable

     

(ff)

Not applicable

SAX SOC LTD

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

(b)

No

 

(i)

No

 

(ii)

No

   

(aa)

None

   

(bb)

R NIL

   

(cc)

Not applicable

   

(dd)

R NIL

   

(ee)

Not applicable

   

(ff)

Not applicable

TRANSNET SOC LTD

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

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

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

   

Ms Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

28 August 2017 - NW2159

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

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

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

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

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Additional Information for the Minister

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

28 August 2017 - NW2214

Profile picture: Lotriet, Prof  A

Lotriet, Prof A to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Additional Information for the Minister

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

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

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

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

28 August 2017 - NW1302

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 August 2017 - NW1654

Profile picture: Mazzone, Ms NW

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

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

Reply:

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

(a)

Not applicable

(b)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 August 2017 - NW2025

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(a) What (i) programmes, (ii) bursaries and (iii) scholarships is each state owned entity involved in to develop and provide careers for the youth in our country and (b) for each state owned entity reporting to her, what (i) amount was allocated for each type of support and (ii) number of youth has been brought through the system in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years?

Reply:

ALEXKOR SOC LIMITED

(a)

(i)

None

 

(ii)

Bursaries for B.Sc. Mine Engineering and Geology

 

(iii)

None

     

(b)

(i)

(aa)

R 640 101

   

(bb)

R 600 000

   

(cc)

R 519 870

       

 

(ii)

(aa)

4 Students

   

(bb)

4 Students

   

(cc)

5 Students

       

DENEL SOC LIMITED

(a)

(i)

Maths and Science enrichment programme

 

(ii)

Engineering related (Electronic, Mechanical, Industrial, Software, computer & Mechatronics)

 

(iii)

n/a

(b)

(i)

2014/15 - Maths & Science = R2.7m; Bursaries = R 5.2m

2015/16 - Maths & Science = R2.7m; Bursaries = R 8.6m

2016/17 - Maths & Science = R3.4m; Bursaries = R 9.8m

 

(ii)

(aa)

2014/15 Programmes (400 learners); Bursaries (52)

   

(bb)

2015/16 Programmes (455 learners); Bursaries (82)

   

(cc)

2016/17 Programmes (455 learners); Bursaries (85)

ESKOM SOC LIMITED

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

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

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

(b)(i)Learnership/ Apprenticeship

(aa) FY2014/15

(bb) FY2015/16

(cc) FY2016/17

(i) Amount allocated

 R28,252,530

 R86,602,740

 R215,532,480

(ii) Number of youth has been brought through the system

 277

 929

 3062

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

(b)(ii) Eskom Bursaries

(aa) FY2014/15

(bb) FY2015/16

(cc) FY2016/17

(i) Amount allocated

 R162,829,076.58

 R94,301,773.38

 R46,288,382.88

(ii) Number of youth has been brought through the system

 2218

 1400

 731

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

(b)(iii) scholarships

(aa) FY2014/15

(bb) FY2015/16

(cc) FY2016/17

(i) Amount allocated

 R9,039,953.12

 R11,100,982.25

[1]Scholarship phased out

(ii) Number of youth has been brought through the system

 125

 158

 

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

       

SAFCOL SOC LIMITED

(a)

SAFCOL has the following programmes, bursaries and scholarships in place to develop and provide careers for the youth in South Africa:

 

(i)

Programmes:

  • internships in various divisions of SAFCOL
  • learnerships in forestry and processing
  • apprenticeships (boiler maker, electrician, fitter, diesel mechanic, millwright)
 

(ii)

Bursaries:

  • Bursaries in the following fields of study: forestry, wood science, engineering, finance, human resource management, construction, architecture, applied mathematics, marketing, tourism, business studies, human settlements and plant science.
 

(iii)

Scholarships:

  • None
     

(b)

The tables below set out the amounts allocated by SAFCOL to the aforesaid types of support and the number of youths that have been brought through the system, for the 2014/15; 2015/16 and 2016/17 financial years:

 

(i)

Amounts Allocated:

   

(aa)

2014/15

R1 615 000

Internships

       

R1 068 000

Learnerships

       

R2 145 919

Apprenticeships

       

R 488 011

Bursaries

         
   

(bb)

2015/16

R 995 000

Internships

       

R1 724 420

Learnerships

       

R1 233 099

Apprenticeships

       

R1 561 189

Bursaries

         
   

(cc)

2016/17

R 620 000

Internships

       

R2 057 600

Learnerships

       

R 67 821

Apprenticeships

       

R1 029 663

Bursaries

       
 

(ii)

Number of Youth Brought through the System

   

(aa)

41 Graduates

Internships

 
     

40 Learners

Learnerships

 
     

20 Learners

Apprenticeships

 
     

11 Bursars

Bursaries

 
         
   

(bb)

30 Graduates

Internships

 
     

56 Learners

Learnerships

 
     

10 Learners

Apprenticeships

 
     

20 Bursars

Bursaries

 
         
   

(cc)

27 Graduates

Internships

     

60 Learners

Learnerships

     

15 Learners

Apprenticeships

     

37 Bursars

Bursaries

SAX SOC LTD

 

(a) What (i) programmes, (ii) bursaries and (iii) scholarships is each state owned entity involved in to develop and provide careers for the youth in our country

(aa) 2014/15

 Cadets and Apprenticeships

(bb) 2015/16

Cadets and Apprenticeships

(cc) 2016/17

Cadets and Apprenticeships

(b) for each state owned entity reporting to her, what (i) amount was allocated for each type of support and,

Cadets:

R3 000 000.00

Apprenticeships

R5 724 480.00

Cadets: R3.5m

 R3 500 000.00

Apprenticeships

R6 224 480.00

Cadets: R4m

R4 000 000.00

Apprenticeships

R6 724 480.00

(ii) the number of youth has been brought through the system in the(aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years?          

11 x Mechanics

1 x Avionic

17 Mechanics

1 x Mechanic

4 x Avionics

61 Cadets were trained since 2014 of which 31 are now Junior First Officers

 

TRANSNET SOC LIMITED

Youth category and programme definition

2014/15

2015/16

2016/17

 

Through

system

R Value

R’000

Through

system

R Value

R’000

Through

system

R Value

R’000

Apprentice: A work-based learning under the supervision and guidance of a skilled, qualified artisan with an employer

613

415.7

102

383.8

250

254.0

Technician Learner: An individual who is participating in a practical technical learnership (P1, P2), work-integrated learning in order to obtain qualification.

563

34.8

232

14.4

229

14.2

Engineer Bursars: An individual who is registered for a four-year B Eng. / Bsc Eng. degree to which a full time bursary has been awarded

255

39.0

155

41.6

173

51.6

Protection Officer: an individual participating in a structured learning program to gain theoretical knowledge and practical skills in the workplace leading to acquiring credits that lead to a security qualification registered on the NQF.

988

51.0

508

36.0

0

0

Young Professionals in Training (non-technical): A Transnet structured programme to develop young graudates in non-technical fields by providing them with workplace experience and skills.

201

66.7

135

50.3

240

48.1

Technician in Training: An individual who has successfully completed a National Diploma in Engineering studies at a University of Technology, undergoing an eighteen month structured development programme

205

143.2

74

128.4

116

105.4

Engineer in Training: An individual who has successfully completed an Engineering Degree at a University, undergoing a two-year structured development programme

173

143.3

38

153.5

72

152.2

Trainee Accountant: An individual who has successfully completed an Accounting Degree at a University, undergoing a three-year Chartered Accountant programme.

7

5.2

5

5.6

5

5.4

Marine Cadets: An individual who is participating in a practical learnership in the Marine field.

21

11.5

31

13.1

0

16.7

Learnerships: A structured learning process for gaining theoretical knowledge and practical skills in the workplace leading to a qualification registered on the NQF

81

1.8

122

3.5

264

42.7

Total

3107

913.6

1290

830.2

1349

691.8

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 August 2017 - NW1766

Profile picture: Mhlongo, Mr TW

Mhlongo, Mr TW to ask the Minister of Public Enterprises

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

Reply:

PUBLIC ENTERPRISES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ALEXKOR SOC LIMITED

   
   

(c)

(i)

No security services provided

 

(ii)

No security services provided

 

(iii)

No security services provided

   

(aa)

Not applicable

   

(bb)

Not applicable

   

(cc)

Not applicable

DENEL SOC LIMITED

   
   

(c)

(i)

Not applicable

 

(ii)

Not applicable

 

(iii)

Not applicable

   

(aa)

Not applicable

   

(bb)

Not applicable

   

(cc)

Not applicable

SAFCOL SOC LIMITED

   
   

(c)

(i)

No security services provided

 

(ii)

No security services provided

 

(iii)

No security services provided

   

(aa)

Not applicable

   

(bb)

Not applicable

   

(cc)

Not applicable

 

ESKOM SOC LIMITED (Outstanding)

(c)(i)

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

(c)(ii)

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

(c)(iii)

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

(c)(i)(aa)

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

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

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

(c)(ii)(aa)

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

(c)(iii)(aa)

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

(bb)

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

(cc)

Table 1 : Details of Protection Services Provided for By Eskom

Type of protection

Chairperson & Group Chief Executive (GCE)

Immediate Family

Staff Members

Residential Protection

Standard- Alarms, CCTV and armed security responses team

Non Standard- house guarding when away on business

Immediate family members of the Eskom GCE and Chairperson are covered indirectly through the GCE/ Chairman

For Exco members, and Senior General Managers only

Standard- Alarms, CCTV and armed security responses team

Non Standard- house guarding when away on business

Personal Protection, while on Eskom business

Rendered by nine protection officers employed and paid for from Eskom’s Group Security division budget pool.

None provided

For Exco, Senior General Managers and other staff when they are threatened due to work they do within Eskom

TRANSNET SOC LIMITED (Outstanding)

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

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

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

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

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

SAX SOC LIMITED (Outstanding)

   
   

(c)

(i)

No security services provided

 

(ii)

No security services provided

 

(iii)

No security services provided

   

(aa)

Not applicable

   

(bb)

Not applicable

   

(cc)

Not applicable

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

17 August 2017 - NW1081

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

Asset Managers.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 July 2017 - NW1270

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises

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

Reply:

(1)(a)

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

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

 Volumes sourced

2012/13

2013/14

2014/15

2015/16

2016/17

Own supply (i)[1]

119 640

115 343

115 521

111 122

113 385

Intermediary (ii)

4 247

4 443

4 196

3 948

3 841

Own Supply + Intermediary

2 550

2 190

1 951

3 631

3 024

 TOTAL

126 437

121 976

121 668

118 701

120 250

(b)

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

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

Annual Payments

2012/13

2013/14

2014/15

2015/16

2016/17

Own supply

28 011 750 253

31 085 536 691

35 145 518 292

36 154 662 673

38 684 634 701

Intermediary

1 417 803 118

1 749 882 580

1 716 350 676

1 518 313 159

1 724 573 826

Own Supply + Intermediary

787 892 666

818 056 450

815 939 974

1 466 286 871

1 331 345 953

TOTAL

30 217 446 037

33 653 475 720

37 677 808 942

39 139 262 702

41 740 554 480

(2)

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

(3)(a)(b)

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

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

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

(4)

No, there are no policies to furnish.

 

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

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

28 July 2017 - NW1841

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Lekota, Mr M to ask the Minister of Public Enterprises

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

Reply:

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

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

(c) No

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

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

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

Remarks: Reply: Approved / Not Approved

Ms. Benedicta Mogaladi Lynne Brown, MP

Act DDG: Corporate Management Minister of Public Enterprises

Date: Date:

28 July 2017 - NW1835

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Madisha, Mr WM to ask the Minister of Public Enterprises

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

Reply:

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

 

    Remarks:

 

 

 

 

 

 

 

Reply: Approved / Not Approved

 

 

 

Mr Mogokare Richard Seleke

 

 

Ms Lynne Brown, MP

 

Director-General

 

 

Minister of Public Enterprises

Date:

 

 

Date:

28 July 2017 - NW1810

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Mashabela, Ms N to ask the Minister of Public Enterprises

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

Reply:

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

1. ALEXKOR SOC LIMITED

(1)

(a)

Alexkor has a Board in place as appointed by Minister Brown on 14 August 2015.

 

(b)

Not applicable

   

(i)

(aa)

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

(bb)

  1. Ms HB Matseke – Term ends August 2018
  1. Mr JS Danana – Term ends August 2018
  1. Mr T Haasbroek – Term ends August 2018
  1. Mr T Matona – Term ends August 2018
  1. Mr V Bansi – (Appointed as Acting CEO and Executive Director until the appointment of a new CEO)
  1. Mr J Bonnett (Appointed as Acting CFO and Executive Director until the appointment of a new CFO)
  1. Ms M Lehobye – Term ends August 2018
  1. Ms Z Ntlangula – Term 2 ends August 2018
   

(ii)

(aa)

6 Non-Executive Directors and 2 Acting Executive Directors

     

(bb)

3 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

2. DENEL SOC LIMITED

(1)

(a)

Denel has a Board in place as appointed by Minister Brown on 24 July 2015.

 

(b)

Not applicable

   

(i)

(aa)

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

(bb)

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

(ii)

(aa)

6 Non-Executive Directors and 2 Acting Executive Directors

     

(bb)

3 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

3. SAFCOL SOC LIMITED

(1)

(a)

SAFCOL has a board in place as appointed by Minister Brown on 24 July 2015.

 

(b)

Not applicable

   

(i)

(aa)

  1. Mr Lungile Rudolph Mabece (Appointed as Non-Executive Director and Chairperson of the Board on 18 August 2015)
  1. Mr Gabriel Christian Theron (Appointed as Non-Executive Director on 18 August 2015 and Acting CEO and Executive Director on 16 December 2015)
  1. Ms Trishantanie Pillay (Appointed as CFO and Executive Director on 20 July 2016 and placed on suspension on 1 June 2017 pending outcome disciplinary action)
  1. Ms Vuyo Tlale (Appointed as Acting CFO from 1 June 2017 until 31 August 2017)
  1. Ms Sakekile Baduza (Appointed as Non-Executive Director on 18 August 2015)
  1. Mr Maroale Jacob Rachidi (Appointed as Non-Executive Director on 18 August 2015)
  1. Mr Mandla Mnguni (Appointed as Non-Executive Director on 18 August 2015)
  1. Dr Petros Mbiji Mahlangu (Appointed as Non-Executive Director on 18 August 2015)
  1. Ms Phumzile Ngwenya (Appointed as Non-Executive Director on 18 August 2015)
  1. Dr Pulane Molokwane (Appointed as Non-Executive Director on 18 August 2015)
     

(bb)

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

(ii)

(aa)

7 Non-Executive Directors and 2 Acting Executive Directors

     

(bb)

3 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

4. ESKOM

(1)

(a)

Eskom has a Board in place as appointed by Minister Brown on 11 December 2014.

 

(b)

Not applicable

   

(i)

(aa)

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

(bb)

  1. Mr Zethembe Wilfred Khoza – First term of three years ends 11 December 2017. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review. Acting Chairperson until the appointment of a new Chairperson
  1. Mr Johnny Dladla - Appointed as Acting GCE until the appointment of a new GCE
  1. Mr Anoj Singh – appointed GCFO on
  1. Dr Pat Naidoo - First term of three years ends 11 December 2017. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review.
  1. Mr Giovanni Leonardi - First term of three years ends on 24 May 2018. Appointed at the AGM held on 23 June 2017 until the next AGM, subject to review.
  1. Dr Pulane Molokwane - Term ends 22 December 2020
  1. Mr Simphiwe Dingaan - Term ends 22 December 2020
  1. Dr Banothile Makhubela - Term ends 22 December 2020
  1. Mr Sathiaseelan Gounden - Term ends 22 December 2020
   

(ii)

(aa)

7 Non-Executive Directors and 2 Acting Executive Directors

     

(bb)

2 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

5. South African Express Airways (SAX)

(1)

(a)

SAX has a Board in place as appointed by Minister Brown on 22 May 2015.

 

(b)

Not applicable

   

(i)

(aa)

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

(bb)

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

(ii)

(aa)

7 Non-Executive Directors, 2 Executive Directors (1 Acting)

     

(bb)

3 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

6. Transnet

(1)

(a)

Transnet has a Board in place as appointed by Minister Brown on 11 December 2014.

 

(b)

Not applicable

   

(i)

(aa)

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

(bb)

  1. Ms Linda Carol Mabaso – First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Mr Siyabonga Gama – Permanent GCEO
  1. Mr Garry Pita – Permanent GCFO
  1. Dr Gideon Mahlalela - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Ms Potso Elizabeth Mathekga - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Mr Zainul Nagdee - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Mr Vusi Matthew Nkonyane - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Ms Yasmin Forbes – First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
  1. Mr Brett Stagman - First term of three years ends 10 December 2017. Appointed at the Annual General Meeting held on 29 June 2017 for a year until the 2018 AGM, subject to review.
   

(ii)

(aa)

7 Non-Executive Directors, 2 Executive Directors

     

(bb)

3 females

     

(2)

(a)

Not applicable

 

(b)

Not applicable

Remarks:

   

Reply: Approved / Not Approved

       

Mr. Mogokare Richard Seleke

   

Ms. Lynne Brown, MP

 

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

28 July 2017 - NW1655

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

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

Reply:

(a) 

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

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

(b) 

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

(c)(i)

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

Kusile Units

P80 Commercial Operation Dates

Unit 1

31-Jul-18

Unit 2

31-Jul-19

Unit 3

31-Aug-20

Unit 4

31-Mar-21

Unit 5

30-Nov-21

Unit 6

30-Sep-22

(c)(ii)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 July 2017 - NW1271

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

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

Reply:

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

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

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

 

Description (a)

Date Signed

(b)

Contract Period (c)

Tonnes to be supplied (d)

Total Value of Contract[1] (e)

1

Short Term Contract for the Supply of Coarse Coal to Duvha Power Station

22 Aug 2014

4 Months

150 000 tonnes

R 57 225 000

2

Modification to extend the duration of the contract for the Supply of Coarse Coal to Duvha Power Station by 3 months

26 Nov 2014

3 Months

Not Applicable, only a duration extension

Not Applicable, only a duration extension

3

Modification to the contract for the Supply of Coarse Coal to Duvha Power Station to deliver the coal to alternate power stations, apart from Duvha

08 Jan 2015

Not applicable

Not Applicable, modification of contract clause

Not Applicable, modification of contract clause

Excluding VAT, CPA, quality adjustments and transport

(1)(f)

Coal was procured under the 2008 Medium-Term Mandate.

(2)(a)

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

(2)(b)

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

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

 

28 July 2017 - NW952

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Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

(1)(a)(i)  

 

(1)(a)(iii)(aa)

(1)(a)(i)

(1)(b)

Name

Period

Contract Purpose

Status

         

TFR Bridging plan

01-Jun-09

30-Nov-10

TFR Bridging plan

Complete

Corridors and Hubs

01-Jan-09

30-Jun-11

Corridor and Hub strategy and execution

Complete

Delivering MDS

01-Jan-12

30-Sep-12

Delivery of the Market Demand Strategy

Complete

TFR Operating model

01-Apr-12

30-Aug-13

Implementation of TFR new operating model

Complete

SWAT 1

02-Feb-13

31-Jan-14

Group capital Integration and optimisation

Completed

Maputo Corridor

01-Nov-13

31-Aug-14

Strategy, design and evaluation of Maputo Corridor

Complete

Capital Rooms and affordability

01-Apr-14

30-Dec-14

Capital structuring and affordability

Complete

TCP - Capital Room

01-Apr-14

31-Mar-15

TCP Project Factory, War Room, Business Case and Resourcing

Complete

Iron Ore

09-Apr-14

08-Apr-15

Renegotiating Iron Ore contract

Complete

Coal

09-Apr-14

30-Sep-15

Support services for coal line increase with a breakthrough of 2mt per week for a period of 17 months

Complete

NMPP

09-Apr-14

08-Oct-15

De-risking and acceleration of the New Multi-Product Pipeline (NMPP) for a period of 18 months

Complete

Defined Benefit Fund

23-Jan-14

30-Jan-16

Defined benefit consulting services

Complete

Results Management Office

15-Jan-13

13-Mar-16

Implementing and embedding a RMO facility

Complete

SWAT II

09-Apr-14

08-Apr-16

Capital optimisation and implementation support services

Complete

Transaction Advisory

15-Jan-13

18-May-16

Acquisition of 1064 locomotives tender

Complete

Manganese

09-Apr-14

08-Oct-16

Manganese execution support for a period of 30 months

Complete

General Freight Business

19-May-15

15-Nov-16

Support Transnet in increasing General Freight Business

Terminated

Liquid Fuel and Gas demand

24-Mar-15

23-Mar-18

Gas demand forecasting

Complete

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

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

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

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

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

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

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

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

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

08 June 2017 - NW1089

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

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

Reply:

SAX’s Reply:

Aircraft Utilisation Chart list Summary

Period 01 January 2016 to 31 January 2017

 
         

Registration

Serial Number

Aircraft Type

Out of Service Days

Operational Days

ZS-NMC

7225

CRJ200

365

0

ZS-NMD

7223

CRJ200

346

19

ZS-NME

7240

CRJ200

256

109

ZS-NMF

7287

CRJ200

158

207

ZS-NMH

7787

CRJ200

358

7

ZS-NMI

7153

CRJ200

161

204

ZS-NML

7201

CRJ200

166

199

ZS-NMM

7234

CRJ200

365

0

ZS-NMN

7237

CRJ200

161

204

ZS-NBF

10028

CRJ700

125

240

ZS-NBG

10039

CRJ700

235

130

ZS-NMO

4122

DH8-400

197

168

ZS-NMS

4127

DH8-400

295

70

ZS-YBP

4142

DH8-400

160

205

ZSYBR

4144

DH8-400

167

198

ZS-YBT

4146

DH8-400

365

0

ZS-YBU

4344

DH8-400

201

164

ZS-YBW

4350

DH8-400

136

229

ZS-YBX

4366

DH8-400

95

270

ZS-YBY

4360

DH8-400

138

227

ZS-YBZ

4175

DH8-400

271

94

 

 

 

 

 

         

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

08 June 2017 - NW1246

Profile picture: Rabotapi, Mr MW

Rabotapi, Mr MW to ask the Minister of Public Enterprises

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

Reply:

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

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

 

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

08 June 2017 - NW1103

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

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

Reply:

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

(b) Sea and Rescue services

(c) 1967/013618/08

(d) R1782.15

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

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

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

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

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

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

06 June 2017 - NW1251

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

06 June 2017 - NW977

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Public Enterprises

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

Reply:

ALEXKOR SOC LIMITED

 

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

DENEL SOC LIMITED

 

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

SAFCOL SOC LIMITED

 

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

SA EXPRESS SOC LIMITED

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

TRANSNET SOC LIMITED

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

ESKOM SOC LIMITED

(a)

NIL

(b)

NIL

(c)

NIL

(d)

NIL

(e)

NIL

(f)

NIL

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date: