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13 March 2017 - NW241

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Public Enterprises

(1) Whether Eskom owns any coalmines; if so, (a) which mine(s) and (b) who mines them; (2) whether the specified mines are on Eskom’s balance sheet; if so, what is the value of each mine?

Reply:

1.  This question is answered below in two parts, i.e. what Eskom owns directly and

what Eskom owns indirectly. Eskom directly owns one mine, called Kilbarchan Colliery.

Eskom indirectly owns some equity in the cost plus mines as a result of ownership of a portion of the mine assets through the cost plus coal supply agreements (CSA) signed. Mining houses have the statutory right to mine the coal, and the statutory obligation to rehabilitate. Eskom, through the CSA has the financial obligation to pay for these costs. The reserves dedicated to Eskom, can only be sold to Eskom.

In a case where the mining house intends to transfer its rights and obligations Eskom would have to provide consent.It should be noted that the CSAs do not include BEE ownership requirements as the last cost plus agreement was signed prior to Eskom’s current BEE Policy.

(1)(a)(b) Table 1 below presents Eskom’s Cost Plus CSAs. The Colliery column (a) provides the names of the mines and the Mining House (b) column provides the information on who is mining the mine.

Table 1Eskom's current Cost Plus CSAs

 

Colliery

(a)

Mining House (b)

B-BBEE

Status

Start of CSA

Current End of CSA

Power Station

Investment made by Eskom, from inception to date

Annual Contractual Volumes

(ktons)

1

Kriel

Anglo

LME 8

Dec 1979

Dec 2019

Kriel

R2.4 bn

8 500

2

New Denmark[1]

Anglo

LME 8

Sept 1989

Sept 2029

Tutuka

R3.2 bn

10 000 per CSA

4 500 Assumed

3

New Vaal

Anglo

LME 8

June 1989

June 2029

Lethabo

R1.6 bn

17 800

4

Matla

Exxaro

BO LME 4

July 1983

July 2023

Matla

R2.2 bn

10 066

5

Khutala

South32

LME 8

Dec 1993

Dec 2033

Kendal

R1.6 bn

13 300

6

Arnot

Closed mine

BO LME 4

June 1981

Dec 2015

Arnot

R0.8 bn

-

2.  Kilbarchan Colliery is recorded in Eskom’s balance sheet under the subsidiary Natal Navigation Colliery. It is recorded at R1, while the associated rehabilitation liability has been fully raised in Eskom’s financial statements

On cost plus mines, these are not on Eskom’s balance sheet because the direct ownership rests with the mining houses and their balance sheets.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

  1. PQ241

09 March 2017 - NW209

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Robertson, Mr K to ask the Minister of Public Enterprises

(1)      What (a) are the reasons that the interdict obtained by Transnet in order to remove illegal squatters from its land in Elandsfontein has been ignored and (b) action is Transnet taking in order to get the interdict enforced; (2) has Transnet read the corrective measures given by the Ekurhuleni Metropolitan Police Department to correct this illegal occupation; if so, what are the corrective measures; (3) what strategy does Transnet have in place to prevent additional invasions of other land they own in the Elandsfontein area?

Reply:

(1)  (a) The final interdict could not be enforced and Transnet was required to proceed with the institution of an eviction application in accordance with the Prevention of Illegal Eviction from Unlawful Occupation of Land Act (“PIE Act”).

      (b) Transnet has applied for a court date and are currently waiting for same.

(2) Transnet has read the corrective measures given by the Ekurhuleni Metropolitan Police department; Corrective measures were for Transnet to:

  • Write an email to EMM to discuss the land issues
  • Obtain a court interdict
  • Fence off the premises and organise their own security until the property is fenced off.

(3) Transnet has an Informal Settlements Strategy that has been approved through internal structures to deal with informal settlements that are on Transnet land including cases similar to Elandsfontein

____________________________

Siyabonga Gama

Group Chief Executive:

Transnet SOC Ltd

Date:

28 February 2017 - NW82

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Hill-Lewis, Mr GG to ask the Minister of Public Enterprises

(a)How many 34-inch forage steel wheels has Transnet or its subsidiaries purchased from 1 January 2015 until 6 February 2017 and in each case, (i) who was the supplier and (ii) in which country were the wheels manufactured?

Reply:

Transnet’s Reply:

(a)(i) 1000 forged steel wheels have been purchased since 1 January 2015 until 6 February 2017 from Naledi Inhlanganiso (Pty) Ltd.

(a)(ii) The wheels were manufactured in France (Vauldunes Plant).

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 February 2017 - NW92

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Figg, Mr MJ to ask the Minister of Public Enterprises

(a)What was the total number of scheduled South African Express Airways flights between South African cities for the past financial year; (b) how many of these in terms of the (i) number and (ii) percentage were delayed and (c) what was the reason for the delay in each case?

Reply:

SAX’s Reply:

(a) The number of scheduled domestic flights for SA Express for the year to date was 32 976.

(b) The number of delayed flights, year to date, are 4 766 and this represents a total of 12.7% of total flights.

(c) 8.4% (3161) of the flight delays were as a result of technical difficulties, 1.7% (635) were due to service provider errors and 0.93% (349) was due to flight operations delays and a further 0.8% (309 flights) was due to airport operation delays. 312 of these are due to other minor causes like commercial delays, IT issues, industrial action delays, damages to equipment, cargo delays and other.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 February 2017 - NW199

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Maynier, Mr D to ask the Minister of Public Enterprises

Whether any State Owned Companies (a) procured any service and/or (b) made any payments to (i) a certain person (name furnished) and/or (ii) a certain organisation (name furnished); if not, in respect of each specified State-owned Company, why not; if so, in respect of each specified State-Owned Company, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total payments and (ee) the detailed breakdown of such payments?

Reply:

SOUTH AFRICAN EXPRESS AIRWAYS SOC LTD

(a) No

(b) (i) No, South African Express Services SOC Ltd has never engaged with Mr. Manyi.

(ii) South African Express Services SOC Ltd has never engaged with the Progressive Professionals Forum.

(aa) Not Applicable

(bb) Not Applicable

(cc) Not Applicable

(dd) Not Applicable

(ee) Not Applicable

ALEXKOR SOC LTD

  1. No
  2. (i) No

(ii) No. Alexkor is currently in a cost-saving drive and cannot commit to foreseeable, new services for the company. No services have been procured by Alexkor.

(aa) No services have been procured by Alexkor.

(bb) Not Applicable

(cc) Not Applicable

(dd) Not Applicable

(ee) Not Applicable

DENEL SOC LTD

  1. No
  2. (i) No
  3. No

(aa) No services have been procured by Denel.

(bb) Not Applicable

(cc) Not Applicable

(dd) Not Applicable

(ee) Not Applicable

SAFCOL SOC LTD

  1. No
  2. (i) No
  3. No

(aa) No services have been procured by SAFCOL.

(bb) Not Applicable

(cc) Not Applicable

(dd) Not Applicable

(ee) Not Applicable

ESKOM SOC LTD

Background

Eskom has not procured any services from Mr Mzwanele Manyi or the Progressive Professionals Forum. Eskom has paid R440 000 to the Progressive Professionals Forum consequent to a sponsorship decision, strictly considered against our sponsorship policy to ensure alignment with the objectives of the business.

a) (i) No, Eskom has not procured any services from Mr Mzwanele Manyi.

(ii) Eskom has not procured any services from the Progressive Professionals Forum.

The business has not raised a need that would require Commercial to procure services from this supplier. However, had there been a business requirement for services offered by this supplier; an open tender process would have been followed to satisfy such a need.

b) (i) No, Eskom has not made any payments to Mr Mzwanele Manyi.

   (ii) Yes, Eskom has paid R440 000 to the Progressive Professionals Forum consequent to a sponsorship decision, strictly considered against our sponsorship policy to ensure alignment with the objectives of the business.

(aa) Not applicable

(bb) Not applicable

(cc) Not applicable

(dd) Total payment is R440 000.

(ee)

Description

Amount

Two corporate tables at PPF Summit and Gala Dinner, Nov 2015

R40 000

Platinum sponsorship for PPF Summit and Gala Dinner, Nov 2016

R400 000

TRANSNET SOC LTD

a) No, Transnet has not procured any services.

(b) (i) Transnet has not made any payments to Mr Mzwandile Manyi.

(ii) Transnet has sponsored the Progressive Professional Forum.

(aa) Sponsored the Progressive Professional Forum conference entitled “Does Corruption undermine services delivery” as a platinum sponsor.

(bb) Total cost is R400 000.

(cc) Breakdown sponsorship:

        • Branding at the Summit and Gala
        • 2 seats at the main table with the keynote speaker
        • Opprtunity for a Senior Transnet Executive to deliver and address at the Gala dinner
        • 4 tables at the Gala dinner
        • 6m x 6m exhibition stand
        • Ticktes for 8 delegates to attend the Summit
        • Logo inclusion on all event collateral
        • Logo placement on the PPF website for the event

(dd) A single payment was made to the Progressive Professional Forum for the event.

(ee) R400 000. And no further payment has been made.

REMARKS REPPLY: APPROVE / NOT APPROVED

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 February 2017 - NW121

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Mazzone, Ms NW to ask the Minister of Public Enterprises

Did Transnet withdraw from negotiations with a certain company (name furnished) (a) in August 2014 before a payment was made by the specified company to another company (name furnished) to supply information technology (IT) equipment and (b) after the specified company received a contract for closed-circuit television equipment in 2015; (2) Did all contracts concluded between Transnet and the specified company pass through a competitive bidding process ; if not, why not in each case; if so, (a) what are the names of all bidders and (b) why were the specified contracts awarded to the specified company in each case; (3) Whether she will provide copies of (a) each contract conluded with the specified company and\or (b) the minutes of each Transnet Board meeting where the decision was taken to award the specified contracts, to Ms NWA Mazzone; if not, in each case, why not; if so, by when: NW126E

Reply:

1. Transnet did not withdraw from negotiations with Neotel.

2. Transnet has concluded two contract with Neotel (Pty) Ltd, one for network services and the other for the closed circuit television vision (CCTV).

Network Services contract

In December 2014, Transnet awarded a five-year contract to Neotel to provide network related services, following an open and competitive procurement process. The award met all our stringent governance requirements and was reviewed by a firm of independent internal auditors. The contract was awarded in line with the Preferential Procurement Policy Framework Act (PPPFA) principle of 90/10 as they were the highest scoring bidder (first ranked bidder) in terms of Price and Preference (B-BBEE).

The following bidders responded to the Network Services Request for Proposal (RFP) that was issued by Transnet Group in 2013:

  • Neotel (Pty) Ltd;
  • Telkom SA SOC (Pty) Ltd;
  • Dimension Data;
  • Vodacom (Pty) Ltd;
  • T-Systems South Africa (Pty) Ltd in partnership with Broadband Infraco SOC Ltd.

CCTV contract

The CCTV contract was awarded to Neotel (Pty) Ltd through a confinement procurement process which was approved by the appropriate delegated authority/committee. A confinement is a recognised procurement mechanism provided for in the Transnet Procurement Procedures Manual (PPM).

An analysis of our business requirements revealed that the existing CCTV equipment had reached the end of its useful life and needed to be replaced. It was crucial for Transnet to urgently rectify the situation for the following reasons:

  • The need for Transnet to comply with the requirements of the International Ship and Port Facility Security Codes (ISPS) and for Transnet to maintain its status as a ports authority. Failure to comply would have resulted in Transnet being blacklisted by the US administration and thus causing a material loss of revenue and the reduction of the country’s ability to export and import goods.
  • In addition Transnet had to meet its obligations as a signatory to the International Maritime Organisation (IMO) legislation. In terms of the IMO, a ports authority is required to have a capability to monitor the port facility and its nearby approaches on land and water at all times.
  • The need to integrate new and existing equipment and systems was crucial in ensuring that the entire surveillance infrastructure and software was fully operational.
  • The existing infrastructure belonged to Neotel, making it critical for the entire surveillance solution to be integrated to a single service provider that would take sole accountability of the entire solution to Transnet.

3. Transnet is not at liberty to provide details of commercial terms with individual suppliers in line with confidential contractual arrangements and protecting the company’s pricing strategies. NW126E

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

28 February 2017 - NW93

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Public Enterprises

(a)What was the total profit and/or loss made by South African Express Airways for the 2015-16 financial year?

Reply:

SAX’s Reply:

SA Express is still in the process of finalizing the audit of the financial results for the year end 31 March 2016, and the performance information will be provided once the audit is concluded.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

10 January 2017 - NW2561

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Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)     How many members does the (a) Transport Pension fund and (b) Transnet Second Defined Benefit Fund have currently; (2) How many members of the specified pension funds died in (a) 2014, (b) 2015 and (c) 2016; (3) What were the reported causes of death of each member of the pension funds in each specified year; (4) (a) How many members of each fund are currently (i) the main member and\or (ii) a dependent and (b) how many of the dependents are (i) spouses and (ii) children; (5) what was the growth (a) in the value and (b) in the surplus of each fund in the financial years (i) 2013-14, (ii) 2014-15 and (iii) 2015-16 NW2972E

Reply:

1. The Transport Pension Fund (“TPF”) has 338 active contributing members and 5 628 pensioners, and the Transnet Second Defined Benefit Fund (“TSDBF”) has 54 026 pensioners as at 31 October 2016.

(2) The number of members of the specified pension funds who died are recorded below:

Entity

Referencing

Financial Year

Number of Deceased Members

Transport Pension Fund

a

2013/14

181

 

b

2014/15

184

 

c

2015/16

212

Transnet Second Defined Benefit Fund

a

2013/14

4255

 

b

2014/15

4114

 

c

2015/16

4142

(3) The causes of death of each member are unknown.

(4) As at 31 October 2016, for the Transport Pension Fund, 3 113 pension members are main members, with 2 290 spouses and 221 children. For the Transnet Second Defined Benefit Fund 17 681 pension members are main members, with 36 180 spouses and 165 children.

(5) The growth of the specified pension funds is detailed below:

 

Entity

Financial Year

Market Value

Surplus

Transport Pension Fund

2013/14

R8 373 million

R2 903 million

 

2014/15

R9 053 million

R3 644 million

 

2015/16

R9 366 million

R4 325 million

Transnet Second Defined Benefit Fund

2013/14

R17 218 million

R2 983 million

 

2014/15

R16 757 million

R3 145 million

 

2015/16

R15 630 million

R3 807 million

10 January 2017 - NW2740

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Lees, Mr RA to ask the Minister of Public Enterprises

What is the (a) name, (b) scope and (c) value of each contract that pertains to the proposed merger of (i) the SA Airways, (ii) Mango and (iii) SA Express, as announced by her whilst addressing the National Council of Provinces on 30 November 2016; (2) Whether she will make a statement on the matter?

Reply:

(1) a) Bain and Company is the consultant appointed for the development of an optimal corporate structure to re-align the state owned airlines.

    b) The work to be conducted by Bain and Company South Africa entails the development of the said optimal corporate structure in line with Government’s objectives and in cognizance of the industry best practices.

   c) The total cost of the project is R12.1 million.

(2) I will not make a statement on the matter.

 

02 January 2017 - NW4012

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Motau, Mr SC to ask the Minister of Public Enterprises

(a) For what number of years has Alexkor Pooling and Sharing Joint Venture conducted cofferdam mining in the Richtersveld mining area and (b) under what licence is the allocation for prospecting mining done; (2) whether an environmental impact assessment was concluded in the specified area before a mining licence for cofferdam mining was allocated to the specified company; if not, why not; if so, (a) on what date was the assessment concluded and (b) what did the assessment determine the effects of cofferdam mining to be on the specified area; (3) whether she will make a copy of the assessment available to Mr S C Motau?

Reply:

(1)

(a)

Alexkor have conducted coffer dam mining since the early 1950’s (approximately 67 years) and the mine has been operational for approximately 89 years. Approval of the Environmental Management Programme Report (EMPR) was granted on 11 October 1995.

 

(b)

Alexkor SOC LTD has 4 (FOUR) marine mining rights and the Richtersveld Mining Company (RMC) 1 (ONE) land mining right; all under the management of the PSJV:

   

(i)

Marine Rights (Alexkor SOC LTD)

        • MR 512_4a
        • MR 513_4b
        • MR 10025_1c
        • MR 554
   

(ii)

Land Right (Richtersveld Mining Company)

        • MR550

(2)

Yes; approval of the Environmental Management Programme Report (EMPR) was granted on 11 October 1995.

 

(a)

In terms of the Minerals Act of 1991. Alexkor was required to submit and obtain approval for an Environmental Management Programme Report (EMPR), Alexkor appointed CSIR to prepare the EMPR. The document was approved by department (1995-10-11). The approval included the construction of cofferdam mining.

 

(b)

Background: A proposal entitled “Proposal for Alexkor 2004 EMPR update approach/structure/content” was compiled, dated 27 January 2004 and the approach set out therein was discussed with DME Kimberley at the time. Within such system the EMPR update was to be guided by the then pending Alexkor audit and performance assessments and the detail knowledge of the site acquired during their compilation given the complexity and extent of the mining operation. Such audits were completed in March/April 2004 and on the basis of those audits and understanding of the available literature and assessment of the existing 1994 EMPR, a set of rehabilitation specifications/methods to deal with existing disturbances entitled “Rehabilitation Liability Calculation; Specifications/Methods/Rates Used and notes on their calculation (Report #2446/SMR/Rev 1 [April 2005])” was formulated for submission to the DME to elicit their sanction/comment on the approach to the methods of dealing with existing disturbance as this posed the major undefined aspect of the new EMPR given that the 1994 EMPR paid relatively little attention to this element. Such specifications/methods were formally submitted to the DME during April 2005 and DME‟s initial comment was obtained in October 2005.Having achieved some level of co-ordination with DME on the historical rehabilitation, the process of EMPR update could be re-initiated.

The approved EMPR states: “Historically coffer dam (sea wall) mining has been carried out at two sites, one in Block 60 in the north and the other at Geeldoring near the Rietfontein-North Plant.”

   

(i)

Impacts resulting from coffer dam activities are as follows:

      • Coffer dam mining requires a major relocation of sand from supratidal levels into the surf zone. This results in the removal of sand dunes and the destruction of their associated vegetation. Vegetation in the area not destroyed by dune excavation is damaged extensively by the heavy earth-moving equipment in use. The smothering of rocky shore and sandy beach destroys all biota, both intertidally and sub-tidally to the depth of the coffer dam wall.
      • Coffer dam mining has been carried out using gravels, cobbles and boulders from tailings for the building of the wall. Although the dam wall has been breached by storm conditions, the redistribution of the material has resulted in a smothering of the original rock and the change from a rocky intertidal to a boulder beach environment.
   

(ii)

Impact of the construction of the coffer dams with sand:

      • Due to the fact that sand is not readily available in the vicinity further disturbances will be done to the already disturbed dunes along the coast, more manoeuvring of heavy machinery occurs, which in turn leads to increased environmental and economic impacts.
   

Based on the above the PSJV has appointed a new independent environmental consultant to revise the approved EMPR. This document is currently out for public comment.

(3)

All documents can be made available to Mr S C Motau

 

   

Remarks:

   

Reply: Approved / Not Approved

       

Mr Mogokare Richard Seleke

 

Ms Lynne Brown, MP

   

Director-General

   

Minister of Public Enterprises

Date:

   

Date:

21 December 2016 - NW2678

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Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) What was the state of the surplusses of the (a) Transport Pension Fund and and (b) Transnet Second Defined Benefit Pension Fund in (i)(aa) 2011, (bb) 2012, (cc) 2013, (dd) 2014, (ee) 2015 and (ii) at the latest specified date for which information is available; (2) (a) what have the surplusses been used for since 2011 and (b) what is their envisaged application for the future?

Reply:

  1. The table below details the surplus for the requested years, as well as the

utilisation:

ENTITY

REF

DATE

SURPLUS

UTILISATION

Transport Pension Fund

 

31 March 2010

R1605m

-

 

aa

31 March 2011

R1739m

-

 

bb

31 March 2012

R1548m

R120m as a Transnet 8.333% bonus

 

cc

31 March 2013

R1453m

R62m as a Transnet 8.333% bonus, and extra 2.47% pension increase for SAA and PRASA respectively

 

dd

31 March 2014

R2903m

R68m as two Transnet 8.333% bonuses, and extra 2.42% pension increase for SAA and PRASA respectively

 

ee

31 March 2015

R3644m

R73m as two Transnet 8.333% bonuses, and extra 1.02% pension increase for SAA and PRASA respectively

   

31 March 2016

R4325m

R72m as two Transnet 8.333% bonuses, an extra 2.42% pension increase, and 13th cheque bonus for SAA and PRASA respectively

   

31 March 2017

-

R70m*

Transnet Second Defined Benefit Fund

 

31 March 2010

R2835m

-

 

aa

31 March 2011

R2733m

R335m as two Transnet 8.5% and 8.333% bonuses

 

bb

31 March 2012

2346m

R520m as a Transnet 10% and two 8.333% bonuses respectively

 

cc

31 March 2013

R2167m

R155m as a Transnet 8.333% bonus

 

dd

31 March 2014

R2983m

R305m as two Transnet 8.333% bonuses respectively

 

ee

31 March 2015

R3145m

R300m as two Transnet 8.333% bonuses respectively

   

31 March 2016

R3807m

R294m as two Transnet 8.333% bonuses respectively

   

31 March 2017

-

R360m**

Notes:

* Uses after 31 March 2016 were two Transnet bonuses of 10% and 11% respectively, and an extra 2.07% pension increase and 13th cheque bonus for SAA and PRASA respectively

** Uses after 31 March 2016 were 10% and 11% bonuses respectively

(2)(a) The surpluses have been used to pay bonuses to beneficiaries of the Transnet Pension Fund and Transnet Second Defined Pension Fund.

(b) The expected future uses a mixture of bonuses and pension increases above 2%, should the Rules be amended to allow this.

 

21 December 2016 - NW2744

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Mulder, Dr CP to ask the Minister of Public Enterprises

What amount is required to pay a bonus of 10% to all pensioners of the Transport Pension Fund and the Transnet Second Defined Benefit Fund where the rules make provision for this; 2. Whether the present surplusses of the pension funds may be used to increase the base of all pensions; if so, with what percentage will the pensions be increased; 3. Whether she will consider implementing such an increase; if not, why not 4. Whether the pending class action court case plays any part in her decision; if not, what is the position in this regard; if so, what are the relevant details? NW3232E

Reply:

1. Based on the actuarial valuation results as at 31 March 2016, the amount required to pay a 10% bonus to all pensioners of the Transport Pension Fund (TPF), i.e. Transnet Sub-Fund, SAA Sub-Fund and PRASA Sub-Fund is R37.7m and for the Transnet Second Defined Benefit Fund (TSDBF) the amount is R172.4m. The Rules of the respective Funds contain a provision that authorises for the payment of ad hoc bonuses. These amounts are paid from the actuarial surplus of each of the Funds, amounting to R4.325 billion for the Transport Pension Fund and R3.807 billion for the TSDBF

2. There is currently no provision in the respective Fund Rules to utilise the surplus to increase the base of the pension.

3. The Shareholder Minister is unable to consider an increase in the base of all pensions as this is not provided for in the pension fund rules.

4. The pending class action court case has no impact on the matter. The rules of the funds guide action related to the pension funds.

 

21 December 2016 - NW2717

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Alberts, Mr ADW to ask the Minister of Public Enterprises

Which company is currently in charge of the investments that the (i) Transport Pension Fund and (ii) Transnet Second Defined Benefit Fund make; (b) What role does a certain person (name furnished) play in making investments in both funds; (c) What are the specified person’s official positions and involvement in (i) Transnet, (ii) the Transport Pension Fund and (iii) the Transnet Second Defined Benefit Fund; (d) Who appointed him; and (e) Why was he appointed in the specified positions?

Reply:

(a) There is no company in charge of investments of the Transport Pension Fund and Transnet Second Defined Benefit Fund. The Boards of Trustees of the respective Funds are in charge of their investment activities.

(b) No role is played by the said individuals as the Board of Trustees of the respective Funds are in charge of the investment activities.

(c) The specified person’s official positions and involvement in (i) Transnet is that of a Non-Executive Director and Chairperson of the Acquisitions and Disposals

(d) Committee. He is also Chairperson and Trustee of the Board of Trustees of the (ii) Transport Pension Fund and (iii) Transnet Second Defined Benefit Fund respectively.

(d) All non-Executive Directors are appointed to the Transnet Board of Directors by the Shareholder Minister.

(e) The specified person was appointed in the specified positions on the basis of his academic qualifications and technical expertise on the activities of the Board of Directors, and the respective Funds.

21 December 2016 - NW2663

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

What amount did the former Chief Executive Officer of DENEL, Mr Riaz Salojee receive in payment of a severance package before the specified person’s suspension and subsequent resisignation?

Reply:

Mr. Riaz Saloojee did not receive a severance package and did not resign. He was only paid up to the end of his contract.

   
   
   
   
   

15 December 2016 - NW2700

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Mazzone, Ms NW to ask the Minister of Public Enterprises

What (a) steps are Eskom and her department taking to ensure that the financial guarantees from the Republic of Zimbabwe’s government regarding a R150 million debt owed by the Zimbabwe Electricity Supply Authority (ZESA) to Eskom is paid and (b) arrangements have been made by ZESA to pay the specified debt?

Reply:

(a)

  • The debt owed by ZESA to Eskom is R443 million as at 2 December 2016.
  • The financial guarantee issued by ZESA in favour of Eskom amounts to R500 million.
  • Consequently, there is no current financial exposure to Eskom.
  • Eskom is currently looking at increasing the financial guarantee to cover future power purchases.

(b)

Additional arrangements are as follows:

  • There is ongoing contact between Eskom and ZESA leadership to monitor the payments
  • There is a guarantee in place to cover the amount owed.
  • ZESA is putting in place mechanisms to address the foreign currency reserves challenge of the central bank so that they are able to meet their ongoing payment obligation.
  • ZESA has recently made a number of substantial payments for example during November up to 1 December they have paid R198.2 million.

15 December 2016 - NW2701

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1) What amount did Trillian Capital Partners receive in service fees for allegedly negotiating the settlement of a massive insurance claim involving the explosion of a boiler at the Duhva power plant; (2) did Eskom appoint the specified company to source a new supplier to replace the exploded boiler at the Duhva power plant; if not, why not; if so, what (a) were the fees payable to the specified company in this regard and (b) are the further relevant details; (3) (a) which other contracts of engagement have been concluded between Eskom and the specified company and (b) what are the costs  involved in each case?

Reply:

(1) 

No amount was paid to Trillian Capital Partners for the Duvha power plant insurance claim. Eskom did not appoint Trillian Capital Partners to negotiate the settlement for the Duvha Power Plant insurance claim.

(2)

No, Eskom did not appoint Trillian Capital Partners to source a new supplier to replace the exploded boiler at the Duhva Power Plant. There was no need to appoint any external party to assist with sourcing.

(2)(a)

Not applicable

(2)(b)

No other additional relevant detail relating to the above is applicable.

(3)(a)

None

(3)(b)

Not applicable

15 December 2016 - NW2666

Profile picture: Van Dalen, Mr P

Van Dalen, Mr P to ask the Minister of Public Enterprises

Whether she will furnish Mr P van Dalen with copies of Eskom’s week on week energy availability factor, demand and energy reports since 1 January 2016; if not, why not; if so, by what date?

Reply:

Herewith is the requested information:

WEEK START

DATE

EAF (%)

Weekly System Peak Demand (MW)

Including IOS

Weekly System Peak Demand (MW) Including IOS & IPP's

Weekly System Energy (MWh) Including IOS

Weekly System Energy (MWh) Including IOS & IPP's

2016/01/04 00:00

71.86

28531

30090

4 174 029

4 379 957

2016/01/11 00:00

71.72

29808

30551

4 366 433

4 536 181

2016/01/18 00:00

72.66

30408

31166

4 444 243

4 588 116

2016/01/25 00:00

72.36

29953

30851

4 373 779

4 575 471

2016/02/01 00:00

73.48

30534

31475

4 377 616

4 595 062

2016/02/08 00:00

73.83

30490

31466

4 447 442

4 642 052

2016/02/15 00:00

74.20

30254

31316

4 421 569

4 619 527

2016/02/22 00:00

76.54

30942

31876

4 439 988

4 632 660

2016/02/29 00:00

77.29

30607

31654

4 396 548

4 596 759

2016/03/07 00:00

72.98

30604

31699

4 367 156

4 577 630

2016/03/14 00:00

74.36

31022

31984

4 383 798

4 557 577

2016/03/21 00:00

73.49

29662

30705

4 048 077

4 242 914

2016/03/28 00:00

73.57

30431

31393

4 222 967

4 426 056

2016/04/04 00:00

74.84

32095

33194

4 325 270

4 527 750

2016/04/11 00:00

75.96

31401

32330

4 337 243

4 542 074

2016/04/18 00:00

76.41

32077

32752

4 357 402

4 544 637

2016/04/25 00:00

76.16

30495

31749

4 196 797

4 414 522

2016/05/02 00:00

77.13

31698

32645

4 255 040

4 460 191

WEEK STARTDATE

EAF (%)

Weekly System Peak Demand (MW) Including IOS

Weekly System Peak Demand (MW) Including IOS & IPP's

Weekly System System Energy (MWh) Including IOS

Weekly System System Energy (MWh) Including IOS & IPP's

2016/05/09 00:00

77.89

33126

33993

4 433 338

4 595 217

2016/05/16 00:00

79.07

33318

34172

4 426 802

4 624 752

2016/05/23 00:00

80.22

33742

34533

4 486 352

4 673 142

2016/05/30 00:00

80.76

34134

34913

4 518 664

4 683 653

2016/06/06 00:00

80.99

33738

34171

4 525 477

4 672 101

2016/06/13 00:00

80.14

33884

34679

4 510 004

4 669 556

2016/06/20 00:00

80.66

34075

34329

4 549 648

4 674 224

2016/06/27 00:00

81.91

33986

34415

4 534 536

4 694 288

2016/07/04 00:00

80.38

34470

34821

4 585 635

4 738 698

2016/07/11 00:00

79.91

34023

34523

4 542 159

4 703 847

2016/07/18 00:00

80.51

34215

34742

4 504 107

4 672 753

2016/07/25 00:00

81.95

34197

34886

4 592 703

4 757 914

2016/08/01 00:00

79.88

34239

34707

4 465 760

4 632 796

2016/08/08 00:00

78.95

33027

33455

4 348 841

4 520 367

2016/08/15 00:00

77.87

32324

32977

4 391 797

4 557 565

2016/08/22 00:00

76.24

33016

33694

4 312 300

4 513 400

2016/08/29 00:00

77.21

30950

31957

4 230 939

4 464 099

2016/09/05 00:00

75.59

31383

32293

4 338 801

4 570 880

2016/09/12 00:00

78.56

31915

32986

4 384 392

4 648 366

2016/09/19 00:00

76.29

32005

32914

4 366 970

4 621 655

2016/09/26 00:00

76.06

30589

32012

4 242 442

4 522 398

2016/10/03 00:00

72.84

30743

31692

4 296 692

4 561 854

2016/10/10 00:00

77.73

31253

32172

4 361 792

4 611 242

2016/10/17 00:00

75.45

31413

32471

4 417 529

4 644 664

2016/10/24 00:00

75.44

30296

31767

4 349 636

4 610 456

2016/10/31 00:00

74.83

30520

31909

4 349 349

4 610 022

2016/11/07 00:00

74.81

30404

31606

4 303 359

4 595 709

2016/11/14 00:00

75.20

30008

31419

4 283 228

4 560 171

12 December 2016 - NW2305

Profile picture: Mhlongo, Mr TW

Mhlongo, Mr TW to ask the Minister of Public Enterprises

Whether any (a) internal and/or (b) external forensic reports pertaining to (i) her department and/or (ii) each entity reporting to her were completed from 1 January 2009 up to the latest specified date for which information is available; if not, in each case, why not; if so, what is the (aa) name, (bb) subject matter and (cc) date of conclusion of each of the specified forensic reports?

Reply:

It must be noted internal or external forensic investigations within the State-Owned Companies that report to me mainly relate to operational matters and therefore where relevant, may fall within the ambit of the Board and/or Executives of the SOC.

In this regard, it is crucial to note that the Honourable Member’s request has to be considered against provisions of Promotion of Access to Information Act 2 of 2000 (PAIA). The Act has specific provisions that regulate disclosure of the nature of information requested hence the Honourable Member is implored to consider submitting specific PAIA application(s) with relevant authorities to access the information required.

With regard to my Department, I am aware of the following investigations that have been concluded:

No.

Details

Lodged with

Date reported

Status

1.

IT forensic investigation allegations of a possible fraudulent email

DDG: CM

29 August 2014

Investigation concluded in October 2014.

2.

Allegations of maladministration, fraud and corruption

Auditor General

12 Feb 2015

Investigation concluded in August 2015.

3.

Allegations of maladministration, fraud and corruption

Public Service Commission

23 Feb 2015

Investigation concluded in August 2015.

4.

Allegation related to recruitment processes:

  • Junior Technician in IT Unit
  • DD:IM
  • ASD:SPME

DPE Whistle Blowing Box

23 Oct 2015

The investigation was concluded in November 2015.

5.

Allegations of possible irregular expenditure – Photo-copiers

Acting Director-General

March 2015

Investigation concluded in August 2015

6.

Allegations of irregularities with regards to bursary awards

Acting Director-General

March 2015

Investigation concluded in August 2015

7.

Allegations of possible irregular expenditure - Korwe

Acting Director-General

March 2015

Investigation concluded in August 2015

8.

Allegations of irregularities with regard to petty cash replenishment

Acting Director-General

March 2015

Investigation concluded in August 2015

 

07 December 2016 - NW2514

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Public Enterprises

What is the (a) current total debt and (b) detailed breakdown of the total debt into (i) local currency denominated debt and (ii) foreign currency denominated debt of each state-owned company?

Reply:

ALEXKOR SOC LTD

(a)

R NIL

(b)

(i)

R NIL

 

(ii)

R NIL

DENEL SOC LTD

Rb’s

Local currency denominated debt

3 717

Foreign currency denominated debt

0

Total debt

3 717

(a)

R 3 717 000 000.00 (Three Billion Seven Hundred and Seventeen Million Rands).

(b)

(i)

R 3 717 000 000.00 (Three Billion Seven Hundred and Seventeen Million Rands).

 

(ii)

R NIL

ESKOM SOC LTD

Rb’s

Local currency denominated debt

218

Foreign currency denominated debt

115

Total debt

333

(a)

R333 000 000 000.00 (Three Hundred and Thirty Three Billion Rands).

(b)

(i)

R 218 000 000 000. 00 (Two Hundred and Eighteen Billion Rands).

 

(ii)

R 115 000 000 000.00 (One Hundred and Fifteen Billion Rands)

     

SAFCOL SOC LTD

Rm’s

Local currency denominated debt

73.138

Foreign currency denominated debt

0

Total debt

73.138

(a)

R 73 138 033.84 (Seventy Three Million One Hundred and Thirty Eight Thousands and Thirty Three Rands and Eighty Four cents).

(b)

(i)

R 73 138 033.84 (Seventy Three Million One Hundred and Thirty Eight Thousands and Thirty Three Rands and Eighty Four cents).

 

(ii)

R NIL

SA EXPRESS SOC LTD

Rm’s

Local currency denominated debt

1077

Foreign currency denominated debt

147

Total debt

1224

(a)

R 1 224 000 000. 00 (One Billion Two Hundred and Twenty Four Million Rands).

(b)

(i)

R 1 077 000 000.00 (One Billion and Seventy Seven Million Rands).

 

(ii)

R 147 000 000.00 (One Hundred and Forty Seven Million Rands).

TRANSNET SOC LTD

Rb’s

Local currency denominated debt

94.90

Foreign currency denominated debt

24.10

Total debt

119

(a)

R 119 000 000 000.00 (One Hundred and Nineteen Billion Rands).

(b)

(i)

R 94 900 000 000.00 (Ninety Four Billion Nine Hundred Million Rands).

 

(ii)

R 24 100 000 000.00 (Twenty Four Billion One Hundred Million Rands).

29 November 2016 - NW2347

Profile picture: Lorimer, Mr JR

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

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

Reply:

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

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

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

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

(2) Yes.

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

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

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

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

29 November 2016 - NW2426

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

ADVISORY NOTE TO THE MINISTER:

DEAR Minister,

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

22 November 2016 - NW2381

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

  • Mr. Daniel Roy and
  • Mr. Janfaure.

The Shareholders were:

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

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

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

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

3. Refer to 2(b) above.

16 November 2016 - NW2376

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

01 November 2016 - NW2176

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

31 October 2016 - NW2130

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

2. Same as (1) (c) above

 

26 October 2016 - NW2177

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

 

13 October 2016 - NW2065

Profile picture: Horn, Mr W

Horn, Mr W to ask the Minister of Public Enterprises

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

Reply:

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

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

   (b) Not applicable based on question 1 above

    (c) Not applicable based on question 1 above

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

2.None

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

    (a) Not applicable based on 3 above

    (b)Not applicable based on 3 above

13 October 2016 - NW2030

Profile picture: Brauteseth, Mr TJ

Brauteseth, Mr TJ to ask the Minister of Public Enterprises

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

Reply:

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

(ii) Acting Chief Financial Officer’s Qualifications:

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

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

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

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

 

05 October 2016 - NW2100

Profile picture: Majola, Mr TR

Majola, Mr TR to ask the Minister of Public Enterprises

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

Reply:

(a)

DPE

spend

period

 (i) ANN7

Nil

 

 (ii) SABC

(aa)

(bb) Ukhozi FM

Nil

R174 676.50

(aaa)

(bbb)

 (iii) National commercial radio stations

Ukhozi FM

R174 676.50

(bbb)

 (iv) Community

(aa) Cape TV

B (bb) Radio Teemaneng

Capricorn FM

Nongoma FM

Nkomazi FM

Radio KC

Radio NFM

Barberton CR

Radio Riverside

R91 200

R11 750

R120 270

R35 416.65

R22 500

R15 700

R28 462

R25 000

R34 200

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

(aaa)

 

(b)

SAX

Spend

Period

 (i) ANN7

SA Express did not pay for advertising on the channel

(aaa) & (bbb

 (ii) SABC

(aa)

(bb) Motsweding FM

SAfm

RSG

SA Express did not advertise on SABC television channels

R208 980

R15 255

R92430

(aaa)

Current financial year

Current financial year

(iii) National commercial radio stations

North West FM

702

R118 260

R124 814

(aaa)

Current Financial year

Transnet

Spend

Period

 (i) ANN7

Nil

(aaa) and (bbb)

 (ii) SABC

(aa)

(bb)

Nil

R384 082.42

R1 951 130

(aaa) and (bbb)

(aaa)

(bbb)

 (iii) National commercial radio stations

Nil

R469 440

(aaa)

(bbb)

 (iV0 Community

(aa)

(bb)

Nil

R111 937.44

Nil

(aaa)-(bbb)

(aaa)

(bbb)

Eskom

Spend

Period

 (i) ANN7

Nil

 

 (ii) SABC

(aa)

(bb)

R16 million

R8 million

R2.4 million

R5.5 million

(aaa)

(bbb)

(bbb)

(aaa)

 (iii) National commercial radio stations

R9.8 million

R6.24 million

(aaa)

(bbb)

 (iv) Community

(aa)

R3.5 million

R1.1 million

(aaa)

(bbb)

Alexkor

Spend

Period

  1. ANN7

Nil

 
  1. (aa)

(bb)

Nil

Nil

 

 (i) National commercial radio stations

Nil

 

 (ii) Community

(aa)

(bb)

Nil

Nil

Nil

(aaa)

(bbb)

Denel

Spend

Period

 (i) ANN7

Nil

 

 (ii) Sabc

(aa)

(bb)

Nil

R363 327.35

 

 (iii) National commercial radio stations

R363 327.35

 

 (iv) Community

(aa)

(bb)

Nil

R140 520

R74 646.96

(aaa)

(bbb)

Safcol

Spend

Period

 (i) ANN7

Nil

 

 (ii) Sabc

(aa)

(bb)

Nil

Nil

 

 (iii) National commercial radio stations

Nil

 

 (iv) Community

(aa)

(bb)

Nil

Nil

(aaa)

(bbb)

06 June 2016 - NW1486

Profile picture: Maimane, Mr MA

Maimane, Mr MA to ask the Minister of Public Enterprises

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

Reply:

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

06 June 2016 - NW1555

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Public Enterprises

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

Reply:

 

(a)

(i)

DPE

R 2 326 000.00

   

(ii)

Alexkor

R 545 825.40

     

Denel

R 1 660 410.65

     

Eskom

R 54 016 282.81

     

SAFCOL

R 172 873.00

     

SAX

R 1 159 118.00

     

Transnet

R 47 991 571.86

         
 

(b)

(i)

DPE

R 2 379 000.00

   

(ii)

Alexkor

R 115 000.00

     

Denel

R 3 000 000.00

     

Eskom

R 67 000 000.00

     

SAFCOL

R 3 500 000.00

     

SAX

R 4 800 00000

     

Transnet

R 43 333 820.82

 

06 June 2016 - NW1520

Profile picture: Bergman, Mr D

Bergman, Mr D to ask the Minister of Public Enterprises

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

Reply:

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

(ii) 2014-15 None

(iii) 2015-16 None

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

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

(ii) 2014-15: None

(iii) 2015-16: None

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

 

25 May 2016 - NW1461

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

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

(b) See 2(a) above.

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

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

 

25 May 2016 - NW1342

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

 

20 May 2016 - NW1203

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

(b) None

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

20 May 2016 - NW1458

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Public Enterprises

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

Reply:

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

 

20 May 2016 - NW1259

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

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

Reply:

 

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

   
 

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

 
 

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

 

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

 

    (c) See (1) and (2) above.

19 May 2016 - NW1085

Profile picture: Rawula, Mr T

Rawula, Mr T to ask the Minister of Public Enterprises

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

Reply:

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

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

 

11 May 2016 - NW1204

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

(2) I do not approve sub-contracts

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

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

 

10 May 2016 - NW1298

Profile picture: Redelinghuys, Mr MH

Redelinghuys, Mr MH to ask the Minister of Public Enterprises

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

Reply:

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

 

10 May 2016 - NW1220

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

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

Reply:

1. Yes

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

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

3. Medupi: 31 January 2017

Kusile: 30 September 2018

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

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

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

 

Ms. Lynne Brown, MP

Minister of Public Enterprises

Date:

10 May 2016 - NW1202

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

Cost to completion component

R’billion

Total value of construction packages

74.15

Owners Development Cost (ODC)

11.19

Escalation

12.69

Cost of Cover

3.97

Contingencies

3.00

Total project cost (excluding interest during construction)

105.00

Interest during construction

29.20

Total project cost (including interest during construction)

134.20

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

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

Cost to completion component

R’billion

Total value of construction packages

66.9

Owners Development Cost (ODC)

12.9

Escalation

22.7

Cost of Cover

5.6

Contingencies

10.4

Total project cost (excluding interest during construction)

118.5

Interest during construction

48.7

Total project cost (including interest during construction)

167.2

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

10 May 2016 - NW1157

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

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

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

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

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

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

 

10 May 2016 - NW1156

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

 

10 May 2016 - NW1144

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

 

06 May 2016 - NW942

Profile picture: Cassim, Mr Y

Cassim, Mr Y to ask the Minister of Public Enterprises

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

Reply:

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

06 May 2016 - NW910

Profile picture: Rawula, Mr T

Rawula, Mr T to ask the Minister of Public Enterprises

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

Reply:

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

04 May 2016 - NW1037

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

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

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

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

(d) (i) Ships

PORTS

AVAILABLE BERTHS

East London

2 Berths (T & S berth)

Port Elizabeth

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

Cape Town

3 Berths (Multi-Purpose Terminal)

 

3 Berths (Fruit Purpose Terminal

Durban

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

(ii) Grain

PORTS

CAPACITY (tons)

East London

1,344,000

Port Elizabeth

1,344,000

Cape Town

2,016,000

Durban (Agriport, SABT)

2,016,000

 

3,360,000

 

2,016,000

 

04 May 2016 - NW1039

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

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

Reply:

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

04 May 2016 - NW867

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

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

Reply:

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

(b) Yes, all purchased software is licensed.

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

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

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

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

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

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

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

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