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07 October 2021 - NW1675

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Cachalia, Mr G K to ask the Minister of Public Enterprises

What are the (a) full relevant details of the various agreements signed by him and his predecessors over the past 10 financial years on behalf of the Government with the Republic of Cuba, (b) reasons and (c) total amounts paid to any Cuban entity in the past 10 financial years by (i) his department and (ii) any entity reporting to him? NW1883E

Reply:

a) There are no agreements signed by the Minister of Public Enterprises and his predecessors over the past 10 financial years on behalf of the Government of South Africa.

b) Not Applicable,

c) Not Applicable,

(i) None.

(ii) None

27 August 2021 - NW1766

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Luthuli, Mr BN to ask the Minister of Public Enterprises

How much electricity (a) Does Eskom produce for and supply to foreign countries, (b) Is generated during the period we are experiencing load-shedding and (c) Revenue is generated from the specified contracts?

Reply:

According to the information received from Eskom

a) Electricity supplied by Eskom to foreign countries is as set out in the table below:

 

Country

Customer

Customer type

Capacity

1.

Botswana

Botswana Power Corporation (BPC)

Utility

150MW+non-firm

2.

Zambia

Copperbelt Energy Corporation Plc (CEC)

Transmission Company

50MW+non-firm

3.

Mozambique

Electricidade de Mocambique (EDM)

Utility

Standby of up to 300MW

4.

Mozambique

Mozambique Transmission Company (Motraco)

Transmission Company selling to South32 (end user)

950MW

5.

Lesotho

Lesotho Electricity Company (Pty) Ltd (LEC)

Utility

80-110MW

6.

Namibia

Namibia Power Corporation (NamPower)

Utility

200MW+ non-firm

7.

Namibia

NamPower for Skorpion Zinc Mine

Utility

Expired

8.

Namibia

NamPower for Orange River Cross Border Supply

Utility

36MW

9.

Eswatini

Eswatini Electricity Corporation (EEC)

Utility

190MW

10.

Zimbabwe

Zimbabwe Electricity Transmission & Distribution Company Private Limited (ZETDC)

Utility

50MW+ non-firm

b) Eskom is expected to honour its contractual obligations as per the respective agreements.  Eskom supplies foreign countries in terms of firm and non-firm power supply agreements.

  • Firm power supply agreements are subject to the load curtailment reduction that is in proportion to the load shedding stages that are determined by NRS 048-9.
  • Non-firm power supply agreements are suspended in the event of increased demand in South Africa including use of Open Cycle Gas Turbines (diesel) and load shedding.

c) Revenue generated is published in Eskom’s annual financial statements. The results for financial year 2020/21 are not yet published.

27 August 2021 - NW1315

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Cachalia, Mr G K to ask the Minister of Public Enterprises

(1) Whether Eskom was a conduit for a certain company (name furnished) in making a strategic donation of R30 million to a certain foundation in 2016; if so, (2) whether he intends taking any action against any senior executive of Eskom for his or her agency, on behalf of the specified company, in using Eskom as a conduit to make the transfer of the donation; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

According to the Information Received from Eskom

Background

General Electric (GE) has a contract with Eskom for the design, engineering, supply, construction and commissioning of the turbines and generators installed at the Kusile Power Station project. There are six turbines and generators at Kusile. The contract includes for the major auxiliary plant supporting the turbines and generators.

(1)

Eskom does not have records of correspondence where GE was instructed to make a donation for R30 million.

(2)

Eskom understands that the alleged donation may be linked to corporate social investment (CSI) projects agreed between Eskom and GE. In this regard, we can confirm that Eskom and GE agreed that GE will execute CSI projects in or around Mpumalanga.

Within this list of CSI projects, Eskom cannot identify any item relating to a donation to the DD Foundation.

27 August 2021 - NW1251

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Luthuli, Mr BN to ask the Minister of Public Enterprises

(1)What (a) Are the relevant details of the R178 billion used by Eskom in tenders with red-flagged companies that were known to be involved in corruption and (b) Total amount of the funds does his department estimate it can recover; (2) What checks and balances in future will be used to avoid this level of misappropriation of funds; (3) Has he found that this loss of billions is further evidence that sourcing the leadership for state-owned enterprises from a certain political organisation’s (name furnished) narrow pool of cadres has contributed to robbing the Republic of billions?

Reply:

According to the Information Received from Eskom

1. The amount of R178 billion reported in the media is the total value of contracts in which there may have been corruption or malfeasance. It should not be inferred that the total amount has been misappropriated. All such contracts are under investigation and signification recoveries have already been made. An example is the recovery of about R1,5 billion from ABB.

2. Eskom is progressing with enhancing its commercial governance process to ensure robust scrutiny. Numerous initiatives implemented under the supply chain recovery programme to mitigate the occurrence of irregular expenditure, include:

  • Enhancement of internal processes and controls to eliminate procurement processes being circumvented. In line with legislative and compliance requirements, checklists have been embedded into systems to ensure that the applicable controls and workflows are complied with before conclusion of a transaction
  • Proactive reviews of newly established contracts, modifications and deviations. In instances where potential irregular expenditure is identified, an investigation is conducted and the necessary condonation process implemented if required. Sanctions are instituted against employees and suppliers where wrongdoing is identified, and civil action and recovery measures are pursued where applicable

In conjunction with these initiatives, training on the revised PFMA reporting procedures and guidelines was rolled out, with the aim of eliminating any ambiguities that may arise from different interpretations of our governance framework.

3. Loss of billions of rands from the State Owned Companies (SOCs) were mainly due to State Capture, malfeasance, fraud and corruption. Eskom is working with law enforcement agencies to recover monies stolen during State Capture, malfeasance, fraud and corruption. The individuals in the SOEs and in the business sector must face the consequences of their thieving. This is in the hands of the law enforcement agencies.

27 August 2021 - NW1014

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether, with reference to the building for accommodation that was built at Kusile by a certain company (name furnished), (a) What number of contracts has the specified company acquired from the Government, (b) Which departments awarded the specified contracts, (c) What were the total amounts of the contracts, (d) Were the contracts finalised within the entered contract price and (e) What amounts have been charged over and above the agreed amount of each contract?

Reply:

According to the Information Received from Eskom

a) Eskom had two dealings with Liviero Group in the past:

  • Liviero Wilge Joint Venture (LWJV) - construction of 336 units on erf 165 Wilge Township.
  • Liviero Civils – manhole construction at Kusile Power Station.

(b) Eskom Holdings SOC Limited

(c)(d)(e) Table 1 sets out details of total amounts of the contracts; whether the contracts finalised within the entered contract price and whether there were amounts charged over and above the agreed amount of each contract.

Table 1: Details of total amounts of the contracts; whether the contracts finalised within the entered contract price and whether there were amounts charged over and above the agreed amount of each contract.

Contract

Liviero Wilge Joint Venture (LWJV) for the construction of 336 units on erf 165 Wilge Township

Liviero Civils for a manhole construction Kusile Power Station

(c) total amounts of the contracts;

Initially, the total contract monetary value was R226.49 million. Subsequent contract modifications (six modifications in total) were implemented. The amount paid to LWJV was R632.64 million.

The estimated value of the contract was R2 501 530.

(d) were the contracts finalised within the entered contract price;

Yes, the LWJV contract was finalised within the mandated contracted price, as it included the approved modifications and termination costs.

Yes. the work was finalised within the contract price.

(e) what amounts have been charged over and above the agreed amount of each contract?

No amount was paid over and above the agreed contract.

The amount paid to LWJV was R632.64 million.

No amount was paid over and above the agreed contract.

Upon completion of the work and an assessment, Liviero Civils was paid R 441 045.

27 August 2021 - NW1112

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Hunsinger, Dr CH to ask the Minister of Public Enterprises

1) Whether the SA Airways (SAA) pilots have undergone any training recently; if not, on what date was the last training conducted; if so, what are the relevant details; (2) Whether the SAA engineering department is working; if not, what is the position in this regard; if so, what are the relevant details; (3) What steps are considered against the crew who were responsible for the miscalculation on the recent SAA - A346 flight from Brussels to Johannesburg?

Reply:

According to the information received from SAA:

1. Yes, training has been conducted recently: requalification training including ground training and flight simulator training was conducted by SAA instructors during the month of March up to the commencement of industrial action by SAAPA affiliated pilots on the 2nd of April 2021. Safety and Emergency Procedure training for the pilots that are not locked out on the A319/320 fleet has been completed, as well as Crew Resource Management training for A319/320 and A330/340 pilots that are not locked-out, post 2nd of April 2021.

2. Yes, the SAA Engineering Department (SAAT) is working. However, the company continues to face challenges with reduced airline activity. This has resulted in less work for SAAT in the market.

As part of SAAT’s Business Plan, the organisation’s restructuring seeks to position SAAT as a viable business entity capable of growing within the current and future market outlook. SAAT remains a strategic entity in the country’s aviation strategy, as well as in enhancing economic recovery through air travel.

3. South African Airways (SAA) Safety Department has concluded its investigation with regards to the Alpha Floor event during a February 2021 flight from OR Tambo International in Johannesburg to Brussels in Belgium.

In addition to SAA’s internal investigation, SAA received the report from the South African Civil Aviation Authority’s (SACAA) investigation into the same Alpha Floor event.

The SACAA report has made findings and recommendations. SAA is studying the report to determine how the recommendations made by SACAA can be implemented.

Ultimately, the trajectory of the Covid pandemic and the possibility of further waves of infection or other events will determine the aviation recovery. This will in turn influence the business available to SAAT.

27 August 2021 - NW1272

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Clarke, Ms M to ask the Minister of Public Enterprises

What (a) significant restructuring plans have been put in place since the current board members were appointed and (b) successes have been realised in terms of the financial recovery of Denel judging from the state the specified company is in? NW1464E

Reply:

According to the information received from Denel:

a) The Board approved Denel’s turnaround plan in 2019 with the aim to refocus the business to reduce duplications and dispose non-cores assets.

b) Denel and the Board has made significant inroads in the restructuring the business key initiatives and success include the following:

    1. LMT (expected annualised savings of R48m).
    2. Exit of loss making subsidiaries
    3. Exit of Denel Aerostructures (expected annualised savings of circa R260m).
    4. Exit of onerous contracts.
    5. Cumulative cost savings in excess of R1bn since April 2018 to September 2020, mainly driven by a 27% reduction in employee numbers.
    6. A 43% forecasted reduction in operating expenditure in FY20/21 vs FY19/20. Mainly as a result in reduced employment costs [as a reduction in natural attrition of employees] and overall subdued business activity.
    7. Improvements to governance and co-operating with the Commission of Inquiry into State Capture and the Special Investigating Unit (SIU).

However, much still needs to be done to reposition Denel and return it to functionality and profitability. A challenging road will have to be traversed to get to this point. Recovery from the huge damage done to these institutions by state capture is a challenging task. There is no “quick fix” in this regard.

27 August 2021 - NW1507

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Buthelezi, Mr EM to ask the Minister of Public Enterprises

(1)Whether the Government intends to provide financial support to Denel to overcome the current financial challenges faced by the state-owned company; if not, what is the position in this regard; if so, (a) on what date and (b) what are the relevant details; (2) whether the Government has a long-term plan to revive the profitability of the specified company; if not, what is the position in this regard; if so, what interventions will be put in place?

Reply:

1. Yes, Plans are afoot to provide financial support to Denel to overcome its current financial challenges.

(a) A solution for the guaranteed debt (>80%) will be addressed between August 2021 and December 2021. Further funding request has been made in the 2022/23 Medium Term Expenditure Framework.

(b) The Department and the National Treasury have agreed on the process to be followed to address the guaranteed debt which is maturing in September 2021 and December 2021. A joint task team consisting of the DPE, National Treasury, Department of Defence and Denel is exploring further funding options to support the operations resumption.

2. The Defence Review regards Denel as a strategic national asset. Denel is critical to the operational readiness of the Department of Defence and the South African National Defence Force (SANDF). Denel is the original Equipment Manufacturer (OEM) for some of the primary mission equipment of the SANDF. In repositioning Denel for sustainability and profitability, the SOC has developed a new operating model which will result in fundamental reorientation of its business structure. In terms of the new business model, Denel will reduce the number of business units from the current six (6) to two (2) to ensure optimal utilisation of critical resources and infrastructure. The SOC will, in terms of the new operating model, rationalise its asset base and plans to dispose non-core assets. The Department has made a funding application for Denel to support the implementation of the new operating model.

However, much still needs to be done to reposition Denel and return it to functionality and profitability. A challenging road will have to be traversed to get to this point. Recovery from the huge damage done to these institutions by state capture is a challenging task. There is no “quick fix” in this regard.

 

27 August 2021 - NW1746

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Komane, Ms RN to ask the Minister of Public Enterprises

(a) What (i) are the reasons for the failure by Denel to pay their employees their full salaries since May 2020 and (ii) action has he taken to resolve the problems and (b) by what date is it envisaged that Denel employees will receive their full salaries?

Reply:

According to the information received from Denel:

(a)(i) Denel’s failure to pay employees during this period is as a result of the company’s liquidity challenges, which started as far back as 2017. Denel is a case study on what corruption and state capture in particular can do to a once successful business that was a benchmark on governance and performance. This pandemic has made the situation worse with closure of facilities in response to lockdown requirements.

(a)(ii) Denel is dealing with the root causes of the challenges faced by the entity which include the impact and consequences of state capture. The process to rebuild Denel is underway. This includes adopting a new business model that is responsive to changing market conditions to ensure sustainability. Management is in constant engagement with employees to find solutions. The Department is looking at various options of improving the liquidity solutions in the short term and options to strengthen the balance sheet for long term sustainability.

Most of Denel’s operating divisions are steadily addressing the outstanding salary payments owed since May 2020. However, this is dependent on how quickly the divisions are able to turn sales into cash. This is ongoing as Denel is dependent on sales in order to create its own liquidity.

13 August 2021 - NW1273

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Clarke, Ms M to ask the Minister of Public Enterprises

(1) Whether Denel still has missile capability; if not, what is the position in this regard; if so, what are the relevant details; (2) whether designs are still being done; if not, why not; if so, what are the relevant details; (3) whether the whole capability has been lost to the United Arab Emirates; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

According to the information received from Denel:

  1. This question would be best described by defining Capability, which is man-made creation that facilitate human endeavor. It consists of three elements: i) Science/knowledge, ii) People, and iii) Tools (materials, machines, and facilities). If any of the elements is removed the capability ceases to exist. Denel still has these three elements in terms of our missiles business, though a number of skills have been lost. Therefore, Denel still has the capability.
  2. The designs are still being done because Denel still has the three elements to some extent, though impacted by loss of a significant number of engineers in the value chain.
  3. No, Denel has not lost all the capability, but is aware of attempts by some of its people to siphon Denel capability to foreign jurisdictions.

04 August 2021 - NW1058

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

In view of his department’s presentation in October 2020 in which Parliament was informed that Denel is currently insolvent and had recorded a loss of R1,7 billion for the 2019-20 financial year, thereby increasing negative equity to more than R2 billion, (a) what is the current financial situation and (b) has Denel been able to meet its financial obligations?

Reply:

According to the information received from Denel

1(a) Denel’s overall operating activities and environment has further declined in the FY2020/21 financial year with revenue (R2.8bn) projected to be in par with the previous financial year and further losses projected to be 23% lower than the previous financial year.

(1)(b) Denel has struggled to meet all its obligations due to low cashflow and limited business operations.

However, the board, management and DPE are in the process of confirming a new business model which takes account the current realities, including the financial constraints, the stealing of Intellectual Property and the need to rebuild Denel’s capability.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

04 August 2021 - NW1162

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Majola, Mr TR to ask the Minister of Public Enterprises

(a) What total number of applications for rental relief has Transnet received in the 2020- 21 financial year, (b) who has applied for rental relief, (c) which applications have been approved and (d) what is the Rand value of each approved application?

Reply:

According to the information received from Transnet:

a) Transnet received 84 applications for rental relief in the 2020 -21 financial year.

b) The names of the tenants who applied for rental relief are listed in Annexure A.

c) The rental relief applications that were approved in line with the guidelines, are listed in Annexure A.

d) The Rand value of each approved application is contained in Annexure A.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

04 August 2021 - NW1147

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Cachalia, Mr G K to ask the Minister of Public Enterprises

Whether, with reference to a certain forensic investigation (details furnished) into a certain company (name furnished), which made a donation of R100 000 to the ruling party after it was helped to secure a deal to supply Eskom with fuel at inflated prices with the help of an Eskom executive, Eskom has taken any steps to recover the illegal donation to the ruling party; if not, why not; if so, what are the relevant details?

Reply:

According to the Information received from Eskom

A forensic investigation revealed multiple instances where Ms Mlonzi, the sole director of Econ Oil was party to inappropriate and unethical behaviour, and in particular, in attempts to unduly influence Eskom officials to inappropriately and unlawfully act to the benefit of Econ Oil, either during procurement processes and/or contract execution stages.

On 29 August 2013, Ms Marah, a former Eskom employee, requested Ms Mlonzi/Econ Oil to make a contribution to “Women in Dialogue”. Ms Mlonzi complied and Econ Oil paid R10,000 to the organisation on 4 September 2013.

On January 2014, Econ Oil invited certain Eskom officials to an ANC Gala Dinner, inclusive of Ms Marah, and allegedly paid for such. The price for the cheapest table was R150,000.

On 11 April 2014, Ms Marah requested Ms Mlonzi on behalf of ANC’s Liliesleaf Farm Branch, to make a donation towards the ANC’s 2014 National Elections campaign. Ms Mlonzi complied and paid R100,000 on 23 April 2014.

Ms Marah was suspended in December 2018 and resigned in January 2019.

There is no causal link with the donation made by Ms Mlonzi to the ANC that would enable Eskom to take legal steps to recover the donation.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

04 August 2021 - NW1059

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

Whether Denel has complied with the court order instructing it to settle the outstanding payments after organised labour approached the Labour Court for relief, in light of the presentation by his department to Parliament in October 2020 wherein it was stated that due to the weak financial position and reduced cash from operations, Denel is unable to meet all its financial obligations including the payment of full salaries from May 2020 to date; if not, what are the reasons for the non-compliance?

Reply:

According to the information received from Denel:

To date, Denel has not been able to fully comply with the Court Order instructing it to settle the outstanding payments for the months of May, June and July 2020 as per the 4 August 2020 judgement of the Labour Court. Denel has however made significant progress in complying with the Court Order and is required to report back to the Labour Court in July 2021, with a report on progress made in this regard. This, in line with the Court’s ruling of 28 January 2021.

It is important to record that Denel finds itself in this dire position, as do its employees, because of the extreme and systemic damage done by corruption and state capture.

Denel’s Board and management are liasing with the unions on this matter.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

04 August 2021 - NW865

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Cachalia, Mr G K to ask the Minister of Public Enterprises

(1)Whether he will furnish Mr G K Y Cachalia with a reasonable data-driven estimate on how much more each one of the seven state-owned entities reporting to him spend on a basket of recurring consumables such as bottled water, toilet paper, milk, cleaning products and implements, as (a) a result of the application of the current procurement regime governed by internal procurement manuals and the Public Financial Management Act, Act 1 of 1999, and (b) against normal wholesale and/or even retail prices; if not, why not; if so, what are the relevant details; (2) How has he found that the quantum of the difference, extrapolated across the total spend, might impact cash flow and profitability?

Reply:

According to the information received from Alexkor:

a) Alexkor has always bought these items directly from the main retailers. They are not procured through a third party

Consumables

YTD Spend

Forecast YE Spend

Cleaning products

R12,210

R13,320

 

 

 

According to the information received from Denel:

(1)(a) Denel, due to continued and prolonged liquidity challenges do not procure bulk bottled waters, milk etc. Cleaning material is part of the Cleaning contracts, which is a consequence of the competitive bidding process.

(1)(b) N/A

(2) N/A

According to the information received from Eskom

Background

Eskom’s Procurement and Supply Chain Management Procedure states that all prices paid need to be market related, thereby minimising the total cost of ownership. The cost of ownership may include items such as delivery, which could be included with each payment invoice. Eskom has since introduced various mechanisms, namely Price Check, e-Auction, Cataloguing, etc., which are embedded in the procurement system to ensure that the principle of obtaining market related prices is adhered to across Operating Units.

The data used to calculate the estimate for Eskom’s spend per unit on a basket of recurring consumables such as bottled water, toilet paper, milk, cleaning products and implements was extracted from SAP based on the text descriptions.

Eskom systems capture information at invoice level not per unit price. In order to respond to this question, Eskom undertook a manual exercise in order to remove items that are not related to the question, and obtained feedback at local level i.e. stations, operating units and offices.

1. (a) The outcome of an exercise undertaken to determine a reasonable estimate for Eskom’s spend per unit on a basket of recurring consumables, such as bottled water, toilet paper, milk, cleaning products and implements, is summarised in Table 1 below. The total spend in April 2020 to February 2020 was R15.6 million - 47% less than the 2019/20 financial year spend.

Category

Currency

FY 2019/20

1 April 2020 to 28 February 2021

Milk

ZAR

        16 955 622

          7 194 810

Toilet paper

ZAR

          5 560 989

          2 804 401

Bottled water

ZAR

             382 566

             258 627

Cleaning products and implements

ZAR

          6 456 299

          5 383 989

Total

 

        29 355 476

        15 641 827

Table 1: Total spend on bottled water, toilet paper, milk, cleaning products and implements

81.47% of the transactions for the last financial year were procured using the local purchase order (LPO)

  • According to Eskom Procurement Procedure 32-1034, LPO is a procurement mechanism to be used by an accredited LPO-buyer to procure specific confined categories of goods and services in accordance with the prescribed Delegation of Authority Policy thresholds. The LPO is seen to procure specific confined categories of goods and services below the value of R26 000, excluding VAT.
  • The spend on these items is considered as ‘low value’, and most spend is not on long term contracts. This is as a result of Eskom’s footprint across multiple sites, across the country. Further these items are procured locally, preferably local to site, in order to support to local business.
  • Since LPO is the main procurement mechanism used, the transaction captured on the system could only reflect the total amount paid. This means the unit data is not standardised and could include varying unit sizes e.g. 20litres of milk, a six pack or 1 litre. This applies to cleaning materials.

(b) A total of 1646 transactions were identified for the period 1 April 2020 to 28 February 2021 and 73%, i.e. 1215 transactions, were analysed further.

In terms of wholesale or retail prices, the results of the price comparison are as set out in Table 2.

Eskom notes that the unit prices paid are above market rates. This is being attended to.

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Table 2: Price comparison for bottled water, toilet paper, milk, cleaning products and implements

In terms of cleaning products and implements:

  • Cleaning services are mostly procured as a combined service including labour, material and equipment, therefore it is not easy to identify cleaning products and implements costs.
  • There are other costs included in the transactions such as transport and delivery cost. Therefore the individual items could not be rolled up accurately.
  1. Eskom’ spend per unit on a basket of recurring consumables such as bottled water, toilet paper, milk, cleaning products and implements is a very small portion (less than 0.01%) of the total spend. Therefore it should not be extrapolated across the total spend, to make any conclusions on the rest of the Eskom spend.

The analysis presented above has been shared with the business and guidance on LPO usage will be provided to the business, since it is monitored at local level.

Overall, the exercise did not reveal issues that would impact on cash flow and profitability.

According to the information received from SAFCOL :

1 (a) SAFCOL procurement (2019/2020 FY)

Bottled Water 500l

Toilet Paper one ply pack 24

Milk 1Litre

Cleaning Products

Average Unit Price

Average Unit Price

Average Unit Price

Average Unit Price

R12.00

R290.00

R18.00

Handy Andy 750ML=R30.00

Pine Gel 5Litre =R180.00

Bleach 5 Litre =R70.00

Domestos 5 Litre = R150.00

Total Spend for the Financial Year

R3 000.00

Total Spend for the Financial Year

R120 000.00

Total Spend for the Financial Year

R15 000.00

Total Spend for the Financial Year

R70 000

1(b) Wholesale prices (2019/2020 FY)

Description

Bottled Water

Toilet Paper

Milk

Cleaning Products

Unit Price

R14.00

R250.00

R14.00

Handy –Andy 750ML =R25

Pine Gel 5L =R150

Bleach 5L =R50

Domestos =R120

Comments

The price varies depending on the brand or the supplier

The price varies depending on the brand or the supplier

The price varies depending on the brand or the supplier

The price varies depending on the brand or the supplier

2. Total spend does not affect cash flow nor profitability.

According to the information received from South African Express:

Not applicable. The SOC is under liquidation.

South African Airways:

The information from this entity is outstanding and will be submitted as soon as it becomes available.

According to the information received from Transnet:

1.(a) &(b): Annexure A provides details of the spend on a basket of recurring consumables.

2. The rate differences per annum for recurring consumables will not have an impact on the profitability or the cash flow of Transnet. Transnet has no long term agreements in place for consumable items and frequent RFQ’s are issued out to the market in order to ensure that the prices paid remain market related. There are certain instances that Transnet pays below the market rate for consumables and this compensates for the items procured above market rate.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

02 August 2021 - NW1060

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

(a) Is Denel undergoing a section 189 process with regard to its employees and (b) is it able to pay severance packages to employees?

Reply:

According to the information received from Denel:

(a) In October 2020, Denel gave s189 notices to Organized Labour as well as the relevant applications for Commission for Conciliation, Mediation and Arbitration (CCMA) facilitation on the process in two (2) of its divisions and one (1) subsidiary on operational requirements. The CCMA facilitated process has been carried out in line with the provisions of the Labour Relations Act no 66 of 1995.

(b) Denel is fully aware of its obligation to pay severance pay as stipulated in the Labour Relations Act. Section 189(3) of the Labour Relations Act stipulates matters of consultation, which among others include Severance Pay. To the extent that the consultation process has not been concluded, Denel is unable to state if it is able to pay the Severance Packages, which are still the subject of consultations.

Recognizing the liquidity challenges that Denel continues to experience to date, and, in the event the consultation process is concluded, the parties may have to consult and reach consensus on the period within which severance pay may have to be paid.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

30 July 2021 - NW1170

Profile picture: Mileham, Mr K

Mileham, Mr K to ask the Minister of Public Enterprises

(a)What was the incremental cost to Eskom for suspending stage 2 load shedding on 18 March 2021 for the purposes of King Goodwill Zwelethini’s funeral, (b) What total amount of additional diesel and/or other combustible fuel was consumed for this purpose? (c) On what basis was the decision made to suspend load shedding for this time frame and (d) Who took the decision to suspend load shedding?

Reply:

According to the information received from Eskom:

On 17 March 2021, Government requested Eskom to suspend load shedding for the duration of King Goodwill Zwelithini’s memorial service on 18 March 2021 from 10:00 to 14:00. The System Operator evaluated the request and concluded that this was technically possible without putting the power system at risk and would not result in a higher stage of load shedding either before or after the memorial service.

The following was taken onto account:

  • The stage of load shedding before and after the memorial service would not be increased from Stage 2 load shedding that was being implemented at the time.
  • The load shedding that was being implemented was necessary to ration the remaining fuel at the pumped storage and OCGT power stations, as these resources were running low on diesel and water in the top reservoirs.  The suspension of load shedding would require additional generators at these power stations to be dispatched utilising some additional fuel.
  • The duration of the suspension of load shedding was only four hours.
  • Load curtailment of industrial customers would not be suspended.
  • The suspension of load shedding would take place during the late morning and early afternoon when there was a reduction in demand.
  • The event was considered to be in the national interest and is allowed by NRS048-9, the standard that governs load shedding in South Africa.
  • A number of generating units were expected to return to service that afternoon and early evening.

In order to supply the additional demand due to the suspension of load shedding, the System Operator dispatched four additional OCGTs from 09:42 until 14:10.  These OCGTs supplied 2 404 MWh (approximately R8.5 million) during this period with a maximum output reaching 610 MW.  Furthermore, pumped storage generation was dispatched and supplied an estimated additional 2 240 MWh with a maximum additional capacity of 626 MW dispatched.  Between 12:00 and 14:00, four coal-fired generators returned to service adding 1 935 MW of capacity to the system, although it takes many hours to ramp these generators to their maximum capacity.

30 July 2021 - NW1407

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(1)       What strategies will his department put in place in order to retain the scarce skills set within Denel; (2) Whether the training college at Denel has the capacity in terms of (a) funding and (b) resources to conduct the necessary training that is currently needed?

Reply:

According to the information received from Denel:

1. As things stand Denel has lost a significant amount of scarce skills, primarily due to non-payment or partial payment of salaries. To the extent that Denel continues to face liquidity challenges, it is difficult if not impossible to retain skills. Denel’s current focus is to stabilise and rebuild the organisation to make it attractive again. Once this is achieved, Denel will be able to attract the lost skills back as most employees have had demonstrable loyalty to Denel.

2. (a) The Denel Technical Academy (DTA) is currently not funded. Its reliance over the past few years has been on applications for government funding. However, the DTA Strategy and Delivery Framework is already under review in line with the Re-purposed Denel Strategy and Operating Model.

(b) The current scope of the DTA is aircraft trades and general engineering trades artisan training together with specific aircraft type training for Denel product types. Denel is of the view that the DTA has not been optimised to its Full Potential in the past. The Strategy review process presents numerous opportunities for Denel to Maximize Value out of this facility and this includes its Infrastructure usage and Integrated Learning Solution Delivery.

 

30 July 2021 - NW1362

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(a) What total number of G6 vehicles are standing in the garages of Denel for repair, (b) for how long have the specified vehicles been there and (c) what will it cost to repair the vehicles?

Reply:

According to the information received from Denel:

a) Fifteen GV6 Vehicles are in process of repair under the Maintenance and Repair Programme and upgrade as part of Project MUHALI at Denel Land Systems.

b) Three GV6 Vehicles were delivered to Denel Land Systems in September 2018, another eleven were delivered in April 2019. One GV6 was stationed at Denel Land Systems to be ready for parades, shows etc. as required by the SA Army. It is important to note that fifteen GV6 Vehicles are currently in the process of being upgraded with Project MUHALI. The reason for the delays in getting the systems completed is primarily due to Denel challenges to procure the required spares and replacement items required for the MUHALI Upgrades.

c) The current value for approved Work Authorizations (WA) to perform the repairs on the GV6 Vehicles and components is R5.5m. (This exclude the upgrades that are performed by Project MUHALI). The upgrades for project MUHALI are expected to be completed in March 2023.

30 July 2021 - NW706

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Public Enterprises

(1)      What are the details of the (a) total amount charged by the SA Airways (SAA) and (b) breakdown of the specified total amount, including but not limited to, the costs of the aircraft, fuel costs, crew costs, and all other specified costs, for the flight that departed on 24 February 2021 to the Kingdom of Belgium to collect another batch of Johnson & Johnson COVID-19 vaccines; (2) What were the flight numbers for the (a) outbound and (b) inbound journeys; (3) What are the full details of the freight the specified flight transported, including but not limited to the (a) number of vaccine doses, (b) the costs of the vaccines, (c) the gross mass of vaccines and packaging, (d) how the temperature of the vaccines was controlled and (e) details of other freight carried?

Reply:

According to the information received from the SAA:

(1)(a) The costs of the flights were in line with the standard costs of flight operations for South African Airways SOC Limited (SAA) cargo of this nature. Due to the commercial sensitivity of cargo pricing structures, personnel payment details and crew salaries for the flights cannot be provided at this time.

(1)(b) Taking into account that the airline operates in a competitive environment and the information requested is commercially sensitive, therefore the breakdown cannot be provided.

(2)(a) The flight number for the outbound flight from OR Tambo to Brussels is SA 4272  

(2)(b) The flight number for the inbound flight from Brussels to OR Tambo is SA6273

(3)(a) The vaccine doses transported on the specific flight were 40 000 doses. Commercial cargo on SA4272 is 3 tons and 16 tones on SA6273 (excluding vaccines)

(3)(b) The cost of the vaccines is information that is part of a contractual agreement between the Department of Health (DoH) and the supplier. DoH is best positioned to respond to this question.

(3)(c) The DoH is best positioned to respond to the question.

(3)(d) The vaccines were maintained at the permitted travelling temperature as specified by approved Centre for Disease Control and Prevention (CDC) guidelines and as agreed with the supplier.

(3)(e) The freight carried on the flight was cargo mix ranging from courier (express cargo), electrical equipment, ship spares, car components and electronic spares.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

30 July 2021 - NW1057

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(1)       What (a) are the relevant details of the manufacturing statistics within Denel over the past six years and (b) total profits have been realised locally; (2) (a) for which countries has Denel manufactured defence equipment and (b) what was the profit margin in this regard over the past six years?

Reply:

According to the information received from Denel:

1(a) Denel is a multi-product entity. The statistics can reasonably be given in financial form as follows:

Year

2015

2016

2017

2018

2019

2020

R’m Revenue

5 852

8 422

7 769

5 848

3 764

2 729

(1)(b) Denel does not split data on profits per country. The gross profitability is shown below:

Year

2015

2016

2017

2018

2019

2020

Overall Group Gross Profits / (loss)*

1137

1672

1219

265

-582

582

* Profit before operational fixed costs

2(a) Denel has manufactured defence equipment for the following:

           Asia Pacific

Africa

South Africa

South America

Europe

Middle East

North America

2(b) See 1(b) above.

30 July 2021 - NW1308

Profile picture: Chetty, Mr M

Chetty, Mr M to ask the Minister of Public Enterprises

With reference to his reply to question 859 on 16 April 2021, (a) what is the general breakdown of the R1 billion investment referred to and (b) on what date did it take place or is it planned to take place?

Reply:

According to the information received from Transnet

a) An amount of R108 million has been spent to date and the breakdown is as follows:

(i) Robinson Dry Dock: approximately an amount of R8m was spent on infrastructure upgrades and pump system upgrades;

(ii) Sturrock Dry Dock: An amount of about R40m was spent on refurbishment and replacement of sliding caisson, water circulation pumps, electrical infra upgrades, physical infra upgrades and pump system upgrade; and

(iii) Synchro Civil Infrastructure upgrades: A further R60m has been spent on refurbishment of synchro lift, electrical control system, and mechanical infrastructure in the port of Cape Town.

b) This amount has been spent from 2016 to date and the remaining investment is to be spent over the next 5 years.

30 July 2021 - NW1310

Profile picture: Cachalia, Mr G K

Cachalia, Mr G K to ask the Minister of Public Enterprises

With reference to his reply to question 567 on 16 April 2021, what (a) were the findings of the investigation that was conducted by Transnet and (b) was the scope of the investigation?

Reply:

According to the information received from TRANSNET:

(a) Findings of the investigation

In March 2020, Transnet Port Terminals (TPT) in Cape Town had an incident where an external truck driver was killed when a TPT Rubber Tyred Gantry (RTG) spreader fell, resulting in a container hitting the truck cabin with the driver inside.

A summary of the core findings of the internal investigation undertaken by TPT are set out herein below.

  • On the day of the incident, the Operator of the Lifting Equipment (OLE) advised of an unusual sound emanating from the hoist breaks. The artisan attended to the RTG and recorded the sound for further consultation. Upon consulting with a Senior Artisan, and upon receiving advice to stop the machine immediately, the responsible Equipment Coordinator was called to stop the machine. The Equipment Coordinator did not timeously convey the instruction to stop the machine to the OLE operator resulting in operations continuing.
  • The RTG25 hoist brake shoe was loose and eventually dislodged as the OLE operator was positioning the equipment. The spreader lowered by itself resulting in the braking system not responding. This resulted in the spreader falling on the truck cabin positioned under the crane waiting to be loaded.
  • The OLE operator panicked and attempted to warn the driver by continuously hooting, however the driver did not hear the warning.
  • The findings from the investigation suggest that possibly the hoist brake bolts were not correctly tightened to the right settings by the service provider when refurbished in May 2017. As a result, the bolt became lose over time and ultimately dislodged. This is a brake unit with a number of components that is refurbished by the service provider. These refurbished units are maintained as spares and used when required for maintenance purposes.
  • The maintenance regime undertaken on the machine at the time did not trigger the need to check the torque settings of the brake pads and ensure that any loose bolts were detected and repaired accordingly.
  • It is important to note that since the occurrence Transnet has tracked and ensured implementation of the control measures identified in the internal investigation in order to avoid the re-occurrence.

(b) What was the scope of the investigation?

The scope of the investigation is outlined in the Transnet Integrated Management System (“TIMS”) Occurrence and Non-conformance Management 013 Procedure.

An internal investigation was conducted by Transnet Port Terminals. A Board of Inquiry was not commissioned as the country had just entered COVID-19 Level 5 at the time.

The internal investigation team was required to investigate the fatality to determine the following:

  • The root causes/facts/immediate/underlying and contributing causes surrounding and leading up to the occurrence; and
  • Develop robust recommendations to avoid the recurrence of similar occurrences in the future.

Further to establishing the facts surrounding the occurrence, the investigation team also focused on:

  • The activation, execution and management of the emergency processes and relevant directives;
  • The effectiveness and execution of safety procedures at the site;
  • The identification of the measurement of control – risk assessments and mitigation processes; and
  • Adherence to procedures pertaining to giving and obeying lawful instructions.

The internal investigation report was based on the evidence collected and included for example, the review of governance documentation, interviewing of key witnesses, and the analysis of evidence provided.

The investigation team was requested to formulate their recommendations in such a way that:

  • The recommendations are clear, specific and unambiguous as to what is expected by whom;
  • The recommendations are measurable, practicable and attainable; and
  • The recommendations are results orientated and coupled to specific timeframes.

.

30 July 2021 - NW1408

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(a) How will Denel reduce its bloated cost structure, (b) what orders are currently outstanding on Denel’s order book and (c) what are the reasons for the delays in terms of Denel’s contractual obligations?

Reply:

According to the information received from Denel:

(a) Denel is in the process of implementing a new Strategy and Operating Model, code-named Denel 5.Y, as approved by the Board and the Minister. Denel 5.Y envisages a much leaner organization with only two operating divisions, i.e. Denel Maintenance & Manufacturing and Denel Engineering. In accordance with this model, the number of CEOs and Executives will reduce significantly. The restructuring process will be conducted in accordance with the relevant legislation.

(b) R11 720m

(c) Liquidity constraints

    • Insufficient working capital;
    • Inability to raise new performance and advance guarantees;
    • Non-payment of full salaries to employees impacting on execution;
    • Aging plant infrastructure and inability to service/maintain ie increased failure leading to increased downtime;
    • Hostile supplier environment due to non-payment of legacy debt. Increased time spend on trying to negotiate with suppliers on payment terms and plans eating into critical delivery times. Also, most suppliers demanding advance payments before order can be executed.
    • Loss of skills and capabilities

30 July 2021 - NW1117

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Public Enterprises

With regard to the presentation by the SA Airways business rescue practitioners on 25 March 2021 to the Standing Committee on Public Accounts, (a) what are the parliamentary and/or other processes that need to be resolved and/or followed before the R2,7 billion, earmarked for recapitalisation of the SA Airway's subsidiaries, will be paid out and (b) will these funds be paid to SAA or directly to the SAA subsidiaries?

Reply:

a) The bill has been enacted into law. National Treasury through the Minister of Finance may provide more details on the special appropriation process should that be required.

b) The funds will be paid to SAA as the shareholder and then transferred to the subsidiaries namely Mango, SAAT and Airchefs.

30 July 2021 - NW1578

Profile picture: De Villiers, Mr JN

De Villiers, Mr JN to ask the Minister of Public Enterprises:

What are the details of all education qualifications held by a certain person (name and details furnished) (,including, but not exclusively, to the (a) details of each qualification, including the (i) name of the qualification, (ii) name of the institution and/or education entity that awarded the qualification, (iii) contact details of the specified awarding institution/education entity, (iv) duration of the study time required and (v) details of the content of the courses studied for each qualification and (b) date that each qualification was (i) awarded to the specified person and (ii) submitted to his department? NW1784E

Reply:

Number

Qualification1

Qualification 2

Qualification 3

 

(i)

Matric

B.Sc. Engineering

MBA

 

(ii)

Leseding Technical Secondary School

WITS

UCT

 

(iii)

057 397 1002

011 717 4208

010 013 0378

 

(iv)

1 year

4 years

1 year

a) 

(v)

-South Sotho

-English Second Language

Mathematics

Physical Science

Technical Drawing

Electricians work

Metallurgy and Materials Engineering Physical Metallurgy Option

-Company Analysis

-Research Methods

and Research Reports

-Business Model

Innovation lab

-Strategy

b) 

(i)

01 January1990

3 December 1996

-Social Innovation

entrepreneuring

-Marketing

-Finance

-Operation Management

-Business, Government & Society

 

(ii)

26 July 2020

26 July 2020

26 July 2020

30 July 2021 - NW1312

Profile picture: Cachalia, Mr G K

Cachalia, Mr G K to ask the Minister of Public Enterprises

What are the details of the agreement between Eskom and the City of Johannesburg in respect of (a) Debt and (b) Delinquent accounts as the City of Johannesburg is scheduled to take over the services provided by Eskom?

Reply:

According to the information received from Eskom

Eskom has not concluded any agreement with the City of Johannesburg (CoJ) in respect of the transfer of services provided by Eskom. However, the CoJ has formally approached Eskom in this regard and this matter is being considered by both parties.

Once Eskom has reached a formal agreement with the CoJ, we will endeavour to ensure that this information is shared via the CoJ, to yourselves and all relevant stakeholders.

04 June 2021 - NW1110

Profile picture: Cachalia, Mr G K

Cachalia, Mr G K to ask the Minister of Public Enterprises

With reference to Eskom suspending stage two load shedding between 10:00 and 14:00, in order for the nation to mourn the passing of the King on 18 March during the memorial service of King Goodwill Zwelithini, (a) How did Eskom arrive at the decision to suspend load shedding for the memorial service, (b) What criteria were used to arrive at the decision, (c) By whose instruction was the suspension agreed to and (d) What total amount did Eskom spend on diesel fuel to provide uninterrupted electricity supply during the period?

Reply:

According to the information received from Eskom:

On 17 March 2021, Government requested Eskom to suspend load shedding for the duration of King Goodwill Zwelithini’s memorial service on 18 March 2021 from 10:00 to 14:00. The System Operator evaluated the request and concluded that this was technically possible without putting the power system at risk and would not result in a higher stage of load shedding either before or after the memorial service.

The following was taken onto account:

  • The stage of load shedding before and after the memorial service would not be increased from Stage 2 load shedding that was being implemented at the time.
  • The load shedding that was being implemented was necessary to ration the remaining fuel at the pumped storage and OCGT power stations, as these resources were running low on diesel and water in the top reservoirs.  The suspension of load shedding would require additional generators at these power stations to be dispatched utilising some additional fuel.
  • The duration of the suspension of load shedding was only four hours.
  • Load curtailment of industrial customers would not be suspended.
  • The suspension of load shedding would take place during the late morning and early afternoon when there was a reduction in demand.
  • The event was considered to be in the national interest and is allowed by NRS048-9, the standard that governs load shedding in South Africa.
  • A number of generating units were expected to return to service that afternoon and early evening.

In order to supply the additional demand due to the suspension of load shedding, the System Operator dispatched four additional OCGTs from 09:42 until 14:10.  These OCGTs supplied 2 404 MWh (approximately R8.5 million) during this period with a maximum output reaching 610 MW.  Furthermore, pumped storage generation was dispatched and supplied an estimated additional 2 240 MWh with a maximum additional capacity of 626 MW dispatched.  Between 12:00 and 14:00, four coal-fired generators returned to service adding 1 935 MW of capacity to the system, although it takes many hours to ramp these generators to their maximum capacity.

Eskom has the technical capacity and expertise to evaluate each situation and make a sound, technical decision.

I trust that the Honourable Member is not opposed to efforts such as these being made, when appropriate and technically possible?

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

05 May 2021 - NW946

Profile picture: Van Minnen, Ms BM

Van Minnen, Ms BM to ask the Minister of Public Enterprises

Ms B M van Minnen (DA) to ask the Minister of Public Enterprises: (a) What are the reasons that a certain person at Eskom (details furnished) has been suspended as the Standing Committee on Public Accounts has been informed and (b) for what allegations is he being investigated?

Reply:

According to the information received from Eskom

(a) and (b)

The CPO, Solly Tshitangano, is suspended pending the finalisation of a disciplinary hearing. Broadly speaking, the CPO is facing the following charges:

  • gross misconduct in the form of gross dereliction of duty and/or a failure to exercise due care;
  • gross misconduct in the form of gross dishonesty;
  • gross negligence in the performance of his duties;
  • failure to carry out instructions;
  • breaching the conditions of his suspension;
  • distributing confidential Eskom documents to a third party;
  • making any false statement or representation that relates to, or ensues from, his duties;
  • disclosing confidential information obtained in the course of his duties to third parties;
  • breaching Eskom’s procurement and supply chain management procedure; and
  • breaching his fiduciary and statutory duties as set out in the Public Finance Management Act 1 of 1999.

05 May 2021 - NW681

Profile picture: De Villiers, Mr JN

De Villiers, Mr JN to ask the Minister of Public Enterprises

Whether (a) his department and/or (b) any entity reporting to him makes use of private security firms; if not, what is the position in this regard; if so, in each case, what is the (i) name of each firm, (ii) purpose, (iii) value and (iv) duration of each specified contract?

Reply:

Departmental information

a) Department of Public Enterprise is using a Private Security Firm

(a)(i) GMP Security Services

(a)(ii) To render security guarding service of office premises

(a)(iii) R 499 100

(a)(iv) 5 months

According to the information received from Alexkor

(i) Name of each firm

Revert Security

Matek Security

(ii) Purpose

Revert Security – Day to day security services for mine operations.

Matek Security – Specialised Task Team service to protect the mina against illegal miners

(iii) Value

Revert Security – R 1 245 350, 83 per month

Matek Security – R270, 749.85 per month

(iv) Duration of each specified contract?

Revert Security 5 years, extended with 2 years, start Feb 2018 end date Feb 2025

Matek Security 6 months, start 13 November 2020, end date 15 May 2021

According to the information received from Denel

a) Not applicable

b) Yes, Denel SOC Ltd makes use of private security firms. Some divisions (OTR and PMP) have security guards in their employ. Denel Dynamics is partially insourced (inner perimeter).

(b)

(i) name of each firm

(ii) purpose

(iii) value

(iv) duration

Mafoko Security

Provision of security services for NKP and non-NKP for Denel Campuses (Kempton Park)

R32,105,706.12

3 Years

Omega Wise JV

Physical Guarding and Patrol of NKP sites (DLS Centurion)

R24,986,000.00

3 Years

Omega Wise JV

Physical Guarding and Patrol of NKP sites (DVS Benoni & Alrode)

R14,828,354.28

3 Years

Wise Business and Risk Solution

Provision of physical security service on the Denel Dynamics (Irene Campus) premises-National Key Point( NKP)

R7,893,656,65

3 Years

According to the information received from Eskom

  1. Not applicable
  2. Yes, Eskom Security makes use of private security companies for physical guarding services rendered at NKP and other Eskom sites.

The physical security guarding services are procured as an outsourced service to supplement the in-house security capability. Services are procured on fixed, rates based contracts and contracts are awarded only to compliant and accredited private security companies.

  1. (ii) and (iii) The name of each firm, purpose and the value of each contract are as set out in Annexure A.

(iv) The duration of the current security guarding contracts is 18 months, set to expire on 31 March 2021.

According to the information received from SAFCOL

(b) Yes, SAFCOL uses Private Security Firms as depicted in the table below:

According to the information received from South African Airways

a) Not applicable.

(b)(i)(ii) SAA is procuring security services from a service provider called Reshebile Aviation and Protection Service for securing the premises and access there to.

(b)(iii) The value is current about R1m a month.

(b)(iv) This contract expired on 31 March 2020. It is currently being extended on a month to month basis.

According to the information received from South African Express response:

Not relevant as the entity is under liquidation.

According to the information received from Transnet response:

a) Not applicable

b) Transnet does make use of private security firms which are listed as Annexure A.

(b)(iii) The total contract value on active Security firms is R 1, 864,952,665.99.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

05 May 2021 - NW626

Profile picture: Komane, Ms RN

Komane, Ms RN to ask the Minister of Public Enterprises

(1)(a) Which state-owned enterprises (SOEs) have been identified as financially unviable by his department and (b) what steps will he take with regard to the specified SOEs?

Reply:

(a) The viability of the companies within the DPE portfolio would need to be assessed against a wider criterion of repurposing and rationalization of the SOE to make them fit for purpose. Once this exercise is completed then a definite answer can be provided which not only looks purely at financial viability but takes into account operational, strategic and national importance as well as responding to the economic reconstruction and recovery plan.

This work is currently being undertaken by the Presidential State-Owned Enterprises Council (“PSEC”) workstream on consolidation and rationalization.

(b) At an appropriate time, and once all the governance processes have been followed then appropriate steps will be communicated.

05 May 2021 - NW938

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

What (a) financial bearing has Denel received from their export partners in the past two financial years, (b) does Denel expect in the coming financial year, (c) new business opportunities are expected to be executed in the coming financial year, (d) is the financial outcome of the specified opportunities, (e) contracts has Denel got with the United Nations and (f) is the monetary value of each contract?

Reply:

According to the information received from Denel:

a)Denel does not have export partners.

b) Not applicable

c) This is commercially sensitive information. However, as part of the restructuring and transformation of Denel, the Board and management are making every effort to both improve marketing and production. This will take time to accomplish. The loss of Intellectual property, skilled staff to foreign interests and general negligence of previous boards have had a severe impact on Denel.

d) This is commercially sensitive information.

e) None

f) None

05 May 2021 - NW937

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(1)     What (a) has Denel currently got on its order book and (b) does it amount to? (2) Whether Denel has formed equity partners; if not, what is the position in this regard; if so, who are the partners? (3)(a) Who are the current export partners of Denel and (b) what percentage do they have within their market? NW1104E

Reply:

According to the information received from Denel:

(1)(a) Export and domestic contract for various product lines

(1)(b) Over R11 billion

(2) Denel has not entered into any strategic equity partnership in recent time. The last strategic equity partnership that Denel established was 9 years ago when it entered into strategic joint venture with Tawazun Dynamics of the United Arab Emirates. The Board is in the process of reviewing Denel overall strategy, which includes the position on strategic equity partnerships.

(3)(a) Denel does not have export partners. The entity exports according to its contractual obligations it has to its customers.

(3)(b) Not applicable.

 

05 May 2021 - NW922

Profile picture: Van Minnen, Ms BM

Van Minnen, Ms BM to ask the Minister of Public Enterprises

How does he intend to recoup wasted and fruitless expenditure running into millions of Rands from the failed accommodation block that was constructed for workers at the Kusile Power Station?

Reply:

According to the information received from Eskom

Eskom is in the process of quantifying the losses incurred and the parties against whom legal actions should be taken. Counsel has been engaged to advise on the merits of intended action.

05 May 2021 - NW841

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(1)With reference to Eskom’s De Wilge Residential Development Project in respect of which the costs ballooned from R160 million to R840 million, what (a) Are names of the service providers who were contracted to build the flats and (b) Is the breakdown of the amount that was paid to each of them; (2) Whether anyone has been held accountable for the wasteful expenditure; if not, why not; if so, (a) Who and (b) What action was taken against them? NW1002E

Reply:

According to the information received from Eskom:

  1. (a) and (b)

The Wilge Residential Development contract was awarded at R 260.46 million for the completion of 336 unit-flats by December2013. Liviero Wilge Joint Venture (LWJV) was contracted to build the flats.

The cost incurred to date is R 632.64 million on the development of the flats paid to Liviero Wilge Joint Venture (LWJV) and an additional R 209.23 million on common infrastructure and related work paid to other service providers as set out in Table 1 below. The total amount that was paid to service providers was R 841.87 million.

Table 1: Other service providers for services and supporting infrastructure work

Service provider (a)

Contracted service

Total value (b)

BKS-PALACE CONSORTIUM

Engineering services

R   55 968 777.66

Emalahleni Planning

Municipality planning

R          28 377.72

ENSafrica

Legal services

R 7 248 484.67

Eskom Rotek Industries (ERI)

Kitchen and electrical network

R 16 935 475.64

Fabricated Steel Manufacturing Company

Kitchen building

R     4 525 945.94

Huntrex 116

Security

R     2 434 485.77

Liviero Wilge Accommodation

Accommodation during construction

R   40 632 852.63

Service Provider (a)

Contracted Service

Total Value (b)

Mbanga Trading Enterprise

Kitchen equipment

R     3 558 621.64

Moremantsa

Furniture

R 17 224 340.00

MRMS

Pump station and water/sewer pipelines

R 15 530 657.37

PricewaterhouseCoopers

Background checks

R 30 168.00

Sphilasethu Security Services

Security

R     1 719 999.60

Thabelo Personnel

Labour broker resources

R 3 826 293.96

Themba Consultants

Engineering services and labour broker resources

R   24 781 473.44

Thusanang Cast

Kitchen

R   11 572 419.18

Ukwazi

Electrical repairs to 22kV supply

R          58 495.29

Unyokane Trading Enterprise

Security

R     2 342 900.00

Zitholele Consulting

Water use licence for pipelines

R 808 042.80

Total

 

R 209 227 811.31

2 (a) and (b)

In 2019, Eskom instituted disciplinary action against the General Manager of Facilities of which the Wilge Project is part. The disciplinary process was concluded in January 2020 and the General Manager was found guilty and subsequently, Eskom terminated his employment.

Eskom has initiated a legal process recovering moneys from the General Manager concerned.

Eskom is currently concluding disciplinary process on an additional implicated employee, this process is at an advance stage

05 May 2021 - NW824

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether, with phase one of the vaccine roll-out process targeting frontline healthcare workers, entities that fall under his department have devised any vaccine roll-out strategies for their employees; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from ALEXKOR

a) The four (4) frontline healthcare workers, employees at the Alexkor Occupational health Department, have been registered on the National Department of Health Electronic Vaccine Data System. Currently all vaccines are being coordinated and supplied by the NDOH.

Dr Vaughan was contacted on 13 March 2021 to inform him that the vaccination roll-out will start with the general practitioners in the district.

Dr Vic Vaughan

Occupational Medical Practitioner

Have been registered under Nababeep Clinic, Namaqua District.

George Richards

Occupational Health Nursing Practitioner

Have been registered under Alexanderbaai Clinic, Namaqua District.

SMS confirmation 02 March 2021

Karl Adams

Emergency Care Technician

Have been registered under Alexanderbaai Clinic, Namaqua District.

SMS confirmation 02 March 2021

Teschwill Matthys

Basic Ambulance Assistant

Have been registered under Alexanderbaai Clinic, Namaqua District.

SMS confirmation 02 March 2021

According to the information received from DENEL

Denel’s workers are not classified as frontline workers therefore, the SOC does not have a vaccine roll-out plan for this category of workers.

According to the information received from ESKOM

Eskom has a COVID-19 Vaccine strategy and roll-out plan that is aligned to the national vaccine strategy. As part of phase 1, Eskom frontline health care workers have registered on the Electronic Vaccine Data System (EVDS) and await to be vaccinated.

Attached is the Eskom COVID-19 vaccine strategy and roll-out plan. It outlines the process to vaccinate employees and contract workers.

According to the information received from SAFCOL

SAFCOL has 3 517 employees (including permanent employees, fixed term employees and contractors) as at February 2021. SAFCOL employees are not frontline workers and are therefore not affected in phase one of the national vaccine rollout process.

Subject to resolution of challenges, relating to financing of vaccines and medical skills constraints at the two clinics owned by SAFCOL, SAFCOL’s vaccine rollout plan is cognisant of the fact that Government will source, distribute and oversee the rollout of the vaccine. Furthermore, that Government, as the sole purchaser of vaccines, will distribute it to provincial governments and the private sector. Consequently, SAFCOL’s roll-out plan will be aligned to the Government roll-out plan as and when the relevant phases are announced. SAFCOL will implement the vaccination programme following a phased approach as detailed in the roll-out plan below.

Phase 1 - Rollout for SAFCOL.

(Phase one for SAFCOL will be implemented when the Government implement its phase two. SAFCOL will include the following employees)

Phase 2 - Rollout for SAFCOL

(Phase two for SAFCOL. For SAFCOL will be implemented when the Government implement its phase three. SAFCOL will include the following employees)

Every employee over 60 years and those over 18 years with co-morbidities.

Every employee older than 18 years, who were not covered during Phase 1, targeting the entire workforce.

Production workers and employees who cannot work from home.

 

Change and Stakeholder Management

  • SAFCOL employees are educated on the vaccine and are encouraged to be vaccinated to ensure the success of the programme.
  • SAFCOL’s existing COVID-19 communications and wellness programmes have commenced with communications around vaccine rollout to the limited extent possible at this point in time. Clear communication will continuously emphasise the fact that all employees’ personal wishes to receive the vaccine (or not), will be respected with no adverse impacts in terms of the employment relationship.
  • Onsite consultation with union and contractors will be encouraged.

Risk Management Strategy

  • The rollout plan will start gradually with small groups of employees, to manage implementation risk.
  • Employee consent/participation forms will be implemented through the clinics to keep accurate records that will inform evaluation on the impact of the vaccine rollout programme and any improvement decisions required over time.

According to the information from SOUTH AFRICAN AIRWAYS

South African Airways does not have a roll-out strategy.

According to the information received from SOUTH AFRICAN EXPRESS

Not applicable. The SOC is under provisional liquidation.

According to the information received from TRANSNET

1. Transnet does not have any healthcare workers who are classified as 1a frontline health care workers as per Government’s classification and roll-out phases. However, Transnet does have healthcare workers who are classified as category 1b and has ensured that this category of employees are registered on the EVDS (Electronic Vaccine Data System) in preparation for their round of vaccinations.

2. Transnet does have an approach to ensure the roll-out of vaccinations for its employees and has segmented its employee’s according to Government’s Three (3) Phase roll-out plan. The Transnet Occupational Health Clinics are also being equipped for vaccinations to be administered to all Transnet employees.

05 May 2021 - NW734

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Clarke, Ms M to ask the Minister of Public Enterprises

(1)       Whether, with regard to the court order obtained in August 2020 that Denel must pay all salaries in arrears, the salaries have now been paid; if not, what are the (a) reasons that Denel failed to comply with the specified court order and (b) consequences of being in contempt of court for Denel; if so, (2) Whether the salaries have been paid in full; if not, (a) why not, (b) which salaries have not been paid as yet and (c) what are the amounts of the outstanding salaries; if so, what are the further relevant details?

Reply:

According to the information received from Denel

1. The employees’ salaries for the period May to July 2020 have not been paid in full. Even though the quantum of the outstanding payments has reduced, there is still an outstanding portion:

a) The reason for Denel’s failure to comply with the Court Order is that Denel does not have the money to comply with the outstanding financial obligations in terms of the court order.

b) The consequence of Denel being in contempt of court is that if it were to be found to be guilty of contempt, the court may impose a fine or imprisonment and/or both. The court has since given its judgement (dated 8 March 2021) and Denel and its directors have for now not been found to be in contempt of court.

c) The court has, however, not dismissed the application and has postponed these proceedings and to require Denel to file an affidavit on a date prior to the reconvened hearing to report further progress towards full compliance with the court order.

2. The salaries have not been paid in full.

a) The salaries have not been paid in full due to Denel’s financial inability to effect payment.

b) Please refer to the attached Spreadsheet marked Annexure A.

  • The spreadsheet addresses outstanding salary payments and third party payments (money deducted to pay 3rd party beneficiaries) in respect of Solidarity and UASA’s members, for whom the court order applies and for the rest of employees excepted by the court order.

c) nRefer to point (b) above.

d) Solidarity and UASA have since obtained warrants of execution totaling an amount of R12,7 Million and for which Denel in proposing a stay of execution while the parties engage in finding an amicable solution.

There are constructive engagements taking place between the Board and management of Denel and the trades unions, with a view to obtaining consensus on resolving the crises faced by Denel due to state capture and to ensure the wellbeing of employees.

                                             

05 May 2021 - NW707

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Lees, Mr RA to ask the Minister of Public Enterprises

(1)  What are the details of the crew of the SA Airways (SAA) aircraft that departed on 24 February 2021 to the Kingdom of Belgium to collect another batch of Johnson & Johnson COVID-19 vaccines, including but not limited to (a) number of crew members, (b) the role of each crew member, (c) the names of each crew member, (d) the length of service in the roles that each specified crew member carried out and (e) details of regulatory training of the flight crew; (2) What are the details of the procurement process followed in order to select the SAA air services to fetch the vaccines from Belgium; (3) Were all aviation regulations and requirements for the aircraft and pilots adhered to; if not, (a) what exemptions were issued, (b) by whom were exemptions issued and (c) what facility was used for the flight deck crew training? NW826E

Reply:

(1) The Department is unable to provide this information due to the industrially charged environment at SAA and the risk that such a disclosure could pose to employees concerned. However, DPE can confirm that the flight was operated by an experienced Captain, First officer, and Flight engineer.

(2) SAA has been utilized, as a 100% government-owned entity, at the request of government, on numerous occasions, in supporting the pandemic related efforts: repatriation of citizens, collection of PPEs etc. SAA has also assisted international organisations such as the World Food Program to distribute its aid to neighbouring countries in the continent.

(3) SAA complied with SAA requirements to operate the flight. The exemptions obtained were in relation to crew re-currency in the following areas:

    • External training facility.
    • External instructor qualification to conduct training for SAA pilots.
    • Pilots regaining recency.
    • Recurrent training:

05 May 2021 - NW529

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether Denel specifically investigated a collaboration with (a) the SA Air Force and (b) Armscor in terms of the development of the new generation Rooivalk MK 11; if not, why not; if so, what (i) budget has been provided for this purpose in each case and (ii) are the further relevant details?

Reply:

According to the information received from Denel:

a) Denel SOC Ltd is the Original Equipment Manufacturer (OEM) of the Rooivalk Attack Helicopter (AH). The SOC has investigated with the South African Air Force (SAAF) through Armscor the potential to upgrade and or replacement of the current baseline.

b)Denel was commissioned by Armscor in 2015/16 financial year to develop a weapons and avionics obsolescence study of the Rooivalk AH. This study would form the basis for a Project Definition (PD) by the Department of Defence (DOD) which would map a path to reach an upgraded Rooivalk AH.

  1. R10 million was allocated for the study by the DOD.
  2. This study was completed in 2016 with an expectation of a further tasking for other major systems of the aircraft.

05 May 2021 - NW945

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

What are the latest steps that he and/or his department is taking to recoup the R28 billion municipal debt currently owed to Eskom as revealed by the latest annual report?

Reply:

According to the information received from Eskom

Eskom continues with its debt management processes which included the issuing of debt summons, attachment of assets and bank accounts if required. Eskom is also pursuing the dispute mechanisms as defined in the Intergovernmental Relations Framework Act and creates awareness of the role of various government departments in the resolution of the arrear debt. Eskom also engages stakeholders via the Eskom Political Task Team and Multi-disciplinary Revenue Committee in seeking resolution to the Municipal debt problem.

Eskom is also embarking on a municipal active partnering programme whereby services are offered to struggling municipalities to assist with electricity reticulation, distribution and revenue collection with the purpose of sustainably improving the electricity value chain, thereby securing payment for the electricity supplied to end consumers of the municipality. A focused intergovernmental approach is also being followed with special intervention in Maluti a Phofung by the Deputy President who has established a task team to track progress on the implementation of these initiatives in the municipality.

05 May 2021 - NW939

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Clarke, Ms M to ask the Minister of Public Enterprises

(1)Whether, with reference to the accommodation building that was built at the Kusile Power Station by a certain company (name furnished) with an estimated contract worth R160 million, an (a) official quote was submitted and (b) agreement was entered into with the specified company for the construction of the units; if not, what is the position in this regard; if so, what are the relevant details; (2) whether an addendum was added to the agreement in terms of additional work that was required; if not, why not; if so, what are the relevant details; (3)(a) what was the total monetary value of the contract, (b) who was responsible for managing the contract and (c) was there a time frame put in place in terms of penalties imposed if the time frames were not met; (4) whether the (a) plans, engineering compliances and bill of quantities submitted and approved by the local authority and (b) final inspections and electrical compliances were carried out by local authorities; if not, why not; if so, what are the relevant details (5) whether the project was inspected and a certificate issued by the National Home Builders Registration Council in terms of inspection; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Eskom:

(1)(a)

An open tender process was followed and twenty-four (24) companies submitted tenders.

(1)(b)

On 3 July 2012, Eskom Holdings SOC Limited awarded a contract (4600046997) to Liviero Wilge Joint Venture (LWJV) for the construction of 336 units on erf 165 Wilge Township (enquiry number PS(K)2011/UR/01). The duration of the contract was 18 months and the accepted contract price was R226 485 875.455 excluding value-added tax (VAT) and cost price adjustment (CPA).

(2)

The following modifications were approved by the relevant delegated authorities:

 

Modification No.

Approval Date

Approved Contract Value

Reasons for Change

Approval Authority

0

3 May 2012

R226 485 875

Initial approval

R300m Procurement Tender Committee (PTC)

1

8 May 2013

R264 795 470

Inclusion of project labour agreement

R300m PTC

2

10 December 2013

R264 795 470

Labour and design issues

Extension of time, no cost

R50m – R300m PTC

3

25 July 2014

R264 795 470

Legal dispute, time extension, no cost

R50m – R300m PTC

4

25 March 2015

R388 249 150

First addendum condonation

Exco Procurement Sub-Committee (PSC)

5

28 June 2016

R447 749 277

Memorandum of understanding

Exco PSC

6

4 August 2017

R608 879 139

Termination cost

Board tender committee

Final

9 May 2018

R600 480 000 (excl. cost price adjustment)

Adjudication outcome

 

(3)(a)

Initially, the total contract monetary value was R226,5 million and the final monetary value at

adjudication was R600,48 million (excluding cost price adjustment).

(3)(b)

Mr. Reuben Mamorare, General Manager for Group Capital Division Facilities.

(3)(c)

Delay damages for sectional completion were included in the contract at 0.04% per day, calculated as a percentage of the prices at the date of contract award. The deadline for Section 1 that included blocks C, D, E and F was 30 September 2013 and the deadline for Section 2 that included blocks A, B, G, H and I was 13 December 2012. However, no penalties were imposed on the contractor.

(4)(a)

The required documents for the rezoning, and building permission was submitted to the Local authorities and approved.

(4)(b)

Final inspection for occupation certificates and electrical compliance by the local authority Was not completed due to termination of the contract.

(5)

The development was enrolled with the National Home Builders Registration Council (NHBRC) and certificates were issued. The development was suspended before final inspections for relevant certifications were done.

16 April 2021 - NW859

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Chetty, Mr M to ask the Minister of Public Enterprises

(1)Whether there is a maintenance plan in place with regard to the dry-dock at the Port of Cape Town; if not, why not; if so, how often does maintenance take place; (2) Whether there are any plans in place to upgrade the dry-dock; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Transnet:

1. Every asset in the dry dock facility in the Port of Cape Town has a maintenance plan. Each maintenance plan is derived from the Original Equipment manufacturer (OEM) operating and maintenance manual. Each asset has its own maintenance interval (daily, weekly, monthly, yearly etc.). All maintenance plans are raised in the form of job cards through Computerized Maintenance Management System (CMMS), in this instance SAP.

The port adheres to annual maintenance repairs and ad hoc maintenance plans. This involves the reaction to the predicted asset failure which is not imminent. The repair cost is estimated, and funds are allocated accordingly. Job cards are created, and jobs are executed and documented and kept for a period of three years for auditing purposes.

2. The Port of Cape Town is in the process of refurbishing its outdated ship-repair facilities in line with Operation Phakisa initiatives. The port is providing an essential gravity point in the ship-repair sector. It has three main facilities namely, Robertson Dry Dock (RDD), Synchro-lift (SL) and Sturrock Dry Dock (SDD). The investment in the refurbishment of the facility to date is as follows:

  • All three-facilities combined capital spend to date is approximately R50 Million
  • Latest Estimate by end of the financial year is approximately R69 Million
  • The total estimated capital spends inclusive of all facilities above is “R1b”.
  •  

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

16 April 2021 - NW800

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Singh, Mr N to ask the Minister of Public Enterprises

Whether the areas that are both supplied in bulk and billed by Eskom for energy provision are entitled to and receive a subsidy for the installation of prepaid meters as per relevant government programmes; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Eskom

All residential customers who fall within the allocated area to be funded by the Department of Mineral Resources and Energy qualify for free prepaid meters (20A) installed by Eskom or by municipalities. The electrification programme is rolled out in line with the municipalities’ Integrated Development Plans (IDP).

Only customers who require more than 20A supply are required to pay an upgrade fee from 20A to 60A.

16 April 2021 - NW740

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

Whether he has been informed that 5 452 officials working for Eskom have to date failed to submit their declaration forms relating to potential conflicts of interest at Eskom; if not, why not; if so, what steps are being taken to ensure compliance?

Reply:

According to the information received from Eskom:

On 14 October 2020, the SIU issued a report to SCOPA for the period 2015/16 to 2019/2020 identifying 5452 cases involving Eskom officials that had failed to submit declarations of interest for the indicated period. These cases have been handed over to Eskom by the SIU and the disciplinary process has commenced for the identified employees.

In order to ensure compliance, Eskom has implemented the following improvement actions to the declaration of interest management process:

  • The information system used to monitor employee declarations has been upgraded to enhance the ability to track and monitor non-compliances to the Eskom requirements.
  • Trained ethics coordinators and trainers have been appointed throughout the organisation to assist with ethics issues at the Eskom sites throughout the country.
  • Ethics training is provided to all employees through online learning, as the classroom training sessions have been placed on hold due to the Covid-19 restrictions.
  • Employees that fail to comply are taken through a consequence management process.

16 April 2021 - NW708

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Lees, Mr RA to ask the Minister of Public Enterprises

(1)    What are details of any passengers carried on the aircraft during the outbound and return flights of the SA Airways (SAA) aircraft that departed on 24 February 2021 to the Kingdom of Belgium to collect another batch of Johnson & Johnson COVID-19 vaccines, including but not limited to (a) the names of ach passenger and (b) the amounts charged to each passenger; (2) Whether SAA and/or Mango airline will be awarded any further government tenders for the transportation of COVID-19 vaccines (a) within the Republic and (b) within Africa; if not, why not in each case; if so, what (i) aircraft will be used and (ii) are the details of all procurement regulations and legislation that will be followed for the procurement of such air services?

Reply:

(1) No passengers were carried on the outbound and inbound flights

(2)(a) The awarding of such tenders is the responsibility of the National Department of Health. SAA has the capacity an infrastructure to transport cargo including the vaccines. SAA will put forward its value proposition for this role in South Africa and in the continent.

(2)(b)(i) The aircraft used will depend on the size of the consignment and distance to and from where the vaccine is transported.

(2)(b)(ii) The vaccine procurement regulations are the responsibility of the Department of Health.

Obtaining and transporting vaccines to SA is of national interest and importance. The state’s limited capacity must be utilized to avail vaccines to South Africans who are waiting to be vaccinated in order to prevent the worst effects of the COVID pandemic.

It is regrettable that some pilots and their collaborators, are doing everything possible to selfishly extract more Benefits for themselves, even if it means misleading the public.

Government is fairly advanced in securing an equity partner, and every effort must be made to ensure that this is successful- such that there is no future imposition on the fiscus.

16 April 2021 - NW823

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether, in light of the five State-owned enterprises (SOEs), namely SA Airways, Alexkor, Safcol, Denel and SA Express that failed to submit their annual reports as required in terms of the Public Finance Management Act, Act 1 of 1996, his department will support the policy position which seeks to provide for additional measures in order to ensure SOE accountability in instances where the executive authority fails to table an annual report and financial statements of a department and/or public entity?

Reply:

10. The Department has adequate measures to ensure SOCs accountability in instances where the executive authority fails to table an annual report of the department and/or entity. Furthermore, extenuating circumstances would need to be considered on a case by case basis. The following are the extenuating circumstances that led to the following SOCs in not tabling annual reports and financial statements:

a) Denel: Denel’s AGM was held on the 29 January 2021. Several reasons resulted in the delay, including the liquidity challenges, which affected its ability to continue operating on a going concern basis. Consequently, Denel was unable to provide sufficient evidence to demonstrate that it is a going concern, resulting in the delayed external audit finalization by the Auditor General. The delayed finalisation of the AFS was also exacerbated by the COVID-19 pandemic which impacted day-to-day activities in general. The AFS and Integrated Report were tabled at Parliament on Tuesday, 9 February 2021.

b) Safcol: The audit was protracted due to the COVID-19 pandemic. The annual report was tabled on 10 March 2021, followed by the presentation to the Portfolio Committee, held on 17 March 2021.

c) Alexkor: The Alexkor AGM is expected to be held during the last week of March 2021. Alexkor’s operational and liquidity challenges not only resulted in delayed finalisation of the AFS and external audit by the Company’s auditors but has impacted its ability to continue operating on a going concern basis, resulting in a disclaimed audit opinion. It is expected that the AFS and IR will be tabled immediately after the AGM is held.

d) SAA: The airline could not table the annual report and financial statements due to financial and liquidity challenges. This had an impact on the going concern assessment which eventually led to the airline being placed under business rescue.​e) SA Express: The airline could not table the annual report and financial statements due to financial and liquidity challenges. This had an impact on the going concern assessment which eventually led to the airline being placed under business rescue and is now in provisional liquidation.

 

2. The last 2 years have been a difficult period for all SOCs, in terms of addressing all matters related to state capture, stabilising the SOC, and the impact of COVID-19 pandemic. The majority of the SOCs are facing serious financial challenges, which impact on going concern and the audit outcome. The accountability framework includes the oversight of Parliament as it relates to non-submission of annual reports. The SOCs, being corporate entities are also required to apply to the Companies Tribunal to grant an extension of the date within which to hold the Annual General Meeting and to present its annual report to the Shareholder. Late submission of the annual report, coupled with going concern and the viability of the company also impacts on loan covenants, which the Board and the Shareholder must address.

3. The Boards are also accountable for other non-negotiable targets such as the achievement of an unqualified audit outcome and the achievement of at least 80% of the total sum of key performance indicators of the Compact. In line with consequence management, but also informed by the financial constraints, Boards and management takes a 0% annual increase when these non-negotiable targets are not met. However, addressing the viability of the SOC remains one of government’s key objective.

16 April 2021 - NW528

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Clarke, Ms M to ask the Minister of Public Enterprises

(1)What (a) are the details of the role his department plays in terms of the development of the new generation Rooivalk MK 11 and (b) budget has been provided for this purpose; (2) Whether Denel has been able to form partnerships (a) within the Republic and (b) internationally at this stage; if not, what is the position in this regard; if so, with whom in each case?

Reply:

(1)(a) The Department is not playing a direct role in the development process of the new generation Rooivalk Combat Helicopter MK II. The discussions are still at a technical level between Denel and Armscor.

(1)(b) No budget provision has been made by the Department.

(2)(a) Domestic partnership is the Light Mobility (LMT) Holdings. Denel acquired the controlling stake in LMT in 2012. Denel owns 51% of LMT Holdings, PAMODZI 29% and the remainder is owned by the previous owners of LMT.

(b) Yes, Denel has in the past managed to enter into international partnerships. These are:

(i) With SAFRAN of France in 2002 to form Turbomeca Africa. SAFRAN owned 51% of Turbomeca Africa and Denel 49%. The company was based in South Africa. The joint venture was discontinued in 2017.

(ii) With SAAB of Sweden in 2007 to form Denel SAAB Aerostructures (DSA). Denel owned 80%  of DSA and SAAB 20%. The company was based in South Africa. SAAB sold back to Denel its 20% stake left the partnership in 2010. Denel Aerostructures was discontinued in 2019.

(iii) In Optronics with Carl Zeiss of Germany in 2007 to establish Carl Zeiss South Africa (now Hensoldt South Africa). Carl Zeiss owned (now Hensoldt) 70% of Carl Zeiss South Africa (Hensoldt South Africa) and Denel 30%. The company is based in South Africa

(iv) With Rheinmetall of Germany in 2008 to establish Rheinmetall Denel Munitions (RDM). Rheinmetall owns 51% and Denel 49%. The company is based in South Africa

(v) With Tawuzan of the United Arab Emirates (UAE) in 2012 to establish Tawuzan Dynamic (now Barij Dynamics)s. Tawuzan owns 51% and Denel 49%. The entity is based in the UAE

(vi) With International Golden Group(IGG) PJSC of the United Arab Emirates (UAE) in 2014 to establish Pioneer Land Systems LLC. Denel (through its subsidiary) own 49% of Pioneer Land Systems LLC and IGG 51%. The company is based in the UAE.    

                                               

16 April 2021 - NW241

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Zungula, Mr V to ask the Minister of Public Enterprises

(1)      Whether, given the state of affairs at SA Airways (SAA), he can account as to the reason that the voluntary severance package (VSP) payments of more than 3480 former SAA employees have not been paid, despite promises by his department to effect the payment by 31 January 2021; if not, why not; if so, what are the relevant details; (2) What plan does his department have in place to ensure that the rest of the 1220 SAA employees who were not subjected to the section 189 retrenchment process do not encounter a similar payment issue; (3) Whether, in light of the recorded R10,5 billion bail-out for SAA that the Minister of Finance, Mr T T Mboweni, had set out, of which R2,2 billion had been set aside to fund retrenchment packages, the specified funds have been made available to the Ministry of Public Enterprises; if not, why not; if so, what are the reasons that the specified funds have not reached the intended recipients; and (4) By what date will his department process the VSPs of all affected employees as a matter of urgency?

Reply:

  1. The VSPs have since been paid with non-management and management employees paid on 12 and 19 February 2021 respectively. The payments could not be paid until the funds had been secured and this was achieved with the adjusted national budget on 28 October 2020. Immediately R3.5 billion of these funds were made available to start payment of employee related liabilities.
  2. The Department does not anticipate that payment related to further restructuring including section 189 retrenchments shall be delayed. Funds necessary for this purpose have been deposited with BRPs.
  3. All the funds for retrenchment packages for SAA employees have been transferred to SAA.
  4. See (1) and (2) above.
     
     
     
     
     

16 April 2021 - NW860

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Chetty, Mr M to ask the Minister of Public Enterprises

(1)In view of the delays in the Port of Cape Town’s container terminal that is often as a result of equipment breakdowns, (a) what was the average number of breakdowns experienced in each shift at the Port of Cape Town’s container terminal in 2020; (2 Whether Transnet keeps record of what is causing breakdowns at the Port of Cape Town’s container terminal; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Transnet:

1. The average number of equipment breakdowns at the Cape Town Container Terminal per shift for the 2020/21 financial year, in respect of all equipment is as follows:

  • Shift One = 162 breakdowns per month (April 2020 – March 2021)
  • Shift Two = 134 breakdowns per month (April 2020 – March 2021)
  • Shift Three = 126 breakdowns per month (April 2020 – March 2021).

2. Transnet Port Terminals (TPT) keeps daily statistical records of the number of equipment breakdowns, the description of each breakdown and the associated outage times. The root cause of these breakdowns is largely attributed to the equipment reaching its mid-life.

There are 8 (eight) Ship-to-Shore Cranes due for mid-life refurbishments and with the high demand for crane density, a new strategic approach to replace all critical components within these cranes is now in place and will take Transnet Port Terminals to the desired reliability of 90% versus the current 85%. To improve the reliability of the Rubber-Tyred Gantry Crane (RTG) fleet, a ramp-up plan has been finalised to move from an average of 20 RTG Cranes to 28 RTG Cranes, within the next 24 months.

16 April 2021 - NW842

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Van Minnen, Ms BM to ask the Minister of Public Enterprises

What steps is he taking to ensure that officials who resign from state-owned enterprises to avoid disciplinary action are not reemployed in other government department?

Reply:

The SOE’s are separate legal entities and employees in the SOE’s are not employed in terms of the Public Service Act. This makes the flagging of the employees who leaves the SOE’s pending disciplinary action or investigation difficult to track and trace in as far as other government departments. Heavy reliance will be on the strengths of our government departments recruitment processes to ensure that the vetting is done diligently to be able to detect such red flags. The prescripts developed under the auspices of Department of Public Service and Administration place a responsibility on the accounting officer of each government department to ensure that rigorous integrity assessments and background checks are conducted against candidates applying for employment.

The SOE’s have measures in place as part of their recruitment processes to prohibit the reappointment of employees who left through dismissal. The SOE’s are reviewing their measures to ensure that through the HR processes employees who leave the institution whilst under investigation or pending a disciplinary procedure are flagged. These should be done in line to what is permissible in terms of our Labour Relations Act.”

The department has also developed the SOC Risk and Integrity Management Framework that will be implemented with effect from 01 April 2021. Among others, the framework introduces reforms designed to regulate the affairs of the SOCs under the Ministry of Public Enterprises as follows:

  • Ensure that SOCs conduct rigorous background checks to prevent employment of candidates whose integrity indicates that they cannot be entrusted with the management of public resources;
  • Prohibit employees and board members of SOCs from doing business with their respective SOC.
  • Prohibit employees and board members of SOCs from soliciting or accepting gifts and/or donations from companies doing business with the SOC.