Questions and Replies

Filter by year

22 September 2015 - NW3343

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1) With reference to her reply to question 2926 on 25 August 2015, how many rail accidents involving (a) Spoornet, (b) Prasa and (c) Metrorail trains took place (i) in (aa) 2010, (bb) 2011, (cc) 2012, (dd) 2013 and (ee) 2014 and (ii) from 1 January 2015 until the latest specified date for which information is available; (2) (a) how many passengers in each accident in each separate year (i) were injured and (ii) died, (b) where did each specified accident take place and (c) what was the cause of each specified accident; (3) whether she will make a statement on the matter?

Reply:

It should be noted that with reference to the question on the number of accidents, the Honourable member, Dr PJ Groenewald (FF-Plus) is asking the same question he had asked in PQ 2926 and I have already provided a response in that regard. The only difference is that this time Dr Groenewald focuses on PASSENGERS whereas in the previous PQ on this matter, his focus was on PERSONS in general. For the record, the Honourable member should take note that Transnet does not operate passenger trains at all and questions related to the operations of Passenger Rail Agency of South Africa (PRASA) should be referred to the Minister of Transport.




END

22 September 2015 - NW3345

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1) Whether any insurance money was paid out due to damages sustained after pressure tests at the Duvha Power Station; if not, why not; if so, what (a) amount was paid out for repair work, (b) amount was paid out due to loss of business and (c) other amounts were paid out by the insurers; (2) whether the full amount that was paid out for repairs to the damaged units was, indeed, utilised for the specified repairs; if not, (a) why not, (b) what amount was utilised for the repairs and (c) what was the remaining money used for; (3) whether any repair work on the damaged units has already commenced; if not, why not; if so, when will the repair work be completed; (4) whether she will make a statement on the matter?

Reply:

(1) The insurance claim has not yet been concluded and no money has been paid out.

(2) Not applicable as no money has been paid to Eskom.

(3) The Duvha Unit 3 Recovery Project execution strategy has not yet been approved by the Eskom Board. Only preservation and site preparation work has commenced. Timelines into recovery will only be definite once a service provider has been appointed.

(4) The relevant stakeholders will be kept abreast of these developments as required.



END 

22 September 2015 - NW3170

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

(1) What is her department’s position in respect of the statement by Eskom’s spokesperson that Eskom’s financial issues were only partly responsible for the country’s rolling blackouts; (2) whether this is an indication of a greater Government culpability in respect of the blackouts; if so, what are the relevant details?

Reply:

1.   Eskom’s financial issues are responsible for load shedding in as far as limited funding for maintenance and restrictions on diesel purchases for Open Cycle Gas Turbines are concerned.

​2.  In the main load shedding has been caused by maintenance deferred in the past which resulted in a backlog of maintenance and decline in plant reliability.



END

11 September 2015 - NW3302

Profile picture: Morapela, Mr K

Morapela, Mr K to ask the Minister of Public Enterprises

(1)         (a)(i) What total amount did her department spend on her travel costs between Gauteng and Cape Town in the 2014-15 financial year and (ii) how many trips did she undertake between Gauteng and Cape Town in the specified financial year and (b) what total amount did her department spend on (i) hotel and (ii) residential or other accommodation for her in (aa) Cape Town and (bb) Pretoria in the 2014-15 financial year; (2) what is the total amount that her department spent on (a) accommodation and (b) car rental in Cape Town for employees attending Parliament business in the specified financial year?

Reply:

(1)(a)(i) The total amount spent on air travel between Cape Town and Pretoria is R301968.46.

(ii) 45 trips have been undertaken by the Minister between Cape Town and Pretoria.

(1)(b)(i)(aa) Total amount spent on accommodation in Pretoria is R56 687.20.

(aa)(bb) No expenditure for her residence in Pretoria as the Department is not responsible for the maintenance thereof.

 

2(a)(i) The total amount spent on air travel by the Deputy Minister between Cape Town and

Pretoria is R353 601.69.

(ii) 65 trips have been undertaken by the Deputy Minister between Cape Town and

Pretoria.

 

(b)(i) No hotel accommodation was booked for the Deputy Minister in Cape Town and Pretoria.

(ii) (aa)(bb) No expenditure was incurred for the residence of the Deputy Minister in

Pretoria and Cape Town as the Department is not responsible for the maintenance thereof.

 

 

11 September 2015 - NW3180

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1)How many (a) flight stewards/stewardesses and (b) pilots of the SA Airways have been apprehended (i) in (aa) 2011, (bb) 2012, (cc) 2013 and (dd) 2014 and (ii) during the period 1 January 2015 up until the latest specified date for which information is available; (2) (a) in which countries were the specified (i) flight stewards/stewardesses and (ii) pilots apprehended in each specified year (b) for which crimes were said persons (i) convicted or (ii) acquitted and (c) which cases have not yet been finalised; (3) whether she will make a statement on the matter?

Reply:

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

 

01 September 2015 - NW3007

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

Whether she had (a) investigated the reasons for the resignation of senior post holders in the SA Airways during the period 1 January 2011 up to the latest specified date for which information is available and (b) launched any investigation to examine the serious allegation by a specified person (name and details furnished) who resigned in July 2015 regarding alleged major unlawful interventions by nonexecutive board members in the supply chain; if not, why not, in each case; if so, in each case, what (i) are the details of (aa) irregularities and/or (bb) failed governance that were discovered by the specified investigations and (ii) action has she taken to address the alleged problems, interference and irregularities?

Reply:

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

 

01 September 2015 - NW3010

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1)Since her reply to question 483 on 4 May 2015, what is the status of the process around the rule of a 2% increase for pensions paid to members of the Transnet Second Defined Benefit Fund and the Transport Pension Fund which will make it possible for these pension funds to pay increases of more than 2% to their members if the funds are available; (2) Why did Transnet not pay the customary bonus to pensioners earning R15 000 and less per year and, if it is still going to be paid, when will this bonus be paid; (3)(a) What travel benefits/concessions (i) were and (ii) are available for trips by (aa) train and (bb) aircraft for pensioners belonging to the Transnet Second Defined Benefit Fund and the Transport Pension Fund and (3)(b) Why were the amendments introduced? NW3549E

Reply:

  1. The proposed rule amendments, which have been approved by the Board of Trustees of the Transnet Second Defined Benefit Fund and the Transnet Sub Fund of the Transport Pension Fund as well as the Transnet Board of Directors, are currently being considered by myself and the Minister of Finance.

(2) The ex gratia payments made by Transnet to qualifying pensioners of the Transnet Second Defined Benefit Fund and the Transnet Sub Fund of the Transport Pension Fund are discretionary amounts. No decision has been taken by Transnet to make a payment in the 2015 calendar year.

(3)(a) Travel benefits/concessions available for trips by (aa) train and (bb) aircraft for pensioners belonging to the Transnet Second Defined Benefit Fund and the Transport Pension Fund, are, to the extent provided for, contained in each individuals service conditions with Transnet at date of retirement.

(b) The travel benefits/concessions of retired employees of Transnet have not been amended. Employees on Management levels in Transnet relinquished their travel benefits/concessions in lieu of a percentage remuneration adjustment from approximately October 2006 until April 2007, when their remuneration was changed from a basic pay plus benefits dispensation to a total cost to company approach. As their conditions of employment had changed they were required to sign new contracts of employment. Thus, from the date of conversion, they also no longer qualified for travel benefits/concessions after retirement. Management level employees who joined Transnet from 2007 onwards were not entitled to free travel benefits. Despite these changes, employees on Non-Management levels have retained their travel benefits/concessions, both during their employment and upon retirement and these benefits have not been amended.

 

01 September 2015 - NW3001

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1)    (a) How many electricity substations between Stilfontein and Orkney were stripped of material by zama-zamas in the past five years and (b) what were the costs in each case; (2) whether these cases of theft were reported to the SA Police Service; if not, why not; if so, how many cases; (3) whether any arrests were made in this regard; if not, why not; if so, how many; (4) whether she will make a statement on the matter?

Reply:

(1)(a) A total of 27 (twenty seven) substations have been impacted, at some substations incidents occurred more that than once, in total there have been 49 (forty nine) incidents in the past five years.

(b)

Incident no

Site / Scene of Crime

Total actual losses

1

Orkney, munic substation

R 1 000.00

2

Orkney, munic substation

R 800.00

3

Zandpan Shaft 1

R 150 000.00

4

Zandpan Shaft one 88 kv DS

R 6 500.00

5

Zandpan shaft on

R 10 000.00

6

Zandpan

R 300000.00

7

Stilfontein town substation

R 3 000.00

8

Buffels Pioneer

R 2 500.00

9

Harties no 8

R 10 000.00

10

Harties no 5 D.S

R 18 000.00

11

Western Reefs 4 D.S

R 8 990.00

12

Buffels East D.S

R 22 000.00

13

Western Reefs 4 D.S

R 35 000.00

14

Harties no 5 , 88kv D.S.

R 22 000.00

15

Harties Vent

R 400 000.00

16

Buffels Pioneer

R 11 000.00

17

Western reefs 4

R 30 000.00

18

Vaal Reefs 2

R 60 000.00

19

Western reefs 4

R 90 000.00

20

Harties 8 substation

R 2 500.00

21

Buffels Orangia

R 90 000.00

22

Buffels Mill

R 51 750.00

23

Buffels Mill

R 50 000.00

24

Harties 5 substation

R 80 000.00

25

Kanana substation

R 3 000.00

26

Stilfontein town substation

R 500 000.00

27

Harties no 8

R 5 000 000.00

28

Harties no 8

R 300 000.00

29

Harties no 8

R 2 250.00

30

Buffels Pioneer 88kv D.S.

R 70 000.00

31

Buffels Pioneer 88kv D.S.

R 12 612.00

32

Hartebeest sub station

R 17 000.00

33

Pioneer Substation

R 2 000.00

34

Buffels Pioneer 88kv D.S.

R 30 000.00

35

Buffels Pioneer

R 7 000.00

36

Scott shaft D.S

R 15 000.00

37

Buffels Mill 88 kv D.S

R 7 000.00

38

Orkney munic substation

R3 500 000.00

39

Matlosana Mall substation

R 40 000.00

40

Harties 4

R 15 000.00

41

Orkney Munic Substation

R 5 000.00

42

Harties Mill 88/11kw

1 200 000.00

43

Buffels Mill

R 8 000.00

44

Buffels Mill

R 1 726.00

45

Harties shaft

R 30 000.00

46

Harties mill

R 800 000.00

47

Matlosana mall substation

R 500 000.00

48

Buffels Pioneer

R 5050.00

49

Harties shaft 4

R 10 000.00

 

TOTAL LOSS

R13 513 678.00

(2) Yes, 49 (forty nine) cases were reported to the South African Police Services.

(3) Yes, 95 (ninety five) arrests were made.

 

(4) The criminal prosecution in this regard is the jurisdiction of Ministry of Police and have been reported as such.

28 August 2015 - NW3073

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(a) How does her department and entities reporting to her define red tape and (b) what specific interventions and/or systems have been implemented to identify and reduce red tape in her department and the entities reporting to her.

Reply:

(a) Historically the concept of ‘red tape’ was introduced as an instrument for standardised, systematic procedures for bureaucratic approval across nation-states but in current times this concept has become synonymous with time-consuming, lengthy systems for issues that are simple to resolve.

(b) To eliminate the latter, the Department of Public Enterprises (DPE) has ensured one consolidated approach for State Owned Company (SOC) to report to the Department based on key areas defined in the shareholder compacts and corporate plans.

These performance areas are reported on quarterly basis in the SOC quarterly reports to the Department with sector team engagements on any concerns or areas for improvement. With regard to the PFMA applications, the Department maintains a register which ensures adherence within the stipulated timelines.

Indeed, the intention with SOC quarterly reporting to DPE is for data accuracy to inform DPE decisions to fully optimise the SOC as key instruments of a developmental state.

 

25 August 2015 - NW2926

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Public Enterprises

How many train accidents (a) occurred in ((i) 2010, (ii) 2011, (iii) 2012, (iv) 2013, and (v) 2014 and (b) have occurred since 1 January 2015; (2) (a) how many persons in each of the specified accidents in each specified year were (i) injured and (ii) killed, (b) where did the specified accidents take place and (c) what was the cause of each specified accident in each case; (3) Whether she will make a statement on the matter? NW3429E

Reply:

(1) (a) (i) 2010 = 3 train accidents

(ii) 2011 = 2 train accidents

(iii) 2012 = 3 train accidents

(iv) 2013 = 11 train accidents

(v) 2014 = 6 train accidents

(b) 7 train accidents.

(2 ) (a) (i) * 2010 = 3 employee injuries

* 2011 = no injuries

* 2012 = no injuries

* 2013 = 7 employee injuries

* 2014 = no injuries

since 1 January 2015 = 58 injuries (3 employee injuries and 55 3rd party injuries)

(ii) * 2010 = 6 employee fatalities

* 2011 = 2 employee fatalities

* 2012 = no fatalities

* 2013 = 3 employee fatalities

* 2014 = no fatalities

since 1 January 2015 = two 3rd party fatalities

(b) See annexure A

(c) See annexure A

(3) No, the Minister will not make a statement on the matter.

 

25 August 2015 - NW2988

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Public Enterprises

(1) Where does the Hendrina Power Station source its coal from since the withdrawal of Optimum Colliery’s mining licence; (2) does the specified power station source its coal from a stockpile; if so, (a) how long will the stockpile last, (b) how is the coal transported, (c) at what price is the coal delivered and (d) how does the specified price compare to the Optimum Colliery contract price; (3) will the closure of the colliery affect the power output of the specified power

Reply:

(1) The suspension of the mining license at Optimum Colliery’s commenced on Monday 3 August 2015 and was lifted on Friday 7 August 2015. As part of the normal contingency plans at all coal fired Power Stations, supply is supplemented from other sources. The specific details of supplemental suppliers are confidential.

(2) Yes.

(a) There is over 30 coal stock days at Hendrina Power Station (levels vary daily).

(b) Coal is transported by conveyor belt from Optimum Colliery and is trucked in from the supplementary sources.

(c) This information is commercially sensitive and it is subject to standard confidentiality clauses in Eskom’s agreements with suppliers. Therefore it cannot be disclosed.

(d) This information is commercially sensitive and it is subject to standard confidentiality clauses in Eskom’s agreements with suppliers. Therefore it cannot be disclosed.

(3) If the supply of coal is maintained through other sources then the generating capacity will stay the same.

11 August 2015 - NW2571

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

(1)       Has her department made any progress in developing alternative and innovative funding arrangements, in light of the National Energy Regulator of South Africa’s recent decision to dismiss Eskom’s latest tariff increase application; (2) what has she done to reduce Eskom’s dependence on funding from the fiscus since her appointment on 26 May 2014; (3) will she, in light of the restructuring and partial privatisation of Denel in 2002 that led the specified company experiencing a highly successful turnaround whilst remaining 100% state-owned, consider implementing a similar model for the urgent turnaround needed at Eskom; if not, what is her position with regard to the (a) privatisation and/or (b) partial privatisation of Eskom as a means of attracting private capital into the state-owned company; if so, will she concede that the privatisation or partial privatisation of Eskom is a reasonable capital-raising exercise as a way out of the company’s financial plights? NW2945E

Reply:

(1) Eskom will continue executing the funding plan as approved and where there is a gap as a result of the NERSA decision, bridging finance will be sought.

(2) Eskom continues to drive cost containment programmes to drive efficiencies and is reviewing the Eskom business model to optimally manage the operations.

(3)(a) Privatisation of Eskom in any form is not an option which is being considered as it is not aligned with current Government policy direction.

(3)(b) Options of raising capital in a more sustainable manner (other than full or partial privatisation of Eskom Company) are being evaluated and will be tabled for consideration by the relevant stakeholders of Eskom.

 

11 August 2015 - NW2705

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

Whether (a) she, (b) her Deputy Minister and (c) any officials in her department travelled to China in the 2014-15 financial year; if so, what was the (i) purpose of each specified visit and (ii)(aa) total cost and (bb) breakdown of such costs of each specified visit?

Reply:

(a) No

(a)(i) None

(a)(ii)(aa) R0

(a)(ii)(bb) R0

 

(b) Yes. Deputy Minister Mr Bulelani Gratitude Magwanishe, Deputy Director-General: Manufacturing Enterprises, Mr Kgathatso Tlhakudi and Ms Vuyo Tlali, Chief Director: Manufacturing Enterprises travelled to China on 29 October – 01 November 2014

(b)(i) The delegation attended, and the Deputy Minister delivered an address at the 2014 World Investment Summit in Beijing (generally referred to as COFAIR). COFAIR 2014 was devoted to decrease or eliminate the information asymmetry between investors and investment attraction units, and create opportunities on initiatives for developers and investors in order to promote the worldwide optimal configuration on capital, project and resource. Such a platform is critical for the Department of Public Enterprises as it allows the department an opportunity to introduce new investors to the South African SOCs, and their capabilities.

(b)(ii)(aa) Total cost for the visit is R172, 102.07.

(b)(ii)(bb)

Official

Item

Cost

Totals

Deputy Minister Mr Magwanishe

Flight (Business)

R39, 525.00

R63, 092.14

 

Accommodation

R12, 143.10

 
 

S&T

R11, 424.04

 

DDG: Manufacturing Enterprises Mr Tlhakudi

Flight (Business)

R39, 525.00

R54, 611.81

 

Accommodation

R12, 143.10

 
 

S&T

R5943.71

 

Personal Assistant to the Minister, Ms Makhanya

Flight (Economy)

R23, 355.00

R41, 441.81

 

Accommodation

R12, 143. 10

 
 

S&T

R5943.71

 

All delegation

Car rental for the delegation

R12, 194.72

R12, 194.72

Total costs

R172, 102.07

(c) Yes. Ms Matsietsi Mokholo, Acting Director-General, Ms Jacky Molisane, Deputy Director-General: Strategic Partnerships and Mr Mzwandile Radebe, Chief Director: Intergovernmental and Stakeholder Relations travelled to China from 14 to 19 November 2014.

(c)(i) The purpose of the working visit was the formalization of the establishment of the SASAC/DPE Steering Committee and agree on the Plan of Action for the MOU signed on 03 December 2013. The team also went on the site visit to learn on the management of mega projects.

(c)(ii)(aa) The total cost for the visit is R159 020.21

(c)(ii)(bb)

Official

Item

Cost

Totals

DG Ms Mokholo – R37, 960.39

Flight (Business)

R35, 960.39

R56, 756.14

 

Accommodation

R14, 627.44

 
 

S&T

R6168.31

 

DDG: Strategic Partnerships Ms Molisane

Flight (Business)

R37, 960.39

R59, 245.25

 

Accommodation

R14, 627.44

 
 

S&T

R6657.42

 

Chief Director: Inter-Governmental and Stakeholder Relations Mr Radebe

Flight (Economy)

R10, 992.39

R29, 844.53

 

Accommodation

R14, 627.44

 
 

S&T

R6657.42

 

All delegation

Car rental for the delegation

R13, 174.29

R13, 174.29

Total costs

R159, 020.21

 

11 August 2015 - NW2774

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Public Enterprises

Whether, in view of the state of affairs in many public enterprises, the Government intends to introduce legislation that will require that all managers holding posts or seeking appointments to management positions in public enterprises must have a recognised MBA qualification and for those persons who have the relevant qualification to have attended a required number of annual refresher MBA courses to keep abreast of the latest developments; if not, why not; if so, what are the relevant details?

Reply:

The Department is in the process of developing the Government Shareholder Management (GSM) Bill, the Regulations of which will incorporate the current tools and frameworks of the Department and provide a guideline for the recruitment and appointment of Chief Executives.

While it is appreciated that recognized qualifications both generic and specific can be set as a broad guide, the qualification requirements will be informed by the role to be performed by the potential candidate of each State Owned Company (SOC). As a result; the legislation will not include MBA as the only qualifying criteria for potential appointment for a senior management position.

11 August 2015 - NW2561

Profile picture: Gqada, Ms T

Gqada, Ms T to ask the Minister of Public Enterprises

With reference to her reply to question 1622 on 26 May 2015, (a) are there currently railway lines available to transport coal from the mines in Waterberg to the power stations in Mpumalanga, (b) how many trucks in respect of each day will Eskom require to transport coal from the mines in Waterberg to the power stations in Mpumalanga and (c) what has been her assessment of the impact of the specified additional trucks on our already heavy congested roads?

Reply:

(a) There is rail infrastructure available; however the current capacity is limited.

(b) Eskom does not currently require coal from the Waterberg and will not use trucks if so required. The cost will be too high.

(c) This has not been considered as trucking of coal from the Waterberg has not been considered.

 

11 August 2015 - NW2572

Profile picture: Esau, Mr S

Esau, Mr S to ask the Minister of Public Enterprises

Will she provide a copy of the book entitled Defence Technology Made Easy, which was launched by Denel as part of the group’s celebrations of South Africa’s 20 years of democracy; if not, why not; if so, when?

Reply:

Yes, Denel will distribute copies of said book to the Portfolio Committee on Public Enterprises, at the tabling of its Annual Report 2014/15.

06 August 2015 - NW2557

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)With reference to her reply to question 1201 on 26 May 2015, what are the reasons for classifying the requested information as commercially sensitive;

Reply:

The disclosure of the information requested could compromise the confidentiality of the contracts that Eskom signed with third parties as some parts thereof are commercially sensitive.

06 August 2015 - NW2559

Profile picture: Gqada, Ms T

Gqada, Ms T to ask the Minister of Public Enterprises

(1)With reference to her reply to question 1200 on 12 May 2015, what are the reasons for classifying the requested information as commercially sensitive;

Reply:

The disclosure of the information requested could compromise the confidentiality of the contracts that Eskom signed with third parties as some parts thereof are commercially sensitive.

06 August 2015 - NW2558

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

(1)Whether, with reference to her reply to question 1275 on 19 May 2015, it is not in the interest of the public to disclose the requested information; if not, why not;

Reply:

The disclosure of the information requested could compromise the confidentiality of the contracts that Eskom signed with third parties as some parts thereof are commercially sensitive.

06 August 2015 - NW2560

Profile picture: Gqada, Ms T

Gqada, Ms T to ask the Minister of Public Enterprises

(1)With reference to her reply to question 1501 on 12 May 2015, what are the reasons for classifying the requested information as commercially sensitive;

Reply:

The disclosure of the information requested could compromise the confidentiality of the contracts that Eskom signed with third parties as some parts thereof are commercially sensitive.

27 July 2015 - NW2453

Profile picture: Mackay, Mr G

Mackay, Mr G to ask the Minister of Public Enterprises

(1) What are the detailed relevant reasons for suddenly and completely aborting theMmamabula Power Purchase Agreement (PPA) drafted between Eskom and the independent power producer, CIC Energy, which allowed for a potential electricity supply of 4 800MW and the proposed Mmamabula Energy project; (2) has she found that (a) the project could have contributed to preventing the occurrence of load-shedding and (b) aborting this project was a mistake; (3) who were the key decision-makers responsible for aborting this project

Reply:

(1) An intergovernmental agreement was signed between the governments of the Republic of South Africa (RSA) and Botswana in 2006. Further to this an MOU was signed between Botswana Power Corporation (BPC) and Eskom in 2006 giving effect to PPA discussions. Following this, the PPA negotiations commenced between Eskom and CIC Energy. CIC Energy presented a commercial offer to Eskom in March 2009. Eskom indicated that it would defer its decision on the offer until such time as an appropriate enabling environment had been created and the funding model resolved. These events were then superseded by the gazetting of the Integrated Resources Plan 2010 (IRP 2010) and the Regulations on New Power Generation projects by the Department of Energy (DoE). This put the onus of procurement on DoE. The Honorable Member is therefore advised to redirect this particular question to the Minister of Energy.

(2)(a) This is unknown. As an example the new and smaller Moropule B power plant in Botswana is experiencing significant time delays and performance issues. Assuming the construction of Mmamabula was concluded on time and performed reliably, the level of reduction in load shedding would have been commensurate with the capacity purchased by the RSA. Therefore, load shedding may not have been possible to prevent even with this project in commercial operation at this time.

(2)(b) I am not in a position to respond on the entire project as the power to stop or commence with the project lies with the developer. Eskom is not aware of whether or not the developer engaged with the DoE regarding advancing the project further. The Honorable Member is advised to redirect the question to the Minister of Energy.

(3) The Honorable Member is advised to redirect the question to the Minister of Energy.

13 July 2015 - NW2430

Profile picture: Marais, Mr EJ

Marais, Mr EJ to ask the Minister of Public Enterprises

How much did (a) her department and (b) state entities reporting to it spend on advertising in (i) The Sowetan and (ii) The Daily Sun in the (aa) 2012-13, (bb) 2013-14 and (cc) 2014-15 financial years?

Reply:

DEPARTMENT OF PUBLIC ENTERPRISES

(a) (i) Sowetan

(aa) None

(bb) None

(cc) None

(ii) Daily Sun

(aa) None

(bb) R 298 771.20

(cc) None

 

STATE-OWNED COMPANIES

TRANSNET

(b)(i) Sowetan

(aa) R 1 597 103.52

(bb) R 3 288 342.91

(cc) R 678 508.12

(ii) Daily Sun

(aa) None

(bb) None

(cc) None

ALEXKOR

(b)(i) Sowetan

(aa) None

(bb) None

(cc) None

(ii) Daily Sun

(aa) None

(bb) None

(cc) None

DENEL

(b)(i) Sowetan

(aa) None

(bb) R 114 000.00

(cc) R 758 456.48

(ii) Daily Sun

(aa) None

(bb) None

(cc) None

SAFCOL

(b)(i) Sowetan

(aa) None

(bb) None

(cc) None

(ii) Daily Sun

(aa) None

(bb) None

(cc) None

SAX

(b)(i) Sowetan

(aa) None

(bb) None

(cc) None

(ii) Daily Sun

(aa) None

(bb) None

(cc) None

ESKOM

(b)(i) Sowetan

(aa) R 1 470 000.00

(bb) R 1 180 000.00

(cc) R 1 050 000.00

(ii) Daily Sun

(aa) R 540 000.00

(bb) R 100 000.00

(cc) R 150 000.00

 

13 July 2015 - NW2401

Profile picture: Vos, Mr J

Vos, Mr J to ask the Minister of Public Enterprises

With regards to the tender for the construction of a dedicated cruise liner terminal at the Cape Town harbour (a) what are the reasons for the delay in awarding this tender and (b) when will the specified tender be awarded?

Reply:

(a) Transnet SOC Ltd (“Transnet”) strictly adheres to the set procurement procedures for good governance. The delay was due to the first RFP (“Request for a Proposal”) being declared a non-award as a result the bidders not achieving the minimum threshold as per the request. The second RFP closed on 5 February 2015 and Corporate Governance processes had to be adhered to and the preferred bidder was only approved on 28 May 2015.

(b) Transnet informed the preferred bidder of its appointment on 4 June 2015. The process of negotiating a suitable Terminal Operator Agreement with the preferred bidder and Transnet is currently underway. As announced on 1 July 2015, V&A Waterfront (Pty) Ltd was awarded the preferred bidder status.

 

03 July 2015 - NW2224

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

Whether she will consider Eskom’s request not to impose load shedding on the country’s water pumps and related infrastructure so as to ensure safe and continuous water supply and services; if not, why not; if so, what are the relevant details?

Reply:

It is the National Energy Regulator of South Africa (NERSA) and not the Minister of Public Enterprises that can make determinations on the exemption of infrastructure or customers’ load shedding, as the impact on other customers and the national power system needs to be considered. The National Code of Practice for emergency demand reduction (NRS048-9) addresses the manner in which critical loads are treated – including water systems (section 7).

03 July 2015 - NW2327

Profile picture: Alberts, Mr ADW

Alberts, Mr ADW to ask the Minister of Public Enterprises

(1) Whether the law firm that has been appointed to audit Eskom has ever done any work for the Government, State organs or State institutions; if so, what are the relevant details; (2) whether any South African or international directors of this law firm have ever done any work for the Government, State organs or State institutions; if so, what are the relevant details?

Reply:

(1) The Honourable member is referred to various government departments for a response on whether the firm has done any work for government. The Law firm (Dentons) has not previously been engaged by Eskom.

(2) As the Minister of Public Enterprises I am in no position to respond on whether the law firm has or not done any other work to various Government Departments and therefore request the Honourable member to direct the question to the relevant Government Department for a response.

03 July 2015 - NW2217

Profile picture: Lekota, Mr M

Lekota, Mr M to ask the Minister of Public Enterprises

(1) Whether the Government had completed a detailed financial analysis to put an estimate on the final cost of Medupi Power Station; if not, why not; if so, what are the relevant details; (2) whether the Government’s financial analysis corresponds with independent estimates that Medupi Power Staton will have cost the Government R300 billion rand or 10 times its cost at the signing of the contract; if so, what is the Government’s own estimate of the final cost; (3) does the Government’s final cost estimate differ with the independently estimated cost of R300 billion; if not, why not; if so, (a) by what amount below or above that mark, (b) will the Government explain what consequences will flow for all those who allowed the target to be overshot by the specified amount and (c) what measures has the Government implemented from 2009 to control the runaway costs; (4) will she make a statement on the handling and management of Medupi Power Station from its implementation up until the latest specified date for which information is available in light of the Government’s own fiduciary responsibility for Medupi Power Station? NW2574E

Reply:

(1) Yes. The cost to completion on the Medupi Project, as with other long term projects, is reviewed on an ongoing basis. The current approved cost to completion is R105bn. The Board of Eskom has not approved any further revision to the R105bn. The most recent review of the costs is currently undergoing internal Governance scrutiny. Should an increase to the current cost of completion be required, the Board will seek the necessary Shareholder approval through the PFMA process.

(2) Eskom is not familiar with the details, assumptions or factors that have been considered in the independent estimate of R300 billion, hence Eskom is not in a position to comment on the credibility of the estimate. The current approved project cost to completion on the Medupi Project is R105 billion.

(3) Eskom’s final cost estimate differs from the quoted independent estimate.

    (a) Eskom’s current approved cost to completion of Medupi of R105bn is R195 billion below the above mentioned independent estimate.

      (b) The Government is aware that the Medupi project might have cost overruns due to the various factors and Eskom will provide the detail of cost overruns to the Department in due course when all the Government processes have been completed.

     (c) Eskom is consistently incorporating techniques to improve performance and manage costs. These ideas for improvement are derived from lessons learnt on other local and international projects. The following main cost control measures have been implemented:

• The introduction of additional supervisory resources to manage construction interfaces and the quality of on-site construction activities and off-site fabrication works.

• The strengthening of construction techniques within the project.

• Implementation of a robust claims management strategy.

• Improved Project oversight and streamlined decision making via the Eskom Board Build Program Review Committee and Eskom’s Executive Build Program Review Committee.

(4) The Minister will continue with the shareholder oversight pertaining to the progress of the Medupi Power Station project. The operational issues of the project are handled by the Eskom and quarterly progress is provided to the Department. The Department has undertaken a study to evaluate Eskom’s build programme and there has been lessons learned which are to be implemented to the build programme.