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11 November 2021 - NW1989

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(a) What is the total number of senior managers in all state-owned enterprises who do not have the required qualifications and credentials for the positions they currently occupy, (b) in which (i) national and (ii) provincial government departments is each such senior manager employed and (c) what measures are in place to rectify the situation? NW2223E

Reply:

According to the information received from ALEXKOR

a) In Alexkor no one is unqualified

b) Not Applicable

c) Not Applicable

According to the information received from DENEL

(a, b, c) Denel is currently executing the new operating model. Part of the strategy is to do contract scrubbing and perform a skills audit to ensure that qualified personnel are placed in the right positions, these will be done across all levels in the organization.

In implementing the new operating model. Denel has identified an opportunity to establish a Workforce Transition Plan, with clear Principles and Guidelines. The process is backed by a Governance Framework to ensure that all Managerial and Leadership positions adhere to a defined criteria which only allows for positions to be filled with suitably qualified and competent incumbents.

 

According to the information received from ESKOM

(a)

Eight (8) Senior Managers do not hold the national higher diploma (B.Tech) but have national diploma (T3). However, all have on average more than 20 years on the job experience as well as the required technical competencies in Maintenance, Engineering, Operating, Outages and Project Management.

(b)(i) and (ii)

The eight (8) Senior Managers are employed in the following areas within Eskom:

Location

Number of Senior Managers

Megawatt Park – Gauteng

3

Arnot Power Station – Mpumalanga

1

Hendrina Power Station – Mpumalanga

1

Majuba Power Station – Mpumalanga

1

Tutuka Power Station – Mpumalanga

1

Lethabo Power Station – Free State

1

(c)

When determining whether a person is suitably qualified for a job, Eskom considers all the factors listed below and the minimum inherent requirements of the job.

The minimum inherent requirements of the job are considered, in conjunction with the employment equity plan of the business unit (BU) and the division, as follows:

a) Appointment or succession into a position is made in line with the Employment Equity Act. Eskom has set the following requirement to select suitable candidates:

b) Formal education – relevant qualification with due consideration to circumstances where the qualification is a statutory or is an essential requirement for the position.

c) Recognition of prior learning – where the individual has undergone an RPL process and has acquired a formal qualification with the required number of credits equivalent to the minimum requirements of the job

d) Relevant experience – where the individual has demonstrated knowledge and skills in previous positions that are similar or related to the position being applied for.

e) Capacity to acquire, within a reasonable time, the ability to do the job – the candidate’s potential to do the job will be assessed using a battery of relevant psychometric assessments.

Although the managers do not have national higher diploma (B.Tech), they however meet all other key requirements of the jobs they occupy as set out by the Eskom Talent Discovery Procedure and therefore there is no specific action required as it relates to the eight managers.

Eskom utilises a rigorous selection process when making decisions to either appoint or promote individuals into managerial levels, which includes psychometric assessments. Where any gaps are identified when promoting or appointing individuals into managerial positions appropriate development programmes are put in place to close the gaps. Eskom also management development programmes, that are in-house and in partnership with institutions of higher learning.

According to the information received from SAFCOL

a) None at SACOL, all Senior Managers have the required and relevant qualifications and credentials for the positions they currently occupy

b) Not Applicable

c) Not Applicable

According to the information received from SAA

a) There are no Managers at SAA without the required qualifications. The inherent requirements as outlined in the job profile for each position are always factored in placement decisions. This includes qualifications and credentials, as applicable to deliver on the requirements of the position. All managers qualify for the positions they occupy and these appointments are in line with SAA’s Recruitment Policy and Practices.

The recent Section 189 Process undertaken involved a matching and placement process against the job criteria to ensure best fit for position. For promotions or placement moves across divisions or functions, interviews were conducted to establish position fit.

b) All positions are occupied by competent individuals, and where gaps exist, it does not adversely affect the core deliverables of the position. Opportunities for skills development and personal growth remains a priority for SAA, and employees are encouraged to sign up for training opportunities when they arise.

Additionally, SAA has developed a system consisting of subjective (self) assessments that we are rolling out, which will be enhanced with objective psychometric assessments that will enable the airline to develop individualised development plans to further enhance the skills and competencies required.

According to the information received from TRANSNET

a) Transnet SOC Ltd, (“Transnet”) has 113 approved roles for Senior Executive Management, 15 at top Executive Management and 98 at Senior Management levels. 98% of all appointed Senior Managers meet full requirements as stipulated in the job description. Only one manager does not meet the stipulated qualification requirements.

b) The senior manager joined Transnet Group from 1 September 2011.

c) The employee has a lower qualification but has extensive unique experience within operations and critical business areas within Transnet. He will undergo Recognition of Prior Learning (RPL) and is currently registered for the Rail Business Performance Programme through the University of Pretoria, to be completed in 2022. The University of Pretoria and Franklin Covey (SA) developed the Rail Business Performance Enhancement Programme for Executives.

This Programme is evaluated at NQF Level 8 (Postgraduate) whereafter delegates can choose to pursue a master’s degree in Public Administration (40 Credits) at the University. The Senior Manager has also demonstrated and achieved exceptional performance over time in the roles that he has been assigned to perform in the organisation. Noting the extensive experience and performance, the decision was taken to appoint the employee.

11 November 2021 - NW1962

Profile picture: Maotwe, Ms OMC

Maotwe, Ms OMC to ask the Minister of Public Enterprises

What steps has he taken against the Chief Executive Officer at Transnet Engineering who refused to sign a revenue-generating project contract for building wagons for the Mozambique railway company, Caminhos de Ferro de Moçambique (CFM)?

Reply:

According to the information received from Transnet:

We have not been provided with sufficient information to respond. The member is, therefore, requested to provide more precise information on the project, including the wagon type and year of contracting.

11 November 2021 - NW1815

Profile picture: Maotwe, Ms OMC

Maotwe, Ms OMC to ask the Minister of Public Enterprises

What measures will he take to remedy the situation at Denel where employees were (a) paid 20% of their salaries from May 2020 to May 2021 and (b) not paid any salaries from June to August 2021?

Reply:

a) The Department is supporting Denel’s new operating model which is aimed at stabilising operations and cost structure. The National Treasury has agreed to settle Denel’s government guaranteed debt, which will save the entity approximately R250 million in interest payment annually.

b) Plans are under considerations to raise the required funding to address both operational requirements and legacy obligations, which includes salaries. Amongst others, Denel has identified assets and other investment assets for disposal to raise funding to raise part of the obligations and to increase operational activities which is key to the SOC generating the minimum required cash flows. However, this process will take some time, none the less, we remain committed to do the best for all employees as soon as possible.

11 November 2021 - NW1769

Profile picture: Clarke, Ms M

Clarke, Ms M to ask the Minister of Public Enterprises

(a) What has been the total number of tenders for the provision of bus transport services to state-owned entities (SOEs), (b) to which SOE’s were the specified services provided, (c) what were the amounts for the specified tenders, (d) who were the tenders awarded to and (e) for what period of time in each case?

Reply:

According to the Information received from Alexkor

ALEXKOR

a) None

b) N/A

c) N/A

d) N/A

e) N/A

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

1

ALEXKOR

NONE

NONE

NONE

NONE

According to the Information received from Denel

DENEL

a) None

b) N/A

c) N/A

d) N/A

e) N/A

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

1

DENEL

NONE

NONE

NONE

NONE

According to the Information received from Eskom

ESKOM

a) Eskom has 47 active bus transport services contracts during 2021/2022 financial year.

b) Eskom

c), (d) and (e) Details of each contract, in terms of the value, the suppliers who were awarded the contracts and the period, are as set out on the table below

Area

No.

Name of Supplier

Validity Per. Start

Validity Period End

Contract Duration

Contract Amount

Gx

1

MAKALANE PLANT MAINTENANCE

2018/09/01

2023/08/31

5 Years

R14 976 783.36

Gx

2

MAKALANE PLANT MAINTENANCE

2019/01/01

2023/12/31

4 Years

R5 776 440.00

Gx

3

NAREMOTHO TRADING ENTERPRISE

2018/09/01

2023/08/31

5 Years

R15 996 713.00

Gx

4

Scsokos Transport (Pty) Ltd

2017/08/01

2022/07/31

5 Years

R8 328 060.00

Gx

5

Nkodosi Trading Enterprise(Pty) Ltd

2017/08/01

2022/07/31

5 Years

R20 462 222.52

Gx

6

Beactress Business Enterprise CC

2017/08/01

2022/07/31

5 Years

R2 040 000.00

Gx

7

Wozungithathe Business Enterprise CC

2017/08/01

2022/07/31

5 Years

R7 260 293.38

Gx

8

Simadlala’s Trading Enterprise

2017/08/01

2022/07/31

5 Years

R4 303 200.00

Gx

9

NAREMOTHO TRADING ENTERPRISE CC

2018/09/18

2023/09/18

5 Years

R1 048 800.00

Gx

10

MAKALANE PLANT MAINTENACE CC

2018/09/18

2023/09/18

5 Years

R11 289 780.00

Gx

11

NTHUSE AMOS MODISE CC

2018/09/18

2023/09/18

5 Years

R12 546 822.00

Gx

12

Qedumana Transport

2019/11/01

2024/10/31

5 Years

R4 453 088.00

Gx

13

Beactress Business Enterprise

2019/05/01

2024/04/30

5 Years

R6 552 000.00

Gx

14

Wozungithande Business Enterprise

2019/05/01

2024/04/30

5 Years

R14 163 788.00

Gx

15

SC ZONDO Transport

2019/05/01

2024/04/30

5 Years

R13 515 788.47

Gx

16

MK Engineering construction &suppliers

2019/05/01

2024/04/30

5 Years

R33 903 849.38

Area

No.

Name of Supplier

Validity Per. Start

Validity Period End

Contract Duration

Contract Amount

Gx

17

Simadala’s Transport

2019/05/01

2024/04/30

5 Years

R11 183 480.00

Gx

18

Thandimpilo Supply and Projects

2021/04/08

2021/08/31

4 Months & 23 days

R125 000.00

Gx

19

Thandimpilo Supply and Projects

2021/09/01

2021/09/30

1 Months

R24 924.00

Gx

20

Mphakathi Tours cc

2019/08/13

2022/08/12

3 Years

R45 043 208.40

Gx

21

Mphakathi Tours cc

2019/09/13

2022/09/12

3 Years

R8 833 567.00

Gx

22

MPHAKATHI TRANSPORT

2018/12/01

2021/11/30

3 Years

R12 684 751.00

Gx

23

CHARLANNA TRANSPORT AND PROJECTS

2018/12/01

2021/11/30

3 Years

R5 673 119.04

Gx

24

BLF SIKHOSANA LOGISTICS

2018/12/01

2021/11/30

3 Years

R7 372 072.80

Gx

25

MELSEE TRADING ENTERPRISE

2018/12/01

2021/11/30

3 Years

R6 622 770.60

Gx

26

MS THUGWANA

2018/12/01

2021/11/30

3 Years

R11 211 092.64

Gx

27

NKODOSI TRADING ENTERPRISE

2020/02/04

2022/01/31

3 Years

R1 007 755.20

Gx

28

MPHAKATHI TOURS

2020/02/04

2022/01/31

3 Years

R5 112 470.40

Gx

29

KUHUMUSA TRANSPORT AND PROJECT

2020/02/04

2022/01/31

3 Years

R1 061 280.00

Gx

30

KUHLWILE CONSULTING

2020/11/01

2022/10/31

3 Years

R862 118.40

Gx

31

MPHAKATHI TOURS

2021/01/15

2023/01/14

3 Years

R1 874 880.00

Gx

32

SINOBUHLE AND JOY SUPPLIES TRADING

2020/12/01

2021/05/31

6 Months

R396 000.00

Gx

33

ENNEAD CONSULTING

2021/06/01

2021/06/30

1 Month

R5 956.50

Gx

34

SINOBUHLE AND JOY SUPPLIES TRADING

2021/07/01

2021/07/31

1 Month

R26 000.00

Gx

35

SINOBUHLE AND JOY SUPPLIES TRADING

2021/08/01

2021/11/30

4 Months

R264 000.00

Gx

36

ADAMS TRANSPORT

2021/08/01

2021/11/30

4 Months

R209 000.00

Real Estate

37

ADAMS TRANSPORT

2021/08/01

2021/11/30

4 Months

R500 000.00

ERI

38

STABUS PTY LTD (2015/061938/07)

2017/05/01

2022/04/30

5 years

R177 053 830

ERI

39

ERMELO TAXI ASSOCIATION

2017/08/01

2022/07/31

5 years

R33 738 263.60

ERI

40

MS THUGWANA

2017/04/01

2022/03/31

5 years

R11 159 564.88

ERI

41

MMABATHO TRANSPORT

2017/04/01

2022/03/31

5 years

R4 050 000.00

ERI

42

STANDERTON TAXI GROUP

2017/05/19

2022/05/31

5 years

R56 798 280.00

ERI

43

MS THUGWANA

2017/10/01

2022/09/30

5 years

R24 964 802.00

ERI

44

DUVHA UNITED LONG DISTANCE

2017/11/01

2022/10/31

5 years

R34 338 041.00

ERI

45

MATHES TOUR TRANSPORT

2018/11/01

2022/07/31

5 years

R10 443 442.25

ERI

46

MAGAIA TRADING ENTERPRISE

2019/10/24

2024/10/31

5 years

R25 331 615.15

ERI

47

AMERSFOORT LOCAL AND LONG TAXI ASOCIATION

2020/02/27

2024/03/01

5 years

R22 909 868.00

According to the Information received from Safcol

SAFCOL

a) One

b) SAFCOL

c) R6 105 500.00 (incl. VAT)

d) Myboet General Trading

e) RFB016/2019, for a period of three (3) years, effective from 20 May 2020

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

1

SAFCOL

For the provision of bus transportation services for the SAFCOL

6 105 500.00

Myboet General Trading

3 years (2020/05/01 2023/05/01)

According to the Information received from South African Airways

(b)

PURPORSE OF TENDER

(c )

AMOUNT

(d)

NAME OF SERVICE PROVIDER

( e)

PERIOD

Crew transport by bus

R7 207 162,90

Mahle Wonke Co-operative limited

March 2019 – Sep 2020

 

R2 567 624,20

Mudziwa Travel Pty Ltd

March 2019 to March 2020

 

R165 000,00

Xhamla-Buhle Shuttle Services

March 2019 to March 2020

Charter flights from Jhb to Cape Town

R238 500,00

African Soil Tours

Mid-June 2020 to 30 Sep 2020

 

R68 000,00

Compass Travel

Mid-May 2020 to June 2020

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

1

SAA

Crew transport by bus

7 207 162.90

Mahle Wonke Co-operative limited

March 2019 – Sep 2020

2

   

2 567 624,20

Mudziwa Travel Pty Ltd

March 2019 to March 2020

3

   

165 000,00

Xhamla-Buhle Shuttle Services

March 2019 to March 2020

4

SAA

Charter Flights from JHB to Cape Town

238 500,00

African Soil Tours

March 2019 to March 2020

5

   

68 000,00

Compass Travel

Mid-May 2020 to June 2020

According to the information received from Transnet

a) The total number of tenders for the provision of bus transport services to Transnet is 24 (twenty-four).

b) The services were provided to Transnet (SOC) Ltd.

c) Refer to table below for detailed amounts.

d) Refer to table below for names of service providers that were awarded the tenders.

e) Refer to table below for the period of time for services rendered.

Transnet Bus Transport Services Tenders

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

1

TFR / TCC

For the provision of bus transportation services for the Transnet-Phelophepa health care Train 1 project for a period of nine (09) months

1 002 858,00

Mbita Holdings

9 Months (2020/03/16 - 2020/12/15)

2

TFR / TCC

For the provision of bus transportation services for the Transnet-Phelophepa health care Train 2 project for a period of nine (09) months

454 925,00

Mbita Holdings

9 Months (2020/03/16 - 2020/12/15)

3

TNPA

Provision of staff transport at TNPA

1 730 750,00

Umlazi General Plant Hire

9 months (01 December 2019-31 Aug 2020)

4

TPT

Bus Services at Durban Pier 2

3 530 630,00

C & D Martins

6 months (2021/01/06 to 2021/06/13)

5

TPT

Bus Services at Durban Pier 1

1 903 280,00

Dumas Transport

6 months (2021/01/22 to 2021/06/08)

6

TPT

Bus Services at Durban Pier 1

725 760,00

Umlazi Plant Hire

6 Months (2021/01/22 to 2021/06/23)

7

TPT

Bus Services at Richards Bay

21 791 737,50

Ikhwezi Buses

10 months (2020/08/13 to 2021/06/08)

8

TPT

Bus Services at Point and Maydon Wharf

7 124 400,00

Umlazi Plant Hire

12 months (2020/09/29 to 2021/08/19)

9

TPT

Bus Services at Saldanha

3 950 749,30

Ikhwezi Bus Services

12 months (01 Aug 2020- 23 Aug 2021)

10

TPT

Bus Services at Cape Town Container Terminal

21 371 432,50

New Era

12 months (01 Aug 2020- 23 Aug 2021)

11

TPT

Bus Services at Cape Town MPT

11 258 518,82

Fox Transport

10 months (01 April 2020-1 Feb 2021)

12

TPT

Bus Services at Cape Town MPT

1 897 500,00

Waterfront Shuttle Services

07 months (02 Feb 2021- 31 Aug 2021)

13

TPT

Bus Services at East London

375 260,00

Xhamla-Buhle Trading

12 months (01 Aug 2020- 23 Aug 2021)

14

TPT

Bus Services at TPT Port Elizabeth

2 698 502,50

Glenlinx-Qwabe Joint Venture Transport

4 months (01 Aug 2020- 30 November 2020)

No

Operating Division

Description of Services

Value of awarded Tender

Name of Service Provider

Duration of Contract
(Start date-End Date)

15

TPT

Bus Services at TPT Port Elizabeth

1 019 046,00

Glenlinx-Qwabe Holdings Pty Ltd

4 months (04 May 2021- 31 August 2021)

16

TPT

Bus Services at TPT Port Elizabeth

413 185,50

Glenlinx-Qwabe Joint Venture Transport

2 months (06 August 2020 - 30 Sept 2020)

17

TPT

Bus Services at Nqura Container Terminal

1 093 976,80

Ntando Tours

1 month (02 Sept 2020 - 30 Sep 2020)

18

TPT

Bus Services for TPT Port Elizabeth

1 658 537,00

Laphumikhwezi Transport

4 months (21 Dec 2020 until 30 April 2021)

19

TE

Transportation of Employees

20 700 000,00

Lifetime Tours and Projects

36 months (27 Aug 2019 - 31 Aug 2022)

20

TNPA

Bus Services for TNPA PE

1 020 901,00

Chumile Holdings (Pty) Ltd

12 months (01 September 2021 to 31 August 2022)

21

TNPA

Bus Services for TNPA PE

169 383,50

Chumile Holdings (Pty) Ltd

2 months (01 July 2021 -31 August 2021)

22

TFR

Provision of Employee Bus Services for Richards Bay

1 890 000,00

Ikhwezi Bus Services

6 months (25 July 2021 – 24 January 2022)

23

TFR

Provision of Employee Bus Employee Bus Services for Vryheid

942 000,00

Ikhwezi Bus Services

12 months (19 Nov 2019 – 18 Nov 2021)

24

TFR

Provision of Employee Bus Service for Saldanha

14 600 000,00

Ikhwezi Bus Services

25 months (1 July 2019 – 31 Aug 2021

11 November 2021 - NW2018

Profile picture: Mabhena, Mr TB

Mabhena, Mr TB to ask the Minister of Public Enterprises

(1)      Whether, in view of the recent alleged cyber-attack at Transnet that occurred on the 22 July 2021 and the resultant notice of declaration of force majeure event on 26 July 2021 by Transnet, which resulted in a ports crisis and the announcement by Transnet that a manual evacuation process of containers from the Cape Town Containers Terminal will be implemented with effect from 24 July 2021, (details furnished), his department has received any information of the contingency plans from Transnet; if not, has his department, through the Ports Regulator of South Africa, sought any information from Transnet; if so, (2) Whether his department approved such contingency plans; if not, why not; if so, what are the relevant details; (3) Whether his department received any update on this matter from the Ports Regulator of South Africa; if not, why not; if so, (a) on what date and (b) what were the contents of the relevant update; (4) Whether he will furnish Mr. T B Mabhena with the specified report; if not, why not; if so, on what date?

Reply:

This question needs to be referred back to Transport, in as far as issues of the Ports Regulator of South Africa are concerned. All other issues relating to Public Enterprises and Transnet have been fully covered in our response to PQ2019.

15 October 2021 - NW2119

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Public Enterprises (DPE)

Whether the SA Airways has in any manner and/or form acted as an agent for any other airline and/or travel agent in the period 1 January 2021 to 15 August 2021; if not, what is the position in this regard; if so, what are the details of: (a) The authority under which such trading operations were undertaken, including the section of the Business Rescue Plan wherein such trading operations were approved by creditors (b) The persons and/or entities for which SAA acted as an agent, including the details of the: (i) services provided, and (ii) revenue raised?

Reply:

According to the information received from the South African Airways:

South African Airways has not acted as an agent for any other airline and/or travel agent in the period 01 January 2021 to 15 August 2021.

2119.

15 October 2021 - NW2019

Profile picture: Mabhena, Mr TB

Mabhena, Mr TB to ask the Minister of Public Enterprises

(1)       Whether, given the recent alleged cyber-attack at Transnet that occurred on 22 July 2021 and the resultant notice of declaration of a force majeure event on 26 July 2021 by Transnet which has resulted in a ports crisis, (a) his department and (b) the Ports Regulator of South Africa have been informed that no import containers have left South African ports since the crisis ensued; if not, what is the position in this regard; if so, (2) Whether there are any plans to engage the relevant stakeholders to resolve this; if not, why not; if so, what are the relevant details; (3) Whether any penalties will be imposed on Transnet by the Ports Regulator of South Africa; if not, why not; if so, what will be the nature and scope of the penalties? (4) Whether, in view of the fact that vessels have started to omit South African ports altogether and are dumping containers at other ports in Africa, there are any plans in place to avert the resultant massive delays in the receipt of goods affecting all industries; if not, why not; if so, what are the relevant details of the plans?

Reply:

According to the information received from Transnet:

(1)(a) The Shareholder Ministry - the Department of Public Enterprises (DPE) - has been kept abreast of all developments pertaining to the declaration of a force majeure, following the incursion on Transnet systems that occurred on 26 July 2021. It is not accurate to suggest that the force majeure has resulted in a ports crisis. The current status of the global shipping environment has been as a result of a number of factors which are more often than not, exogenous to Transnet’s operations. The current perception of Transnet as the fault-line and the cause for a “ports crisis” is factually incorrect. 1a

(1)(b) Transnet National Ports Authority (TNPA) has engaged with the Ports Regulator of South Africa on measures to follow in the event of a similar incident recurring. 1b

(1)(c) We have provided a detailed analysis of the number of import containers that have left the country since 26 July 2021, to-date. (see the attached annexure A)

(2)(a) Transnet has engaged all affected stakeholders following the incursion on the systems.

(2)(b) Since the ICT challenges first began on Thursday 22 July 2021, Transnet Port Terminals has continued to keep all customers and stakeholders informed of the progress made, both on the ICT side and on the operational recovery. This has taken the form of daily meetings and letters, among others.

(2)(c) Whilst the frequency has declined as the crisis was addressed, as at 20 September 2021, Transnet still conducts the following stakeholder engagements:

  • A daily operational meeting with port stakeholders (shipping lines, transporters, freight forwarders, TNPA, TFR, TPT)
  • A weekly engagement with the citrus stakeholders
  • A weekly engagement with members of Business Unity South Africa

(2)(d) Transnet will continue to engage in dedicated recovery forums, until all operations and the entire supply chain have normalised.

(3) The question should be directed to the Department of Transport as the Port Regulator of South Africa is an entity under its authority.

(4) There are a number of reasons for Shipping Lines omitting South Africa from their schedules, these include:

4.1. Omissions for shipping line convenience (trying to catch-up on schedule integrity/make the next window in the following port; profitability; inability to complete the customer’s voyage, e.g. when the vessel plans to omit a destination port in Europe).

4.2 Blank voyages (lack of vessels on a line service network e.g. there should be 7 vessels in a row to make a weekly call in every port, but due to shortages of vessels the line plans to only have 6 vessels, in order to save costs and effectively balance supply with anticipated logistics delays which may impact any one of the number of ports within the schedule).

4.3 Omissions because of delays in the port (caused by TPT operational inefficiencies/delays; wind delays; port congestion; landside congestion. It is worthwhile to note that it becomes difficult to quantify the percentage of TPT’s responsibility because all incidents (wind, operational, congestion etc) have a combined impact on the total terminal delay, resulting in decisions by the shipping line to omit. It is worthwhile to note that it becomes difficult to quantify the percentage of Transnet Port Terminals (TPT) responsibility because all incidents (wind, operational, congestion etc.) have a combined impact on the total terminal delay resulting in decisions by the shipping line to omit.

  • TPT is undertaking initiatives to reduce congestion at the ports. This includes increasing equipment availability to improve productivity. The initiatives are tracked through the Durban Decongestion Workstreams, where all stakeholders participate. These include:
  • Decongesting Durban Container Terminal (DCT) imports through promoting prompt evacuation in partnership with the shipping lines (carrier haulage).
  • Working closely with citrus exporters to ensure the export reefers arrive within the terminal in time to make the vessel sailing deadlines.
  • Mass evacuation of imports through Transnet Freight Rail (TFR) supporting the short-haul evacuation to back-of-port facilities in the greater Durban precinct.

 

 

15 October 2021 - NW1829

Profile picture: Cebekhulu, Inkosi RN

Cebekhulu, Inkosi RN to ask the Minister of Public Enterprises

(a) What is the economic impact of the cyber hack on the network of Transnet in major ports of the Republic? (b) How is the cyber-attack expected to affect the position of the Republic as a ports operator in international trade in the (i) short and (ii) long term?

Reply:

According to the information received from Transnet:

(a) The port networks have not been negatively impacted by the attack, as the surface area of attack was on the server domain and applications.

(b) Transnet networks were shut down in the attack to prevent the spread of the malware.

(b)(i) Through the shutdown period, some terminals operated manually, while others could not operate in manual mode, given the complexity of the operations. This impacted on vessel and truck turnaround times.

(b)(ii) No long-term impact is foreseen, as catch-up planning takes place within the terminals. No IT systems were compromised or lost at Transnet Port Terminals. We have seen similar cyber-attacks on large organisations - including shipping lines - that have recovered without a long-term negative impact on trade.

 

14 October 2021 - NW1884

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

(a) What are the full details of companies and/or entities to whom the recent Eskom coal contracts were awarded and; (b) At what price in each case?

Reply:

According to the information received from Eskom:

(a)

Eskom has concluded 2 Coal Supply Agreements (“CSA’s”) for FY2022 as follows:

  • Modification to the CSA with South32 SA Coal Holdings (Pty) Ltd from MMS to supply Duvha Power Station.
  • A new CSA with Arnot OPCO (Pty) Ltd from Arnot Mine to supply Arnot Power Station.

(b)

Eskom cannot, at this point in time, fulfil the parliamentary request of disclosing the contractual prices of the above-mentioned CSA’s.

Eskom is currently progressing with coal supply negotiations with the shortlisted tenderers from RFP’s issued to the market. By disclosing this information to the public, the tenderers could potentially use this information to erode Eskom’s bargaining power.

 

07 October 2021 - NW1816

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What steps is he taking to turn around the situation of Mango, a subsidiary of the SA Airways, which is on the verge of collapse?

Reply:

Mango has been placed under Business Rescue and a Business Rescue Practitioner has been appointed to be responsible for the affairs of the airline. The Department will be providing oversight support during this process by ensuring that a sustainable model is developed for Mango. Of significance would be the restructuring of Mango to successfully ease the reliance of the airline from Government funding and taking into account the current market dynamics.

07 October 2021 - NW2207

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Clarke, Ms M to ask the Minister of Public Enterprises

(1)In terms of Alexkor’s contract with Scarlet Sky Investments, what (a) are the relevant details of the marketing contract term of the specified company and (b) was the time period of the specified contract; (2) Whether the company fulfilled the period of the contract; if so, what are the relevant details; if not, (3) Whether any payment was made to the company at the time of the contract; if not, what is the position in this regard; if, so, what are the relevant details of the payments; (4) What was the (a) name of the company that was appointed to replace Scarlet Sky Investments and (b)(i) duration and (ii) cost of such a contract; (5) Whether, with the appointment of the new company to replace Scarlet Sky Investments, an independent valuator was appointed; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Alexkor

1. (a) The initial contractual obligations were to buy Alexkor Richtersveld Mining Company Pooling and Sharing Joint Venture (PSJV) production and pay the nett value percentage to PSJV.

(b) The initial period was 3 years as stated above. Then it was amended to include IMDSA (Deep sea marine mining), at this point SSI changed the operating model to buy, market and sell. Which was not the original plan at the tender stage.

(2) The company did change the model agreed to tender system which was agreed to by previous management to buy the whole production. This means that they did not fulfil the obligations initially agreed to.

3. The agreement payment was 1.5% commission for all carats sold at the tender. It was paid in full and no outstanding amounts.

4. (a) No company was appointed, Alexkor SOC is conducting the marketing and selling function in house with corporation from Diamond Export and Exchange (DEEC) and Government Diamond Valuation (GDV) office.

5. No company was appointed, Alexkor SOC is processing in house with corporation from DEEC. The Contractors and the Alexkors appointed evaluators are still in operation.

07 October 2021 - NW2271

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Buthelezi, Mr EM to ask the Minister of Public Enterprises

(1).Whether, in light of the mooted decisions by responsible government entities, including Eskom, to procure nuclear energy, the Government and the specified entities have financial resources required to procure nuclear energy, particularly given Eskom’s huge debt and gigantic year losses in the preceding years; if not, why not; if so, what are Eskom’s financial reserves in figures in this regard; (2) whether the Government will step in and inject capital in Eskom for the procurement of nuclear energy; if not, what is the position in this regard; if so, what total amount has been set aside for this purpose; (3). What conditions influenced a return to procure nuclear energy, given that not less than five years ago the procurement of nuclear energy was abandoned due to, inter alia, its allegedly unsustainable price tag

Reply:

According to the information received from Eskom

(1)

Eskom maintains the position that it supports nuclear power, in particular the life extension of Koeberg Power Station. The procurement process is being dealt with by the Department of Minerals and Energy (DMRE) in accordance with IRP19. The DMRE should be approached for any further information.

(2) this matter is being dealt with by the Department of Minerals and Energy (DMRE) in accordance with IRP19. The IRP makes it clear that additional nuclear power generation will only be added to the electricity mix at a pace and scale that the country can afford .The DMRE should be approached for any further information.

 

(3) the DMRE is best placed to respond to this.

Eskom is ready to provide support where needed as the operator of nuclear power plants in South Africa, and in accordance with the Nuclear Energy Policy of 2008.

07 October 2021 - NW2206

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether he has been notified of any land claims against the SA Forestry Company SOC Limited; if not, what is the position in this regard; if so, (a) what (i) total number of land claims, (ii) is the status of each specified land claim and (iii)(aa) total number of claims have been settled and (bb) is hampering the settling of the land claims, (b) has any title deeds been handed over to the local folk in terms of the process and (c) how has the land claims been dealt with to date?

Reply:

According to the information received from Safcol

a) (i) Total number of land claims: 46 (1X KZN, 24X Limpopo, 21X Mpumalanga)

(ii) Status of each specified land claim: Status of each claim indicated in Annexure A.

(iii) (aa) Total number of land claims that have been settled: 4 settled.

(bb) Challenges hampering the settling of land claims: finalization of claims by the Department of Agriculture, Land Reform and Rural Development. Signoff of title deeds handover by respective departments.

b) Title deeds handed over: 1 Mpumalanga CPA

c) How land claims are dealt with by SAFCOL to date:

(i) Engage land claimants proactively in terms of SAFCOLs Proactive Community Engagement Model (before settlement of land claim) to establish commercial partnerships in the value chain:

Value Chain Position

Description

Downstream

Utilising SAFCOLs final products

In the value chain

Directly related to SAFCOL

Related activities

Conservation, tourism, unplanned areas, agro-forestry

Upstream

Before entering SAFCOLs value chain

07 October 2021 - NW2067

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Clarke, Ms M to ask the Minister of Public Enterprises

What is the (a) total number of sub-contractors that are currently on site at the Kusile Power Station project and (b) name of each sub-contractor; (2) Whether the contracts with all the sub-contractors are standard and include the penalty clause addendum; if not, why not; if so, what are the details of the penalty clause; (3) Wwhat (a) is the full budget for the Kusile Power Station, (b) spend of the budget has been realised, (c) additional budget was approved and (d) amount was overspent; (4) Wwhat is the (a) planned completion date of the project and (b) period that has gone over the set period of the contract; (5) (a) what is the amount spent on a monthly basis to provide (i) accommodation and (ii) meals for the specified contractors that are on site and (b) who is the supplier of the accommodation and meals?

Reply:

According to the information received from Eskom

(1)(a)&(b) Eskom does not engage with the sub-contractors, they are engaged by the principal contractors. Eskom therefore cannot provide details of sub-contractors.

However, there are 22 active principal construction and supply contracts at the Kusile project site.

(2) As mentioned above, Eskom does not engage with sub-contractors. However, for principal contractors:

The contracts in place are either from the International Federation of Consulting Engineers (FIDIC) or New Engineering Contract (NEC) suite of contracts and include specific Eskom approved clauses. The contracts include specific penalty clauses for performance issues and delays. The penalty clauses and the quantum of the penalty vary from one contract to the next – the penalties generally vary between 5% and 10% of the contract value.

(3)(a) On 14 December 2015, the Eskom Board approved a budget of R161.40 billion for Kusile Power Station, excluding interest during construction (IDC).

(3)(b) As at 31 July 2021, R142.93 billion (excluding interest during construction) was spent in relation to the budget.

(3)(c) No additional budget was approved.

(3)(d) No amount was overspent.

(4)(a) On 9 June 2020, Eskom Board approved a time extension only from 30 September 2022 to 31 May 2024 for commercial operation of the last unit (Kusile unit 6).

(4)(b) The approved project period is still valid and has not been exceeded (see 4a above).

(5)(a)(i) The average monthly spend on accommodation is R5.27 million, including value-added tax (VAT).

(5)(a)(ii) The average monthly spend on meals is R7.55 million, including VAT, which includes meals for residents at Kendal Village.

(5)(b) The current suppliers of accommodation are:

  • Combined Accommodation (Kendal Village and Khaya Resort),
  • Raziserve (Nan Hau and Cathy Hostel),
  • Cross Atlantic Properties 219, and
  • T L Marule Property Developer (Villa Shekina).

The current supplier of meals is: Tsebo Solutions Group ATS (Pty) Ltd.

Additional Information:

  1. We provide a list of contractors with whom Eskom has active principal construction and supply

contracts at the Kusile project site.

It is to be noted that there are 22 principal contracts with 17 contractors because some contractors have two or more contracts e.g. Alstom has two contracts; ABB has two contracts and Tenova Mining and Minerals has three contracts. 

The 17 principal contractors are as follows:

1. MHI Power ZAF (Pty) Ltd and Mitsubishi Power Europe GmbH

2.  Aveng Africa

3. Alstom S and E Africa (General Electric)

4. Ingersoll Rand South Africa

5. Kusile Civil Works JV

6. PDNA Industrial Projects

7. (Mott Macdonald)

8. Eskom Rotek Industries

9. Zest Electric Motors

10. Siemens

11. Static Power

12. SSBR (Stefanutti Stocks Basil Read Joint Venture)

13. Honeywell Automation

14. Industrial Water Cooling

15. ACI Technical Services

16. ABB South Africa

17. Actom Contracting, a division of Actom

18. Tenova Mining and Minerals

 

2. We provide a historical view of all Kusile business case approvals:

ERA’s

(Business Cases)

ERA Value

(excluding IDC)

Approval Date

Approved By

ERA Rev. 0

R80.7Bn

March/April 2007

Eskom Board

ERA Rev. 1

R103.9Bn

September 2009

Eskom Board

ERA Rev. 2

R121.0Bn

May/June 2011

Eskom Board

ERA Rev. 3

R156Bn (P50)

R161.4Bn (P80)

December 2015

Eskom Board

ERA Rev. 4

R156Bn (P50)

R161.4Bn (P80)

June 2020

Eskom Board

07 October 2021 - NW2023

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

Whether Siemens (a) had withdrawn their warranty on the steam pipes they supplied to Medupi because the pipes had not been cleaned as prescribed before installation and (b) warned that the pipes could burst under the introduction of steam; if not, in each case, what is the position in this regard; if so, what are the relevant details in each case; (2) Whether he has found that this was a major contributory cause to the explosion of 8 August 2021; if not, what is the position in this regard; if so, for what reason was this allowed to happen under reliability maintenance; (3) (a) what is the (i) cost of and (ii) estimated time frame for repairs and (b) how will this cost be financed?

Reply:

According to the information received from Eskom

(1)(a) and (b)

The incident is not related to the steam pipe / or steam generator as it occurred on the Electric Generator that is coupled to the steam turbine centreline through a Turbo Gen rotor. The Medupi Generators original equipment manufacturer (OEM) is General Electric (GE).

(2)

The 8th of August 2021 Medupi unit 4 generator failure incident is still under investigation, however, following the preliminary investigation, it appears that while performing the purging of hydrogen activity, air was introduced into the generator at a point where hydrogen was still present at sufficient quantities to create an explosive mixture. This is not related to the steam pipes or to issues with previous maintenance activities.

(3)(a)(i)

The final damage assessment will only be quantified once the all-turbine cylinders and the generator are fully stripped. The process underway is making the area safe to commence with stripping and internal inspections. The cost of repairs will be established once the contracts are placed as per detailed scope of work following damage assessments.

3(a)(ii)

The repairs will depend on the extent of the damage and the long lead components to be replaced. It is safe to say that the repair duration will be in excess of one year.

3(b)

Eskom has insurance cover for all its assets.

07 October 2021 - NW1893

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

In light of the fact that Transnet Port Terminals (TPT), the state-owned freight company’s division that operates the container terminals at the biggest ports of the Republic, including Cape Town, Port Elizabeth, Ngqura and Durban, has declared force majeure late on 26 July 2021 after its IT systems suffered a massive cyberattack the previous week that crippled its operations, (a) what is the extent and effect of the attack, (b) what is being done to (i) mitigate effects of the attack and (ii) ensure no repeat of the attack, (c) how did the attack come about, (d) who was responsible, (e) on what date is it envisaged that TPT operations will return to normalcy and (f)(i) what are the details of the impact of the attack on exports and imports and (ii) how are customers being assisted in the interim?

Reply:

According to the information from Transnet response:

(a) Initially all ICT systems were shut down to stop the spread of the malware.  Some servers and some workstations that were online at the time of the attack were encrypted by the ransomware.

(b)(i) An incident response team was brought in to assist with the secure rebuild of the active directory servers. A second incident response team assisted with containing the incident and performing a forensic scan of all machines.

(b)(ii) Transnet was already in the process of rolling out additional security measures across the network. This has been fast-tracked and all machines that are brought back on on-line have the security stack deployed. A separate Endpoint Detection and Response (EDR) and forensic agent has been deployed on all machines before they were brought back online.

All older operating systems have been upgraded to current operating systems and were fully patched before being brought back online.

Transnet has also deployed a web access firewall, reverse proxy and an anti-distributed denial of service system for all public websites.

(c) It was a ransomware attack. There is a criminal investigation in progress.

(d) There is a criminal investigation in progress.

(e) All customer interfaces and the NAVIS terminal operating system have returned to normal. TPT has continued to keep customers and stakeholders informed of the progress made since Thursday 22 July 2021. Transnet will continue to engage in the dedicated daily recovery fora and meetings until all operations and the entire supply chains have normalised. For example, Transnet has a dedicated weekly recovery session with Business Unity South Africa, which commenced on 28 July 2021 and is planned to conclude on 20 September 2021. Other meetings with port stakeholders will continue daily, until congestion has been resolved.

(f)(i) Container volumes were delayed as a result of the cyber-attack or the resulting congestion. However, most imports and exports would still be serviced through SA or neighbouring Ports, albeit later than originally planned.

Automotive vessels were delayed due to system unavailability, which was mitigated by the implementation of manual processes. Some vessels have been diverted between terminals and other delayed volumes have caught up. Hence, the impact on volumes through SA ports is negligible.

In respect of Bulk and Breakbulk cargo, Business Continuity (manual processes) significantly mitigated the potential loss of volumes. No material impact is expected on Bulk and Breakbulk volumes as a result of the system down time.

(f)(ii) TPT will continue to engage in dedicated recovery forums, until all operations and the entire supply chains have normalised.

In addition to the broader fora, TPT engages directly with the shipping lines, to plan jointly to ensure fluid operations at the terminals and on the waterside.

 

07 October 2021 - NW1888

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Mabhena, Mr TB to ask the Minister of Public Enterprises

(1) In light of the fact that Pimville in Soweto has over the past 60 days experienced no less than 160 power cuts collectively across all the zones, besides the planned Eskom load-shedding schedules, which has resulted in disruptive and at times violent protests with negative impact on many small businesses in the area, and in view of the recent 11 power cuts in a space of 24 hours, on Tuesday 22 June 2021 in Pimville Zone 6, what (a) are the reasons that Eskom is totally ignoring the community of Pimville by not resolving the problem and/or offering a permanent solution and (b) measures has Eskom put in place to date to ensure that there (i) are no power cuts and (ii) is a permanent solution to the power cuts in Pimville; (2) whether there has been any assessment conducted recently to ascertain the extent of the damage to Eskom infrastructure in Pimville; if not, why not; if so, what are the details of the extent of the damage?

Reply:

According to the information received from Eskom:

(1)(a) Eskom is not ignoring the community of Pimville.

Eskom has responded to all 32 faults logged by the Pimville customers since June 2021. Regrettably, 24 of the 32 faults relate to cable theft, five to network overload and three were due to planned maintenance.

In the Pimville area Eskom has ~24 700 registered customers however 70% (~17 300) of these customers do not buy electricity.

The causes of power interruptions in Pimville are vandalism, cable theft and illegal connections which result in an overloaded network.

It is to be noted that queries and faults from customers that do not buy electricity are scheduled for meter audits. Upon auditing, customers that are found to be buying electricity legally are restored. However, customers that are found to be buying illegal electricity tokens; not buying at all; or have tampered meters, are issued with fines and their supply is only restored once payment of the tamper fine is received.

Recently, the longest outage experienced was due to infrastructure vandalism at Moroka substation which affected supply in multiple areas in Soweto, including Pimville. The vandalism resulted in an explosion at the substation which took almost a week to repair due to the extent of the damages.

Even though Eskom secures the substation, thieves still find a way to break in, steal cables and other equipment, leading to massive destruction and extended unavailability of electricity to customers.

(1)(b)(i) and (ii) Eskom has taken the following measures:

  • Eskom replaced the credit meters with prepaid split meters in the area, where amongst other benefits customers are able to manage their consumption and limit it to their affordability, however most communities continue to bypass these meters resulting in vandalised equipment, indiscriminate use of energy and overloaded networks. Eskom has tried to remove these meter bypasses but experiences retaliation from the community which in some cases, makes it unsafe for our technicians to work in those areas.
  • In cases where major networks are affected resulting in extended outages, Eskom dispatches technicians to the fault areas and customers are updated through contact details of the registered account-holders. Customers are also updated through media statements, radio, and via social media platforms such as Facebook and Twitter.
  • Eskom implements load reduction in all areas where the networks are at risk of being damaged by overloading, and Pimville is one of these areas. Load reduction is carried out to prevent loss or damage of equipment and extended outages. Customers are notified of pending load reduction, which normally lasts for a maximum of five (5) hours and is implemented up to twice a day per customer.
  • Eskom continues to educate customers on the safe and responsible use of electricity. Eskom encourages communities to protect their infrastructure by reporting any nefarious activities undertaken by their neighbours including Eskom technicians and contractors. Eskom intends to run community co-operatives where communities will co-own the problem and joint solutions will be sought and implemented.

(2) Yes, Eskom conducts routine assessments as required by our maintenance philosophies.

The tampering and the bypassing of meters, illegal connections and unauthorised operations result in electricity demand exceeding the design capacity of the network and overloads and damages electricity infrastructure i.e., transformers.

Of ~132 transformers in the area, six failed recently due to overloading however three have since been restored. The cost of replacing a transformer is ~R400 000.

For Pimville area alone Eskom has lost revenue of ~R36 million in the last four (4) months.

07 October 2021 - NW1822

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Buthelezi, Mr EM to ask the Minister of Public Enterprises

(1)What is the status of finalising the strategic equity partnership between SA Airways (SAA) and a certain company (name furnished), that would acquire 51% in SAA; (2) whether an amendment to the Memorandum of Incorporation of SAA has been concluded; if not, why not; if so, what are the relevant details

Reply:

  1. The due diligence is at an advanced stage and should be completed shortly. The parties have started negotiating the Sale and Purchase Agreement (SPA). After the successful completion of the SPA stage, we will be able to announce the completed deal to the public pending regulatory approval.
  2. Once the Sale and Purchase Agreement have been concluded, the Memorandum of Incorporation will be finalised.

07 October 2021 - NW2111

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

(1)        With reference to Denel’s presentation to the Standing Committee on Public Accounts on 24 August 2021, (a) what are the reasons for the 161% increase in the number of contractors from 1 April 2021 to 30 June 2021; (2) Whether any arrangement has been reached with the SA Revenue Service regarding the outstanding pay as you earn-debts owed by Denel; if not, what are the implications for Denel and its relevant officials as it pertains to possible criminal prosecution under section 234(p) of the Tax Administration Act, Act 28 of 2011; if so, what are the relevant details; (3) Whether the three executives implicated in the Ngidi report with respect to the R356 million VR Laser Group were suspended with pay or without pay; if not, why not; if so, what are the reasons; (4) What were the outcomes of the completed disciplinary action taken against the Denel employees implicated in the R69 million ENNE7 contract?

Reply:

According to the information received from Denel:

1. The increase in the number of contractors in the period from 1 April 2021 to 30 June 2021 was as a result of permanent employees, who resigned from their permanent positions and later offered their services on a fixed term basis.

2. SARS is amenable to granting Denel a deferred payment arrangement for the legacy tax debts and a compliant tax status provided the entity pays the current monthly Value Added Tax (VAT) and Pay as You Earn (PAYE) for August and the subsequent tax periods. Denel managed to pay the VAT due on 31 August but the PAYE remains unpaid.

SARS has indicated their intention to invoke the provisions of section 169 of TAA and recover tax that is due to the fiscus followed by the provisions of section 172 (Application for civil judgment for recovery of tax) in the event of not securing enough cash to liquidate the current outstanding liabilities.

Provisions of section 234(2)(k) that lead to conviction, fine or imprisonment for a period not exceeding two years may be applied by SARS against the management of Denel due to non-payment of VAT and PAYE withheld and not paid over to SARS.

3. The three (3) executives, implicated in the Ngidi Report are currently on precautionary suspension with full pay. The suspension with full pay is in line with the Denel SOC Ltd Disciplinary Code.

4. Four (4) employees who were implicated in the ENNE 7 contract were subjected to disciplinary hearings. Two were found not guilty. The other 2 were found guilty and were given Final Written Warnings. In addition to the Final Written Warning, one also received an additional 12 months suspension without pay.

07 October 2021 - NW1935

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Clarke, Ms M to ask the Minister of Public Enterprises

What is the total number of technically skilled staff members that (a) Denel Vehicle Systems has lost in the past three financial years and (b) are currently employed at Denel Vehicle Systems. (2) What (a) are the full details of the tenders that Denel Vehicle Systems finalised in terms of due process in the past three financial years and since 1 April 2021, (b) is the total monetary value of each specified tender and (c) are the full details of successful bidders in respect of each tender; (3) (a) what contract is currently being finalised by Denel Vehicle Systems, (b) what is the value of the specified contract, (c) how does Denel Vehicle Systems intend to finance the specified contract in light of its financial constraints and (d) what is the current financial status of Denel Vehicle System; (4) whether Denel Vehicle Systems will be able to raise the capital to finance the specified contract that is currently being finalised; if not, what is the position in this regard; if so, what are the relevant details NW2068E

Reply:

According to the information received from Denel:

1(a) Technically Skilled lost in past 3 Financial years = 173

1(b) Total number of technically skilled currently employed = 157

2.(a)- (b) details of the tenders that Denel Vehicle Systems (DVS) finalised in term of due process in the past financial years are mentioned in Annexure 1.

3. The business has existing contracts with customers and are at the different stages. These are shown in Annexure 2: DVS Existing contracts. Along with these are the opportunities at varying stages:

(a) DVS has submitted a number of proposals to various potential clients but none are at the stage of being finalised;

(b) The new opportunities are valued at R700 million;

(c) DVS would seek project financing from corporate office, alternatively it would be asking clients to pay for material directly to suppliers where possible.

(d) The business is financially strained and cannot meet short to medium term financial obligations.

4. Financing of Programmes

(a) DVS is not in a position to raise any capital to finance these contracts due to liquidity challenges;

b) DVS is seeking external sources to finance existing programmes as well as the potential contracts.

07 October 2021 - NW1817

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether it is his plan to (a) to sell public assets to private companies and (b) privatise ports under the control of Transnet, if not what is the position in this regard, if so what are the relevant details; (2) Whether he invited the President, MR C Ramaphosa, to visit the Port of Durban in light of the pending privatization of the port as well as Transnet Ports

Reply:

(1)(a) There is no plan to sell assets to private companies.

(1)(b) There is no plan to privatise ports under the control of Transnet. The position in this regard is to crowd in private capital to co-invest in the ports equipment, technologies, skills and operations with the aim of improving efficiencies of the country’s port systems which is critical for the country’s economic competitiveness ability to grow the export market and support the growth of local businesses.

Transnet’ balance sheet alone is not sufficient to support the investment resources required to upgrade the ports to worldclass standards. The private sector participation model leaves the ownership of the port and resultant improvements in the balance sheet of Transnet, enables the participation of the private sector in supply chain efficiencies as port users but still leaves the ownership of the entity with the State while simultaneously reducing the financial reliance on the national fiscus.

2. No. The invitation of the President was not informed by any plan to privatise the Port of Durban or any other port under Transnet. The visit by the President was to evaluate progress made from his visit to the Port of Durban in October 2019. During that visit, many local businesses and port users raised specific concerns about the performance of the Port of Durban. Shipping companies in particular, expressed concern about the low productivity levels in the port which included amongst others, truck congestion and waiting times, ship berthing delays and poor reliability of critical port equipment. The visit in April 2021 was aimed at affording the President a firsthand check on the progress against the commitments that were made in the 2019 visit; and for Transnet to apprise him about further plans to reposition the port. This was to reinforce the commitment that the President had made to local business regarding the improvement of the efficiencies at South African Ports.

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 - 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 - 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.

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 - 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 - NW1112

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Hunsinger, Mr 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 - 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 - 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 - 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.

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 - 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.

cid:image007.png@01D73828.C49F9900

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:

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 - 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 - 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:

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 - NW1308

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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 - NW1057

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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 - NW706

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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 - NW1407

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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

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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 - NW1312

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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.

30 July 2021 - NW1578

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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 - NW1170

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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 - NW1117

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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 - NW1408

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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 - NW1310

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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.

.

04 June 2021 - NW1110

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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 - 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.