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10 April 2024 - NW769

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Gondwe, Dr M to ask the Minister of Public Enterprises

(1) (a) What is the latest update on the restructuring and repositioning of Denel and (b) on what date is the restructuring and repositioning of Denel likely to be finalised; (2) (a) which aspects of Denel’s turnaround plan have been implemented to date and (b) what total amount of money is required by Denel to completely implement its turnaround plan; (3) whether Denel has been able to source and secure funding for the implementation of its turnaround plan; if not, what is the position in this regard; if so, what are the relevant details; The funding for the growth phase was included in the recapitalisation allocated to Denel in 2023 (4) what (a) is the current value of Denel’s order book and (b) was the value of this order book in each year in the last five financial years to date? NW947E

Reply:

According to the information received from DENEL

1. (a) Denel has materially implemented the first two phases of the turnaround which is the stabilise and sustain phases, starting with the growth phase.

(b) The turnaround plan will be implemented over a three- year period: 2022/23 financial year to 2024/25 Financial year.

2. (a) Denel has implemented the stabilise and sustain phase.

(b) The total amount for the completion of the implementation of the turnaround plans forms part of the recapitalisation allocated to Denel SOC Ltd.

3. The funding for the growth phase was included in the recapitalisation allocated to Denel SOC Ltd in 2023.

4. (a) R4 406m (Secured Order Book) and R16 580m (Order Pipeline/Winnable Projects) at the end of Dec 2023.

(b)

YEAR

Order Book/Backlog (Rm)

Order Pipeline/ Intake Rm

Dec 2019

17 487

8 290

Dec 2020

13 240

11 650

Dec 2021

11 977

8 316

Dec 2022

8 862

9 414

Dec 2023

4 406

16 580

Remarks: Reply: Approved / Not Approved/ Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date

10 April 2024 - NW681

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Graham, Ms SJ to ask the Minister of Public Enterprises

Whether, with reference to the current curtailment framework as an addendum to the Generation Connection Capacity Assessment which lacks details in the live assumption of the grid and where capacity availability will emanate from, Eskom will publish through his department a comprehensive curtailment framework; if not, why not; if so, (a) what are the relevant details and (b) by what date does he envisage it will be published?

Reply:

According to Information Received from Eskom:

(a)

The curtailment framework creates capacity by exploiting the intermittent nature of renewable energy resources. Since they are not producing the same energy all the time, more resources can be connected to the grid and for most of the time, the grid capacity will not be exceeded.

Only on rare occasions when the output exceeds grid capacity, will it be necessary to curtail production.

(b)

The comprehensive curtailment framework will be published as soon as all pending matters, such as the compensation mechanism, have been resolved. All matters are expected to be resolved no later than July 2024.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

10 April 2024 - NW809

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Essack, Mr F to ask the Minister of Public Enterprises

What total amounts have been paid out in bonuses to the (a) Chief Executive Officer, (b) Chief Operations Officer and (c) Chief Financial Officer of (i) SA Airways, (ii) Eskom, (iii) Transnet, (iv) SA Forestry Company Limited, (v) Alexkor and (vi) Denel, respectively, since May 2019?

Reply:

ALEXKOR

According to the information from Alexkor:

(a) R189 202,87 paid to Mr. L Pitsoe in January 2022;

(b) The position of Chief Operations Office does not exist; and

(c) No bonus paid.

DENEL

According to the information from Denel:

Denel SOC Ltd has not paid out any bonuses to the Chief Executive Officer, Chief Operations Officer and the Chief Financial Officer since May 2019.

ESKOM

According to the information from Eskom:

(a) (b) (c)

No bonuses have been paid out to any of the abovementioned positions since May 2019.

SAFCOL

According to the information from Safcol:

The South African Forestry Company SOC Limited made the following payments since May 2019.

Bonuses Paid during the below FY’s (2019-2023)

Position

2019/20

2020/21

2021/22

2022/23

2023/24

a) Chief Executive Officer

0

0

0

173,359

0

b) Chief Operations Officer

0

0

0

159,032

0

c) Chief Financial Officer

0

0

0

146,376

0

Grand Total

0

0

0

478,767

0

SOUTH AFRICAN AIRWAYS

According to the information from SAA:

Since 2019, the following information should be noted with regards to South African Airways (SAA), bonus to CEO, COO and CFO since May 2019.

Year

Chief Executive Officer

Chief Operations Officer

Chief Financial Officer

2019

R nil

R nil

R nil

2020

R nil

R nil

R nil

2021

R nil

R nil

R nil

2022

R nil

R nil

R nil

2023

TRANSNET

According to the information from Transnet:

Transnet has not paid any incentive bonuses to either the Group Chief Executive or the Group Chief Financial Officer since May 2019

Remarks: Reply: Approved / Not approved/ Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

05 April 2024 - NW605

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Ngcobo, Mr S to ask the Minister of Public Enterprises

With reference to his reply to question 91 on 28 February 2023, what are the details of the (a) make, (b) model, (c) year of manufacture, (d) date of purchase and (e) purchase price paid for each vehicle purchased by his department for (i) him and (ii) the Deputy Minister since 8 May 2019?

Reply:

(i) Table below display the vehicle information for Minister Pravin Gordhan

(a) Make

(b) Model

(c) Year of Manufacture

(d) Purchase date

(e) Purchase price

Audi

A6 2.0 TDI S Tronic Audi A6

2018

2021/03/19

R783 909.98

(ii) Minister Pravin Gordhan has been the only Minister since 1 June 2019.

(iii) Table below display the vehicle information for Deputy Minister Obed Bapela. He was appointed on 6 March 2023.

(a) Make

(b) Model

(c) Year of Manufacture

(d) Purchase date

(e) Purchase price

Audi

A6 2.0 TDI S Tronic Audi A6

2018

2021/03/19

R783 909.98

(iv) Deputy Minister Phumulo Masualle had been the Deputy Minister since 01 June 2019 up to the appointment of Deputy Minister Obed Bapela.

(a) Make

(b) Model

(c) Year of Manufacture

(d) Purchase date

(e) Purchase Price

Audi

A6 2.0 TDI S Tronic Audi A6

2018

2021/03/19

R783 909.98

However, in Cape Town, the Minister and Deputy Minister still use vehicles purchased by the department in 2016.

 

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date:

04 April 2024 - NW728

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Magaxa, Mr K to ask the Minister of Public Enterprises

(1) Whether he has found that it will be appropriate to conclude the SA Airways (SAA) and Mango business rescue processes before the start of the 7th administration; if not, why not; if so, what are the relevant details: (2) what progress has been made by Global Aviation and Syranix in terms of selling their stake in Takatso Consortium to satisfy the conditional regulatory requirement of the Competition Commission for finalising the sale of the SAA?

Reply:

  1. The SAA business rescue process concluded on April 30, 2021, subsequent to the filing of the Notice of substantial implementation of the Business Rescue Plan by SAA Business Rescue Practitioners. Meanwhile, the business rescue process for Mango is ongoing and being managed by the Mango Business Rescue Practitioners. Its finalization hinges upon the substantial implementation of the Business Rescue Plan and the filing of the Notice of substantial implementation with the CIPC by the Business Rescue Practitioner. We are awaiting further legal advice on how we conclude the Mango matter.
  2. The divestiture process involving Takatso Aviation (Pty) Ltd's minority shareholders was overseen by Takatso itself, rather than the Department of Public Enterprises. However, following the recent termination of the SEP transaction by the Parties, there is no longer a requirement to fulfil this condition.

 

 

04 April 2024 - NW715

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Ngcobo, Mr S to ask the Minister of Public Enterprises

Whether he will furnish Mr S Ngcobo with a (a) list and (b) full description of all events planned by his department to take place before 29 May 2024 in celebration of the 30 years of democracy in the Republic, including the (i) projected total cost or expenditure of each event and (ii) breakdown thereof in terms of expenditure for (aa) catering, (bb) entertainment, (cc) venue hire, (dd) transport and (ee) accommodation; if not, why not; if so, what are the relevant details?

Reply:

There are no events that are planned to take place in celebration of 30 Years of Democracy by the Department of Public Enterprises. Therefore, no budget was set aside for catering, entertainment, venue hire, transport, accommodation in celebration of such important milestone in the history of South Africans.

04 April 2024 - NW677

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Gondwe, Dr M to ask the Minister of Public Enterprises

(1) What total number of Eskom’s transformers are currently not functional (a) in each province and (b) in rural communities, (c) for how long the transformers have not been functional and (d) on what date are these transformers likely to be replaced? (2) What total number of replacement transformers does Eskom currently have in each province?

Reply:

According to the information received from Eskom:

(1)(a)

Currently, 1 135 transformers are not functional.

Below is the table of data:

Operating Unit

Faulty and vandalized transformer numbers per NEPSR Data

Gauteng

366

KZN

342

Mpumalanga

156

Eastern Cape

143

Western Cape

59

Northwest

43

Limpopo

21

Northern Cape

5

(b) About 70% of the non-functional transformers are in rural communities.

(c)

  • Transformers that are not associated with buying customers are changed within three (3) days.
  • Transformers that are related to non-buying customers are not replaced until the community pays the tamper fees as per the agreed process.

(d) Only upon the customer paying the tamper fee will the transformer replacement process begin.

 

(2)

  • The number of pole-mounted transformers allocated for breakdown is as per the table below.
  • It is important to note that transformers do get moved across provinces as they are needed.
  • Each of the transformer categories has minimum and maximum reorder levels.

Operating Unit

Number of pole-mounted 100Kva /22KV transformers

Free State

35

KZN

25

Western Cape

25

Limpopo

20

Eastern Cape

18

Gauteng

7

Northwest

6

Mpumalanga

2

 

 

04 April 2024 - NW737

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Essack, Mr F to ask the Minister of Public Enterprises

What are the full details of the Government’s plan with regard to the operation of the SA Airways in the short- to medium term, following the termination of the Takatso deal?

Reply:

  1. Following the termination of the strategic equity partner transaction, SAA’s plans are being enhanced to continue operating the airlines on a sustainable basis. 
  2. In the short term the airline will require strengthening the SAA Board and Management as well as raising funds for acquiring aircraft to expand the network.  In the medium to long term, it will require developing a long-term strategy. The Board will present the strategy to Minister for consideration. Among the measures being taken/putting in place post the termination of the SEP transaction are the following:
  • Strengthening the board,
  • Strengthening the management with aviation specialists,
  • Consolidating the strategic, operational and corporate plans with the support of aviation experts,
  • Entering into longer term leases for aircrafts,
  • Exploring alternative options for financing the expansion of SAA services,

       3. We are past the “interim” phase of SAA’s recovery. It is important to hand over to the 7th Administration, a firmly consolidated and efficient SAA.

04 April 2024 - NW676

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Gondwe, Dr M to ask the Minister of Public Enterprises

What is (i) the status update on the unbundling of Eskom and (ii) causing a delay in the unbundling of Eskom and (b) on what date does he envisage the unbundling process of Eskom to be concluded?

Reply:

A

1. The restructuring of Eskom into three businesses in line with the President pronouncements is continuing with critical milestones achieved to date. The Eskom Road map envisaged that, the Transmission Company will be the first to be separated from the Eskom Holdings.

National Transmission Company of South Africa (NTCSA) was established as a wholly owned subsidiary of Eskom Holdings. Subsequently, the National Energy Regulator of South Africa (NERSA) approved and issued licenses to the NTCSA for operating, trading as well as importing and exporting electricity.

The Eskom Board appointed the NTCSA Board of Directors in January 2024. The enactment of the Electricity Regulation Act (ERA) into law is a critical milestone to provide the NTCSA with the transitional arrangement and assigned the duties, powers and functions of the Transmission System Operator (TSO) for a period of five years. In addition, the ERA will create a competitive wholesale electricity market. The ERA is going through Parliamentary approval processes. The National Energy Regulator of South Africa (NERSA) has approved Eskom’s application for a transfer of its powers and duties related to Section 34 Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) to the National Transmission Company South Africa (NTCSA).

The National Electricity Distribution Company of South Africa SOC Ltd (NEDCSA), was registered during the 2023 financial year. The Minister of Public Enterprises and the Minister of Finance granted approval of the PFMA application in terms of section 54(2)(a) and 54(2)(d) on 7 August 2023 for the transfer of the distribution business to NEDCSA. The NEDCSA merger agreement will be signed once all lenders to Eskom Transmission have given consent and the NTCSA is operationalized. Thereafter the NEDCSA will submit a Distribution license application to NERSA.

The Generation Division was functionally separated in March 2021. An internal Divisional Generation board was appointed and ring-fenced financials and reporting are in place. The establishment of Generation as a wholly owned subsidiary of Eskom Holdings will be completed following the establishment of the NewCo.

2. The restructuring of Eskom into three businesses is a complex process characterised by many dependencies both internal and external of Eskom. Most dependencies have been dealt with and Eskom is finalising the completion of critical suspensive conditions to operationalise the NTCSA. Lessons learned in the restructuring of the NTCSA will be utilised in the restructuring of both the Distribution and Generation subsidiaries.

B) The completion of the restructuring process will take time given the complexity and challenges encountered when executing the various activities. Although there are timelines for completing the process, there has been deviation and new timelines established on the back of unforeseen complexities in executing the restructuring process. However, the Board and new management team have been directed to seize every opportunity to speed up processes.

 

04 April 2024 - NW661

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Mhlongo, Ms N to ask the Minister of Public Enterprises

What role is Eskom playing in driving (a) job creation, (b) skills development and (c) economic empowerment initiatives in (1) communities where its operations are located and (ii) the closed power stations? (2) How is Eskom supporting (a) local procurement, (b) supplier development and (c) enterprise growth to stimulate economic activity and promote inclusive growth?

Reply:

According to the information received from Eskom:

(1)(a)(b) Job Creation and Skills Development:

Eskom is an active participant and major partner in skills development and has been at the forefront of skills development since the advent of democracy to satisfy the needs of the national pipeline. Eskom’s programmes increase access to high-quality and relevant education, training, and development opportunities in the form of bursaries (technical and non-technical), apprenticeships, learnerships, and workplace-integrated learning (WIL) to enable effective participation in the economy by all South Africans and reduce inequalities.

Eskom has and continues to avail and conclude memoranda of understanding with external funders to host youth across all demographics on WIL in the artisan, technical, and engineering disciplines, with a particular focus on the previously disadvantaged sectors of our society. In partnership with the Energy and Water Sector Education and Training Authority (EWSETA), Eskom has implemented a successful artisan programme that has changed the lives of many young people.

Retention and development of skills through a targeted employee value proposition are essential to ensure that Eskom has the required skills to meet the organisation’s needs, especially considering operational challenges and financial constraints. Eskom invests extensively in developing employees through various skills programmes comprising internal and external training interventions, further studies, and on-the-job training.

In the current financial year, Eskom has offered 2 457 learner pipeline and youth employment

oportunities and 48% of this total are females.

(1)(c) Economic empowerment initiatives at power stations:

The Just Energy Transition (JET) is an essential national initiative required to bridge the gap to improve energy security and reliability while reducing the effects of climate change. Through partnership development, Eskom organisation continues to increase its capacity to provide renewable and green energy technology training for future energy solutions.

The changing world of work, JET and the evolving energy industry require the reskilling and upskilling of Eskom’s workforce. Eskom is scaling up on initiatives to repower and repurpose fossil-fired power stations into hubs for economic diversification and growth in the long term. As part of the JET, Eskom, together with various stakeholders, is undertaking several initiatives to deal with the socio-economic impact of the shutdown of the stations on the local communities. These initiatives are outlined below.

  1. Komati Power Station:

Through the Stakeholder Forum and under the leadership of the Ward Councilor, community members are integrated into projects that are undertaken at Komati Power Station. To date, 204 community members have been employed for the following projects:

  • Agri-voltaics Demo Plant Construction.
  • Containerised Microgrid Assembly Plant - this includes both skilled and unskilled labour. These microgrids fit in a standard shipping container which enables the rapid electrification of rural areas, a concept previously deemed too costly or technically challenging to connect to the national grid.
  • Construction projects, including electrical fencing.
  • Removal of alien invasive vegetation.

Eskom has the following projects planned for further training and employment of at least 40 community members in the first phase:

  • Personal protective equipment (PPE) manufacturing.
  • Palletisation - production of pallets from the alien vegetation that has been cleared.
  • Aquaponics - Aquaponics is a food production system that couples farming with hydroponics (growing plants in water instead of soil) whereby the nutrient-rich water is fed to plants.

In addition, projects including the 100 MW solar PV plant with 600 MWh battery energy storage system which is planned to commence in January 2025, will create approximately 2700 to 3000 indirect jobs throughout construction.

Training and development are crucial for a successful energy transition and Eskom emphasis on reskilling and upskilling communities and staff alike. Eskom has made progress on several training initiatives aimed at fostering community development and empowering employees at Komati Power Station. These initiatives, encompassing training in solar photovoltaic (PV) mounting, installation and essential soft skills, reflect the ambition to offer new opportunities for communities around our power stations. A total of 63 community members have been trained, with 44 planned for early April 2024. The training programmes currently offered are:

i. South African Photovoltaic Industry Association (SAPVIA) accredited Solar PV Mounter and Installer.

ii. Soft Skills and Entrepreneurial Skills inclusive of Financial Literacy and Business Planning among other accredited training courses.

iii. A welding training facility has been established to train community members for use on future projects, creating a distinct pathway to employment.

iv. Quality Control for Trade and Occupation (QCTO), Recognized Mounter Training (for Solar PV).

v. Through partnerships with organisations such as the South African Renewable Energy Technology Centre (SARATEC), Eskom is rolling out training for both its employees and community members on several skills development initiatives including, but not limited to Introduction to Renewables, Battery Energy Storage Systems, Workshop Assistants for Microgrids, Aquaponics, Solar PV, Wind Turbine Service Technicians, Welding, Entrepreneurial Skills and Soft Skills.

In addition, training on the use of chainsaws, health and safety, herbicide and pesticide usage and storage etc., is presented before community members commence with work.

Economic empowerment

The incubation of SMMEs is underway for agriculture, primarily aquaponics, palletisation and other major contracts depending on the process allowances. Eskom is currently enhancing process knowledge of local SMMEs through forums and having constant engagements covering the governance, tender, and evaluation processes. These engagements further assist with creating an understanding of what is required to be competitive in the changing energy landscape. These SMMEs will then create further opportunities for jobs and skills development.

1. Grootvlei and Hendrina Power Stations

Eskom is exploring initiatives and projects which will enhance the reskilling and upskilling of employees while crafting skills development opportunities for the community members. Eskom intends to create new high-quality jobs through repowering and repurposing initiatives with a direct focus on Mpumalanga, where most of our power stations are located while catalysing the reskilling and upskilling of its employees to ensure an equitable and just transition.

(2)(a) Local procurement:

Eskom abides by local procurement government policies such as local content on designated products and the National Industrial Participation Programme (NIPP) as advocated by the Department of Trade, Industry and Competition (the dtic). These initiatives are monitored and reported monthly. The local procurement requirement is one of the transformation requirements in Eskom’s procurement processes.

2(b) Supplier development:

Eskom’s Supplier Development Localisation and Industrialisation (SDL&I) ensures that all contracts display opportunities for supplier development where feasible and that 30% sub-contracting is implemented.

2(c) Enterprise growth to stimulate economic activity and promote inclusive growth:  

Enterprise development is one of the main objectives of SDL&I, and this entails supplier incubation programmes in some instances where there is a need to skill and provide business opportunities to designated groups. Many enterprise development initiatives such as procurement opportunities, awareness sessions, targeted capacity developmental programmes, and workshops are conducted across the supply chain.

A presentation on Eskom’s year to date performance is attached.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

04 April 2024 - NW578

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Gondwe, Dr M to ask the Minister of Public Enterprises

What steps has his department taken to investigate the media reports on coal trucking mafias operating in the Richards Bay area and sabotaging the railway line so that the delivery of coal is diverted from rail to heavy-duty trucks; (2) Whether his department has reported the issue to the relevant authorities; if not, why not; if so, what are the relevant details; (3) What (a) total amount of tons of Transnet’s coal was diverted from rail to heavy duty trucks (i) in the (aa) 2021-22 and (bb) 2022-23 financial years and (ii) since 1 April 2023, (b) total number of trucks had to carry the coal in each financial year and (c) are the reasons the coal was diverted from rail to heavy duty trucks?

Reply:

According to the information received from Transnet:

1. This matter is subject of security risks under consideration of the National Logistics Crisis Committee (NLCC) Workstream 7: Security and has been a focus area prior to the recent media reports relating to Richards bay.

2. The NLCC Workstream 7: Security is also recognised as a Priority Committee of the NATJOINTS and represented by the various Security Cluster Departments of Government. Transnet has reported this particular matter via the NLCC Workstream 7: Security.

(3) With reference to the volumes carried by road freight, the table below offers insight into (a) number of trucks and tonnages over the past three financial years (b) split per commodity type.

Table 1: Tons transported through road freight over past three financial years.

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

04 April 2024 - NW740

Profile picture: Gondwe, Dr M

Gondwe, Dr M to ask the Minister of Public Enterprises

(a) What are the relevant details of the steps his department will take to ensure the full implementation of the recommendations of the VGBE Consortium report that was commissioned by the National Treasury, which constitutes an independent assessment of the operational situation at Eskom’s fleet of coal-fired power stations and (b) by what date is it envisaged that the recommendations will be fully implemented?

Reply:

According to the information received from Eskom:

(a)

The report covers an assessment period from March to May 2023, coinciding with the inception of the Generation Operational Recovery Plan approved by the Eskom Board. During this time, significant developments occurred, including the appointment of Bheki Nxumalo as the Generation Group Executive in mid-April 2023. The Generation Operational Recovery Plan addressed various operational observations at power stations. These initiatives focus on improving people, plant, and process performance. Regular progress updates, which also cover progress feedback on these aspects, are shared with the public every two weeks by the Minister of Electricity (MoE) and Eskom executives during media briefings to give updates on the implementation of the country’s Energy Action Plan (EAP).

Over the nine months since the report’s assessment period, positive results included fixing design-related issues at Medupi and Kusile Power Stations, which have been addressed through modifications. This has improved maintenance and operations, and significantly improved plant availability. This is evident in the much-improved performance at Medupi, which remains among Eskom’s most reliable power stations following the modifications.

Furthermore, as of January 2024, a total of 3 510MW was recovered through concerted efforts focusing on priority power stations. Each power station has its detailed recovery plan, and these are centrally monitored to ensure successful implementation of the actions. Tracking of VGBe recommendations, alongside recommendations of other similar reports, will be done via the Eskom Board and NECOM processes.

(b)

The new Group Chief Executive, Mr. Dan Marokane is assessing the Generation Operation Recovery Plan, which has been instrumental in addressing the issues contained in the VGBe report. This is with the view of accelerating its execution and ensuring that issues in the VGBe report that have not been already addressed are prioritised.

The cooperation of the private sector in the National Energy Crisis Committee has also assisted Eskom to improve operations and training of operators.

The Department and National Treasury are monitoring implementation of the recommendations of VGB.

28 March 2024 - NW579

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Gondwe, Dr M to ask the Minister of Public Enterprises

With reference to the recent Transnet Freight Rail (TFR) collision on the export line to Richards Bay which occurred in January 2024, (a) on what date is the investigation into the accident likely to be concluded and the details of the full investigation be made public and (b) what (i) total number of accidents did TFR experience in each of the financial years since 1 April 2021 to date, (ii) total number of the accidents were found to have been as a result of sabotage, (iii) was the outcome of the investigations into each of the accidents and (iv) steps has Transnet taken to minimize TFR accidents?

Reply:

According to the information received from Transnet:

  1. The Board of Inquiry (BOI) investigating the accident had a first sitting on 5th of February 2024 and held the last the sitting on the 19th of February 2024. The draft report has been circulated to all the BOI members for comments and will be signed off latest 22nd of March 2024.

The BOI report forms part of the TFR investigation process and it is an internal document which is confidential. The BOI findings and outcomes can be shared on request.

(b)(i) 2021-2022 6 collisions

2022-2023 3 collisions

2023-12 March 2024 1 collision

(b) (ii) One sabotage case, but seven (7) of the ten (10) collisions occurred under abnormal operating conditions as a result of theft and vandalism.

(b (iii)

Province

Operations Area

Financial Year

Operating conditions

Outcome (Causes)

Mpumalanga

Nelspruit

2021/22

Abnormal: Visual Display Unit not operational leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Driver declared his train complete and clear whilst it was not.

Gauteng

Welgedag

2021/22

Abnormal: Visual Display Unit not operational leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Driver mislead the Train Control Officer by confirming the wrong position of his train

Eastern Cape

Port Elizabeth

2021/22

Normal

Non-adherence to the Train Working Rules in that the Train Driver passed a signal at Danger/Red which he was not authorized to pass after being warned by a previous signal which was at caution/yellow

Gauteng

Vereeniging

2021/22

Abnormal: track circuits were down leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Control Officer did not make sure that the line was clear of trains before authorizing another train to proceed on the same line

Northern Cape

Kimberley

2021/22

Normal

Non-adherence to Train Working Rules in that the Train Driver exceeded the point where he was authorized up to whilst on his way to assist a failed train on the same line

Gauteng

Vereeniging

2021/22

Abnormal: Visual Display Unit not operational leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Control Officer authorized a train without ensuring that the previous train was complete and clear of the section

KwaZulu Natal

Bayhead

2022/23

Normal

Non-adherence to Train Working Rules by the Track inspector in that he did not couple machines together when they were moving as a train.

Limpopo

Nelspruit

2022/23

Abnormal: Visual Display Unit not operational leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Driver mislead the Train Control Officer by confirming the wrong position of his train.

Mpumalanga

Nelspruit

2022/23

Sabotage: once the angle cock is closed the following wagons’ brakes are disabled.

The train parted and the subsequent train following collided with the wagons left on the line. The angle cock was found in closed position on the last wagon that parted.

KwaZulu Natal

Richards Bay

2023/24

Abnormal: Visual Display Unit not operational leading to inability to locate train position in the section

Non-adherence to Train Working Rules in that the Train Control Officer did not make sure that the line is clear of trains before authorizing the movement into an occupied line.

Table: Total Number of Collision incidents (2021/22 – 2023/24)

(b) (iv) Interventions

  1. Filling of Train Control vacancies to ensure effective supervision and alleviate fatigue;
  2. Network rationalization to reduce manual verbal authorizations;
  3. Approach market to explore technology on ‘Electronic Train Order’ capability; and
  4. Establish back-up capacity to deal with communications failure.
  5. Improve security effectiveness through Outcome Based Security contracts.

The transparency of Transnet and the continued efforts to improve operational efficiency and reduce mishaps is to be applauded.

 

28 March 2024 - NW580

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Gondwe, Dr M to ask the Minister of Public Enterprises

What (a) kind of a system does Transnet Freight Rail (TFR) use to schedule and track its freight rail, (b) was the outcome of the tender issued in 2022 for the procurement of a digitised system for the scheduling and tracking of TFR’s freight rail and (c) are the relevant details of the reasons TFR has not implemented a digitised system for the scheduling and tracking of its freight rail?

Reply:

 

According to the information received from Transnet:

TFR has embarked on a digital transformation journey that aims to change the organisation into a digitally enabled railway operator. The digital transformation journey has three phases to it, namely stabilisation, optimisation, and digitisation.

In the first two phases (stabilisation and optimisation), TFR has been focusing on the stability, availability and reliability of its current systems, applications, and tools, while enhancing and optimising them to ensure sustainability of business operations.

(a) TFR currently uses semi-automated and fragmented legacy systems, applications, and tools to schedule and track its freight rail operations.

The third phase of the digital transformation journey speaks to the end-to-end digitisation of TFR’s business processes and operations, through the implementation and integration of safe, secure, relevant, and resilient digital platforms, technologies, and related infrastructure across the organisation’s value chain. In 2022, TFR obtained approval of the business case for the implementation of a fully automated Integrated Train Plan (ITP) solution, which was followed by a rigorous procurement process enabled through an open market tender sourcing approach.

(b)&(c) To date, TFR has onboarded a service provider to implement the ITP solution:

 (i) the implementation will take place over three and half years, from January 2024 to September 2027.

 (ii) the first six months of the implementation period entails the Value Commit phase, which is currently underway to confirm and refine business needs, with the following anticipated key deliverables:

  • As-Is business process analysis,
  • Business Process re-engineering: To-Be business process definition,
  • Change management strategy,
  • Business value roadmap definition (Benefits Realisation Planning),
  • Overall risk mitigation strategy.

 (iii) the execution of the ITP solution follows a phased approach, with the first release to production planned to go live in July 2025; enabling business to realise value with the first release (Base Train Planning, Fleet & Train Crew Planning) and start consuming benefits such as increased utilisation of rolling stock, optimised capacity planning, consistency in service offering, more available slots for yard activities, better utilisation of the crew, and more efficiency from the planning team, among others.

(iv) The second release scheduled for August 2026 will focus on Production Planning to enable reduction in train delays and cancellations due to crew, fleet, and network unavailability, and increased utilization of rolling stock (increased profitability).

(v) The final deployment to production will be in September 2027, this release will focus on Execution Monitoring and Deviation Management (Improved response time and decision efficiency to disruptions, enhanced visual and KPIs support for strategic decision making).

(vi) This will be followed by a ten-year system support and maintenance period.

 

22 March 2024 - NW297

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Lees, Mr RA to ask the Minister of Public Enterprises

With reference to his reply to question 3248 on 8 January 2024 stating that SA Airways (SAA) was issued with the International Air Services Licence in February 2020, what are the relevant details of the (i) application and (ii) documentation upon which the International Air Services Licence was issued to SAA; (2) Whether he will furnish Mr R A Lees with records of the management accounts that were used in taking into account the financial capabilities of SAA; (3) Who made the application for an International Air Services Licence on behalf of SAA?

Reply:

According to the information received from SAA:

(1)(i) The license was revised on 14 February 2020 after adding new codeshare destinations to Kenya.

(1)(ii) The basis on which the International Air Services License (IASL) was issued may best be answered by the International Air Services Council.

2. We are unable to share the Management accounts as it contains commercially sensitive information on the airline. The information will be shared once the Annual Financial Statements are audited and tabled in Parliament.

3. The Board remains the accounting authority of SAA. The application was submitted to the International Air Services Council by the Interim CEO, Prof. John Lamola.

The Department and the Board are currently in the process of reviewing all aspects of SAA in order to strengthen its capacity to implement the strategic direction which has been set for it by the shareholder.

 

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

22 March 2024 - NW358

Profile picture: Manyi, Mr M

Manyi, Mr M to ask the Minister of Public Enterprises

In light of the pending tender for the Trans-Kalahari Railway Project in Namibia, what proactive steps has he taken to prevent further diversion of cargo traffic away from the Republic’s ports and safeguard the interests of Transnet against potential loss of business? NW402E

Reply:

According to the information received from Transnet:

Preliminary competitor analysis demonstrates that the Trans-Kalahari Railway project and port developments in Namibia will have a minimal impact on Transnet Port Terminal’s long term volume growth. This is chiefly due to the following reasons:

  • At the time of commercial operation of the Trans-Kalahari railway project, Transnet would have stabilized its rail and terminal operations as per the approved turnaround plan thus significantly reducing Customer churn rate.
  • Transnet will continue with the implementation of long-term contracting regimes with predictable commercial arrangements. This will ensure volume growth and long-term sustainability for the Iron Ore and Manganese Customers who are targeted by the Trans-Kalahari project.
  • Transnet is future-proofing its operations by creating additional capacity in line with Customer validated demand to neutralize any potential volume and revenue leakage.

Transnet must anticipate competition from other ports and rail corridors and “raise the bar” in respect of both infrastructure maintenance and operational efficiency. This is now taking place under the rubric of the Transnet Recovery Plan, notwithstanding the huge financial, operational and governance damage done during the State Capture period.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

22 March 2024 - NW356

Profile picture: Manyi, Mr M

Manyi, Mr M to ask the Minister of Public Enterprises

What are the details of the measures that his department has implemented to achieve a significant reduction in cargo traffic through the (a) Port of Durban Harbour and (b) the Port of Richards Bay, particularly concerning cargo bound for Angola and Mozambique, which is now diverted to Port of Lobito?

Reply:

According to the information received from Transnet:

Multiple long-term strategies are being employed in the Ports of Richards Bay and Durban to reduce congestion in the port precincts. These include:

a) - Greater emphasis on the use of back-of-port storage facilities to minimize road congestion in the port. Durban is working on a mass container evacuation to the back-of-port facility to free up space and improve efficiencies in the terminal.

  • Better traffic management in the city precincts through the truck appointment systems and cargo tracking app in the container terminals in Durban.

b) - Improving the rail transportation to and from the port thereby decreasing the reliance on road transport. Cargo owners are encouraged to take up rail contracts in Richards Bay for bulk commodities.

  • Optimising terminal operations such as the implementation of a truck staging area in Richards Bay to reduce the number of trucks inside the port precinct.
  • Better traffic management in the city precincts through the truck appointment systems and cargo tracking app in the container terminals in Durban.
  • The root cause of inefficiencies at Richards Bay Multipurpose Terminal (MPT) and Dry Bulk Terminal (DBT) are mainly due to lack of investment in infrastructure. Competition has invested in far superior handling technology while RCB is still using technology from 40 years ago.
  • The DBT will be investing in infrastructure through partnerships for major bulk-handling equipment. The MPT is introducing business process re-engineering and contemporary materials-handling-equipment to produce desired efficiencies.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

22 March 2024 - NW357

Profile picture: Manyi, Mr M

Manyi, Mr M to ask the Minister of Public Enterprises

How does his department plan to mitigate the impact of the Port of Maputo's increasing role in handling container imports into the Republic, as well as the export of coal and other minerals, on the operations and competitiveness of the Port of Durban and the Port of Richards Bay?

Reply:

According to the information received from Transnet:

The Port of Maputo serves two roles to South Africa: as an extension of the South African complementary port system and as a competitor.

In the role as an extension of the South African complementary port system, the Port of Maputo provides import and export capacity that cannot be met by Transnet Port Terminals thus assisting with maintaining fluidity in the South African freight logistics system. Transnet allocates cargo to Maputo on an equitable basis to ensure that the system doesn’t choke, i.e., Richards Bay and Durban cannot accommodate all cargo from the hinterland, therefore, the Port of Maputo provides an alternative to execute Customer demand, especially when Transnet Port Terminals are oversubscribed.

Over the past three years, the Port of Maputo recorded significant growth in bulk commodities like Chrome, Coal and Magnetite, and negligible growth in the container business. Transnet is implementing strategies to improve the availability and reliability of plant and equipment to enable the clawing-back of cargo volumes that migrated to Maputo port due to operational inefficiencies.

High-level initiatives to enable volume claw-back include, but are not limited to:

  • long-term partnerships with Original Equipment Manufacturers to reduce response time to plant and equipment failures
  • implementing a reliability-based maintenance regime
  • implementing continuous improvement initiatives as identified in the turnaround plan to drive the achievement of terminals-wide performance norms
  • introduction of the 4th shift operation philosophy to improve throughput, performance levels and ultimately Customer satisfaction.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

08 March 2024 - NW156

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Graham, Ms SJ to ask the Minister of Public Enterprises

With reference to Eskom’s Tarriffs and Charges Booklet 2023-24 there is no Tariff 1 scale applicable to normal prepaid meters, (a) what are the reasons that the specified tariff scaleis not included in the above-mentioned booklet (b) where can consumers find the specified information readily available (c) who determines the scale and (d) what scale is applied to smart meters? (2) Whether smart meters use more electricity than ordinary prepaid meters; if so, what (a) are the reasons for the difference in electricity usage and (b) steps will be taken to mitigate such a difference?

Reply:

According to Information Received from Eskom:

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

Eskom does not have tariffs based on the metering type. Therefore, Eskom tariffs published in the Eskom tariff book are the same for both prepaid and billed supplies and there are no tariffs that are specifically specified as “prepaid”. For example, a customer could be on Homelight 60A and take supply through either a prepaid meter or a post-paid account. They will pay the same tariff as published. Some tariffs may only be available on prepaid metering, but only a tariff scale is published, as there are no tariffs based on the metering type, whether it is a conventional meter, a prepaid meter, or a smart meter.

The tariff structure used would take into account the capability of a meter for example, can the meter measure time of use or import an export energy.

(2)(a)(b)

Smart meters do not use more electricity than ordinary prepaid meters. All meters are subjected to the same accuracy and testing in accordance with SANS 62053-21 and calibrated in accordance with SANS 474.

 

Remarks: Approved / Not Approved/Comments

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

23 February 2024 - NW3

Profile picture: Breedt, Ms T

Breedt, Ms T to ask the Minister of Public Enterprises

What is the current status of the private sector participation tender regarding the Ngqura Container Terminal in Port Elizabeth? (2) Whether there are sufficient bid submissions to proceed with the specified tender in its original format; if not, why not; if so, what are the relevant details? (3) Whether any changes will be made to the tender guidelines to improve private sector participation in the tender process; if not, why not; if so, what are the relevant details? (4) Whether he will make a statement on the matter.

Reply:

According to the information received from Transnet

1. The Ngqura Container Terminal (NCT) private sector participation (PSP) transaction ran alongside the Durban Container Terminal (DCT) Pier 2 transaction, with the intention to position it as a transshipment hub for SA, based on the location of South Africa, adjacent to major sailing routes such as Asia and West Africa and Asia and South America trades.

There was an initial interest for the PSP in the terminal, as demonstrated by responses received during the Request For Information and the Request For Qualification processes, with four respondents shortlisted to participate in the Request For Proposals (RFP) process. However, there was no response received on the final RFP submission date. Some respondents cited challenges in meeting the volume requirements for NCT, which were stipulated in the RFP documents, and therefore the PSP for NCT was not awarded.

2. There was no response to the RFP process as outlined above and the PSP could not be awarded.

3. Transnet’s strategy to position the terminal as a transshipment hub has not changed. Management is considering options on how to proceed with the PSP, and a decision has not been taken yet whether this will include amending the RFP requirements or whether other alternatives to the initial PSP process will be considered.

4. Further announcements will be made when there is further progress.

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

23 February 2024 - NW58

Profile picture: Gondwe, Dr M

Gondwe, Dr M to ask the Minister of Public Enterprises

What (a) may have been the cause of the lack of improvement at the Cape Town harbour in December 2023 and (b) was the level of efficiency of the Cape Town harbour in December 2023; (2) Whether there has been an increase in shifts and manpower during the busy deciduous export season at the Cape Town harbour; (3) Whether there were any major delays at the Cape Town harbour over the period of December 2023; if not, what caused the inefficiency at the harbour; if so, what caused these delays; (4) Whether the seven pre-used rubber-tyred gantry cranes that were delivered in December 2023, have been integrated into the harbour’s activity yet? NW59E

Reply:

According to the information received from Transnet.

Major problems at CTCT that impact on its operations is twofold:

(i) The first is the extreme windy conditions which paralyzes operations for long periods of time. Transnet has obviously no control over this problem.

(ii) The shortage of equipment.

(iii) Not withstanding the above, excellent progress has been made by putting in place an experienced management team, installing new equipment on an incremental basis and ensuring that both cranes and other equipment are able both to steady ships in rough weather and cranes which operate in windy conditions.

(1)(a) CTCT only executed 12 vessels for the month, compared to an average expectation of 20 per month. In 2023, CTCT recorded the highest number of hours lost due to strong winds in December, with 183 hours (equivalent to eight days) lost compared to 150 hours during the same period in 2022. The increased wind speed experienced also prevented the safe docking of some vessels into the terminal. When the terminal goes windbound, it means that the terminal must cease operation for safety reasons.

CTCT has also been challenged with equipment unavailability of especially Rubber Tyred Gantry (RTG) cranes and Haulers, which have exceeded their design life. Equipment breakdowns result in crane down time and reduced productivity over the quay. TPT have since made significant strides in improving the availability of equipment, particularly through the delivery of 7 used RTGs in December 2023, 6 of which are already in operation. Training has been done on this new equipment.

In addition to the above, the terminal was shut for the public holidays on 25th December 2023 and 1st of January 2024.

(1)(b) While CTCT’s headline productivity measure is the Moves per Ship Working Hour (SWH), which measures the average container moves on a vessel per hour, the current focus is on a number of containers moved over the quayside over a 24 hour period. This helps to maximise the volumes rather than focusing solely on SWH which can be compromised if the focus is on volumes.

For the month of December, CTCT averaged an SWH of 27,6 moves per hour, servicing a 2-Berth operation for a portion of the month while the 7 used RTGs were discharged at one of the berths. In January, the terminal resumed a 3-berth operation, but this means that cranes and supporting RTGs and Haulers were spread across 3 vessels instead of 2, resulting in a reduction in equipment allocation per vessel. As a result, the SWH for January 2024 was 22.

A more realistic indication of the operational improvement is the overall throughput across all berths, which is measured by the daily container moves. For the month of December, the terminal moved an average of 700 containers per day. Container moves in January increased to 842 moves per day and 1164 moves per day for February month to date. Furthermore, the average daily rate for the last 7 days is 1238. This reflects an upward trend in operational activity. The immediate target is to ramp up to 1500 container moves per day, with an aspiration to improve further to 1700 per day.

(2) Since the beginning of December, CTCT appointed additional personnel, which coincided with the ramp-up of the current deciduous season. These include appointments of Diesel Mechanics, Millwrights, Driver Articulated Vehicles and Operators of Lifting Equipment amongst others. A Team from Navis, the software system used to operate the terminal, is also in CTCT to train the Planners and Supervisors to use the system optimally and improve efficiencies.

(3) In 2023, CTCT recorded the highest number of hours lost due to strong winds in December, with 183 hours (equivalent to eight days) lost compared to 150 hours during the same period in 2022. The increased wind speed experienced also prevented the safe docking of some vessels into the terminal. When the wind is terminal bound, it means that the terminal must cease operation for safety reasons.

As previously indicated above, the delays can be linked to the equipment availability challenges, particularly with aging RTG cranes and Haulers which CTCT currently faces. This has led to downtime and reduced productivity along the quay. TPT has made significant progress in addressing this, obtaining 7 used RTGs in December 2023, with 6 already in operation and staff trained on the new equipment.

(4) Since the delivery of Rubber-Tyred Gantries (RTGs) on 11 December 2023, the Cape Town Container Terminal (CTCT) has completed the following:

  • Fully commissioned a total of six RTGs with the seventh still in progress.
  • A total of 54 Operators of Lifting Equipment (OLE) have completed training on the pre-used RTGs.
  • Six RTGs have been successfully handed over to Operations. These machines now fully form part of our RTG fleet.
  • The seventh RTG wasn’t successfully commissioned due to additional parts it required, which are on order from abroad. The commissioning process is in progress. It is projected that all seven RTGs will be operational by the end of February 2024.

 

Remarks: Reply: Approved / Not Approved/ Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date:

23 February 2024 - NW59

Profile picture: Gondwe, Dr M

Gondwe, Dr M to ask the Minister of Public Enterprises

Whether compared to December 2022 there have been any improvement in January 2023 in the turnaround time in respect of cargo handling, especially of deciduous fruits being exported from Cape Town; (2) What (a) was the impact of strong winds/bad weather on the efficiency of the harbour at Cape Town during 1-31 December 2023 and (b) total number of working days or hours were lost due to bad weather in this period; (3) Whether, with regards to big shipping companies diverting their ships away from the Suez Canal via Cape Town, there has been an increase in ships docking at the port in Cape Town due to this diversion; if so, how many?

Reply:

According to the information received from Transnet

(1) and (2) Kindly see the response provided in Parliamentary Question No. 58

(3) Cape Town Terminals have contracted line services calling in accordance with the terminal’s full capacity design. Therefore, any additional vessels are reviewed and handled on an ad-hoc basis, depending on the occupancy and availability.

Cape Town will see short-term benefits as there is an opportunity for the Western and Northern Cape deciduous fruit exporters to export more of their produce to Europe and America.

Most vessels now re-routing via the Cape of Good Hope (COGH) would still have cargo for foreign destinations and therefore would not necessarily request to stop in South Africa for additional volumes. However, the South African Ports will continue to pursue additional business opportunities which may arise from the additional vessels calling via COGH.

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date:

23 February 2024 - NW68

Profile picture: Smalle, Mr JF

Smalle, Mr JF to ask the Minister of Public Enterprises

What (a) total number of cases of (i) theft of transformers and/or (ii) sabotage to electrical infrastructure were reported in the (aa) 2019-20, (bb) 2020-21, (cc) 2021-22 and (dd) 2022-23 financial years and (b) was the financial cost in terms of each province;

Reply:

According to information received from Eskom:

(1)(a)(i)

The number of electrical infrastructure theft incidents is depicted in the table below:

 

Sum of Events ID

             

Operating Unit

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

Grand Total

Eastern Cape Operating Unit

1171

1080

1194

1280

1418

986

7129

Free State Operating Unit

702

582

569

554

518

420

3345

Gauteng Operating Unit

1849

1195

1400

1116

771

699

7030

KwaZulu-Natal Operating Unit

2159

1290

1489

1152

1125

1383

8598

Limpopo Operating Unit

924

828

852

857

707

523

4691

Mpumalanga Operating Unit

732

702

731

837

764

667

4433

North West Operating Unit

892

878

803

767

675

507

4522

Northern Cape Operating Unit

462

434

410

449

422

367

2544

Western Cape Operating Unit

269

274

261

372

322

253

1751

Grand Total

9160

7263

7709

7384

6722

5805

44043

               

The number of transformer theft cases that were reported is depicted in the table below:

(1)(b)(i)

Data not available for (aa) 2019-20, (bb) 2020-21 and (cc) 2021-22 (dd) 2022-23: A direct loss of R18 953 668.45 was reported relating to the theft of transformers.

(2)(a)

  • The total number of failed transformers in Eskom across the nine provinces due to theft is 1347 as of 09 February 2024. Failed transformers are replaced daily, while failures as a result of theft and vandalism also take place frequently.
  • The main causes of these transformer failures include overloading, which occurs when customers have tampered with or bypassed their meters, illegal connections which have bypassed the fuses and breakers that are meant to protect the transformer from overloading, as well as theft and vandalism.
  • Eskom remains committed to replacing failed transformers soon after tamper fines have been paid by the customers and the replacement criteria have been met.

(2)(b)

  • Collaboration with SAPS, SSA, and NPA [MAJOC/Priority Committee, ProvJoints, NatJoints] for continued support regarding crime prevention, disruptive operations, intelligence gathering, investigations, arrests and prosecutions.
  • Implementation of technology to inform security designs for substations, powerlines and all Eskom facilities.
  • Continually assessing threats and risks with appropriate plans for high-risk sites.
  • Collaboration with communities to create awareness and encourage them to pay for electricity and take ownership thereof.
  • Collaboration with the private security industry through enabling contracts.
  • Strengthening of governance among the private security role-players that conduct business with Eskom.
  • Conducting risk assessments and identification and classification of high-value assets and high-risk sites.
  • Strengthening of security measures through investment in physical security technologies through the leveraging of the existing resources within Eskom Distribution.

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

09 January 2024 - NW3295

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

In light of the fact that the strategies that he has been implementing to improve the performance and accountability of the state-owned enterprises (SOEs) over the years have failed, what is the new and revised strategy of his department to bring stability to the SOEs?

Reply:

  1. Strategies to improve the performance and accountability of State-Owned Enterprises (SOEs) have not failed.
  2. It is worth noting that SOEs face structural, operational and financial issues.
  3. There has been progress although there have been some setbacks. The following are some of the examples denoting progress registered to date:

Eskom

Restructuring proceeding: Eskom’s vertically integrated structure is no longer suitable to meet the country’s energy needs and has made the utility susceptible to the kinds of problems it has recently experienced including state capture and dependency on fiscal allocations. Therefore, Eskom is currently being restructured into three subsidiaries i.e. generation, transmission and distribution as per the 2019 Roadmap For Eskom in a Reformed Electricity Supply Industry.

Currently the Eskom Transmission Division is undergoing a process of legal separation to form the National Transmission Company of South Africa (NTCSA). The NTCSA was incorporated into a wholly owned subsidiary of Eskom Holdings in December 2021. The National Energy Regulator of South Africa (NERSA) approved the licence for NTCSA to operate the electricity transmission system as well as trading and import/export licences. Eskom’s plan is to commence trading by April 2024, but this is dependent on obtaining lenders consent which is currently being sought. The application for the designation of the NTCSA as a buyer has been supported by the Department of Mineral Resources and Energy (DMRE) and is being finalised by NERSA. The appointment of the NTCSA Board of Directors is underway. It is expected that NTCSA will be operationalised in April 2024.

Similarly, the Eskom Distribution Division is undergoing legal separation to form the National Electricity Distribution Company of South Africa (NEDCSA). The functional separation for Distribution was completed in March 2021. A new company, the National Electricity Distribution Company of South Africa SOC Ltd (NEDCSA), has been registered. The Minister of Finance and Minister of Public Enterprises has granted approval of the PFMA application in terms of section 54(2)(a) and 54(2)(d) for the transfer of the distribution business assets to the NEDCSA. It is expected that NEDCSA will be operationalised and trading by 2025. Functional separation for the Eskom generation business was completed in March 2021.

Generation improvement: To end loadshedding, Eskom has implemented a Standard Offer Program to purchase excess power from private generators and from neighbouring countries. The Standard Offer Programme is fully subscribed for the 1000 MW. Consideration is being given to extending the capacity and duration of the programme to take advantage of additional opportunities. Furthermore, An Eskom Emergency Generation Programme has been implemented, to procure emergency power when the grid is under significant strain. To date 60 MW has been signed on to the programme and is available to the grid. A further 150 MW is expected to be on-line from the Risk Mitigation Independent Power Producer programme by December 2023. Between 2028-2023 approximately 2411 MW of new capacity was brought online via the Department of Mineral Resources and Energy’s (DMRE) Renewable Energy Independent Power Producer Programme (REIPPP).

Eskom is currently in a process of extending the life of KNPP by an additional 20 years. Key to the life extension programme is the replacement of three life limiting components, namely, refuelling water storage tanks (RWST), reactor pressure vessel heads (RPVHs) and steam generators (SGs). Despite some setbacks, Eskom has replaced two of the three life limiting components i.e. RWST and RPVH. On 28 July 2023 Eskom replaced Unit 1’s stream generators and Unit 2 is undergoing similar replacement so to ensure energy security.

But unless new megawatts are added to the entire system, minimal loadshedding will continue in short term.

SAA

SAA is on its way to financial and operational sustainability. SAA’s 2021/2022 financial statements, indicate that the airline emerged from business rescue as a company that was liquid and solvent. After exiting the business rescue process its assets of R8.9-billion exceeded its liabilities of R5.8-billion, resulting in positive equity of R3.1-billion. SAA is now a going concern. During the period ended 31 March 2022, SAA operated on average five narrow-body (i.e., 3 x A319s and 2 x A320s) and two wide-body (i.e., 1 x A330 and 1 x A340) aircraft. The narrow-body fleet peaked at seven in December 2022 when SAA received two A320 deliveries to replace the A319s. The A319s exited the airline fleet in March 2023, leaving the airline with five A320s.

Despite fleet acquisition challenges, the airline will end fiscal year 2024 operating 17 routes, including Sao Paulo, and Perth, Australia and seasonal domestic routes which are George and Port Elizabeth

Transnet

There has been progress registered despite the structural setbacks experienced by Transnet relating to maintenance, equipment and crime. These will be addressed through the turnaround plan as well as the initiatives of the National Logistics Crisis Committee (NLCC).

In October 2023 Transnet developed a recovery plan (Turnaround Plan) outlining various measures planned and implemented across the operating division to improve operating performance, enhance effectiveness, and attain improved financial sustainability. The recovery plans include amongst other are reforms proposed by the NLCC in the Freight Logistics Roadmap such as vertical separation of Transnet Freight Rail into rail infrastructure manager and operation collaboration with private sector in ports and rail to resolve operating and financial challenges experienced.

  • New top management will be put in place in Eskom and Transnet.
  • The focus is now on creating financial and operational efficiency.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW3779

Profile picture: Graham, Ms SJ

Graham, Ms SJ to ask the Minister of Public Enterprises

With reference to Eskom’s required Atmospheric Emission License (AEL) reports published on the Eskom website data portal, what are the reasons that Eskom has not provided monthly reports on AEL for each of the power stations for most of the months in 2023? (2) How does Eskom identify and ensure compliance with the requirements of the AEL for its power stations in the absence of monthly reports? (3) What measures and/or procedures does Eskom have in place to monitor and verify compliance with the conditions of the AEL, given the lack of monthly reports? (4) Whether there are any alternative reporting mechanisms and/or systems in place that Eskom utilises to track and document emissions data in the absence of regular monthly reports; if not, why not; if so, what are the relevant details?

Reply:

According to information received from Eskom:

1. The emission reports in terms of the atmospheric emission licence (AEL) are compiled monthly and submitted to the licensing authorities by the power stations and the Head Office receives a copy of these reports when it is sent to authorities.

As of 23 November 2023, 17 out of 18 stations are up to date with their submission to the licensing authorities. Eskom experienced a delay in uploading the submitted and completed AEL monthly reports to the Eskom data portal due to issues with system access rights. These issues were resolved in October 2023 and all completed reports have been updated on the portal. Eskom will be able to keep the portal regularly updated going forward. Duvha power station is the only station which has been delayed in submitting to the data portal. The reports are being revised based on data issues identified through the internal quality control processes and this report will be submitted in December 2023.

2. There was no absence of monthly reporting as indicated above. There was only a delay in making the reports publicly available on the data portal.

Monitoring of emission compliance with the AEL limits is carried out continually at the power stations using continuous emission monitors located in the power station stacks. Compliance with the emission limits is tracked continuously and reported on a daily, weekly, and monthly basis within Eskom.

3. There was no absence of monthly reporting. Reports were prepared and submitted to the authorities. However, there was a delay in making the reports publicly available on the Eskom data portal.

4. There was no absence of monthly reports. The reports were prepared and submitted to the authorities. However, there was a delay in making the reports publicly available on the Eskom data portal.

Therefore, the reporting within Eskom, to the relevant authority, and to the public is complied with and in order.

 

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4149

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Buthelezi, Mr EM to ask the Minister of Public Enterprises

Whether his department will review the current model of fixing state-owned enterprises which has proven to be ineffective; if not, why not; if so, what are the relevant details?

Reply:

The impact of state capture and the climate of rentseeking and corruption at all levels, including the deliberate efforts of previous boards and management to force the departure of honest and skilled professions, particularly black professionals, will take unrelenting and courageous commitment to overcome.

Much progress has been made to recover operations, introduce skills and financial controls to overcome the legacy of corruption.

However, introducing ethical business practices in the private sector, both global and local, big and medium businesses, will require a total societal commitment. All social actors, including political parties, (many of which do not necessarily have “clean hands”) must publicly take an uncompromising stand on corruption and operational efficiency, and be seen to act accordingly – not just attempt to make political capital from a matter that we must act on the basis of national interest.

Boards and management at various entities are constantly introducing innovations and undertaking a constant battle against all forms of negativity.

This also involves new initiatives by the President and cabinet. The Presidential SOE Council (PSEC) is one such example.

The PSEC recommended that the Centralized Model be adopted to oversee the State-Owned Enterprises (SOEs) with development of the National Enterprises Bill and formation of the State-Owned Holding Company. On this basis, the Department then developed the National State Enterprises Bill. The Bill was published on 15 September 2023 for public comment, and the public comment period concluded on 14 October 2023. The Bill incorporates PSEC’s recommendation to adopt a centralized shareholder model to improve the management and oversight of South African State-Owned Enterprises (SOEs).

Eventually, we shall overcome the forces of darkness, corruption and negativity – the bankruptcy of ideas permeating many at present. Slogans alone will not work!

Remarks: Reply: Approved / Not approved/ Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4183

Profile picture: Graham, Ms SJ

Graham, Ms SJ to ask the Minister of Public Enterprises

What (a) are the details of the (i) metros and (ii) local municipalities in which Eskom installed smart meters in the past five years as a means of demand-side management and (b) were the costs of the installation of the smart meter programmes in each specified metro and local municipality? (2) Whether the smart meters are being used effectively to control demand; if not; (a) why not and (b) what steps have been taken to address the shortcomings; if so, what are the relevant details?

Reply:

According to information received from Eskom:

(1)

(a) The smart meters that were installed during the past five years were mainly for grid modernisation, increased operational efficiency, revenue collection improvement and technology enhancement. The current non-smart meters that were in use have almost reached the end of life as technology is continuously developing. Internationally, all meters are read and controlled remotely with big data being collected from installed smart meters to enhance services offered to customers.

Eskom has started a project to use the already-installed meters for demand management i.e: using the load-limiting functionality which is built into smart meters. The first phase of the project was in Gauteng (Fourways) to ensure that the system worked as per design before the national rollout. At this stage, Eskom is preparing to roll out load limiting in all areas nationally, where smart meters are installed, following the successful implementation of the project in Fourways.

(i) Metros:

Sandton/Midrand – The full rollout of load limiting on installed smart meters in Sandton/Midrand is part of the second phase of the load limiting project. To this effect, the load limiting project in Fourways has already been extended to over 5000 smart meters in Riverside (Fourways area).

(ii) Municipalities:

Smart meters were installed at Raymond Mhlaba Municipality in the Eastern Cape for a Pilot Project known as Metering as a Service (MaaS). Part of the second phase of the national load-limiting rollout is to engage the municipality and implement load limiting on the installed smart meters.

(b) The installed cost of a single-phase meter ranges between ± R1 700 and ± R2 700 for a three-phase meter, if it is a straight meter swap out. Labour costs are included.

(2)

(a) Eskom has started a project to use the already-installed smart meters for demand management, using the load-limiting functionality built into smart meters. The first phase of the project was in Gauteng (Fourways) to ensure that the system worked as per design before the national rollout. At this stage, Eskom is preparing to roll out load limiting in all areas nationally where smart meters are installed following the successful implementation of the project in Fourways.

(b) Since June 2021, Eskom has only been installing smart meters for electrification projects and maintenance. Load limiting will be phased in on all installed smart meters under the national load limiting project.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4191

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Essack, Mr F to ask the Minister of Public Enterprises

What total kilometres of Transnet Freight Rail (a) railway tracks have fallen into disuse since 27 April 1994 and (b) copper cables have been stolen since 1 April 2019. NW5473E

Reply:

According to the information received from Transnet

a) A total of 3 636 kilometers of railway track have fallen into disuse since April 1994 to the end of November 2023.

b) TFR has lost 4 633 kilometers of copper cable through theft from 2019/20 financial year to date as of the end of October 2023.

 

Remarks: Approved / Not Approved/Comment

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4193

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Essack, Mr F to ask the Minister of Public Enterprises

(1) What total amount of private investment has been invested since 1994 in State Owned Enterprises (SOEs) reporting to him; (2) Whether any of the SOEs reporting to him hold any investment stakes in any commercial entities located in foreign jurisdictions; if not, what is the position in this regard; if so, (a) what is the (i) name of each foreign commercial entity and (ii) total amount of each investment stake and (b) how much in dividends has each SOE realised through the specified investment stakes?

Reply:

According to information received from Alexkor, Denel, Eskom, SAFCOL, Transnet and SAA:

ALEXKOR

  1. None

Alexkor and the PSJV do not hold or plan to hold any investment stakes in any commercial entities located in foreign jurisdictions.

DENEL

1. Not applicable

2. (a)(i) Entity1: Barij Dynamics (49%) (ii) R22 858 500

(a)(i) Entity 2: Pioneer Land Systems (49%) (ii) R0

(b) Barij Dynamics R91 953 908

(b) Pioneer Land Systems R0

ESKOM

  1. None
  1. Eskom has no investment stakes in any commercial entities in foreign jurisdictions.

SAFCOL

  1. No private investment in SOC
  1. (a)(i) Industrias Florestais de Manica in Mozambique

(ii) Equity: R8 433 539

  1. (b) Zero dividends

TRANSNET

Gaborone Container Terminal (GABCON)

Botswana Railways (BR) and Transnet (trading as Spoornet) entered into Memorandum of Agreement (MOA) on 16 August 1996. BR and Transnet agreed to build a new container terminal at a cost of R14million, where each party contributed equally. Further, it was agreed that a 50:50 Joint Venture Agreement (JVA)

would be created to manage total investments for both parties.

 

Country of Registration:

Botswana

 

Strategic Objectives:

Regional Container Terminal Hub

 

Shareholding:

Botswana Railways (64%) and Transnet SOC Ltd (36%)

 

Dividends realised to date.

R5,4million

SAA

 
  1. SAA currently does not have records of private investment transactions. Our current records indicate that No amount (Nil Rand Value) has been invested in SAA.

However, we see from the attached news coverage that 20% stake in SAA, along with an option for a further 10% was sold to Swissair in June 1999 for R1,4-billion (about $200 million at the time) as part of the government’s privatisation process.

The South African government is to buy back the 20% stake in the country’s national carrier, according to the then Minister of Public Enterprises, Mr Jeff Radebe, under government’s transport subsidiary Transnet.

SA to buy back 20% Swissair stake in SAA - The Mail & Guardian (mg.co.za)

  1. SAA does not hold any investments in any commercial entities located in foreign jurisdictions.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4052

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Graham, Ms SJ to ask the Minister of Public Enterprises

Whether Eskom has determined the extent to which ghost vending impacts the revenue and financial stability of it and local municipalities; if not; why not; if so; what are the relevant details; (2) Whether any measures are in place to detect and prevent electricity ghost vending; if not, why not; if so, (a) what measures and (b) what are the legal penalties or consequences for individuals or entities involved in electricity ghost vending; (3) Whether Eskom has provided vendor education about the risks and consequences of selling illegally obtained electricity tokens or units; if not, what steps are being taken to raise awareness about electricity ghost vending and encourage consumers to purchase electricity tokens from authorised and reputable sources; (4) Whether there are any technological advancements or innovations being implemented to enhance the security and integrity of electricity token distribution and usage; if not, what is the position in this regard; if so, what are the relevant details; (5) (a) how can consumers protect themselves from inadvertently becoming victims of electricity ghost vending schemes and (b) what action processes are provided by Eskom for communities or individuals who suspect they may be affected by electricity ghost vending activities in their area?

Reply:

According to information received from Eskom:

(1)

Eskom is unable to quantify the ghost vending impact since it is difficult to determine the revenue losses directly associated with illegal sales, as they are done clandestinely.

(2)(a)(b)

Eskom works closely with law enforcement agencies, including the Hawks, to conduct covert investigations on detected or reported illegal vending activities and thereafter tries to locate illegal vending machines, confiscate, and criminally prosecute the perpetrators. On 02 November 2023, the Pretoria High Court granted a preservation order to the amount of R36 million on the property (movable and immovable) belonging to 13 ring leaders of an illegal vending syndicate.

Eskom has recently upgraded its Online Vending System (OVS) to be compatible with Key Revision Number 2 (KRN 2) software and the meters are being converted to KRN 2 applications where the ghost tokens will not be credited by the meters. Furthermore, Eskom is in the process of replacing the current OVS with a new one. The current vending system has been in operation for 16 years and there is a need for a more modern and integrated one.

Eskom conducts meter audits and the customer credit that was not bought through Eskom agents is removed, thereafter the prepaid meter box is disconnected immediately. The customer is then required to pay a minimum fine of R6 052.60.

(3)

Eskom-approved prepaid electricity vending agents are given clear terms and conditions in the service level agreement with specifications on the service scope and control measures. Notifications or warnings are provided regarding the consequence of selling illegally, otherwise the terms and conditions of the contract and service level agreements are enforced.

(4)

(a) Eskom has since decommissioned all officially registered offline Credit Dispensing Units and security modules and migrated to a new centralised OVS. The new Online Vending STS6 security modules have embedded security features that automatically disable a security module after either a certain amount of electricity is sold or after a set duration.

Also, Eskom has recently upgraded the OVS to be compatible with Key Revision Number 2 (KRN 2) software and the meters are being converted to KRN 2 applications where the ghost token will not be credited by the meters. In addition, Eskom is in the process of replacing the current OVS with a new system. The current vending system has been in operation for 16 years and there is a need for a more modern and integrated one. The new system is also expected to have better controls to minimise fraudulent activities.

(b) Eskom periodically runs campaigns to educate customers regarding energy losses and illegal vending is part of this campaign.

Customers are also urged to buy Eskom prepaid vouchers only from legal Eskom national vendors that have their footprint in supermarkets, petrol stations and local shops with registered point-of-sale machines, ATMs, mini markets, mobile apps, and online banking. Customers are encouraged to be vigilant and not be deceived or tempted on social media by unknown people promising big discounts for their purchases. Customers are advised to report incidents of suspected illegal buying of electricity in their areas to the SMS crime line number 32211 or call the Eskom contact centre on 0860037566.

(5)

(a) Customers are informed through campaigns and customer education to buy Eskom prepaid vouchers only from legal Eskom national vendors such as supermarkets, petrol stations and local shops with registered point of sale machines, ATMs, mini markets or mobile apps and online banking and not be deceived and tempted on social media by unknown people.

(b) Customers are urged to report such activities to Crime line number 32211 or call the Eskom contact centre on 0860037566. Eskom also continuously runs campaigns to educate customers about ghost vending.

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4139

Profile picture: Mhlongo, Ms N

Mhlongo, Ms N to ask the Minister of Public Enterprises

Whether Eskom is steadfast in its commitment to a cost-reflective pricing structure; if not, why not; if so, (2) Whether the cost-reflective tariffs will consider the (a) socioeconomic situation, (b) issue of indigents and (c) monopolies that exist in the Republic; if not, why not; if so, what are the relevant details; (3) What has he found is the (a) efficiency, (b) cost-benefit and/or (c) even opportunity cost of using open cycle gas turbine?

Reply:

According to information received from Eskom:

(1)

Yes, Eskom is committed to a cost-reflective pricing structure, and it is still in the process of migrating towards cost-reflective pricing – recovering all efficient costs, as required in terms of the Electricity Regulation Act (ERA). The National Energy Regulator of South Africa (NERSA) makes all decisions on the pricing of electricity and Eskom implements these decisions.

(2)

These factors are considered by NERSA when NERSA undertakes revenue and tariff decisions in accordance with legislation (ERA) and policy (Electricity Pricing Policy). To deal with such matters, the government’s Electricity Pricing Policy and Electricity Regulation Act allow for targeted and transparent subsidies and cross-subsidies to particular consumer groups, as appropriate.

(3)(a)

The overall efficiency of the OCGTs is approximately 34% which is the norm for this type of technology.

(b) and (c)

The cost of running OCGTs is balanced against the cost of loadshedding (COLS) to the economy. The latest available estimate of the COLS is 12.61 R/kWh. This is significantly more expensive than the cost of running the OCGTs which varies depending on the price of diesel, which is typically in the range of 6.5 to 7.5 R/kWh.

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW2834

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

Whether he has found that Eskom assets are being sold off to private companies; if not what is the position in this regard; if so, what are the relevant details; (2) whether he will remain resolute in the face of opposition by encouraging public-private partnerships at (a) Eskom and (b) Transnet; if not, why not; if so, what are the relevant details?

Reply:

1. No part of Eskom’s restructuring involves selling any of its assets. Eskom is being restructured into three separate and distinct subsidiaries – generation, transmission and distribution – which will be 100 percent wholly owned by the State.

2. Public-private partnerships have previously been acknowledged as a way to unlock critical investment opportunities for the SOEs. They are also critical in helping the state to address competing fiscal priorities by making SOEs more financially sustainable and self-reliant.  These partnerships also enable crowding in of appropriate skills and capital. This ensures that the national interest is best served by creating a collaborative ethos among all stakeholders, including labour.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW2605

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Shivambu, Mr F to ask the Minister of Public Enterprises

(1)(a) What is the name of each company that will be created out of the unbundling of Eskom, (b) who is the director of each specified company, (c) what is the composition of their boards and (d) what are the relevant details of the initial capitalisation of each company; (2) whether he will furnish Mr N F Shivambu with the memoranda of incorporation of each company; if not, why not; if so, what are the relevant details?

Reply:

(1)(a)

  • The Transmission Division will become the National Transmission Company South Africa (NTCSA SOC)
  • The Distribution Division will become the National Electricity Distribution Company South Africa (NEDCSA SOC)

(1)(b)

The National Transmission Company of South Africa (NTCSA) currently has the following directors:

  1. Elsie Pule
  2. Calib Cassim
  3. Segomoco Scheppers

The National Electricity Distribution Company of South Africa currently has the below-mentioned directors:

  1. Elsie Pule
  2. Calib Cassim
  3. Monde Bala

It must be noted that Mr de Ruyter is being replaced by Ms Elsie Pule on boards of the above two entities. So, in the near future Mr de Ruyter will not reflect as a director. It is to be noted that the removal of Mr de Ruyter from CIPC had been delayed by the lack of a recently certified ID copy from him and CIPC refused to make a change without a recently certified ID. The companies have since prepared an affidavit for consideration by CIPC to enable the deregistration of Mr de Ruyter as a director.

(c )

One African male, one coloured male and one African woman.

(d)

Details entailed in the MOI are attached.

(2)

MOI attached.

 

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4015

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

What (a) are the (i) names and (ii) positions of officials of his department who travelled abroad in the 2022-23 financial year and (b) was the (i) purpose, (ii) total cost and (iii) total breakdown of such costs of each specified visit?

Reply:

Names (i)

Positions (ii)

Purpose (i)

Total cost (ii)

Breakdown (iii)

Borotho Nthabiseng

Chief of staff

Official visit to UAE

86 252.00

43 126.00

Gordhan Pravin

Minister

Official visit to UAE

 

43 126.00

 

 

 

 

 

Molisane Jacky

ADG

Official visit to Kenya

45 417.57

45 417.00

 

 

Official visit to Kenya

3 901.25

3 901.25

 

 

 

 

 

Masualle Phumulo

D Minister

Official visit to Dakar

18 722.35

6 240.78

Jacky Molisane

ADG

Official visit to Dakar

 

6 240.78

Thelma Malatsi

PA

Official visit to Dakar

 

6 240.78

 

 

 

 

 

Jacky Molisane

ADG

Official visit to Dubai

8 355.98

4 177.99

Georgina Sylvester

PA

Official visit to Dubai

 

4 177.99

 

 

 

 

 

Gordhan Pravin

Minister

Official visit to Dubai

81 924.03

27 308.01

Jacky Molisane

ADG

Official visit to Dubai

 

27 308.01

Georgina Sylvester

PA

Official visit to Dubai

 

27 308.01

 

 

 

 

 

Jacky Molisane

ADG

Official visit to Kenya

17 201.93

17 201.93

 

 

 

 

 

Georgina Sylvester

PA

Official visit to Dubai

8 378.06

8 378.06

Jacky Molisane

ADG

Official visit to Dubai

8 378.06

8 378.06

 

 

 

 

 

 

 

 

 

 

Jacky Molisane

ADG

Official visit to Kenya

8 550.51

8 550.51

 

 

 

 

 

Total Allowances for all trips

 

 

37 778.00

37 778.00

 

 

 

 

 

TOTAL

 

 

 

324 859.16

 

Remarks: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW4034

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Sithole, Mr KP to ask the Minister of Public Enterprises

Whether his department have any step-by-step measures in place to ensure an effective and harmonious freight rail traffic system in Mpumalanga; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Transnet

The following steps have been implemented to ensure an effective freight rail traffic system to support the Mpumalanga region and to optimise the movement of export coal;

1. Security

  1. The activation of industry support to protect by-passes 24/7 and nightshift deployment of security personnel on the coal line. Nightshift deployment has commenced from 6 November 2023.
  2. Rapid Rail Police have been deployed from 1 November 2023 for hot spots such as Ulundi, Ogies and Rustenburg.

2. Rolling Stock

  1. Transnet looks to improve rolling stock availability through the procurement of 30 compressors for locomotives awaiting spare parts. Delivery is on track with 4 having been delivered via airfreight on 30 November 2023, a further 8 to be delivered in March 2024 and the final 18 deliveries planned for April 2024.
  2. Industry via the Richards Bay Coal Terminal (RBCT) is assisting in the sourcing of batteries for CRRC locomotives and compressors. A Mutual Cooperation Agreement (MCA) has been concluded that will allow for the procurement of 50 additional compressors and 100 full sets of batteries (1800 batteries).

3. Operational Efficiency

  1. In order to reduce export coal cycle time and increase efficiencies;
    1. Emergency working has been implemented between the Ulundi & Elubana and Iswepe & Maviristad sections that has improved transit times on the loaded and empty legs
    2. At the Geluksplaas substation that was impacted by theft and vandalism, re-energisation will be complete on 21 December 2023. The re- instatement of this substation will improve transit times between Ermelo and the mines.

 

Remarks: Approved / Not Approved/Comment

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW3248

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Lees, Mr RA to ask the Minister of Public Enterprises

Whether, given that he did not table in Parliament the annual reports for SA Airways (SAA) for the 2019/20, 2020/21, 2021/22 and 2022/23 financial years, notwithstanding clause 17(6)(e) of the International Air Services Act, Act 60 of 1993, that requires the International Air Services Council to take into account the financial capability of the applicant, the SAA currently has a valid international air services licence; if not, why not; if so, (a) on what basis was the financial capability of SAA taken into account by the international air services council and (b) what date was the international air services licence issued to SAA?

Reply:

The previous years financial statements (2019/20, 2020/21, 2021/22 and 2022/23) have been tabled.

In adherence to the stipulations set by the Domestic Air Service Regulations 1991 Section D, Clause 5(a), the interim Chief Executive Officer of South African Airways (SAA) dutifully submits monthly management accounts to the council.

With these considerations SAA was issued its international air services license in February 2020 and the license is updated as new routes are added.

 

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW3633

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Essack, Mr F to ask the Minister of Public Enterprises

What (a) number of board meetings and/or operational planning meetings of state-owned enterprises that report to him did he attend in (i) the past two financial years and (ii) since 1 April 2023 and (b) was the purpose of each meeting he attended?

Reply:

The Minister does not attend operational meetings. The Minister attends board meetings.

Alexkor

(a)(i) 2021/2022 and 2022/2023 Reporting Period

  • The current interim board of Alexkor was appointed in February 2022 and the Minister convened an introductory meeting with the Interim Board on 7 February 2022.
  • A meeting took place on 18 March 2022 following the first board meeting to provide feedback and receive guidance from the shareholder.
  • The 2021 AGM took place on 27 May 2022.
  • A meeting took place on 5 August 2022 following the strategy session of the board to provide feedback and receive guidance from the shareholder.
  • There was continuous telephonic interaction between the chair of the board and the Minister and Deputy Minister in the course of the 2022/2023 reporting period.

(ii) 2023/2024 Reporting Period to date

  • The newly appointed Deputy Minister attended the board meeting on 28 April 2023 to be briefed by the board and provide guidance from the shareholder.
  • A meeting took place on 10 August 2023 to discuss the future of Alexkor and, following the strategy session of the board, to provide feedback and receive guidance from the shareholder.
  • The Deputy Minister attended the Alexkor RMC PSJV board meeting on 11 August 2023 to meet the newly reconstituted PSJV board and provide guidance from the shareholder.
  • The 2022 AGM took place on 29 September 2023.
  • There is continuous telephonic interaction between the chair of the board and the Minister and Deputy Minister in the current reporting period.

Denel

(a)(i) Board meeting: 05 April

(b) Annual General Meetings

Please note that the Deputy Minister is also delegated to deal with Denel matters.

Eskom


(a)(i) Annual General Meeting on 23 December 2022

  1. Annual General Meeting on 30 October 2023
  1. (b) Annual General Meetings (AGMs)

Safcol

(a) (i) Annual General Meeting on 28 September 2021

(ii) Annual General Meeting on 23 September 2022

(iii) Annual General Meeting on 28 September 2023

  1. (b) Annual General Meetings (AGMs)

Transnet

(a)(i) Number of board and/or operational planning meetings attended in the past

two financial years (FY)

(a)(ii) Number of board and/or operational planning meetings attended since 1 April 2023

2021/22FY (1 April 2021 – 31 March 2022) - 2

(two)

7 (seven) since 1 April 2023

2022/23FY (1 April 2022 – 30 April 2023) - 9

(nine)

 

(b) Purpose of each meeting

Meetings attended during the 2021/22 FY

21 October 2021

Meeting with Transnet

11 January 2022

Transnet / SONA

Meetings attended during the 2022/23 FY

6 May 2022

Briefing by TNPA

12 May 2022

Follow-up meeting regarding TNPA matters

20 May 2022

DPE Budget Vote

27 June 2022

Transnet Zondo Report

26 July 2022

Briefing by the Board on Transnet AGM of 27 July 2022

27 July 2022

Transnet AGM

5 August 2022

Transnet Container Corridor

28 November 2022

Vulindlela – Transnet - DPE

29 November 2022

Trilateral meeting: Vulindlela, DPE and Transnet

Meetings attended from 1 April 2023 to date

21 June 2023

Meeting with the Transnet Board

11 July 2023

Meeting with Shareholder Minister

18 July 2023

Transnet New Board Members

5 September 2023

SCOPA Review of 2021-22FY Annual Report, Irregular and wasteful expenditure of Transnet

Meetings attended from 1 April 2023 to date (continued)

28 October 2023

Transnet Turnaround Plan by Board

29 October 2023

Engagement with SATAWU/Shareholder/Transnet Board

13 November 2023

Workshop: DPE/AGSA/SOEs on Budgetary Review (BRRR)

South African Airways (SAA)

a) (i) 22 November 2021

22 February 2022

 10 November 2023

(ii) The three meetings attended by the Minister was for the purpose of Annual General Meetings (AGM)

 

Remarks: Reply: Approved /Not approved/Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW3761

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Pambo, Mr V to ask the Minister of Public Enterprises

Noting that The Petroleum Oil and Gas Corporation of South Africa (PetroSA) has the poorest Broad-Based Black Economic Empowerment scorecard of Level 9, which is non-compliant compared to all other state-owned enterprises, what are the reasons that Eskom continues to conduct business with PetroSA when Eskom can get a cheaper product from service providers other than PetroSA?

Reply:

According to the information received from Eskom:

Eskom follows an open, fair, transparent, and competitive procurement processes in sourcing its goods and services as prescribed by National Treasury Regulations, Eskom Procurement Policy and Procedure (32 – 1034), as well as the legislative requirements (PPPFA, BEE, NIPP, etc). These processes entail:

  • A robust selection process to appoint qualifying suppliers to provide goods and services using the following criteria: 1) Technical capability and capacity, 2) Quality and competitiveness, 3) BEE, and 4) Price.
  • Once the suppliers have been identified through this process, a ranking based on preference points (price and BEE) is used to select the highest-ranked supplier to be awarded a contract.

An open market tender process was followed to award PetroSA

  • The process described above was undertaken to award the current contracts for fuel supply where PetroSA was the highest ranked (BEE level 4 and competitive price = discount of wholesale price) at the point of award (2019).
  • This was submitted and approved by the delegated approval authority (DAA).
  • These contracts will expire in September 2024 and a similar process is currently underway to source suppliers to replace the existing contracts.

Concern over high price

  • At the time of the award, PetroSA offered the highest discount/litre compared to other bidders.

Detailed market analysis

  • Eskom conducts a market analysis for benchmarking purposes and scans the market for potential new entrants.
  • Eskom also monitors the market in search of opportunities for price renegotiations where possible.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

08 January 2024 - NW3780

Profile picture: Graham, Ms SJ

Graham, Ms SJ to ask the Minister of Public Enterprises

With reference to Eskom’s required Atmospheric Emission License (AEL) reports published on the Eskom website data portal; (a) how does Eskom plan to address the specified issue moving forward to ensure consistent and transparent reporting on AEL compliance for all power stations and (b) what are the full details of any corrective actions and/or initiatives that have been undertaken by Eskom to rectify the reporting gaps and improve compliance monitoring in relation to the AEL? (2) Whether Eskom faced any regulatory and/or enforcement actions due to the lack of regular reporting on AEL; if not, what is the position in this regard; if so, what are the relevant details? (3) (a) What steps is Eskom taking to enhance transparency and accountability in reporting on atmospheric emissions and (b) how will stakeholders be kept informed about progress in this regard? NW4996E

Reply:

According to the information received from Eskom:

(1)(a)The atmospheric emission license (AEL) emissions reports are compiled monthly and submitted to the licensing authorities by the power stations, and the Head office receives a copy of these reports when it is sent to authorities. Most of the stations are up to date with their submissions to the licensing authorities. However, Eskom experienced a delay in uploading the submitted and completed AEL monthly reports to the Eskom data portal due to issues with system access rights. These issues were resolved in October 2023, and all completed reports have been updated on the portal. Going forward Eskom will keep the portal regularly updated.

(b) The issues in respect of access rights for the uploading of completed AEL reports have been resolved by ensuring that additional staff are trained and have the appropriate system access rights to allow the uploading of completed reports. The delayed publication of the reports on the data portal was not indicative of any gaps in compliance monitoring in relation to the AELs.

(2) There was no lack of regular reporting on AEL compliance to the authorities, and no regulatory and/or enforcement actions were implemented.

(3)(a)(b)Eskom has already published all the available monthly AEL reports as submitted to the authorities onto the public data portal. Eskom will regularly update the portal which is available to the public.

 

Remarks: Approved/Not Approved/Comment

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW4150

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

Whether his department has any projected capped amount at which it will cease to provide financial relief to state-owned enterprises; if not, why not; if so, what (a) is that amount and (b) are the further relevant details?

Reply:

The Department has no capped amount at which it will cease to provide financial relief to state-owned enterprises. Each request for financial relief is assessed on its own merit. The factors to be considered are diagnosis of the challenges the SOE is facing and the development of turnaround plan to remedy those challenges.

The Presidential State-Owned Enterprises (PSEC) was established by the President in 2020, of which the Department is the Secretariate. The task of PSEC is to reform, reposition and revitalise the SOE’s not only within the Department’s portfolio but others as well. The exercise will require some funding which may be from Government and/or from other sources including disposal of non-core assets, private sector participation amongst others. Funding will therefore be assessed on a case-by-case basis.

 

It must be emphasised that SOEs should not operate on the basis that they will always receive funding from the fiscus. In fact, SOEs must be viable in their own right as soon as possible.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3799

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

(1) whether his department has any records of cases of fraud and mismanagement of funds lodged against any of its (a) former and current senior management officials since April 1994, if not, why not, if so, what total number of (i) arrests have been made, (ii) such cases are before the courts and (iii) convictions have been secured. NW5017E

Reply:

There is 1 recorded case of mismanagement of funds by senior management official in the Department. The details are shown below:

Total of cases of fraud and mismanagement of funds lodged against current and previous senior management officials since 1994

Nature

Arrests have been made

Cases before the courts

Convictions have been secured

2020/2021 – 1 Case

Mismanagement of funds

No need for arrests. It is a civil recovery matter

Matter not before court as yet. Matter is still at pleading stage.

No need for conviction. This is a civil recovery matter.

Remarks: Reply: Approved/Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3798

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

What are the relevant details of the (a) budget allocated for and (b) actual expenditure on flights of senior management in his department in the (i) 2019-20, (ii) 2020-21 and (iii) 2021 22 financial years?

Reply:

The budget for flights within the Department is not split between senior managers and other officials. However, 95% on average of the travel is undertaken by senior managers. The total flights of officials over the last three years are shown below:

(i) 2019/20 Financial Year:

Expenditure Items

(a)

(b)

 

Total budget allocated

Actual expenditure

Flights

19 557 000

15 728 000

(ii) 2020/21 Financial Year:

Expenditure Items

(a)

(b)

 

Total budget allocated

Actual expenditure

Flights

3 924 000

2 384 000

 

(iii) 2021/22 Financial Year:

Expenditure Items

(a)

(b)

 

Total budget allocated

Actual expenditure

Flights

9 607 000

5 130 416

 

Remarks: Reply: Approved / Not Approved/Comment

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3525

Profile picture: Tambo, Mr S

Tambo, Mr S to ask the Minister of Public Enterprises

a) What steps does he intend to take to (i) curb the exodus of high-ranking officials at state-owned enterprises (SOEs) and (ii) deal with the allegations that this was due to his undue interference in the entities and (b) to what does he attribute the resignation of high-ranking officials in SOEs? NW4691E

Reply:

(a)(i) The Board of Directors, entrusted with the ultimate responsibility and guided by their fiduciary duties, is empowered to manage all facets of the SOE's business. In instances of significant operational challenges affecting both the Company and the broader economy, as exemplified by Transnet, I have tasked certain Boards, including Transnet's, with developing and implementing a recovery plan. This strategic initiative aims to reassess and enhance operational effectiveness, ultimately leading to a substantial improvement in SOE’s performance.

The Boards are wholeheartedly committed to ensuring operational continuity and the successful implementation of the turnaround plans.

(ii) The Shareholder has a responsibility to hold the Boards of SOEs accountable in line with relevant laws including the Companies Act and Public Finance Management Act. Furthermore, the shareholder exercises shareholder rights in line with the Memorandum of Incorporation. There has not been any political interference in the SOEs that resulted in any leadership vacuum.

While the Departments ensures that there is stable leadership in SOEs, we have appointed interim leaders who possess the necessary experience and expertise to effectively manage and guide Eskom and Transnet. We have recently directed the Transnet Board to promptly formulate solutions for a variety of operational challenges, which encompass matters such as accountability, cost structure, and employee engagement.

(b) During extremely challenging times, it is found that more often than not, changes in leadership at both Board and Executive level are necessitated in order to drive urgent change and performance of an organisation, based on its operational requirements and the need for a review and refocus of operational effectiveness. This has been the case in the instance of Transnet and Eskom in recent months.

Leadership change is but one of the levers utilised to drive strategic enhancement of the organizations. It is on this basis that a review of Executive Management to determine whether they were fit for purpose and capable of executing the Board’s revised strategies and plans was undertaken by the SOE Boards. Coupled with leveraging of existing resources to pursue long-term success, the Boards of some entities in the DPE portfolio, namely Transnet, Eskom, and Denel, are undertaking rigorous and comprehensive recruitment processes to fill key positions of Group Executives and Prescribed Officers.

While the recruitment processes are underway the Boards have appointed interim executives and prescribed officers from within their existing management structures, with immediate effect. This ensures leadership continuity and stability, and operational sustainability.

Any assertion of the so called “interference” is rejected emphatically.

Remarks: Reply: Approved / Not approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3516

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

Whether his department has any short-term step-by-step solutions to address the mismanagement of state-owned entities; if not, why not; if so, what are the relevant details?

Reply:

I have directed the boards of several SOCs in my portfolio to formulate and implement turnaround plans. These plans aim to enhance operational efficiency and significantly improve the overall performance of the respective companies.

Eskom

Eskom is making strides towards ensuring energy stability and sustainability. The Generation Recovery plan has already recovered 1,535 MW between April and September 2023 contributing to Eskom’s goal of achieving an Energy Availability Factor (EAF) of 65% by March 2024. This progress is poised to reduce the intensity and frequency of load shedding while increasing grid capacity. Furthermore, Eskom has significantly improved generation at its coal-fired stations through accelerated maintenance. In addition, the bringing online of three units at Kusile Power Station earlier than scheduled has reduced the amount of load shedding. Eskom’s partnership with independent power producers (IPPs) will add 9,421 MW of renewable energy to the grid. This underscores Eskom’s and the countries commitment to cleaner energy solutions. Eskom is also undergoing restructuring process that will result in the company having ion and Distribution. This is to promote efficiency, accountability, and the adoption of new technologies. The recent debt relief package from the government, along with efforts to strengthen the transmission grid and combat corruption, further solidifies Eskom's position on the path to a sustainable and reliable energy future for South Africa.

In addition to these advances, Eskom has made significant progress in addressing financial challenges and enhancing its corporate structure. The debt relief package of R254 billion from the government and measures to write off municipal arrear debt demonstrate Eskom's commitment to financial sustainability. Their focus on strengthening the transmission grid, with a special emphasis on the first 1,000 km of power lines, underscores their readiness to accommodate power from independent producers. Importantly, Eskom's anti-corruption efforts have led to a number of arrests, the recovery of assets, and the pursuit of criminal cases, affirming their resolve to protect the integrity of the company and public funds. These combined efforts paint a promising picture of Eskom's commitment to a more stable, sustainable, and accountable energy future, ultimately benefiting the people of South Africa.

Transnet

On 1 September 2023, I directed the Transnet Board to urgently address and report to the shareholder on its decisions and recommendations within the next few weeks in respect of, inter alia the following:

  1. Operational transformation: Develop or enhance a turnaround plan to radically transform the operational performance of each of the business areas, including the restructuring of the entity to deliver on its mandate more effectively and efficiently.
  2. Root causes: Identify the root causes of the inability of management and staff to meet the performance targets and a plan to deal with the deficiencies.
  3. Stringent / rigorous accountability Oversight: Transnet to develop, with the DPE and National Logistics Crisis Committee (NLCC), a new framework for transparency and accountability through detailed reporting on the successful execution of the turnaround strategy.
  4. Digitisation of systems: Mechanisms to speed up the automation and digitisation of performance reporting systems to prevent deliberate and wrongful manipulation of data.
  5. Rigorous system of controls: Implement urgently the controls identified by the Auditor General reports.
  6. Private sector participation: Transnet is in the process of getting private sector involved in various capital projects. For example, a reputable international private sector partner has already been identified for the development and operation of the Pier 2 container terminal at the port of Durban.

As a result, the Board and Interim leadership have formulated an impressive “Recovery Plan” that is being rigorously implemented. In particular, the operational inadequacies are being systematically overcome – the assistance of the private sector through the establishment of “Centre of Excellence” will result in better operational outcomes in due course. Similarly, extraordinary efforts are being made to acquire additional equipment to improve port performance. Already a difficult operational approach at the ports introduced by management, is reducing the time spent by ships at anchorage.

 

Alexkor

Alexkor is solvent and does not have any interest-bearing debt. Alexkor’s financial position has limited financial risk as the largest liability will be settled by ring-fenced funds.

In January 2022, I appointed an interim board to restore governance amid years of instability. The appointment process for a permanent CEO and CFO is underway.

In 2019, we initiated a forensic investigation into allegations of maladministration and corruption. This led to significant findings, prompting President Cyril Ramaphosa to authorize the Special Investigating Unit (SIU) to delve into corruption and maladministration in Alexkor and joint venture diamond operations on December 10, 2021. We remain resolute in our commitment to transparency, justice, and ethical governance as we pave the way for a brighter future.

South African Airways

There have been notable strides in the SAA Strategic Equity Partner (SEP) transaction. The approval of the transaction in July 2023 by the Competition Tribunal offers the potential for a significant turnaround. It provides the opportunity for SAA to comprehensively address and overcome its longstanding financial difficulties, with the added benefit of mitigating the compounding effects of the COVID-19 crisis. By securing a strategic equity partner and fostering collaboration, SAA may embark on a path towards financial stability and long-term viability, marking a pivotal moment in its recovery journey. Currently, it has expanded its route network to 11 destinations and increased a number of aircraft by 9 with further expansion expected over the short and medium term. It also plans to commence international routes with the first flight to Brazil expected shortly.

SAFCOL

SAFCOL's unqualified audit and INFLOMA's clean audit underscore SAFCOL’s financial responsibility and transparency. With a notable R285 million profit, SAFCOL is not only stable but also positioned for growth, especially as it pursues projects like Combined Heat and Power (CHP – generating heat and power from wood chips) to mitigate load shedding risks. SAFCOL’s initiatives further highlight its commitment to social responsibility. SAFCOL is a thriving, responsible organization, ready to embrace future opportunities and challenges.

Denel

 

In the past three years, Denel was faced with significant viability challenges. The malfeasance linked to State Capture and poor management decisions resulted in a steep decline in revenues and profitability since 2017/18, reversing a 7-year trend of good governance, growth, and profitability. This culminated into in a weak balance sheet, declining order book, poor operational performance, unpaid salaries, and suppliers which resulted in an erosion of key defence industrial capabilities and loss of critical skills.

Government has made significant interventions to stabilize the SOC. In the past five financial years, the State has injected into Denel approximately R9 billion, including settling guaranteed debt which was keeping Denel in a debt trap due to high interest payments. The intervention has resulted in an appreciable improvement in the market sentiments (employees, clients, partners, financial institutions, and suppliers) regarding the clarity of Government’s strategic intent with respect to Denel.

The focus in the near term, the Department is encouraging Denel to optimise on short term revenue opportunities to ensure that the SOC can fund its operational requirements and deliver on existing contracts.

Despite the challenges of the prior years, the interest by both local and international entities as well as government to collaborate with Denel on various defence technologies remains high.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3222

Profile picture: Essack, Mr F

Essack, Mr F to ask the Minister of Public Enterprises:

DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY QUESTION NO.:PQ 3222 QUESTION: 3222. Mr F Essack (DA) to ask the Minister of Public Enterprises:In light of the fact that the National Treasury has cautioned that the Government will have to cut back on spending in order to balance the budget and save the Republic from going over a fiscal cliff, what steps have Denel, the South African Forestry Company SOC Limited and Alexkor taken to ensure that they will rely entirely on their own balance sheets instead of bailouts from the fiscus to fund their own operations? NW4296E REPLY: According to the information received from SOCs: ALEXKOR: Alexkor had good returns from the sale of diamonds in the 2022/2023 reporting period and there are sufficient reserves to continue operating in the next 12 months without reliance from the fiscus. DENEL: Denel has tabled a comprehensive turnaround plan dealing with all aspects of the business with the following objectives: Reduced costs and increased revenue Engaged staff who are performance orientated Increased customer base Ensuring effective supply chain procedures Optimized planning and production Partnerships and joint ventures This plan and actions were underpinned by a recapitalisation programme from Government and Denel is currently executing this plan and will not require any additional bailouts from the Government. SAFCOL: SAFCOL has implemented cost curtailment measures since the start of the second quarter. Through this, revenue-generating and compliance expenditure is prioritised. The impact of these cash preservation measures is closely monitored on a monthly basis. Due to this intervention, SAFCOL’s total expenditure at the end of September 2023, was 16% below budget and continues to show positive variances in the forecast for the remainder of the year. SAFCOL has no government guarantees in place and relies on the robustness of its own balance sheet. Currently, there are no indications that any bailouts would be necessary in the foreseeable future. Remarks: Approved / Not Approved/Comments Jacky Molisane PJ Gordhan, MP Acting Director-General Minister Date: Date:

Reply:

According to the information received from SOCs:

ALEXKOR:

Alexkor had good returns from the sale of diamonds in the 2022/2023 reporting period and there are sufficient reserves to continue operating in the next 12 months without reliance from the fiscus.

DENEL:

  • Denel has tabled a comprehensive turnaround plan dealing with all aspects of the business with the following objectives:
  • Reduced costs and increased revenue
  • Engaged staff who are performance orientated
  • Increased customer base
  • Ensuring effective supply chain procedures
  • Optimized planning and production
  • Partnerships and joint ventures

This plan and actions were underpinned by a recapitalisation programme from Government and Denel is currently executing this plan and will not require any additional bailouts from the Government.

SAFCOL:

SAFCOL has implemented cost curtailment measures since the start of the second quarter. Through this, revenue-generating and compliance expenditure is prioritised. The impact of these cash preservation measures is closely monitored on a monthly basis. Due to this intervention, SAFCOL’s total expenditure at the end of September 2023, was 16% below budget and continues to show positive variances in the forecast for the remainder of the year.

SAFCOL has no government guarantees in place and relies on the robustness of its own balance sheet. Currently, there are no indications that any bailouts would be necessary in the foreseeable future.

 

 

Remarks: Approved / Not Approved/Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3092

Profile picture: Essack, Mr F

Essack, Mr F to ask the Minister of Public Enterprises

What (a) total amount in debt does (i) Denel, (ii) the SA Forestry Company Limited and (iii) Alexkor owe to date, (b) is the breakdown of (i) the entities that are owed and (ii) the interest accrued to date and (c) amount does each of the three entities pay in interest on the debt owed in each case?

Reply:

According to the information received from SOCs:

ALEXKOR:

a) R4 620 135.75

(b)(i)

(ii) No interest has been accrued on the items listed.

(c) None

DENEL:

  1. (i) R100m
  2. (i) Aluwani

(ii) R 5,456,986.30

  1. 3 months Jibar + 280 basis points

SAFCOL:

(a) (ii)

R58 537 150

 

(b)

(i) Nedbank Bank:

Capital R4 600 167

Standard Bank:

Capital R52 483 995

(ii) Nedbank Bank:

Interest R387 066

Standard Bank:

Interest R1 065 922

(c)

Nedbank Bank:

Interest R387 066

 

Standard Bank:

Interest R1 065 922

 

Remarks: Approved/Not Approved/Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3946

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Public Enterprises

Whether (a) he, (b) the Deputy Minister and (c) any other official in his department attended the Rugby World Cup final in France in October 2023; if not; what is the position in this regard; if so, what (i) are the relevant details of each person in his department who attended the Rugby World Cup, (ii) is the total number of such persons and (iii) were the total costs of (aa) travel, (bb) accommodation and (cc) any other related costs that were incurred by his department as a result of the trip(s)?

Reply:

a) The Minister did not attend the Rugby World Cup final in France in October 2023.

b) The Deputy Minister did not attend the Rugby World Cup final in France in October 2023.

c) There were no other officials who attended the Rugby World Cup final in France in October 2023.

 

Remarks: Approved/Not Approved/Comment

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW3905

Profile picture: Van Zyl, Ms A M

Van Zyl, Ms A M to ask the Minister of Public Enterprises

Whether, with reference to his reply to question 771 on 27 March 2023 and noting that farming areas of Dordrecht, Jamestown and Aliwal North which are serviced by the Aliwal North Eskom Office still experience weekly outages due to the slightest winds and poor weather conditions suggesting unresolved previously reported defects on these lines, he will furnish Ms A M van Zyl with a detailed (a) plan and (b) timeframe aimed at resolving the defects to ensure that these farming areas enjoy stable electricity supply?

Reply:

According to the information received from Eskom

Before February 2023, the Melkspruit area had been experiencing poor electricity supply. During February and March 2023, Eskom arranged planned outages to conduct maintenance on the equipment and power lines in the area. As a result, 80% of the defects on the lines were resolved by Eskom’s construction maintenance teams. The reliability and electricity supply situation has been improving since the planned maintenance took place. There has been a significant reduction in the number of faults per month from 19 faults in February and March 2023 to an average of about four faults per month in the last few months. Eskom continues to closely monitor and clear any faults on the power lines in the area.

Remarks: Approved/Not Approved/Comment

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW4053

Profile picture: Graham, Ms SJ

Graham, Ms SJ to ask the Minister of Public Enterprises

With regard to the Distribution Demand Management Programme (DDMP), (a) how many proposals have been received for (i) Load Management Programme, (ii) Residential Load Management Programme, (iii) Energy Efficiency Programme and (b) what are the relevant details of each proposal in relation to the specified programme; (2) What is the (a) status of each proposal and (b) estimated demand reduction of each project; (3) What are the potential barriers to entry into these programmes that might have affected the intake for each programme; (4) What marketing measures Eskom intends undertaking to improve the intake of the programmes?

Reply:

1. Twenty-three project proposals have been received to date.

  • Load Management (LM): 16 proposals received.
  • Residential Load Management (RLM): zero proposals received.
  • Energy Efficiency (EE): seven proposals received. (See tables in (2) for details).

Of the 23 projects received, 16 projects (11 LM and five EE) have met the programme criteria to proceed to the governance approval stages. (See the tables in (2) for details).

(2)

Eskom Distribution Demand Management Programme – Load Management Projects

Project number

Project name

Project type

Demand reduction (MW)

Project costs

Status

Project description

2023001

Cooke 4 Water Pumping System

Load Management

10.000

R30 000 000

Procurement phase

Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours

2023003

Driefontein 4 and 5 Fridge Plant

Load Management

5.000

R15 000 000

Procurement phase

Optimisation of underground mining refrigeration system to enable electrical load shift in the evening peak hours

2023008

LM Karee 4 – Water Pumping System

Load Management

1.000

R3 000 000

Investment phase submission for 8 December 2023

Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours

2023009

LM Karee 4 – Compressed Air (CA)

Load Management

1.300

R3 900 000

Investment phase submission for 8 December 2023

Optimisation of underground mining compressed air network to enable peak clipping of electrical load in the evening peak hours

2023010

LM Samancor WCM Mooinooi CA

Load Management

1.000

R3 000 000

Investment phase submission for 8 December 2023

Optimisation of underground mining compressed air network to enable peak clipping of electrical load in the evening peak hours

2023011

LM Samancor MFC Mills Load Shifting

Load Management

1.440

R4 320 000

Investment phase submission for 8 December 2023

Optimisation of smelter-milling plant to enable electrical load shift in the evening peak hours

2023012

LM Samancor TAS Mills

Load Management

1.058

R3 174 000

Investment phase submission for 8 December 2023

Optimisation of smelter-milling plant to enable electrical load shift in the evening peak hours

2023014

LM Samancor ECM Doornbosch PC

Load Management

0.700

R2 100 000

Investment phase submission for 8 December 2023

Optimisation of air pressure control for the underground mine to enable peak clipping of electrical load in the evening peak hours

2023015

LM Samancor ECM Tweefontein PC

Load Management

1.000

R3 000 000

Investment phase submission for 8 December 2023

Optimisation of air pressure control for the underground mine to enable peak clipping of electrical load in the evening peak hours

2023016

LM Great Noligwa KOSH Pumping

Load Management

1.600

R4 800 000

Investment phase submission for 8 December 2023

Optimisation of underground mining water pumping network to enable electrical load shift in the evening peak hours

2023017

LM Moab Khotsong Compressors

Load Management

0.800

R2 400 000

Investment phase submission for 8 December 2023

Optimisation of underground compressor network to enable peak clipping of electrical load in the evening peak hours

 

 

 

24.90

R74 694 000

 

 

 

Eskom Distribution Demand Management Programme – Energy Efficiency Projects

Project number

Project name

Project type

Demand reduction (MW)

Project costs

Status

Project description

2023004

Driefontein 5 Service Water Optimisation

Energy Efficiency

1.000

R3 000 000

Procurement phase

Optimisation of underground mining water pumping network to enable electrical energy savings between 06:00 and 20:00

2023005

Driefontein 5 Energy Recovery

Energy Efficiency

1.800

R5 400 000

Procurement phase

Commissioning of an underground turbine to break the water pressure feeding down the mine shaft to generate electricity, reducing the amount of electricity needed from Eskom

2023007

EE Limpopo Schools Lighting Project

Energy Efficiency

0.443

R1 329 000

Investment phase submission for 8 December 2023

Replacing old fluorescent lights with energy-efficient light-emitting diode (LED) lighting at 34 Limpopo public schools

2023018

EE Kusasalethu Turbines

Energy Efficiency

3.200

R9 600 000

Investment phase submission for 8 December 2023

Commissioning of an underground turbine to break the water pressure feeding down the mine shaft to generate electricity, reducing the amount of electricity needed from Eskom

2023019

EE Shoprite T5 LED Retrofit

Energy Efficiency

0.640

R1 920 000

Investment phase submission for 8 December 2023

Replacing old fluorescent lighting with energy-efficient LED lighting at 31 Shoprite Checkers supermarkets

 

 

 

7.083

R21 249 000

 

 

(3)

No.

Possible barriers to uptake

Mitigation

1

The DDMP performance contracting programme participating criteria limit mid-segment consumers to participate, as the minimum criteria requirement targets larger projects.

Review programme participation requirements to attract medium to small customers to participate. Revise the engagement plan to address the missing middle segment.

2

Developers have challenges in securing upfront project funding from commercial funding institutions. The incentive is paid after project implementation and during the sustainability period.

Project developers have been encouraged to engage the public (Development Bank of South Africa (DBSA), Industrial Development Corporation (IDC), etc.) and private financial institutions for support in financing Energy Efficiency and Demand-Side Management (EEDSM) projects.

3

Project developers, customers, and funders require certainty in the markets when it comes to Demand-Side Management (DSM) incentives. How long will they be available so that they can plan on capital?

This is important to developers and customers, as it will assist them in the decision to invest. Eskom Integrated Demand Management (IDM) intends to run the DDMP after the Multi-Year Price Determination (MYPD) 6 (the 2029 financial year) and to motivate the inclusion of DSM in the Integrated Resource Plan (IRP), which will assist in enhancing certainty.

4

The skills shortage is a critical factor. Most customers do not have the necessary skills and resources to undertake DSM measures. This also has an impact on the assessment of benefits when it comes to DSM initiatives.

Eskom IDM and the National Cleaner Production Centre (NCPC) have collaborated to assist customers who have the potential to participate. The NCPC has the resources to offer customer training on DSM and to conduct energy assessment audits.

5

DDMP's current engagements are held at executive customer level, and the information is not adequately passed on to on-site engineers to develop projects.

Engage engineers/energy managers at site level within the cluster.

(4) The following interventions are ongoing to improve the visibility of the DDMPs:

  • Ongoing presentations to industry associations, such as the South African Property Owners Association (SAPOA) and the Energy Services Company (ESCO) Association.
  • Eskom has also presented the DDMP at the National Energy Crisis Committee (NECOM) DSM Indabas (national, Western Cape (WC), and KwaZulu-Natal (KZN). Furthermore, Eskom participates in NECOM Work Stream 5 - DSM as a task team member.
  • In addition, Eskom has held EEDSM symposiums and continues to engage with customers and stakeholders to promote and provide clarification on the DDMP performance contracting programmes.
  • Eskom IDM management recently held meetings with large municipalities/metros (KZN and the WC) and is planning to engage other distributors.
  • Eskom IDM management has decided to conduct roadshows in all provinces that address the missing middle (small- to medium-sized customers) to improve participation.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

14 December 2023 - NW4014

Profile picture: Buthelezi, Mr EM

Buthelezi, Mr EM to ask the Minister of Public Enterprises

Whether his department has any (a) short-term and/or (b) long-term contracts with any (i) South African and (ii) foreign companies in efforts to restore the energy contributions of the (aa) Kusile and (bb) Medupi Power Stations; if not, why not, in each case; if so, what are the (aaa) terms of each contract, (bbb) projected deliverables of each agreement and (ccc) further relevant details?.

Reply:

(a) and (b)

The Department of Public Enterprises (DPE) does not have short-term and/or long-term contract with any national or foreign companies in respect of all Power Stations, this includes the Kusile and Medupi Power Stations. Any such contracts are entered into by Eskom. Examples would be with supplies from Cahovva Bassa, Southern African Power Pool

(aaa), (bbb) and (ccc)

The Department of Public Enterprises has an oversight responsibility over State-Owned Companies (SOCs) and is not involved in the operations of the SOCs. The Department is not responsible for procurement in the Eskom power stations in line with the Public Finance Management Act (PFMA). Eskom Holdings SOC Ltd management is responsible for all the interventions at the Kusile and Medupi Power Stations.

.

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date: