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22 July 2022 - NW2202

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

(1) What (a) are the full details of the establishment of the proposed state-owned holding company that will oversee all state-owned companies and will be free from political interference as he announced during the Budget Vote 10 on 20 May 2022, (b) mechanisms will he put in place to ensure that it is insulated from political interference. (2) whether his announcement was a recognition that there has been an undue influence by politicians on the management of state-owned companies; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. (a) There have been a number of studies within government over time to determine how SOEs should be governed, and on other matters such as which SOEs are required in current context, and which are not. The President established the Presidential SOE Council (PSEC) to advise him on these and related matters. Based on a review of global experience and work done within the Department, the PSEC recommended the centralised shareholder model, which is reflected in the holding company (Holdco) proposal. A policy paper, draft legislation and other legal documents have been in preparation. Once the governance process has been concluded, other formal processes will be pursued.

(b) It is proposed that the Holdco will be governed by an independent board that will be acting in the fiduciary interests of the company. However, the commercial and development mandates of Holdco will be set by government. Similarly, it is anticipated that Holdco will ensure that the governance of SOEs is carried out in a transparent and accountable manner, with a high degree of professionalism and effectiveness.

2. While evidence of state capture has recently been confirmed concerning the affairs of some but not all SOEs, the development of the shareholder management bill is based on the intent of building a capable state through among others, the adoption of globally recognised practices in managing all SOEs owned by the government of the Republic of South Africa. The work that informs the establishment of the Holding Company predates state capture and is meant to among others, insulate SOEs from undue influence based on insights derived from global best practices.

20 July 2022 - NW2413

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether the 42 employees who won the case in May 2022 against Denel have been paid their outstanding salaries amounting to R13,2 million dating back to 2020; if not, what is the position in this regard; if so, on what date was payment done?

Reply:

According to the information received from Denel

  1. Out of the 42 current and former employees who won the case in May 2022, three (3) of them had already been paid by the time the Court Order was issued and they failed to inform their attorneys.
  2. The amount owed to the remaining 39 claimants differ from person to person (due to some having received part-payment from the date of the Court Order to date), and to that end, Denel has been in discussions with the attorneys representing the claimants with a view to reconcile the records and agree on the legitimate amounts owed to each individual.
  3. Part of our discussions with the attorneys includes agreeing on a date by which the amounts can be paid, in view of Denel’s ongoing liquidity challenges.

20 July 2022 - NW2414

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What are the details of the intervention that he has made in respect of the wage talks between Eskom and the employees as they now prepare for the fourth round of negotiations?

Reply:

The Ministry does not get involved in labour relations matters at the company level. The company has a Board and an Executive Team that is fully mandated to attend to such matters. The operational matters fall within the ambit of the Executive Team.

20 July 2022 - NW2370

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

On a recent oversight visit by the Standing Committee on Public Accounts (Scopa) to the Megawatt Park Power Station, the board of Eskom indicated that (a) it is required by his department to put together a corporate plan articulating key performance indicators (KPIs), which would culminate into performance agreements and (b) a plan is in place, but it has to get the consent from his department before it will be shared with Scopa, (i) what are the details of the progress on getting consent from his department and (ii) by what date will the plan be signed off?

Reply:

 (a)

The Minister gives strategic direction to the entity through the Strategic Intent Statement (SIS).  Regulation29.1 of Treasury Regulations, read with section 52 of the Public Finance Management Act (PFMA) requires the entity to develop a Corporate Plan that covers three years and must include, inter alia, strategic objectives and outcomes identified and agreed on by the executive authority (the Minister of Public Enterprises) in the shareholder’s compact. The Shareholder’s Compact (SHC) is a negotiated performance agreement between the Shareholder and the Board.

​The Corporate Plan (which provides a perspective on Eskom’s strategy execution trajectory), drives the delivery of the approved SHC, directing the relevant business areas to deliver the KPI targets that have been compacted on. 

The Corporate Plan is reviewed annually to factor in the SHC decreed KPI targets and to ensure that Eskom’s strategy execution is realigned to the prevailing operating realities. The Corporate Plan was taken through the appropriate Eskom governance process (Exco/Board) for approval and was submitted to the Ministers of Public Enterprises and Finance on 31 March 2022, in accordance with Treasury Regulations 29.1.3.

(b)(i) (ii) 

Some of the information is deemed commercially sensitive, including industry analysis (including suppliers and customers bargaining power over the company and comparisons, benchmarking, competitive advantages, and corporate calendars). The SHC and the Corporate Plan are therefore largely company confidential internal documents. The Corporate Plan, in presentation format, can be shared with external parties, including Parliament, funders, rating agencies and other Government Departments. Given the disclosure of sensitive information that could have a negative impact on the entity, and undertaking to share information with Parliament, I will direct Eskom to share a redacted copy of the Shareholder Compact within the next month. 

20 July 2022 - NW2371

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

On a recent oversight visit by the Standing Committee on Public Accounts to follow up on issues at Medupi and Kusile it was clear that the Flue Gas Desulphurisation (FGD) process was not running as smoothly as it should, resulting in an often loss of generation capacity with no adequate expertise or skills to maintain the FGD systems, despite the plan to have the technical know-how to maintain environmental emissions at Medupi and Kusile at a permissible legal level, what progress is being made in this regard?

Reply:

According to the information received from ESKOM

During the recent oversight visit by the Standing Committee on Public Accounts to Kusile Power Station, Unit 1 was on forced outage. The unit has since been repaired and it is back on load. The commercial process to establish the Operating and Maintenance Contract with Technical Support that will assist in restoring the reliability of the plant, as well as providing Kusile with skills development, is underway.

Flue Gas Desulphurisation has not yet been installed at Medupi Power Station, and when it is, the learnings from Kusile will be incorporated into the Operating and Maintenance processes.

30 June 2022 - NW2009

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

(1) What are the details of the agreed upon performance indicators of the (a) Chief Executive Officer and (b) Chief Operating Officer of Eskom; (2) whether he has found that the specified officials are currently performing according to their agreed-upon performance indicators; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from ESKOM

1. The performance indicators for the Group Chief Executive and Chief Operating Officer are agreed to at the beginning of each financial year. These indicators are based on the Shareholders compact / Corporate Scorecard as approved by the shareholder and includes the following key performance areas and key performance indicators:

KPA

FY23 KPI

Unit

FY23

FY24

FY25

Focus on Safety

Lost-time Injury Rate (Employee) (LTIR)1

Rate

0.30 

0.30 

0.30 

Improve Plant Operations 2

Energy Availability Factor (EAF)

%

65

TBC

TBC

 

Post Philosophy Outage UCLF (PPO UCLF)

%

14

TBC

TBC

 

Outage Readiness Indicator (ORI) at T-3

%

80

TBC

TBC

 

Boiler Tube Failure (BTF) rate

No. of failures per unit per year (12mma)

1.8

TBC

TBC

 

Number of days of load reduction (load shedding and/or curtailment)

Days

63

TBC

TBC

Reduce Environmental Footprint in Existing Fleet

Relative Particulate Emissions (Kg/MWh sent out)

Kg/MWh

0.30

0.30

0.28

 

Specific Water Usage –Litres Per Kwh (l/kWh Sent Out)

l/kWh

1.39

1.30

1.25

 

Atmospheric Emission Licences (AEL) Compliance

%

90

91

92

Primary Energy Optimisation3

Migration Of Coal Delivery Volume From Road To Rail

Mt

4.7

7.6

7.6

 

Coal Purchases Rand/Ton % Increase

%

Commercially confidential

Deliver Capital Expansion

Generation Capacity Installed and Commissioned (Commercial Operation)

MW

800

800

800

Improve Plant Operations

System Minutes Lost

Min

3.53 

3.53 

3.53

 

Transmission Lines Installed

Km

140

340

346

 

Transmission Transformers Capacity Installed and Commissioned

MVA

0

1 315

1 500

 

Payment Levels Excluding Soweto Interest

%

95.7

95.7

95.7

 

Distribution Total Energy Losses

%

9.44

9.42

9.56

 

Total Electrification Connections

Number

106 280

105 936

105 000

 

SAIDI

Hours

38.0

38.0

38.0

Ensure Financial Sustainability3

EBITDA

Rm

53 829

68 053

82 805

 

Cash Interest Cover Ratio

Ratio

1.75

2.28

2.04

 

Debt Service Cover Ratio

Ratio

0.73

1.01

0.91

 

Savings From Turnaround Initiatives

Rm

21440

22619

23863

Legal Separation

Business Separation Key Milestones (Gx legal separation)

Date

2022/12/31

 

 

 

Business Separation Key Milestones (Dx legal separation)

Date

2022/12/31

   

Socio-economic Impact: Human Capital

New intake: Learner Artisans

Number

100

100

100

 

New Intake: Learner Engineers

Number

50

50

50

 

New Intake: Learner Technicians

Number

50

50

50

 

New intake: Sector specific

Number

90

90

90

 

Training Expenditure as % of Budgeted Gross Employee Benefit Expense

%

3.75

3.75

3.75

Corporate Social Investment (CSI)

CSI Committed Spend

Rm

131

131,3

137.9

Industrialisation and Localisation

Preferential Procurement

%

80

80

80

 

Local Content

%

80

80

80

 

B-BBEE Score Level

Number

6

4

4

 

Enterprise Development

Rm

5

5

5

 

Supplier Development

Rbn

5

6

7

 

National Industrial Participation Programme

%

100

100

100

 

Research and Development

%

90

95 

95 

Data Analytics

Integrated outage solution platform

%

30

  TBC

 TBC 

 

Improved data quality

%

30

  TBC

 TBC 

 

Plant data actionable insights

%

30

  TBC

 TBC 

 

Enhance self-service capability

%

10

  TBC

 TBC 

 

The key performance areas such as Financial Sustainability and Legal Separation will have higher percentages in the Group Chief Executive compact whereas higher ratings in the Chief Operating Officer compact will be given to operational key performance areas such as improvement of plant performance and primary energy optimalisation.

(2) With all the challenges facing Eskom these officials are performing according to and beyond their agreed performance scorecards. There had been a dramatic improvement in Eskom’s performance with an 85% improvement in earnings before interest, tax and depreciation (ebitda). Eskom has also successfully reduced debt to R396 billion, from a previous high of R440 billion. The actual performance against the shareholders compact can be shared once the Audit is completed.

30 June 2022 - NW2238

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Chabangu, Mr M to ask the Minister of Employment and Labour

With reference to his reply to question 483 on 11 March 2023, wherein he mentioned that 39 057 medical invoices were rejected in the 2021-22 financial year, what are the top five reasons for the rejections in numbers?

Reply:

The top Five rejection reasons for medical invoices:

 

Rejection Reason

Number of invoices

No medical report

11 759

No Pre-authorisation

8 098

Duplicate invoice

4 112

Liability not accepted

1 972

Exempted Employer claim

1 078

30 June 2022 - NW2267

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Lees, Mr RA to ask the Minister of Public Enterprises

1) Whether the SA Airways (SAA) Captain, Vusi Khumalo, has been and/or is to be appointed as the SAA Manager: Aviation Training; if not, what is the position in this regard; if so, what are the relevant details of the aviation training qualifications held by the specified person that makes him a suitable person for appointment to the specified position. 2) What are the details of (a) the processes followed to identify a suitable person for the position and (b) all persons who were considered for appointment to the position? 3) What are the detailed reasons for concluding that Captain Khumalo was the candidate best suited for the position? 4) Whether Captain Khumalo was paid the Voluntary Severance Package (VSP) offered to SAA staff during the Business Rescue process; if not, what is the position in this regard; if so, (a) what are the details of the procedure followed that resulted in his re-employment at SAA and (b) did Captain Khumalo repay SAA for the VSP payments made to him?

Reply:

According to the information received from SAA

1. Captain Vusi Khumalo has indeed been appointed to the position of Manager: Aviation Training Organisation (ATO) for a fixed term of three years.

2. His appointment came after a comprehensive, rigorous, and interrogative process where he emerged as the best candidate, and there is no doubt that he is the right person for the job. He not only knows the inner workings of SAA, but those of the industry and has clear ideas on what priorities need to be set in terms of driving the implementation of sustainable developmental solutions and align our training needs with business objectives and priorities to enhance optimum performance.

3. Captain Khumalo’s role will include expanding the mandate of the ATO to attract external business and turn it into a profit center. Furthermore, his role will include transformation, monitoring and evaluating the impact of learning and developmental interventions on performance across the airline. Captain Khumalo is a well-known and a respected figure in our company and the industry and has the full support of the Board and Executive team in his new position.

4. Yes, Captain Khumalo did receive the VSP, but the norm is that after a 12-month period and as required by the business, those that have previously taken packages can be brought back into any position, especially those that are multi skilled like Captain Khumalo. The position was advertised after the previous incumbent retired, shortlisting and interviews were conducted in line with the SAA recruitment and selection processes.

30 June 2022 - NW2299

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Lees, Mr RA to ask the Minister of Public Enterprises

What are the details of the sources of the funds to be used for the repayment of the TNUS 22 GMTN Dollar Bonds issued by Transnet that amount to a total of 1,0 billion US Dollar, which fall due on 26 July 2022?

Reply:

According to the information received from Transnet

Transnet SOC (“Transnet”) plans to raise USD ($1 billion) (~ZAR15, 6 billion) in both the domestic and international capital markets to settle the USD $1,0 billion (an obligation that is due on 26 July 2022). Transnet has also appointed Joint Lead Managers (JLMs) who will assist Transnet to access the capital markets to raise the USD $1,0 billion (~ZAR15, 6 billion).

30 June 2022 - NW2278

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Marais, Mr EJ to ask the Minister of Public Enterprises

What are the details of the (a) medium- and (b) long-term plans of Transnet for the (i) development of additional infrastructure and (ii) maintenance of current infrastructure at the Saldanha Bay harbour?

Reply:

According to the information received from Transnet

a) Medium Term Plans

The following infrastructure development projects are intended to materialize in the short- to medium-term and is illustrated below:

a) Land reclamation next to the current iron ore stockyard for the increase of the iron ore stockpile area (short-medium term) as well as additional space for new Liquid Natural Gas (LNG) facilities (medium-long term).

b) LNG Floating Ship Regasification Unit (FSRU) infrastructure connected to the new LNG facilities (extension of land in dunes area and oyster dam reclamation).

c) The existing Mossgas Quay converts to maritime engineering berth together with additional maritime engineering berths as provision for dedicated facilities for rig and ship repair.

d) One additional maritime engineering berth for ship repairs adjacent (southern side) to the break bulk Multi Purpose Terminal (MPT) berths.

e) One additional dry bulk berth adjacent (south) of the new ship/rig repair berth.

f) Break Bulk (MPT) extension towards the north providing one additional Break Bulk (MPT) berth at the Break Bulk terminal.

b) Long Term Plans

The following infrastructure development projects are intended to materialize in the long-term and is illustrated in Annexure B:

a) New proposed land-based LNG storage area inside the port limits.

b) Decommissioning of the LPG Multi Buouy Mooring (MBM) Facility at end of life, and subsequent replacement with fixed LNG and LPG berths (eastern side of the port).

c) Expansion of the Offshore Supply Base.

An aerial view of the port indicating the specific berths that are referred to above are provided in Annexure C.

(i) Development of additional infrastructure for the Port of Saldanha

Background

Future port development is planned for and indicated on the Port Development Framework Plans (PDFP). The PDFP aims to provide a flexible spatial guideline within which the port can develop over the next 30 years. It is defined as a spatial framework within which future port services can be provided.

The planning process comprises of the agreement and alignment of planning objectives, the assessment of the current state of port infrastructure and its associated cargo throughput or functional role, analysis of potential and latent capacity and a comprehensive cargo demand forecast. The outcome of this work defines the temporal and spatial demand for future freight handling facilities, leading to the drafting of several port developments options (PDO). The preferred development is then subjected to further rigorous evaluation in terms of cost benefit analysis, phasing to meet demand, inter-model and other port relationships and opportunity and constraint analyses, leading to the final PDFP.

The following port development framework plans (PDFP’s) are based on the approved 2019 PDFP’s. The 2022 updated PDFPs have been submitted to TNPA head office for approval.

(ii) Maintenance of current infrastructure at the Port of Saldanha

Background

Maintenance of current infrastructure is performed using the Transnet Asset Maintenance Policies and Procedures. This typically follows annual inspections, and identification of short-term maintenance requirements, and budgeted for on a 3 year rolling cycle, using operational budget (OPEX).

For medium term maintenance requirements, these typically are for extensive refurbishment activities, such a midlife refurbishment of assets, or rehabilitation that adds significant remaining useful life to the assets. These are placed onto the Capital investment corporate plan (CAPEX).

Maintenance activities typically have a short to medium term planning cycle that comprises a window of up to ten years.

(a) Short to medium term maintenance plans

At present, there are three main refurbishment programs identified over the 10-year period:

  • Refurbishment of Quay and Jetty Infrastructure – which covers Fenders, Mooring Hooks and Concrete repairs;
  • Road and Rail Upgrade – which covers 3 phased refurbishment and upgrade projects for the port road network;
  • Refurbishment of Main Breakwater and Causeway rock revetments – which covers coastal protection structures critical to the port operation;

Maintenance activities typically have a short to medium term planning cycle that comprises a window of up to ten years. Where assets are identified for replacement due to end-of-life consideration beyond this planning period or where any upgrade as per the original design or intended use becomes applicable, budget planning would consider CAPEX requirements. Such events would normally require significant planning and alignment of operational activities and could be included on the PDFP’s. This would allow for coordinated planning by all stakeholders to ensure minimal impact on operational activities.

30 June 2022 - NW2201

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

(1) Whether he has held any engagements with the Chief Executive Officer (CEO) of Eskom, Mr André de Ruyter, who announced that he expects load-shedding to happen for 295 days in the next 12 months, which is about 80% of the time next year, in order to understand the basis of his claim; if not, why not; if so, what are the relevant details; (2) Whether the explanation given by the CEO has been sufficient so as to convince him that the CEO and the management of Eskom know what they are doing; if not, what is the position in this regard, if so, what are the relevant details?

Reply:

1. The Minister, Department Officials, Eskom Board of Directors, Eskom Chief Executive Officer (CEO) and Management meet on a regular basis to discuss Generation performance challenges and plans to improve the performance. The Eskom’s worst-case scenario is assumption of unplanned unavailability between 13 500 MW and 15 000 MW for winter and between 14 500 MW and 16 000 MW for summer, this shows that 104 days of loadshedding could be expected in 2022 winter and 191 days of loadshedding could be expected in the 2022/23 summer. These result in total of the 295 days of load shedding. The Generational Recovery Plan (including Maintenance Recovery Programme) has been implemented to improve Generation performance. Eskom has been implementing defects correction mechanism plan to improve Energy Availability Factor (EAF) at Medupi and Kusile power stations. Eskom will require additional capacity of between 4 000MW to 6 00MW to minimise load shedding.

2. The explanation given by the Eskom CEO has been sufficient that the CEO and Management know what they are doing in turning around Generation performance. I have got confidence of Eskom CEO and management to turnaround Eskom’s Generation Performance and reduce loadshedding that is affecting our economy.

At the same time, the board, management and staff are being directed to make energetic and urgent efforts to avert as much load shedding as possible- recognising the deleterious effect it has on households and businesses.

Additional Information for the Minister

Eskom never plans to loadshed. The System Operator (SO) evaluates the adequacy of the power system at the beginning of each season (1 April – 31 August for winter and 1 September – 31 March for summer) based on the maintenance requirements of the generation fleet, the anticipated demand from the customers and the unplanned breakdowns of generators. The capacity unavailable due to breakdowns, is highly volatile and uncertain, leading the SO to resort to scenario planning based on the range of unplanned unavailability of generation capacity.

For the 2022 winter, the SO determined that the unplanned unavailability of generation capacity would be in the range of 12 000 MW – 15 000 MW based on a trend analysis of the previous five years performance. For the 2022/23 summer, this range is between 13 000 MW – 16 000 MW (subject to review in August 2022).

This was broken down into three scenarios which were further analysed:

• The optimistic scenario: with unplanned unavailability below 12 000 MW for winter and below 13 000 MW for summer, this illustrates those 0 days of loadshedding would be expected in winter 2022, while 16 days of loadshedding could be expected in summer 2022/23.

• The realistic scenario: with unplanned unavailability between 12 000 MW and 13 500 MW for winter and between 13 000 MW and 14 500 MW for summer, this shows that 37 days of loadshedding could be expected in 2022 winter and 132 days of loadshedding could be expected in summer 2022/23.

• The extreme scenario: with unplanned unavailability between 13 500 MW and 15 000 MW for winter and between 14 500 MW and 16 000 MW for summer, this shows that 104 days of loadshedding could be expected in the 2022 winter and 191 days of loadshedding could be expected in the 2022/23 summer. This is the total of the 295 days referred to.

The unplanned unavailability varies dynamically in time with variances in excess of 4 000 MW in a single week being common. To achieve 295 days of loadshedding in summer and winter combined, the unplanned unavailability would need to remain at 15 000 MW for every hour of winter and at 16 000 MW for every hour of summer for the 12-month period, and that is unlikely.

30 June 2022 - NW2179

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Lees, Mr RA to ask the Minister of Public Enterprises

With reference to the funding of the SA Airways operations, what (a) were the budgeted losses in the 2021-22 financial year, (b) are the projected budgeted losses for the 2022-23 financial year, (c) were the actual losses incurred in the 2021-22 financial year and (d) are the details of the sources of funds that (i) funded the 2021-22 losses and (ii) will fund the 2022-23 losses?

Reply:

We confirm that the operations of the airline are being funded from the working capital that was provided to the airline by Government as part of the R10.5 billion for implementing the business rescue plan. As soon as the audited fiancials are ready, these will be made public.

 

30 June 2022 - NW2148

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Herron, Mr BN to ask the Minister of Public Enterprises

(a)(i) How many litres of diesel did Eskom use for the purposes of power and/or electricity generation in the 2021-22 financial year and (ii) what was the total cost of that diesel consumption, (b) what total number of days in the current calendar year since 1 January 2022 has Eskom implemented load shedding and (c)(i) how many litres of diesel has Eskom used to generate power and/or electricity in this calendar year since 1 January 2022 and (ii) what is the total cost of that diesel consumption?

Reply:

According to the information received from Eskom:

(a)(i) In the 2021/22 financial year, 571 295 617 litres of diesel were burnt.

(a)(ii) The total cost of diesel consumption was R 6 407 million.

(b) Eskom implemented loadshedding for 50 days from 1 January 2022 to 2 June 2022. Five (5) days were at Stage 1; 35 days were at Stage 2; four (4) days were at Stage 3; and six (6) days were at Stage 4.

(c ) (i) The amount of diesel consumed at Eskom’s Ankerlig and Gourikwa OCGTs, as well as the associated cost for the current year, 2022 (January to May) is 272 911 112 litres consumed.

(c ) (ii) The total cost of the diesel consumption from January to May 2022 is R 3 843 million.

30 June 2022 - NW2099

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Lotriet, Prof A to ask the Minister of Public Enterprises

Whether (a) his department and/or (b) any of the entities reporting to him have found any ghost workers within their system in the past five years; if not, what is the position in this regard; if so, what (i) total number of ghost workers was discovered, (ii) total amount was paid to them and (iii) steps have been taken to (aa) recover the money lost and (bb) hold the offending parties accountable?

Reply:

According to the information received from the Department and SOCs:

DPE/SOC

REPLY:

DPE

(a) Whether his department have found any ghost workers within their system in the past five years, if not what is the position in this regard, if so, what:

(i) total number of ghost workers was discovered: None

(ii) total amount was paid to them: None

(iii) steps have been taken to: None

(aa) recover the money lost: None

(bb) hold the offending parties accountable? None

ALEXKOR

Alexkor SOC Limited and the Pooling and Sharing Joint Venture (PSJV) do not have any Ghost Workers.

DENEL

a) N/A

b) In August 2020, Denel (SOC) Ltd discovered that two apprentices whose training programme had ended on 30 June 2018 and 28 October 2019 respectively remained on the payroll until they were terminated on 30 August 2020.

(i) The total number that was discovered was two (2).

(ii) The amount paid to them during this period was a combined total of R182,082.40.

(iii) (aa) No steps were taken to recover the money paid to them.

(bb) The responsible employee resigned and left the company before the disciplinary action process could be finalised.

ESKOM

(b) In the past five years, no ghost employees have been found at Eskom.

In 2018 Eskom embarked on an exercise to validate all employees on its payroll to ensure that no ghost workers exist. The exercise involved conducting various checks across Eskom in line with best practices.

Eskom continues to implement further enhancements in terms of monitoring and identifying potential ghost employees.

(b)(i) (ii) (iii) Not applicable.

(aa) Not applicable.

SAFCOL

(a) N/A

(b) None for SAFCOL

(i) N/A

(ii N/A

(iii) N/A

(aa) N/A

(bb) N/A

SAA

SAA has not found any Ghost Workers in our SAP payroll system in the past five years.

SAA’s position in this regard is that there is a very stringent system in place to ensure that no ghost employees are paid by the company. No Ghost Workers were identified following our recent HR audit.

TRANSNET

a) Not applicable

b) On 15 June 2021 Transnet SOC (“Transnet”) commissioned Transnet Internal Audit (TIA) to conduct a Payroll Audit assessment to verify the number of employees within its system, amongst other functions. Following this assessment, a report was issued on 27 August 2021 which indicated that were no ghost employees on their system

(i) Not applicable

(ii) Not applicable

(iii) Not applicable

(aa) Not applicable

(bb) Not applicable

20 May 2022 - NW1683

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Van Dyk, Ms V to ask the Minister of Public Enterprises

Who are the current board members for (a) Alexkor and (b) the Richtersveld Mining Company, known as the Pooling and Sharing Joint Venture?

Reply:

Below are the names of the INTERIM board members appointed by the Department:

Alexkor Board (Company Secretary) Mr Lopang Peacock

Dr Patricia (Trish) Elizabeth Hanekom

Non- Executive Director

CHAIRPERSON

Female

White

Ms May Hermanus

Non- Executive Director

Female

Coloured

Mr Alan Aubrey Roberts

Non- Executive Director

Male

Indian

Ms Hilary Alana Swartbooi

Non- Executive Director

Female

Coloured

Ms Dineo Peta

Non- Executive Director

Female

African

Ms Karabo Mbele

Non- Executive Director

Female

African

PSJV board (Company Secretary) Mr Lopang Peacock

Dr Patricia (Trish) Elizabeth Hanekom

Non- Executive Director

CHAIRPERSON

Female

White

Ms Dineo Peta

Non- Executive Director

Female

African

Ms Karabo Mbele

Non- Executive Director

Female

African

Mr Brain Grobbelaar

Non- Executive Director

Male

African

Ms Adelaide Ranape

Non- Executive Director

Female

African

Mr Raymond Maboe

Non- Executive Director

Female

African

20 May 2022 - NW1424

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Van Dyk, Ms V to ask the Minister of Public Enterprises

On what date will Alexkor’s 2021 integrated report be available?

Reply:

According to the information received from Alexkor

The audit process has taken longer than expected. In this regard, the Company requested a concession for late submission of their integrated report. The new interim board is working as expeditiously as possible to finalise the integrated report.

Accordingly, the approval of integrated report and publication of the same will be concluded at the annual general meeting (AGM), to be held in a fortnight at the latest.

20 May 2022 - NW1425

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Van Dyk, Ms V to ask the Minister of Public Enterprises

What is the status of tender 0412021/2022 of his department?

Reply:

Bid number DPE07-2021-2022 relating to the Appointment of Service Provider to assist with determining the Optimal Operating Model for the State’s Diamond Assets

Status: It was cancelled due to the changed of circumstances, there is no longer a need for the services requested.

20 May 2022 - NW1490

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Magaxa, Mr K to ask the Minister of Public Enterprises

Given that the Government is working to improve the business environment for companies of all sizes through a dedicated capacity to reduce red tape, what does his department intend to do to access land for planting for SA Forestry Company Limited to expand production, revenue generation, job creation and downstream industrialisation?

Reply:

Currently, SAFCOL has a total of 189 747 hectares with plantable area of 120 644 hectares. As a result, only 116 695 hectares is planted and 3 949 hectares is “Temporary Unplanted” (TUP). This is approximately 3% of the total ,which was maintained for the past 5 years, is in line with annual industry targets.

The Department of Public Enterprises has since requested SAFCOL to consider assisting the Department of Forestry, Fisheries and Environment (DFFE) in reducing its TUP which is currently above 30%, either by leasing or managing plantations near its operations in Mpumalanga, Limpopo and KZN. This will not only reduce unlimited risks DFFE is currently exposed to but also increase rural employment and sawlog availability for supply of raw material to small and medium business in response to sector transformation and addressing the Commercial Forestry Masterplan objectives.

Furthermore, DPE has encouraged SAFCOL to ensure that it remains a preferred partner post the land settlement process as currently 57% of SAFCOL land under operation is under land claim. This is in collaboration with DFFE and the Department of Agriculture, Rural Development and Land Reform.

 

20 May 2022 - NW1497

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Herron, Mr BN to ask the Minister of Public Enterprises

In light of the fact that despite the commitments by the Government and Eskom to fix the electricity supply and the fact that the Council of Scientific and Industrial Research statistics show that loadshedding and/or power outages in the Republic have steadily worsened over the past 14 years; what are the (a) reasons that the stability of the Republic's electricity supply worsened instead of improving over the past 14 years and (b) details of Eskom’s plan for reversing the trend of increasing hours and energy outages?

Reply:

According to the information received from Eskom

a) Eskom’s Generation fleet is unreliable and unpredictable because its plants have been run for over 10 years at exceptionally high utilisation factors, with less than adequate maintenance. there has been insufficient investment in maintenance as a result of inadequate ENERGY capacity and years of tariffs that were not reflective of prudent and efficient costs. Together with inadequate capacity on the system, this unreliability and unpredictability has led to load shedding and this also means that the risk of load shedding remains if there are more breakdowns than predicted in the base planning scenarios.

b) A reduction in the risk of load shedding depends on two factors. Firstly, an additional 6 000MW is required to be commissioned. This is being driven by the DMRE. Secondly, Eskom needs to improve the reliability and predictability of the coal fleet. This requires adequate financial resources and “space” on the system to execute the required additional reliability maintenance. To achieve this, Eskom is driving the Generation Turnaround Programme that includes focussing on the Seven Strategic Initiatives that include the 2035 Strategy, the 9-Point Plan and the Reliability Maintenance Recovery Programme.

In addition, special programs to deploy experienced personnel to assist power station managers, and a mentoring and training program is also being put in place to improve operational efficiency.

the negative impact of criminality, corruption, sabotage and fraud must also be taken into account. urgent law enforcement measures must be put in place to combat this.

please be assured that the management is very aware that agility, accountability and responsiveness is critical to the more efficient operation of plant.

20 May 2022 - NW1498

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Van Dyk, Ms V to ask the Minister of Public Enterprises

(1) (a) What process led to the appointment of a certain person (name furnished) as Chief Executive Officer (CEO)of the Pooling and Sharing Joint Venture (PSJV), (b) how long will the specified person be in this position and (c) what are the reasons that a certain other person (name furnished) has been removed from his duties at the PSJV? (2) Whether the specified person who has been removed from the performance of his duties will continue to receive a salary; if not, what is the position in this regard; if so, how much? NW1743E

Reply:

According to the information received from Alexkor

1. (a) Ms Leilani Swartbooi was never appointed as CEO or Acting CEO of the PSJV.

(b) Ms Swartbooi was appointed to act in the position of Mr Bowers, the General Mine Manager, for the period 8 February 2022 to 14 February 2022 while Mr Bowers was on leave.

(c) Mr Bowers is still the General Mine Manager of the PSJV. He was never removed from this position.

(2) Mr Bowers has not been removed from the performance of his duties and there has been no change to his remuneration package.

20 May 2022 - NW1588

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Tarabella - Marchesi, Ms NI to ask the Minister of Public Enterprises

Whether (a) his department and/or (b) entities reporting to him concluded any commercial contracts with (i) the government of the Russian Federation and/or (ii) any other entity based in the Russian Federation since 1 April 2017; if not, what is the position in this regard; if so, for each commercial contract, what are the (aa) relevant details, (bb) values, (cc) time frames, (dd) goods contracted and (ee) reasons that the goods could not be contracted in the Republic? NW1924E

Reply:

DPE Response

The Department has not concluded any commercial contracts with the Russian Federation since 1 April 2017

According to the information received from Alexkor

There is no contract with the Russian Federation and / or any other entity based in the Russian Federation recorded in the Alexkor SOC Limited contract register since 1 April 2017.

According to the information received from Denel

(i) No (ii) Yes (aa) Ohotnik v Sheremetievo Ltd. (bb) R4,525,815.33 (cc) 2017 to 2018 (dd) Commercial ammunition (ee) Sales

According to the information received from Eskom

(b)(i) and (ii)

Eskom has not concluded any commercial contracts with the government of the Russian Federation, or any other entity based in the Russian Federation since 1 April 2017.

However, Eskom had a commercial contract with a Russian entity that commenced in 2010 and ended in 2017.

(aa)

The contract was with Tenex, a Russian Joint Stock Company owned by the Russian state- owned company Rosatom, to supply the Koeberg Nuclear Power Plant with Enriched Uranium Product (EUP).

The sourced EUP is delivered to the Eskom nuclear fuel suppliers abroad where it is processed into small pellets, which are loaded into the metallic fuel rods that make up a nuclear fuel assembly.

(bb)

The value of the contract was $411 121 667,50.

 

(cc)

The contract commenced on 9 March 2010 and ended on 31 December 2017.

(dd)

The contract was for the supply of EUP.

(ee)

The reason EUP is not procured within the Republic is due to the unavailability of enrichment and/or conversion facilities in South Africa.

According to the information received from SAFCOL

(b) According to records at our disposal SAFCOL had never concluded any commercial contracts with (i) the government of the Russian Federation and/or (ii) any other entities based in the Russian Federation since 1 April 2017. SAFCOL procures its goods and services within the boundaries of the Republic of South Africa, there are and were never intentions to contract any commercial contracts with the Russian Federation.

According to the information received from SAA

SAA has no commercial contracts with the Russian Federation nor any entity based in the Russian Federation to supply goods and services.

According to the information received from Transnet

(b)

On 05 March 2018, Transnet SOC Limited (Transnet) signed a Memorandum of Understanding (MoU) with the Joint Stock Company Russian Railways. This MOU is for 5 years, and it is valid until 2023. However, Transnet has not concluded any commercial agreements to date. The objective of this MoU was to collaborate on the following areas:

  • Implementation of railway infrastructure projects.
  • Provision of consulting services in the field of development of passenger and freight traffic solutions.
  • Cooperation in the field of innovation, scientific Research & Development and experience exchange.
  • Integration of railway and port infrastructure.
  • Staff training.
  • Interaction with the BRICS New Development Bank.

To date none, of the above projects has been implemented because Transnet could not find an appropriate procurement mechanism to procure the necessary services from Russian Railways.

 

 

20 May 2022 - NW1599

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Van Dyk, Ms V to ask the Minister of Public Enterprises

What is the status of his department’s 20% stake in West Coast Resources?

Reply:

The department remains the custodian of the State’s 20% stake in West Coast Resources (WCR). WCR is currently under business rescue. A 7-year business rescue plan was approved in July 2020. The shareholding is held through a special purpose vehicle created by De Beers called Mainstreet( Pty) Ltd. The Department is currently working on a process to have the shareholding held in the name of the State directly or through one of the State-Owned Entities.

20 May 2022 - NW1686

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

(a) What process was followed by his department to set up a team to deal with the report of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State and (b)(i) what are the names of the external lawyers who were appointed to form part of the project team, (ii) on what basis were they appointed and (iii) what is the (aa) term and (bb) total monetary value of each specified contract?

Reply:

(a) The appointment of the legal team was handled by the Office of the State Attorney according to its procurement processes.

(b)(i) Advocate R Schorn, Advocate SJ Coetzee SC and Advocate P Nonyane.

(ii) They were appointed to advise the Department on the actions to be taken by the department or the specific entity based on the findings and recommendations of the Judicial Commission of Inquiry into Allegations of State Capture particularly those that relate to the State-Owned Enterprises within the Department’s portfolio.

(iii)(aa) The appointment is product-based. Once the advice has been provided, the instruction will automatically terminate.

(bb) There is no monetary value set for each contract. Counsels are paid on the submission of an invoice submitted to the Office of the State Attorney for the work done.

20 May 2022 - NW1728

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Msimang, Prof CT to ask the Minister of Public Enterprises

What is the (a) length of tenure to date and (b)(i) annual remuneration and/or (ii) cost to company of the current Board of Directors at Transnet in each year?

Reply:

According to the information received from Transnet

The information as requested is reflected in the table below. The cost in terms of question (b)(i) and (b)(ii) is the same and therefore depicted as (b)(i) in the table.

Member

Date of entry

Tenure

(a)

Annual remuneration FY2018/19
R 000

(b)(i)

Annual remuneration FY2019/20
R 000

(b)(i)

Annual remuneration FY2020/21
R 000

(b)(i)

PS Molefe (Chairperson)

May 2018

4 years

1 078

1 278

1 278

LL Von Zeuner

May 2018

4 years

647

777

840

DC Matshoga

May 2018

4 years

566

671

575

UN Fikelepi

May 2018

4 years

485

675

671

GT Ramphaka

May 2018

4 years

472

656

671

FS Mufamadi

May 2018

4 years

550

671

671

AP Ramabulana

May 2018

4 years

472

575

575

ME Letlape

May 2018

4 years

517

671

834

FY2021/22 annual remuneration figures will be issued following finalization of the audit and other governance approvals.

20 May 2022 - NW1729

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Msimang, Prof CT to ask the Minister of Public Enterprises

What is the (a) length of tenure to date and (b) (i) annual remuneration and/or (ii) cost to company of the current Board of Directors at Denel in each year?

Reply:

According to the information received from Denel

The following are the names of the current Board, their tenure and Remuneration:

Name

Tenure

Remuneration

Gloria Serobe

9 April 2018 (appointment date) 2018/19

R616 000

 

2019/2020

R389 000

 

2020/2021

R240 151

 

2021/2022

R1 042 340

Mandla Mnisi

9 April 2018 (appointment date) 2018/19

R385 000

 

2019/2020

R269 000

 

2020/2021

R161 259

 

2021/2022

R217 775

Thami Magazi

9 April 2018 (appointment date) 2018/19

R693 000

 

2019/2020

R751 000

 

2020/2021

R325 882

 

2021/2022

R275 994

Temba Matanzima

9 April 2018 (appointment date) 2018/19

R112 000

 

2019/2020

R326 000

 

2020/2021

R105 216

 

2021/2022

R231 390

Tshidi Mokgabudi

25 June 2021 (appointment date)

2021/2022

R 12 873

Tryphosa Ramano

23 February 2022 (appointment date)

2021/2022

R21 337

20 May 2022 - NW1730

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Msimang, Prof CT to ask the Minister of Public Enterprises

What is the (a) length of tenure to date and (b) (i) annual remuneration and/or (ii) cost to company of each member of the current Board of Directors at Eskom in each year?

Reply:

According to the information received from Eskom:

In accordance with the Eskom Memorandum of Incorporation, the directors serving on the Board of Eskom are appointed on a three-year term, which is reviewed annually by the Shareholder. The directors may serve up to three terms with the approval of the Shareholder.

The period served by the current directors on the Eskom Board is as set out in Table 1 below.

Table 1: Tenure of Eskom Directors

Name of Director

Date appointed

Length of term to date

Non -executive directors

Dr Pulane Elsie Molokwane

15 December 2017

4 years,4 months

Dr Banothile Charity Events Makhubela

15 December 2017

4 years,4 months

Prof Malegapuru William Makgoba

15 December 2017

4 years,4 months

Prof Tshepo Herbert Mongalo

20 January 2018

4 years,3 months

Ms Busisiwe Mavuso

20 January 2018

4 years,3 months

Dr Roderick de Brissac Crompton

20 January 2018

4 years,3 months

Executive Directors

Mr André de Ruyter

December 2019

2 years ,4 months

Mr Calib Cassim

28 July 2017

4 years, 10 months

The annual remuneration for each of the past five years for the current Non-Executive and Executive Directors is set out in the Table 2 below.

Table 2: Annual Remuneration of Eskom Directors

Name of Director

2017/2018

(R)

2018/2019

(R)

2019/2020

(R)

2020/2021

(R)

2021/2022

(R)

Director Fees of Non-Executive Directors

Ms Busisiwe Mavuso

112 000,00

593 000,00

593,000.00

711,000.00

592 889,40

Dr Banothile Charity Events Makhubela

543 000,00

489 000,00

497,000.00

593,000.00

682 164.60

Dr Pulane Elsie Molokwane

640 000,00

578 000,00

618,000.00

717,000.00

710 530,56

Prof Tshepo Herbert Mongalo

196 000,00

593 000,00

543,000.00

717,000.00

716 766,36

Prof Malegapuru William Makgoba

233 000,00

717 000,00

952,000.00

1,687,000.00

1 598 571.96

Dr Roderick de Brissac Crompton

101 000,00

524 000,00

540,000.00

717 000,00

716 766,36

Cost to Company of Executive Directors

Mr André de Ruyter

-

-

1,654,000.00

(3 months)

7,040,010.00

7,040,010.00

Mr Calib Cassim

1 649 000,00

3 130 000,00

4,900,020.00

4,900,020.00

4,900,020.00

29 April 2022 - NW1219

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether he has been informed that the contactors who are now part of Global Consulting Direct International, terminated employment contracts of a number of workers who had been working on the construction of Kusile Power Station; if not, why not; if so, has he engaged the specified company to find out the reasons for terminating the contracts of mainly black workers?

Reply:

According to the information received from ESKOM

Eskom does not have a contract with Global Consulting Direct International at Kusile and across Eskom.

 

29 April 2022 - NW1218

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

(1) Whether he has been informed of Eskom employees who had recently resigned and are now part of the Global Consulting Direct International contract which is carrying out construction at the Kusile Power Station; if not, why not; if so, has he found it to be regular for former employees to take over as private contractors; (2) which responsibilities were the specified employees directly associated with while being Eskom employees?

Reply:

According to the information received from ESKOM:

1 Eskom does not have a contract with Global Consulting Direct International at Kusile and across Eskom.

2. Not applicable.

29 April 2022 - NW1209

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether Transnet has taken a decision to issue tenders without preferential criteria such as broad-based black economic empowerment, exempted micro-enterprise and/or qualifying small enterprise and minimum 30% sub-contracting requirements; if not, why not, in each case; if so, what is the (a) reason for this and (b) implication of the decision on transformation?

Reply:

According to the information received from Transnet

a) Pursuant to section 217(2) of the Constitution, the Transnet SOC Ltd (Transnet) Board of Directors has approved an addendum to the company’s Supply Chain Management (SCM) Policy – effective 25 March 2022 - to allow Transnet to include specific provisions for preferential procurement in its procurement processes.

The Board of Directors resolved to continue applying the 80/20 and 90/10 preference point system provided for in section 2(1) of the Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA) – in order to promote preferential procurement in its processes, demonstrating the company’s continued commitment to transformation and empowerment.

The Board has determined monetary thresholds for the application of the 80/20 and 90/10 preference point systems that will continue to provide certainty to bidders and Transnet’s procurement processes until new Preferential Procurement Regulations are promulgated or the Constitutional Court judgment is clarified.

This approach aligns with the Constitutional Court ruling that the policies of organs of state should take charge of driving transformation and preference in procurement to give effect to section 217(2) of the Constitution.

b) Transnet’s transformational objectives will be achieved. Transnet’s amended policies will ensure that the SOC continue to provide certainty to bidders and Transnet’s procurement processes until new Preferential Procurement Regulations are promulgated or the Constitutional Court judgment is clarified.

29 April 2022 - NW1292

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Lees, Mr RA to ask the Minister of Public Enterprises

What are the details of the (a) agreement entered into by his department to dispose of 51% of South African Airways shares to a certain preferred strategic equity partner (SEP) (name furnished) and (b) concerns that the National Treasury has with some of the terms and conditions agreed to between the preferred SEP and his department?

Reply:

a) The negotiations to conclude the SEP process has reached an advanced stage. The agreement contains sensitive commercial information which if shared publicly may affect the conclusion of the deal. Furthermore, the Department of Public Enterprises has signed a Non-Disclosure Agreement with Takatso to keep the details of the agreement confidential until such time that the process is concluded. We are therefore asking that the Department be given a chance to conclude this agreement. The information will be submitted at an appropriate time when the process has been concluded.

b) The National Treasury has not raised any concerns with the Department that have not been responded to satisfactorily. The department and National Treasury are constantly sharing information with regards to the SEP process.

 

29 April 2022 - NW708

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Phiri, Ms CM to ask the Minister of Public Enterprises

(1)      In light of the fact that the Government has provided funds to Mango’s business rescue and yet the finalisation of the process has not yet been concluded, on what date is it envisaged that the business rescue process will be concluded; (2) whether the rescue plan is intended to find the buyer and/or the investor for the airline; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. The business rescue process is at an advanced stage. The Department has transferred the last tranche of R399 million from the total of R819 million that was allocated to the airline for restructuring purposes. The last tranche was transferred on 28 March 2022 on conditions that not only should the business rescue process be completed around the end of April 2022 but that a viable strategic equity partner for Mango is identified that has financial capacity to fund the airline after it exits the business rescue process.

2. The process of identifying a suitable Strategic Equity Partner (SEP) for Mango is part of the conditions for transfer of the last tranche of R399 million as indicated above. The process which was initiated on 2 December 2021 is expected to be finalised in the next few months.

 

28 April 2022 - NW1093

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Boshoff, Dr WJ to ask the Minister of Public Enterprises

(a) How much diesel has been used in the generation of electricity at Eskom since 1 January 2022, (b) what was the total cost thereof and (c) how was the total price that Eskom paid for the diesel calculated?

Reply:

According to the information received from ESKOM

a) From 1 January 2022 to 24 March 2022, Eskom utilised 110 141 069 litres of diesel for the generation of electricity at two of its OCGT stations.

(b) The total cost of the amount in (a), above is R1 385.9 million.

(c) The price indicated is the moving average price for each month. The price is the wholesale price less rebates and discounts where applicable. In addition, tank rental costs are included monthly, and these are approximately R4 million per month for both stations. There were no demurrage costs in this period.

Note that the usage and costs are verified at the end of each month. The March values and thus the totals in (a) and (b) above may therefore be subject to change.

12 April 2022 - NW857

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Engelbrecht, Mr J to ask the Minister of Public Enterprises

What total amount in Rand has been spent on (a) catering, (b) entertainment and (c) accommodation for (i) him, (ii) the Deputy Minister and (iii) officials of his department since 29 May 2019?

Reply:

(i) Ministry

2019/20

2020/21

2021/22

a) Catering

0.00

0.00

0.00

b) Accommodation

332,786.78

0.00

0.00

c) Entertainment

0.00

0.00

0.00

(ii) Deputy Minister

 

 

 

  a. Catering

0.00

0.00

0.00

b. Accommodation

514,163.56

40,843.43

179,559.59

c. Entertainment

0.00

0.00

0.00

(iii) Official of his department

 

 

 

a. Catering

140,637.33

60,205.34

37,312.53

b. Accommodation

2,877,798.90

349,562.74

600,764.83

 c. Entertainment

0.00

0.00

949.00

05 April 2022 - NW706

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Dlamini, Mr NE to ask the Minister of Public Enterprises

(1) Whether, in light of the fact that Transnet entered into a R54 billion contract to procure 1 064 locomotives with four original equipment manufacturers, including the contract with the China North Rail which was declared unlawful and subsequently set aside, one of the cited reasons being that the chassis do not fit the body of the locomotives, there are any plans in place to repurpose the chassis to get value out of the money spent; if not, why not; if so, what are the relevant details; (2) whether Transnet has identified new original equipment manufacturers to fill the gap left by the China North Rail; if not, what is the position in this regard; if so, what are the further relevant details? NW844E

Reply:

According to the information received from Transnet

1. Transnet and the Special Investigating Unit (“the SIU”) have applied to the High Court to set aside the contract but no judgement has yet been delivered. China North Rail was contracted to deliver 232 diesel locomotives but only delivered 22 locomotives - Transnet suspended the contract in December 2019. The suspension is not due to any technical failures but followed evidence of kickback agreements with Gupta entities overseas.

2. In the review application by Transnet and the SIU, Transnet is tendering the return of the 22 locomotives delivered by China North Rail. These locomotives were defective and were never taken into service by Transnet. Currently, Transnet is exploring all options to acquire as many locomotives as it can to meet the demand in the country.

05 April 2022 - NW654

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Whitfield, Mr AG to ask the Minister of Public Enterprises

What (a) are the reasons for the delay in relocating the fuel tank farm from the Port of Port Elizabeth to the Port of Ngqura, (b) by what date is it envisaged that the relocation will be completed and (c) what plans are in place for the rehabilitation of the current site in the Port of Port Elizabeth?

Reply:

According to the information received from Transnet

a) The delay in the relocation of the fuel tank farm was due to the inability of an operator that was appointed in terms of Section 56 of the National Ports Act, to achieve a commercially viable business case for the proposed terminal, and thus a decision was taken to discontinue the project. Subsequently, Transnet supported the Coega Development Corporation (CDC) in developing the liquid bulk facilities in Zone 5 of the Special Economic Zone (SEZ) in view of the advanced progress the CDC had made with the development of their liquid bulk storage facility.

b) The Transnet National Ports Authority (TNPA) has given termination notice to Astron Energy (Pty) Ltd, Engen Petroleum Ltd, and Total Energies Marketing South Africa (Pty) Ltd (Oil Majors) who operate the Liquid Bulk Terminal in the Port of Port Elizabeth, effective 30 April 2022. As a result of this termination notice, the Oil Majors have lodged an appeal to the Ports Regulator of South Africa (PRSA) contesting this termination.

A firm timeline for the relocation cannot be determined until such time that:

1. TNPA and Astron settling the PRSA matter; and

2. There is a firm commitment from the Oil Majors to commit to commercial offtakes with the CDC or a liquid bulk storage facility operator appointed by the implementing agent CDC.

c) In October 2020, the Department of Forestry, Fisheries and the Environment (DFFE) issued a Remediation Order in terms of Part 8 of the National Environmental Management: Waste Act of 2008. This Remediation Order will regulate how the Oil Majors will undertake the decommissioning and remediation of the Port of Port Elizabeth’s liquid bulk terminal. TNPA has initiated negotiations to conclude a Decommissioning and Remediation Exit Agreement.

The Oil Majors have cited that this Agreement cannot be finalised without the PRSA appeal being determined and for realistic timelines for the relocation to the Port of Ngqura/CDC SEZ being agreed to.

05 April 2022 - NW739

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether he has done an assessment of the livelihood impacts on the lives of the employees of the (a) SA Airways, (b) Denel and (c) Mango resulting from the inability of the specified companies to pay their workers; if not, why not; if so, what responsibility is he taking for such impacts?

Reply:

a) South African Airways Response

South African Airways has been paying all its retained employees their full salaries since December 2020 on or about the 28th of the month, every month.

There was a six-month period in 2020 when salaries could not be paid as the airline was not operating as there were travel restrictions put in place by Government in response to the Covid 19 pandemic. An agreement was reached with the majority of the unions and non-unionised employees, that three months salary be paid as a full and final settlement, i.e. the employees were to forego salaries for the months of June, July, August, September, October and November for the proposed settlement. This offer was extended to both the retained employees and those who accepted Voluntary Severance Packages (VSP) and ultimately exited the company in September 2020.

Due to delays in getting funding from the fiscus, the full and final settlement was made in the first quarter of 2021. There is a small number of employees who have still not signed the agreement for the settlement, and these will be paid as soon as they sign.

b) DENEL Response

An assessment of the livelihood on the lives of employees was not done as those:

  • Who received VSPs were paid the agreed package amounts in full; and
  • Those who were retained have been getting paid in full since December 2020.
  • Continuous assessment of the SOC financial and operational is done. This is also done through engagements with SOC leadership (Board and Management), organized labour and relevant Government departments. Through these engagements, valuable information, and appreciation of the depth of social impact and challenges encountered by the employees and their families as result of the partial payment of salaries.
  • The situation at Denel has necessitated the need to reset and re-purpose Denel’s value proposition and to support its balance sheet. The Minister of Finance has approved approximately R3 billion to settle Denel’s guaranteed debt. This will enable the SOC to significantly reduce its interest payment burden which was over R200 million per annum.
  • The focus is on core business growth and partnerships, disposal of non-core businesses and assets. The cash raised from the disposals will be used to re-capitalize operations, settle outstanding salaries and other creditors. This will also enable Denel to restore its credibility with employees, suppliers, and clients (existing and potential).

c) Mango Response

  • At the start of business rescue, Mango’s employees were owed on average about 8 months’ salaries, which in total amounted to approximately R125m.
  • Immediately after the appointment, the BRP prioritised the issue of unpaid salaries and as of today the only arrears remaining, which need to be paid in March 2022, is approximately R1.8m.

05 April 2022 - NW738

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Given that the SA Airways (SAA) currently has revenue of R543 million, but needs R2,3 billion for operations, (a) how will he ensure that the SAA is able to operate despite the challenges and (b) what contribution will the Strategic Equity Partner be bringing to ensure that the SAA is financially sound? NW913E

Reply:

a) SAA commenced operations in September 2021, after exiting the business rescue process. It has therefore incurred costs from the beginning of the financial year and only generated revenue from September 2021.

The operating costs are being funded from the working capital that was allocated as part of the R10.5 billion funding for SAA to implement the business rescue process.

b) The contribution by the Strategic Equity Partner (SEP), is to provide approximately R3 billion as operating capital as soon as the transaction is concluded. Further financing will be determined by the new board.

 

05 April 2022 - NW737

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What (a)(i) steps has he taken to make the management of Eskom account for the R900 million for the appointment of a service provider that was declared as irregular expenditure by the Auditor-General and (ii) is the name of the service provider and (b) steps has he taken to recover the specified money?

Reply:

According to the information received from Eskom

(a)(i)

The incident occurred prior to 2018, and the Eskom management team during the period in question, is no longer at the helm. In the meantime, the investigation was finalised, and processes are underway to recover the monies.

(a)(ii)

The name of the service provider is Econ Oil & Energy (Pty) Ltd.

(b)

On 14 December 2020, Eskom received an interim forensics report. On 17 December 2020, Eskom instituted arbitration proceedings against the supplier to recover the sum. The parties held a first pre-arbitration meeting on 30 April 2021 and agreed on the timelines for exchanging documents. Econ Oil applied for the issue on prescription, to be separated from the merits. The arbitrator ruled in Eskom’s favour. On 17 September 2021, Econ Oil filed a notice of appeal against the arbitrator’s ruling, which was dismissed on 16 February 2022. The Eskom legal team will now liaise with Econ Oil’s attorneys regarding dates for delivery of further and better particulars and to provide all the witness statements.

05 April 2022 - NW1032

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What is the projected return on investment for the (i) Medupi and (ii) Kusile Power Stations, and over what period?

Reply:

According to the information received from Eskom

a) ( i & ii)

In terms of the economic regulation framework applicable to the regulated parts of the Electricity Supply Industry (ESI), all investments should earn a return equal to its weighted average cost of capital (WACC), on the depreciated asset value, over its full life cycle – in line with globally-accepted regulatory practice.

This is dependent on the initial asset construction cost, as well as the ongoing annual operating and maintenance cost, and the performance of the asset being assessed as prudent and efficient.

The electricity regulator assessed the %WACC for Eskom for the current MYPD4 revenue cycle as 7.1% pre-tax ‘real’. The regulator also commented in a Reasons for Decision and a subsequent affidavit that the overnight construction cost of Medupi is approximately 6% above the international benchmark norms, and that of Kusile fell within the international benchmark norms. The current operating and maintenance costs are at or below international benchmark norms. After some initial teething problems, Eskom is confident that both Medupi and Kusile will perform according to their design parameters.

Therefore, once the electricity price reaches the level of cost-reflectivity the power stations should earn a return on investment of equal to the %WACC, which for the current MYPD4 revenue cycle is assessed as 7.1% pre-tax ‘real’. However, in the interest of a gradual transition to cost-reflective electricity prices the electricity regulator is not yet awarding the full return on investment in its revenue and price determinations.

For the current MYPD4 revenue cycle the electricity regulator awarded a return of 1.5% on the regulatory asset value, however due to the regulator having reduced the revenue by the amount of the government equity support of R23bn per year the actual returns are close to zero.

(b) In terms of the economic regulatory framework applicable to the regulated parts of the ESI, the return on investment on the depreciated asset values should annually be equal to the %WACC, over the full life cycle of the asset. This will apply once electricity prices are cost-reflective.

05 April 2022 - NW885

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Lorimer, Mr JR to ask the Minister of Public Enterprises

What (a) is the total number of incidents of (i) sexual harassment and (ii) sexual assault that were reported in his department (aa) in each of the past three financial years and (bb) since 1 April 2021, (b) number of cases (i) were opened and concluded, (ii) were withdrawn and (iii) remain open or pending based on the incidents and (c) sanctions were meted out against each person who was found guilty?

Reply:

(a) DPE has a zero / No cases

(aa) there was zero reported in the past three financial years.

(bb) there was zero reported since 1 April 2021.

(b) Number of cases opened and concluded:

  1. There was zero opened and concluded.
  2. There was zero withdrawn.
  3. Zero remained opened or pending based on incidences.

(c) There was zero sanctions meted out on guilty findings.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister

Date: Date:

05 April 2022 - NW704

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Tshabalala, Ms J to ask the Minister of Public Enterprises

(1)What are his department’s current initiatives that are intended to address the instability of community structures in Richtersveld that impacts negatively on the operations and effectiveness of Alexkor; (2) whether, besides the mining strategy that seeks to address the lower diamond production that impacts negatively on Alexkor’s balance sheet, there are any plans to diversify Alexkor given the diamond price volatility; if not, why not; if so, what are the further, relevant details?

Reply:

1. The task of normalising the functioning of Richtersveld community structures is that of the of the Department of Agriculture, Land Reform and Rural Development (DALRRD). This question is therefore best directed to the Minister of DALRRD.

2. The Richtersveld region has seen continued decline in the diamond industry in the area. De Beers West Coast and Transhex operations have depleted their resources and closed. Alexkor on its own cannot be the saviour of the region.

Alexkor was established as an alluvial diamond company and that will be its mandate until the diamond resource is deemed unviable or the State exits the business, as was envisaged by the Deed of Settlement with the Richtersveld Communities agreed in 2007.

An interim board appointed in January 2022 has been tasked to ensure in the short term:

  • Financial Sustainability
  • Operational Effectiveness; and
  • Restoration of Governance

The economic viability of the Richtersveld will require all stakeholders including the communities, the municipalities, provincial and national government to work together in developing an economic development plan for the Region. Projects like the development of Boegoebaai Port and the Green Hydrogen Special Economic Zone are an example of what is needed to diversify economic activity in the region.

The District Development Model driven by the Department of Cooperative Governance and Traditional Affairs (COGTA) could be a platform for achieving the objective of mitigating the eventual run out diamond mine operations.

05 April 2022 - NW655

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Whitfield, Mr AG to ask the Minister of Public Enterprises

(1) With reference to the Waterfront development of the Transnet National Ports Authority in the Port of Port Elizabeth, what (a) is the current timeline for the completion of each phase of the development and (b) are the relevant details of how the development will be financed; (2) whether his department plans to renegotiate the Southernport lease of land within the development footprint; if not, what is the position in this regard; if so, what is the current (a) value of each parcel of land leased to Southernport and (b) rental paid to Transnet by Southernport; (3) whether Southernport has submitted any proposals for the development of any of the parcels of land; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

According to the information received from Transnet

1. Waterfront Development

(a) The timelines for completion of the Waterfront development would be based on the business case, market demand and appetite, which will only be ascertained once a Request for Proposal (RFP) has been issued to the market. The development is scheduled in terms of phases commencing with the development of bulk infrastructure, which is common user infrastructure, the benefit of which should be accessible to all Port Users and phase II, which is constituted by the development of commercial top structures. Based on the bulk services required for the development, Phase 1 is envisaged to be completed within 5 -10 years and Phase 2 within 10 -15 years of commencement.

(b) The provision of bulk services required in Phase 1 will be financed by TNPA. It is envisaged that the development, operation, and maintenance of the Waterfront facilities will be financed by the developer/s that will be appointed by way of a competitive tender.

2. Southernport Lease

(a) TNPA is not able to publish the values of the land parcels because these values are issued in negotiations with third parties. Publishing such information would be commercially prejudicial to Transnet’s commercial obligations.

(b) Southernport has not paid any rental to Transnet, due to the fact they have not taken occupation of the leased land.

3. Southernport submission of proposal for the development

a) In 2014, Southernport submitted a draft site development plan to TNPA for consideration. TNPA was not satisfied with the information contained therein and accordingly responded calling for further information from Southernport in this regard which was not responded to positively.

(b) In April 2021, Transnet, through its operating division, Transnet Properties, sought to find an amicable solution to the impasse with Southernport, by tabling to Southernport, a proposal for co–development of the Waterfront and provided them with a copy of the Master Plans for the proposed Waterfront development. TNPA and Transnet Properties requested Southernport to provide their proposed development plans, which to date have not been provided, reasons of which have not been shared with Transnet.

03 March 2022 - NW166

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

Whether he and/or his department ever received correspondence from a certain political organisation (details furnished), via email, WhatsApp, hardcopy and/or in any other format of which the original file is dated June 2020; if not, what is the position in this regard; if so, (a) on what date was the specified correspondence received, (b) who was the sender of the correspondence and (c) what steps were taken by his department in this regard?

Reply:

Neither the Minister nor the Department of Public Enterprises received the correspondence referred hereto.

(a)(b)(c) not applicable.

03 March 2022 - NW217

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Komane, Ms RN to ask the Minister of Public Enterprises

How far is the process to convert some high schools into maritime schools to expose learners to careers in maritime at an early age, as it was indicated to the Portfolio Committee on Public Enterprises seven years ago during an oversight visit to Transnet, that Transnet was in communication with the Department of Education and Training?

Reply:

According to the information received from Transnet

A Task Team comprising officials from Transnet National Ports Authority (TNPA), the South African Maritime Safety Authority (SAMSA), South African International Maritime Institute (SAIMI) and the Gauteng Department of Education (GDE) has conceptualised a programme on maritime schools.

In 2019, a secondary school in Sedibeng Municipality – Sharpeville in Vereeniging was converted into a maritime school, renamed Mohloli Maritime School. Two (2) maritime subjects were introduced, with the aim of introducing key aspects of the blue economy to the educators and learners.

Between 2018 and 2019, further preparatory work was done with other schools in Gauteng, Western Cape, Eastern Cape and KwaZulu-Natal. TNPA and SAMSA participated in several engagements organised by the GDE to map out the process and progress on reorganising the remaining schools in the six (6) identified corridors.

TNPA has also launched several initiatives which culminated in a programme where a group of grade eleven (11) and twelve (12) boys from these schools are invited to TNPA under the theme, “Tomorrow’s men - Bring a Boy Child to work” in parallel with the “Take a Girl Child to Work Day”, to create awareness and exposure to the maritime environment where the learners are engaged and introduced to career possibilities in the maritime sectors.

The Maritime School of Excellence (MSoE) conducts roadshows to create awareness on career opportunities in the maritime sector. Furthermore, to encourage learners to meet the requirements to study maritime-related subjects while schools are in the process of being converted, the Port of Durban has donated a science laboratory to Ndukwenhle High School and Smart Boards to Seven (7) adopted Schools in the South Durban Basin.

03 March 2022 - NW35

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Van Dyk, Ms V to ask the Minister of Public Enterprises

(1)Whether, given that more than R1billion of taxpayers’ money has been spent on the establishment and upkeep of the Joint Venture between Alexkor and the Richtersveld Mining Company, known as the Pooling and Sharing Joint Venture (PSJV), of which the entity has proven to be a dismal failure because of the lack of transparency and public accountability, he has found that it was appropriate to spend over R1 billion in taxpayers’ money in circumstances where there will be no accountability; if not, why not; if so, what are the provisions of the Public Finance Management Act (PFMA), Act 1 of 1999, he relies upon; (2) whether the PSJV is a Schedule 2 Major Public Entity; if not, what is the position in this regard; if so, what are the relevant details; (3) whether he has taken any steps to ensure that the PSJV subjects itself to the jurisdiction of the PFMA and gives Parliament a full account of the financial misconduct that has taken place for the past decade (details furnished); if not, what is the position in this regard; if so, what are the relevant details?NW39E

Reply:

1. The settlement agreement reached between Government, Alexkor and the Richtersveld Community comprised of the following obligations:

  • Transferral and restoration of portions of land by the State and Alexkor to the Richtersveld Community.
  • The transfer of Alexkor’s land mining rights to Richtersveld Mining Company and the setting up of Alexkor RMC PSJV. The State through Alexkor would capitalise the Alexkor RMC PSJV with R200 million in order to restore mining operations.
  • The transfer of Alexkor’s mariculture and agricultural assets to the Richtersveld Agricultural Holdings.
  • A sum of R190 million to be paid as reparation to the Richtersveld Investment Holding Company (RIHC) over three years.
  • R50 million development grant to be paid as a lump sum development grant to the RIHC for agriculture and mariculture.
  • R45 million to be paid to the Richtersveld Property Holding Company (RHPC) as compensation for Alexkor’s occupation on transferred residential properties for ten years.
  • The establishment of a township at Alexander Bay including the upgrade of the municipal infrastructure to be handed over to the Richtersveld municipality.
  • Environmental rehabilitation of historical mining areas.

Only R200 million was provided to the Alexkor Richtersveld Mining Company Pooling and Sharing Joint Venture (PSJV) as recapitalization loan to resuscitate the diamond operations following the protracted legal proceedings.

R200 million is a loan and is repayable, to date the PSJV has made payment of R14 million.

2. The PSJV is an unincorporated entity and does not qualify as a national public entity or a national government business enterprise based on the definition of the two by the PFMA namely the PSJV is not juristic entity nor under the ownership control of the national executive.

Given that the PSJV is not a public entity that it could not be listed in either Schedule 2 or 3 of the PFMA. Section 3 of the PFMA provides that the PFMA applies to departments, public entities listed in Schedule 2 or 3, and constitutional institutions. The PSJV is none of these and the PFMA does not apply to the PSJV itself in its own name.

3. Despite the PJSV not being subjected to the PFMA by virtue of its arrangement, the department referred the matters of financial misconduct, corruption and mismanagement to the Special Investing Unit (SIU). On 10 December 2021, the President Cyril Ramaphosa signed the proclamation authorizing SIU to investigate affairs of Alexkor SOC which extend to the PSJV.

11 January 2022 - NW2565

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Clarke, Ms M to ask the Minister of Public Enterprises

What (a) are the names of the (i) persons and/or (ii) companies who are the biggest buyers of diamonds from the State Diamond Trader (SDT) and (b) total revenue has been raised in the past two financial years by the SDT through diamond sales?

Reply:

This question should be directed to the Ministry of Mineral Resources and Energy, as the competent authority over the State Diamond Trader (SDT).

11 January 2022 - NW2498

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Clarke, Ms M to ask the Minister of Public Enterprises

Whether Denel Pretoria Metal Pressings, popularly known as PMP, is currently solvent and tax compliant; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

According to the information received from Denel

PMP, like other divisions of Denel, has been experiencing liquidity challenges. From a tax compliance point of view, PMP is not a legal persona but an operating division of Denel. Therefore, PMP uses the tax credentials of Denel SOC Ltd. Denel is in discussions with South African Revenue Services on its overall tax compliance matter.

11 January 2022 - NW2775

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Siwisa, Ms AM to ask the Minister of Public Enterprises

Whether, with reference to Transnet, that has a lot of vacant buildings which have turned into hubs for criminal activities: (1) There are any plans in collaboration with the Department of Human Settlements to turn the buildings into low cost housing facilities for middle-class citizens who cannot afford to buy houses and/or who do not qualify for RDP houses, to occupy and provide a safe environment for their children. (2) If not, why not; (3) If so, what are the relevant details?

Reply:

According to the information received from Transnet

(1). Transnet is engaging with the Department of Human Settlements and the Housing Development Agency with the aim of facilitating the disposal of its mass housing portfolio and some of the vacant pieces of land to municipalities, so that they can be used for human settlement purposes.

(2). N/A.

(3). A portion of Transnet’s property portfolio is reclassified as non-core as it is not required to support operations. Transnet entered into a Memorandum of Understanding with the National Department of Human Settlements to create housing opportunities across the country and facilitate the release of vacant land, buildings and hostels to convert them into liveable residential accommodation.

To this end, Transnet has made available vast tracks of land across the country to various municipalities and other state organs for the development of human settlements.

Engagements between Transnet, the National Department of Human Settlements, Housing Development Agency and municipalities are ongoing to conclude the release of the hostels portfolio for human settlements.

11 January 2022 - NW2741

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Buthelezi, Mr EM to ask the Minister of Public Enterprises

(1) Whether, in light of the R402 billion debt saddling Eskom, he will furnish Mr. E M Buthelezi with the reported new comprehensive and unified approach in turning around Eskom; if not, why not; if so, what are the relevant details; (2) Whether he has been informed of a forensic report that was supposedly ignored by Eskom in January 2020, which shows how employees and contractors of the entity colluded to make more money by inflating their overtime bonuses and sabotaging the infrastructure in collaboration with crime syndicates; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from Eskom

(1) In the absence of the free cash flow or equity from the shareholder to execute the recent build program, Eskom has had to, in the main, fund the program using debt. Even though funding with debt was not ideal, the build program was needed and has been executed for the benefit of the country. The burden of debt now sits with Eskom.

If Eskom receives a cost reflective tariff, recovers arrear municipal debt, manages internal costs and deals with its current excessive leverage, Eskom’s reliance on future Government support will be minimised. Currently the debt service costs cannot be adequately covered by the amount left from operations. Eskom can afford to service a debt of approximately R200 billion. This means that the balance sheet needs to be deleveraged by R200 billion.

Eskom has communicated the need to reduce its debt by at least half its current level to its shareholder representative. Details on the unified approach toward a solution is in the ambit of Government and will in due course be communicated.

(2) Besides the aforementioned forensic report, there have been many other investigations that Eskom Management conducted at Tutuka Power station, leading to criminal charges and arrests of implicated employees and suppliers.

Some senior employees are still on suspension and are being subjected to internal disciplinary process, while some are referred to authorities to deal with the fraudulent and criminal activities committed during their tenure at Eskom.

11 January 2022 - NW2499

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Clarke, Ms M to ask the Minister of Public Enterprises

(1) Whether the board members of Denel (a) are currently receiving their salaries and (b) have been paid since 1 June 2020 up to the latest specified date for which information is available; if not, what is the position in each case; if so, what are the relevant details; (2) Whether the (a) Chief Executive Officer and (b) Group Chief Executive Officer (i) are currently receiving their salaries and (ii) have they been paid full salaries since 1 June 2020 up to the latest specified date for which information is available; if not, what is the position in this regard in each case; if so, what are the relevant details in each case; (3) What number of designers with experience in artillery are currently in the employ of Denel? NW2920E

Reply:

According to the information received from Denel

(1). Members of the Denel Board of Directors (Non-Executive Directors) have received Directors’ fees for official meetings attended for the following periods:
​(a). The payment of Board fees made in full:

i). Quarter 2 of 2020/21 financial year;
ii). Quarter 3 of 2020/21 financial year
iii). Quarter 4 of 2020/21 financial year;
iv). Quarter 1 of 2021/22 financial year; and
v). Quarter 2 of 2021/22 financial year

(b). Board member’s fees for Quarter 3 of 2021/22, are still outstanding in full and committee fees for Quarter 1, Quarter 2 and Quarter 3 of 2021/22 financial year are still outstanding due to Denel’s liquidity situation.

(2). 

(a). (i) Denel has a total of 5 (five) divisional Chief Executive Officers (CEOs). All 5 of them have been receiving partial salary payments since June 2020.

(b). (i) The Interim Group Chief Executive Officer is currently receiving a partial salary.

(ii) The Divisional CEOs and the Interim Group Chief Executive Officer have outstanding salary and other related payments due to them from Denel for the period under question.

(3). Denel Land Systems (DLS) currently has (1) one employee with artillery design experience. The employee works with 4 (four) other employees, who have been subcontracted from the group’s Engineering Department.