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21 September 2020 - NW1197

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

(1) What are the relevant details of private shareholders who (a) have held shares in the SA Express Airways SOC Ltd (SA Express) since it was established and (b) currently hold shares; (2) What are the relevant details of shares traded during the life of SA Express, including the details of the (a) shares traded, (b) share sellers, (c) share purchasers and (d) amounts paid for shares? NW1502E

Reply:

 

  1. (a) In 2007, Transnet divested its interest in SA Express when the airline was established in terms of the SA Express Act (No. 34 of 2007), promulgated in December 2007, which provided for the transfer of SA Express shares and interests from Transnet to the state. The Act further granted the conversion of SA Express into a public company with share capital. In 2009, Government took 100% shareholding in SA Express.

 

The Company is a pre-existing company as contemplated in Item 2 of Schedule 5 of the Companies Act, (No 71 of 2008), as amended, and was incorporated in accordance with the Legal Succession to the South African Transport Services Act No. 9 of 1989 to and, in terms of its enabling legislation.

(b) There are no private shareholders who currently hold shares in SA Express. The company is also subject to the provisions of the Public Finance Management Act, 1999, (PFMA) as amended. The government is the sole shareholder of the shares in the company and the rights attached to those shares are exercised by the Minister of Public Enterprises.

 

  1. The Memorandum of Incorporation (MOI) provides that the company is authorised to issue 1000 (one thousand) Shares. The 2013 MOI provides that the shares in issue are 452 (four hundred and fifty two) ordinary shares, all of which are held by the shareholder, as represented by the Minister of Public Enterprises.
    1. shares traded where 102 shares
    2. share seller was Transnet

c). share purchaser was Government, represented by the Minister of Public Enterprises

d) amount paid was R140 million.

The company received a total of R1 549 000 000.00 during the 2018/19 and 2019/20 financial years. The company was required to provide the Minister with a commensurate request to increase the authorised and issued shares, accordingly. The process was not finalised and the provisional liquidator will only be able to address the matter, subject to prescribed requirements.

21 September 2020 - NW2080

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

With reference to his department’s appearance before the Portfolio Committee on Public Enterprises on 19 August 2020, where the Director-General indicated that Rand Merchant Bank has been appointed as transaction advisors to ensure that the best option of securing funding is chosen, what (a) process was followed to appoint Rand Merchant Bank as the transaction advisors, (b) is the contract value of the specified agreement, (c) are the deliverables in the agreement and (d) are the timelines of the contract?

Reply:

(a) The Rand Merchant Bank had been appointed as transaction advisor to oversee the Strategic Equity Partner (SEP) transaction of Air Chefs by SAA, the Department of Public Enterprises (DPE) expanded the scope in line with procurement prescripts to include a similar scope on the SAA group, in line with Treasury Regulation 16A6.6.

(b)The contract value is capped at R12 million as retainer fee and R25 million as success fee for concluding a partnership for S

(c) The deliverables are;
i. Initial evaluation
ii. Due diligence and agreeing heads of agreement
iii. Final Due Diligence, definitive Transaction agreements, Transaction approvals and closing

(d) The timeline for the contract is 12 months. But the project may be concluded earlier due to the urgency of the matter, and the Department of Public Enterprises (DPE) has an option of exiting within 15 days, a month’s notice or by mutual agreement.

21 September 2020 - NW1889

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What are the reasons that (a) The grievance lodged by a certain person (name furnished) regarding the interdict of the appointment of Eskom Group Treasurer was ignored, (b) Eskom misled the chairperson of the grievance process by supplying an incorrect advert of the position and (c) A certain person (name furnished) was a member of the interview panel that appointed Eskom Treasurer when the specified person is not a member of the board or an employee of Eskom? NW2397E

Reply:

According to the information received from Eskom

(a) The Grievance was attended to in line with the Eskom HR Management priscipts and the outcome was provided to the aggrieved employee.

(b) The advert that had been provided initially was the copy of the working draft. The error was corrected when it was posted out. There were no material differences between the working draft and final version published.

 

Table 1: Comparison of pdf copy of the advert vs advert on the Eskom recruitment site

 

Advert on the pdf copy

Advert  on       the  Eskom        recruitment

portal

Position: GM TREASURY

Position Task Grade: EEE – GENERAL MANAGER

Purpose: Ensure Eskom has necessary policies, strategies, processes and systems to optimize Eskom’s financial liquidity through providing an effective Treasury function.

Business Unit: Office of the CE/Chairman

Location: Megawatt Park Reference Number: 041120191 Closing Date: 07 November 2019 Line Manager: Jabu Mabuza

Position : GM Treasury Task Grade : E-Band

Area of Specialization: Ensure Eskom has necessary policies, strategies, processes and systems to optimize Eskom’s financial liquidity through providing an effective Treasury function.

Department : Chief Financial Officer Business Unit : Office of the CFO              Location : South Africa (Gauteng)              Reference Number : 041120191 Closing Date : Monday, 11 November 2019

 

(c) The Eskom recruitment and selection process make provision for a subject matter expect to form part of an interview panel. Ms Ramos was brought in on this basis.

None of the candidates of the candidates interviewed expressed discomfort or objected to discomfort with the composition of the interview panel.

21 September 2020 - NW1746

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Singh, Mr N to ask the Minister of Public Enterprises

(1) Whether his department and/or the entities reporting to him currently provide free basic electricity under programmes other than the Free Basic Electricity programme; if not, why not; if so, (a) to whom and (b) what are the relevant details; (2) whether the installation and maintenance of electricity prepaid meters would be (a) subsidised or (b) free under certain parameters; if not, why not; if so, (i) under what parameters and (ii) what are the relevant details; (3) whether his department and/or the entities reporting to him prescribe electricity tariffs and rates to municipalities in order to ensure that the most vulnerable and indigent communities receive free basic electricity; if not, why not; if so, (a) in what manner and (b) what are the relevant details?

Reply:

(1) No the Department of Public Enterprises and its entities do not provide free basic electricity under programmes other than the Free Basic Electricity (FBE) programme.

(1)(a) Not applicable (1)(b) Not applicable

(2)(a) Under the FBE programme, installation and maintenance of electricity prepaid meters is not subsidised.

(2)(a)(i) and (ii) Not applicable

(2)(b)(i) and (ii) The installation of electricity prepaid meters is free under the Government’s Integrated National Electrification Programme (INEP). INEP is funded by the Department of Mineral Resources and Energy as per the Division of Revenue Act, 2013 (Act No.2 of 2013) schedule 6.

Eskom maintains prepaid electricity meters. Eskom has a maintenance budget for repairs and maintenance for its infrastructure and this is allocated from the tariff.

(3) Eskom does not prescribe electricity tariffs and rates to any of its customers but charge all its customers tariffs approved by the National Energy Regulator of South Africa (NERSA). The Electricity Regulation Act prohibits Eskom from charging its customers any other tariffs other than those approved by NERSA.

(3) (a) Not Applicable

(3) (b) Not Applicable

09 September 2020 - NW1891

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Mkhaliphi, Ms HO to ask the Minister of Public Enterprises

Whether the Chief Executive Officer of Transnet intends to sell the assets of Transnet to the private sector; if not, what is the position in this regard, if so, (a) which assets will be sold, (b) what process is followed to decide which assets should be sold and (c) what are the reasons that Transnet is selling its assets?

Reply:

According to the information received from Transnet

No, Transnet is not planning to sell assets to the private sector. However, it is in the process of considering how its asset base is best positioned to deliver on the requirements of the business. We are however looking for opportunities to partner with the private sector. This is in order to promote economic transformation and to mobilise private sector capital for important projects.

(a) Not applicable

(b) Not applicable

(c) Not applicable

09 September 2020 - NW1204

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

(1)(a) At what stage are the negotiations with the unions regarding the unbundling of Eskom into three separate subsidiaries, and (b) which unions are involved in the process?(2) How will (a) the outstanding debt of Eskom be accrued to each of the three potential subsidiaries, and (b) Eskom debit to creditors be secured prior to the unbundling process?

Reply:

According to the information received from Eskom:

(1)(a) In terms of the Collective Agreement, Eskom engages with organised labour at various

participative structures. National structures include - Strategic Forum, Central Consultative Forum and Central Bargaining Forum. There are also Group Structures and Business Unit Level. The purpose of these structures is for Eskom to engage (share information, consult and bargain) with organised labour on matters that have direct impact on the employee’s conditions of employment in line with legal prescripts.

Post the publication of the Eskom Roadmap in October 2019, Eskom has had two formal consultative meetings with the leadership of NUM, NUMSA and Solidarity where Eskom shared the Strategic Turnaround Plan and Operating Model, the latter detailing the divisionalisation plans in support of the Eskom Roadmap. The table below lists engagements that have taken place as well as those planned.

Eskom is also party to the NEDLAC process where only NUM is in attendance as prescribed by the NEDLAC regulations.

Consultative Forum

Dates of past meetings

Discussions

Organised labour representation

Planned meetings

Strategic Forum (SF)

26 May 2020

Eskom shared the Eskom Strategic Turnaround Plan and Operating Model.

NUM/NUMSA/Solidarity leadership.

The engagements are targeted at Secretary General level.

26 November 2020

 

21 July 2020

A follow up meeting to engage further on issues tabled at the meeting.

   

Central  Consultative Forum (CCF)

-

The Eskom Turnaround Plan as shared at the Strategic form meetings of 26 May and 21 July.

NUM/NUMSA/Solidarity

The engagements are targeted at local leadership.

The CCF meeting is scheduled to take place on 22 September 2020. With another meeting scheduled for 3 December 2020.

NEDLAC

15 October 2019

4 December 2019

11 February 2020

The Roadmap for Eskom in a reformed electricity supply industry 2019

As per NEDLAC’s prescribed regulations.

Dates and agenda is set by NEDLAC.

(1)(b)The recognised trade unions at Eskom are National Union of Metalworkers of South Africa

(NUMSA), National Union of Mineworkers (NUM) and Solidarity.

(2)(a)In line with the divisionalisation decision, proforma financial statements: income statement

and balance sheet, etc. have been formulated for each of the units to enable proper performance monitoring by the established divisional boards. However, the decision on the group debt remains an outstanding matter and a solution will be finalised before the debt is allocated to each division and prior to attainment of the legal separation.

(2)(b) The decision on a long term solution will include engaging and reaching agreement with

the creditors, after taking into account the regulatory methodology and the profitability of the proposed subsidiaries. It would be premature at this stage to provide a definitive decision on this matter, as the work has not been concluded.

09 September 2020 - NW1887

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What are the reasons that a certain person (name furnished) was appointed as the Chairperson of the Eskom Pension Fund when a letter of appointment for the same position was already drafted and sent to another person (name furnished)?

Reply:

According to the information received from Eskom

The term of the Eskom Pension and Provident Fund (EPPF) Board, ofwhich Ms Mantuka Maisela was the Chairperson, expired on 31 May 2020. However, because the governance process was not in place on 31 May 2020 and Eskom did not want to be the cause of a non-constituted Board, which had been a finding of the Financial Sector Conduct Authority (FSCA) against the EPPF previously, Ms Maisela and the other two trustees were appointed to avoid such an occurrence.

The appointment letters were drafted to appoint them for a full term because the rules of the Fund did not provide for temporary appointments, but for replacements, where Eskom had the right to replace an employer board member at any time on reasonable grounds.

In a letter dated 29 May 2020, Ms Maisela was informed that her appointment was subject to the finalisation of the governance process and that it was to be read in conjunction with rule 3.5(1) of the EPPF rules, which provides that an employer board member could be replaced by Eskom at any time on reasonable grounds.

Eskom followed an appointment process for the EPPF Chairperson position with the assistance of an executive search company. Shortlisted candidates were interviewed by an Eskom panel that consisted of the Chief Financial Officer (CFO), Senior Manager Human Resources, and Recruitment Manager, and all internal governance processes were adhered to. Ms Maisela was not part of the process because she was not shortlisted.

In its decision not to extend Ms Maisela’s appointment, Eskom also considered the fact that Ms Maisela had acted in various roles on the EPPF Board since 2004, which made a total of 16 years, for 12 of which she had been appointed by Eskom. This tenure considerably exceeded the recommended period for a non-executive director in terms of governance processes.

Eskom took the above into consideration and decided that it would not be in the interest of good governance for the EPPF and Eskom to reappoint Ms Maisela as the Chairperson of the EPPF Board.

The CFO recommended the successful candidate’s name to the Group Chief Executive (GCE), and the GCE, in consultation with the Chairman of the Board, recommended the appointment to the People and Governance Committee (P&G), a subcommittee of the Board, for approval. The P&G approved the submitted name and recommended approval of the appointment by the Minister. It must be noted that this is merely a formality as the Minister is not involved in the process identifying new members of the Board. There were delays in soliciting the P&G approval due to the lockdown. The P&G recommendation reached the Minister on 15 May 2020.The Minister approved the recommended candidate on 9 June 2020. Eskom appointed the Chairperson with effect from 1 July 2020, and the name was submitted to the EPPF Board for final approval.

The EPPF Board approved the appointment of Ms Caroline Henry on 15 July 2020, and therefore, Eskom did not have authority to extend Ms Maisela’s appointment beyond 30 June 2020.

It should be noted that Ms Maisela was not the only trustee who was replaced in terms of rule 3.5(1) of the EPPF rules on 30 June 2020, as she was replaced along with two other trustees.

09 September 2020 - NW1892

Profile picture: Mkhaliphi, Ms HO

Mkhaliphi, Ms HO to ask the Minister of Public Enterprises

(1)What qualifications do certain persons (names furnished) hold; (2) whether the qualifications of the specified persons were verified; if not, why not; if so, which institutions were used to verify their qualifications?

Reply:

According to the information received from Eskom

(a) and (b)

The table below captures the details requested for each person.

Title

Initials and surname

Designation

Qualification

Verification by

Mr

A M

de Ruyter

Group Chief Executive

  • Bachelor of Arts in English and Psychology - (University of Pretoria)
  • Bachelor of Civil Law - (University of Pretoria)
  • Bachelor of Law - (University of South Africa)
  • Master of Business Administration - (Nijenrode University - Netherlands)

Lexis RefCheck

Mr

C

Cassim

Chief Financial Officer

  • Bachelor of Commerce - (University of Natal)
  • Honours Bachelor of Accounting Science - (University of South Africa)
  • Masters in Business Leadership – (University of South Africa)
  • Member of the South African Institute of Chartered Accountants

Internal recruitment department - 2006

Title

Initials and surname

Designation

Qualification

Verification by

Mr

J A

Oberholzer

Chief Operating Officer

  • Bachelor’s degree in Electrical Engineering - (University of Pretoria)
  • Master of Business Leadership - (University of South Africa)
  • Executive Leadership Programme - (University of Michigan – USA)
  • Electrical Engineering Certificate of Competency (SA)

Internal recruitment department
Previously employed by Eskom since 1983

Mr

N

Harris

Senior Manager: Information Management

  • Bachelor of Commerce Education - (Rand Afrikaans University)
  • Diploma in Data Metrics - (University of South Africa)
  • Master of Business Leadership – Brunel University, UK – (Henley Management College)

Internal recruitment department.

Previously employed by Eskom since 1982

Mr

R

Vaughan

General Manager: Treasury

  • Bachelor of Commerce – (Rhodes University)
  • Higher Diploma in Accountancy - (Rhodes University)
  • Member of the South African Institute of Chartered Accountants

LexisNexis Risk Management

27 August 2020 - NW1572

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What numbers of persons have been appointed at Eskom on the basis of (a) race, (b) position, (c) qualification, (d) salary level, (e) experience and (f) gender since the appointment of the Chief Executive Officer at Eskom, Mr André de Ruyter?

Reply:

According to the information received from Eskom:

As at 13 July 2020, Eskom appointed 139 employeessince the appointment of the Group Chief Executive, Mr André de Ruyter.

The breakdown is as follows:

  • 25 external appointments, of which 18 were T-Systems employees who were transferred into Eskom in accordance to Section 197 of the Labour Relations Act, 1995. Only 7 were true external recruits.
  • 114 were appointed on Fixed Term Contracts.

Annexure A provides details, according to (a) race, (b) position, (c) qualification, (d) salary level, (e) experience and (f) gender.

21 August 2020 - NW522

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Lees, Mr RA to ask the Minister of Public Enterprises

Whether all of the SA Airways Group Companies including (a) SA Airways SOC (Limited), (b) Mango Airlines SOC (Limited), (c) Air Chefs SOC (Limited), (d) SAA Technical SOC (Limited) and (e) SA Airways City Centre SOC (Limited), but not exclusively, are under business rescue; if not, why not?

Reply:

The only company in business rescue is South African Airways SOC Limited (SAA).

SA Airways City Centre SOC (Limited) has been placed in voluntary liquidation before the business rescue proceedings.

None of the other companies in the group are in business rescue as the boards have not placed the companies under voluntary business rescue, nor has any other process in terms of the Companies Act been given effect to.

21 August 2020 - NW1544

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Zungula, Mr V to ask the Minister of Public Enterprises

(1)Whether he will disclose the recipient(s) of the R5 billion allegedly paid to an Eskom service provider by mistake; if not, why not; if so, what are the relevant details; (2) What steps has he taken to: (a) Bring those persons responsible for the reckless conduct to book and (b) Retrieve the R5 billion?

Reply:

According to the information received from Eskom

1. The R5.5 billion is the total value of Eskom’s claim against Tegeta Resources and Exploration, which is in business rescue.

Relevant details are as follows:

Tegeta is a company owned by Oakbay which is a Gupta related company. Tegeta owns the Optimum coal mine.

The Business rescue proceedings of the Optimum coal mine commenced in February 2018 when the Optimum Board of Directors resolved to place the company under voluntary business rescue and proceeded to file a notice of commencement of business rescue proceedings with the Companies and Intellectual Property Commission on 19 February 2018. The Optimum coal mine had been supplying coal to Hendrina Power Station.

Eskom has submitted a claim of approximately R5.5 billion against Optimum in these proceedings, composed of undelivered coal and poor quality of delivered coal:

A. pre - commencement (of business rescue) September 2016 to January, 2018 = R1,1 billion ( 1,1 million tons)

B. post – commencement (of business rescue process) February, 2018 to December, 2018

= R4.4 billion (3.8 million tons of Coal)

At a meeting of creditors convened on 10 December 2019, the quantum of Eskom’s claim was challenged and it was resolved to refer Eskom’s claim for determination by an independent expert. Creditors contended that Eskom’s claim is inflated and as such Eskom should not have been afforded voting rights on the contingent and disputed part of its claim in Optimum. Eskom’s disputed claim was determined by way of an expedited arbitration presided over by retired judge Fritz Brand, jointly appointed by the creditors.

At the arbitration hearing held in March 2020, the majority of creditors (excluding Oakbay – also a creditor in Optimum), Eskom and the BRPs reached an agreement regarding the quantum of Eskom’s claims. Eskom’s claim, both pre- and-post-business rescue, was determined to be the sum of R1 276 031 278.48 (one billion two hundred and seventy six million thirty one thousand two hundred and seventy eight rand and forty eight cents). Eskom’s voting share was determined at 24% to be exercised by Eskom in any manner it wishes to do.

Current Status of BR proceedings:

During the arbitration hearing in March it was also agreed that the revised business rescue plan would be published on or before the 2 April 2020. It was further agreed that the meeting of creditors, to vote on the preferred offer and adopt the business rescue plan, would be convened on or about 20 April 2020. The BRPs did not publish the plan in April due to the 2 remaining bidders, namely Lurco and IZM, failing to secure funding to acquire the mine.

In light of the above, in May 2020 the BRPs invited other prospective bidders to submit proposals to acquire the mine. Bids were submitted mid-June 2020 and the BRPs are currently reviewing the offers received from the 3 bidders. Eskom currently awaits the outcome of the review. Preferred bidders will be incorporated in the revised BR plan to be published in due course.

Towards the end of June 2020, the BRPs also received an alternative proposal to rescue the mine. The alternative offer was submitted by Centaur Ventures Ltd, one of the largest creditors of Optimum. According to the BRPs, the alternative plan, if supported by the BRPs and creditors, will also be incorporated in the revised business rescue plan and be triggered in the event that the preferred bidders fail to secure sufficient funding to acquire the assets. Eskom has not yet been furnished with the alternative proposal for consideration.

The BRPs have not committed to a specific date for publication of the revised business rescue plan. In the event that the revised plan is published end July, 2020 then the meeting of creditors for purposes of voting and adopting the plan would have to be convened early August i.e. within 10 days of the date of publication of the plan.

2. (a) Not applicable.

(b) As explained in (1) above, Eskom submitted a claim in the business rescue proceedings which are still underway.

21 August 2020 - NW1681

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Brink, Mr C to ask the Minister of Public Enterprises

What: (a) are the details of the current age analysis of the total debt owed by each municipality to Eskom and (b) amount of the debt is made up of (i) principal debt, (ii) interest and (iii) penalties ineach case?

Reply:

According to the information received from Eskom

a) The total debt owed by municipalities as at June 2020 is R43.9 billion, of which R30.9 billion is overdue debt. The details of the age analysis of the total debt owed by each municipality to Eskom, as at June 2020 are set out in Annexure A.

b) (i) and (ii) The total debt of R43.9 billion, is made up of the capital amounts of R32.4 billion, interest of R6.7 billion and VAT of R4.8 billion. The makeup of total debt in terms of capital and interest for each municipality, as at June 2020 is set out in Annexure A.

c) (iii) The total Notified Maximum Demand (NMD) exceedance charge for June 2020 is R46.9 million and R104 million for the financial year to date. This is a penalty for NMD exceedance raised in terms of the NMD Rules approved by the National Energy Regulator of South Africa (NERSA) to discourage future exceedances and is included in the capital amount. The NMD exceedance charge, for each municipality as at June 2020 is set out in Annexure B.

24 July 2020 - NW1154

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Wessels, Mr W to ask the Minister of Public Enterprises

(1)Whether his department purchased any goods and/or services below the amount of R500 000 connected to the Covid-19 pandemic; if not, what is the position in this regard; if so, what (a) is the name of each company from which the specified goods and/or services were purchased, (b) is the amount of each transaction and (c) was the service and/or product that each company rendered;

Reply:

Goods and services were procured in relation to Covid-19 pandemic and the information is indicated in the table below.

(a) Name of the budiness

(b) Amount

(c) Service/ Product

Biologica Pharmaceuticals

R26 650.00

Mask surgical

Tripple N Medical

R2 044.00

Mask surgical

Ekhaya Investments

R11 500.00

Mask cloth

Evergreen Latex

R2 517.20

Gloves surgical and examination natural rubber

Lechoba Medicals

R15 187.50

Hand Sanitizers

Promed Technologies

R2 700.00

Disinfectant surface

Promed Technologies

R3 600.00

Temperature scanners

Multisurge

R4 600.00

Temperature scanners

Recreative Creativity

R27 950.00

Dispenser wipes

Oks iInvestment 2009

R89 700.00

Fumigation/ Building sanitization

Bizmak Trading

R17 000.00

Hand sanitizer dispensers

 

R39 000.00

Hand spray sanitizer

 

R6 000.00

Face shield

(2) Whether there was any deviation from the standard supply chain management procedures in the specified transactions; if so, (a) why and (b) what are the relevant details in each case;

Answer:

There was no deviation from the standard supply chain management procedures.

(3)        What were the reasons that the goods and/or services were purchased from the specified companies;

Answer:

Businesses awarded through request for quotations met the specifications and their prices were the cheapest as compared to other competitors.

08 June 2020 - NW878

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Brink, Mr C to ask the Minister of Public Enterprises

(1)Whether his department will offer any form of Covid-19 financial or other relief to small businesses; if not, why not; if so, what are the relevant details; (2) whether the Covid-19 financial or other relief will only be allocated to qualifying small businesses according to the Broad-Based Black Economic Empowerment Act, Act 53 of 2003, as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds and/or provisions does he or his department rely to allocate Covid-19 financial or other relief only to small businesses according to the specified Act and (b) what form of Covid-19 financial or other relief, if any, will be made available to other small businesses?

Reply:

The government has put in place a support package for small businesses.

The Department of Small Business Development will provide the details of the support available. The support, is available from various departments, for example: Agriculture and Tourism

08 June 2020 - NW557

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Clarke, Ms M to ask the Minister of Public Enterprises

(1)     What amount in funding did Transnet allocate to the Esselen Park Sport School of Excellence in Tembisa for the current academic year; (2) Whether the funding for the current financial year has been released to the specified school; if not, why not; if so, what are the relevant details; (3) (a) what are the relevant details of the funding that Transnet intends to allocate to the school over the 2020-22 medium-term expenditure framework and (b) does the specified funding cover the cost of running the school; (4) What number of (a) staff members are employed at the school and (b) professional football players has the school turned out to date?

Reply:

According to the information received from Transnet:

1. For the Financial year 2020/2021 the SAFA Transnet Football School of Excellence has been allocated an amount of R 21 m.

2. The funds for the School of Excellence have been released for this financial year as per Transnet cost centre 1004036.

(3)(a) The budget for the 2020 – 2022 Medium Term Framework is estimated at

R44m, based on a 10% budget increase for the Financial year 2021/2022.

(3)(b) The allocated funding covers the running costs of the School including salaries for the 28 staff members employed by the School.

(4)(a) The School has 28 staff members made up of:

Eight academic staff;

One Head Coach and Five Coaches; and

Fourteen support staff.

(4)(b) The school has produced over 100 professional players. A list of players who

graduated from the School of Excellence is attached.

08 June 2020 - NW5

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Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1)What amount of diesel, indicated in (a) Litres and (b) Rand value, has Eskom used (i) In the (aa) 2014-15, (bb) 2015-16, (cc) 2016-17, (dd) 2017-18 and (ee) 2018-19 financial years and (ii) Since 1 April 2019; (2) For what purposes was the diesel used in each specified financial year; (3) Whether he will make a statement on the matter?

Reply:

According to the information received from Eskom

1. The table below provides the Eskom OCGT diesel usage.

Financial Year

Rand value, R'm[1]

Megalitres

1 April 2019 up to Jan 2020

                 3 268

            318.6

2018-19

                 3 768

            384.5

2017-18

                    320

              37.8

2016-17

                    340

10

2015-16

                 8 690

         1 247.8

2014-15

                 9 546

         1 178.6

 

2. At Eskom diesel is used as fuel to open cycle gas turbines (OCGTs) and fleet.

3. As the power stations perform better and energy availability factor (EAF) improves to a higher level, the use of diesel must reach zero level.

08 June 2020 - NW374

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

What (a) number of contracts have been cancelled since the SA Airways was placed under business rescue, (b) is the name of each company whose contract was cancelled and (c) was the (i) value and (ii) term of each contract?

Reply:

The following information is provided by the Business Rescue Practitioners of the SAA: see the link

https://pmg.org.za/files/1/RNW374-200608.docx

 

08 June 2020 - NW375

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Maotwe, Ms OMC to ask the Minister of Public Enterprises

Whether the SA Airways (a) advertised and (b) awarded tender(s) for catering in all its aircraft since 1 January 2014; if not, what is the position in this regard; if so, (a) on what date was each tender (i) advertised and (ii) awarded, (b) what is the name of each company that was awarded a tender and (c) what is the monetary value of each tender

Reply:

The following information was provided by the Business Rescue Practitioners of South African Airways:

SAA advertised and awarded catering tenders from 01 January 2014 to July 2019. The links below include contracts that cover SAA’s global operations (Local, Regional and International):

https://pmg.org.za/files/1/RNW375-200608.docx

08 June 2020 - NW234

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

(1)       In view of his confirmation to the Standing Committee on Public Accounts on 19 February 2020 that each state-owned entity (SOE) must be evaluated for viability, (a) by what date will the process of evaluating the 131 SOEs commence, (b) who will be carrying out the evaluation and (c) what will be the criteria for such evaluations; (2) (a) what does his department intend to achieve with the evaluations and (b) how will the evaluations be connected to the financial viability of the SOEs; (3) how does he intend to deal with SOEs that are found not to be adding value and/orthat are not financially viable?

Reply:

(1)

Government as a whole is concerned about the number of state-owned enterprises and entities, and their respective governance operational and financial status. A process of review has been discussed and the relevant departments are establishing which entities can be merged, closed or retained. This will be an on-going process with regular reports to government.

Once the Presidential SOC Council begins its work, further measures and initiatives will be put in place.

(2)

As above:

In addition, Boards as the accounting authority in terms of the PFMA, will also be responsible for ensuring operational performance and financial viability of entities.

(3)

Government, in consultation with the relevant Departments, will determine the response to financial and other issues. The example of restructuring of Eskom as a result of the governance, operational and financial challenges arising from corruption and state capture.

Government initiated a process to change the business model, restructure the generation, transmission and distribution components with a view to better transparency, and focus on operational performance and financial efficacy.

The repositioning of state owned entities will continue to receive intense focus – particularly, ensure that dependence on the fiscus is stopped.

08 June 2020 - NW126

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Shivambu, Mr F to ask the Minister of Public Enterprises

(1)What total amount have certain persons (names furnished) been paid since their appointment as business rescue practitioners for the SA Airways (SAA); (2) whether the specified business rescue practitioners benefited from the Development Bank of Southern Africa equity bridge loan facility to SAA; if so, (a) what amount did they get paid for that specified intervention and (b) how are they paid?

Reply:

The following information was provided by the Business Rescue Practitioners of the South African Airways Response:

1. The business rescue practitioners have been paid in accordance with the hours worked and set down rate for business rescue practitioners. The amounts paid to Matuson & Associates and Adamantem as at 26 May 2020 are as follows:

Matuson and Associates – R22 208, 689

Adamantem (Pty) Ltd – R14 002,112

(2) The business rescue practitoners did not benefit from the intervention relating to the DBSA bridge facility, other than payment in the normal course of the business rescue process done based on hours spent on the transaction and set down rate for that practitioner.

08 June 2020 - NW85

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Schreiber, Dr LA to ask the Minister of Public Enterprises

What is the total number of (a) persons who are currently employed at each state-owned entity and/or public enterprise and (b) what number of the specified employees at state-owned entities or enterprises are appointed at (i) senior and (ii) middle management levels (2) What is the average remuneration package of employees appointed at (a) senior management and (b) middle management levels at state-owned entities or enterprises; (3) What is the current total amount spent on salaries for senior and middle management managers at state-owned entities or enterprises? NW91E

Reply:

According to the information received from Alexkor

(1)(a)

The number of employees are currently employed at ALEXKOR is 205 as at end of December 2019.

 

Level

Number of employees

(1)(b)(i)

Senior Management

12

(1)(b)(ii)

Middle Management

9

(2)

 

Level

Average remuneration

(a)

Senior Management

R3 323 538,75

(b)

Middle Management

R1 411 488,89

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

R15 617 673,20

(b)

Middle Management

R4 873 830,00

 

According to the information received from Denel:

(1)(a) As at February 2020 the total workforce of Denel is 3426.

 

Level

Number of employees

(1)(b)(i)

Senior Management

45

(1)(b)(ii)

Middle Management

700

(2)

 

Level

Average remuneration

(a)

Senior Management

R2,653,454m

(b)

Middle Management

R958,088m

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

R76,771,451m

(b)

Middle Management

R684,391,669m

REPLY:

According to the information received from Eskom

(1)(a)

The number of employees are currently employed at Eskom is 45353 as at end of December 2019.

 

Level

Number of employees

(1)(b)(i)

Senior Management

372

(1)(b)(ii)

Middle Management

6734

(2)

 

Level

Average remuneration

(a)

Senior Management

R1 846 032

(b)

Middle Management

R1 144 138

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

R686 723 910

(b)

Middle Management

R7 616 533 256

 

According to the information received from SAFCOL

(1)(a)

The number of employees are currently employed at Safcol is 1479 as at end of December 2019.

 

Level

Number of employees

(1)(b)(i)

Senior Management

7

(1)(b)(ii)

Middle Management

82

(2)

 

Level

Average remuneration

(a)

Senior Management

R 131 726/ 1580 712 p/a

(b)

Middle Management

R 80 977/ 971 724 p/a

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

Middle Management

R 7 643 211/ 91 718 532/pa

(b)

   

 

According to the information received from SAX

(1)(a)

The number of employees are currently employed at SAX is 671 as at end of December 2019.

 

Level

Number of employees

(1)(b)(i)

Senior Management

81

(1)(b)(ii)

Middle Management

43

(2)

 

Level

Average remuneration

(a)

Senior Management

R1 093 485 per annum

(b)

Middle Management

R598 330 per annum

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

Middle Management

R16 828 815.00.

(b)

   

 

According to the information received from Transnet:

(1)(a)

The number of employees are currently employed at Transnet is 58051 as at end of December 2019.

 

Level

Number of employees

(1)(b)(i)

Senior Management

1041

(1)(b)(ii)

Middle Management

5296

(2)

 

Level

Average remuneration

(a)

Senior Management

R 1 522 753

(b)

Middle Management

R 758 755

(3)

 

Level

Amount Salary Spent

(a)

Senior Management

Middle Management

R5.6 billion p/a

(b)

   

Response from SAA is still outstanding and will be submitted as soon as the information becomes available.

08 June 2020 - NW524

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Lees, Mr RA to ask the Minister of Public Enterprises

What are the details of (a) all government guarantees (i) issued to the SA Airways (SAA) and (ii) utilised by SAA and (iii) for what purpose have they been utilised, (b) all SAA loan debt liabilities including the (i) name of each lender, (ii) amount owed to each lender, (iii) interest rates charged by each lender and (iv) repayment date of each loan, (c) all current liabilities including the (i) name of creditor, (ii) amount owed to each creditor and (iii) due date for payment to each creditor and (d) all non-current liabilities excluding loan debt as at 29 February 2020?

Reply:

The following information was provided by the Business Rescue Practitioners of South African Airways: see the link

https://pmg.org.za/files/RNW524-SAA.docx 

 

08 June 2020 - NW917

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Wessels, Mr W to ask the Minister of Public Enterprises

(1)Whether his department awarded any tenders connected to the Covid-19 pandemic; if not, what is the position in this regard; if so, what (a) are the names of the businesses to whom these tenders were awarded, (b) are the amounts of each tender awarded and (c) was the service and/or product to be supplied by each business;

Reply:

In accordance with procurement regulations, requests for quotations were sourced in relation to Covid-19 pandemic and the information is indicated in the table below.

(a) Name of the budiness

(b) Amount

(c) Service/ Product

Biologica Pharmaceuticals

R26 650.00

Mask surgical

Tripple N Medical

R2 044.00

Mask surgical

Ekhaya Investments

R11 500.00

Mask cloth

Evergreen Latex

R2 517.20

Gloves surgical and examination natural rubber

Lechoba Medicals

R15 187.50

Hand Sanitizers

Promed Technologies

R2 700.00

Disinfectant surface

Promed Technologies

R3 600.00

Temperature scanners

Multisurge

R4 600.00

Temperature scanners

Recreative Creativity

R27 950.00

Dispenser wipes

Oks iInvestment 2009

R89 700.00

Fumigation/ Building sanitization

Bizmak Trading

R17 000.00

Hand sanitizer dispensers

 

R39 000.00

Hand spray sanitizer

 

R6 000.00

Face shield

(2) Whether there was any deviation from the standard supply chain management procedures in the awarding of the tenders; if so, (a) why and (b) what are the relevant details in each case;

Answer:

There was no deviation from the standard supply chain management procedures.

(3)        What was the reason for which each specified business was awarded the specified tender;

Answer:

No tender was awarded in connection with Covid-19 pandemic. However, businesses awarded through request for quotations met the specifications and their prices were the cheapest from other competitors.

09 March 2020 - CW26

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Visser, Ms C to ask the Minister of Public Enterprises

1. When last did his department use a white hat hacker to identify possible security gaps in their information technology system and cyber security threats; 2. Whether he will (a) employ such a hacker or (b) request the relevant Sector Education and Training Authorities to employ it; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

The Department is constantly reviewing its IT security. Where weaknesses have been identified, they were corrected. To further strengthen its IT security, a process has been started to have a permanent capacity in the unit.

09 March 2020 - CW39

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Nhanha, Mr M to ask the Minister of Public Enterprises

Whether he will provide an update on the post-settlement model between his department and the land claimants that was arranged by the SA Forestry Company Limited (SAFCOL) on a matter that has been going on for more than five years without any success; if not, why not; if so, what are the relevant details?

Reply:

1. Government has decided that settlement of forestry land claim could be informed by the Department of Rural Development and Land Reform (DRDLR) Agrarian Transformation System (Wagon Wheel) which emphasises significant community’s participation in enterprises operating on their land. In this regard, the communities will be prioritised in terms of:

  • Guaranteeing that there is community participation in the planning process and subsequent phases.
  • Equity participation in the enterprises operating on their land. This would include rights to have input into appointing non-executive and executive directors and senior management.
  • Preference for community based enterprises in the subcontracting for goods and services, enterprise and supplier development, and prioritising of the community in corporate social investment spend.
  • Recognition of Tribal Authorities, where they exist as competent oversight authorities over the assets acquired by the communities through the land claim settlement process.
  • The land post transfer to community should continue to be used for the prime activities that had been on the land. In the case of forestry, approval by Minister should be obtained before the land use can be changed.

2. The forestry land claims have received a priority within government, with the Mkhwanazi land transfer in the Northern KZN effected on 14 October 2018. The next three parallel land claims are Mbonambi, Dukuduku and Nyalazi which are scheduled to be settled and transferred as per DRDLR’s plans.

07 January 2020 - NW1371

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

Whether his department did business with certain (a) persons, (b) companies and (c) trusts (names and details furnished in each case) (i) in each of the past five financial years and (ii) since 1 April 2019; if so, (aa) on what date(s) did his department do business with the specified persons, companies and trusts and (bb) what was the (aaa) nature and (bbb) monetary value of each business arrangement?

Reply:

The Department has not used any of the individuals nor the companies as mentioned on the parliamentary question.

07 January 2020 - NW1700

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Graham, Ms SJ to ask the Minister of Public Enterprises

What is the nature of the agreement between Transnet and Dr Beyers Naudé Local Municipality in the Eastern Cape pertaining to the borehole that services Wolwefontein in respect of (a) maintenance, (b) fuel supply for the pump, (c) water provision to the community and (d) future transfer of the borehole to the auspices of the specified municipality?

Reply:

This response is according to information received from Transnet:

In response to the above questions, there is no agreement between Transnet and Dr Beyers Naudé Local Municipality pertaining to the borehole that supplies water to the community of Wolwefontein in the Eastern Cape.

(a)&(b) The borehole is the property of Transnet and is operated and maintained by service providers appointed by Transnet. Part of the maintenance includes the supply of fuel for the pump. The borehole has been out of service from August 2019 and a service provider was appointed to effect repairs, however, the service provider has been experiencing challenges to restore the water supply for the community of Wolwefontein.

(c) Currently, water is being supplied to the community with a tanker service to provide immediate relief.

(d) A new borehole will be drilled, preferably in front of the police station. The exact location will depend on the water table survey. Water can be restored within six (6) weeks after completion of the drilling of the borehole, considering that quality of water needs to be treated, together with other works that may be required. Until such time that the new borehole is functional, the tanker service will continue to supply water to the community of Wolwefontein.

Lastly, Transnet has no objection to the borehole being transferred to the Dr Beyers Naudé Local Municipality. It must be noted that high level meetings were held in 2013 and 2014, between Transnet and the Dr Beyers Naudé Local Municipality to transfer the ownership of the borehole to the municipality, but no agreement was reached.

 

07 January 2020 - NW1199

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Lees, Mr RA to ask the Minister of Public Enterprises

(1) With regard to the completion of the dust handling and conditioning plant using the dense phase pneumatic conveying technology for unit one at the Medupi power station, what are the details of (a) the funding that was required by a certain company (name furnished) in order for the specified company to (i) complete the dust handling and conditioning plant and (ii) employ a new contractor to complete the dust handling and conditioning plant and (b)(i) tenders that were received and rejected, (ii) reasons for the tenders being rejected in each case, (iii) the estimated costs for the completion of the work by a new contractor and (iv) the date by which the (aa) tender adjudication will be completed and (bb) ash extraction unit will be completed and fully operational; (2) whether the specified company will be considered for the new contract; if not, why not?

Reply:

The parliamentary question has been forward to the entities and the Ministry of Public Enterprises awaits their urgent response. Further information will be conveyed to Parliament as soon as the response is received.

07 January 2020 - NW1200

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Lees, Mr RA to ask the Minister of Public Enterprises

(1) What are the details of the process currently used to remove ash from unit one at the Medupi power station in terms of the (a) daily operational hours of vacuum trucks, (b) number of operational days per week of each vacuum truck, (c) process followed to award the contract/s for the ash removal, (d) number of vacuum trucks being used, (e) number of round trips being undertaken by each vacuum truck every 24 hours and (f) daily cost of each vacuum truck; (2) what are the details of the additional costs resulting from the use of vacuum trucks to remove the ash including (a) dust suppression, (b) road cleaning, (c) road repairs and (d) staff expenses such as for traffic control? NW2410E

Reply:

The parliamentary question has been forward to the entity and the Ministry of Public Enterprises awaits their urgent response. Further information will be conveyed to Parliament as soon as the response is received.

07 January 2020 - NW1294

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Lees, Mr RA to ask the Minister of Public Enterprises

(1) With reference to the Eskom, Kusile and Medupi Power Station contracts with a certain company (name furnished), what are the details of (a) the contract bonds of any sort that were provided by the company to Eskom and (b) all expired contract bonds that were provided by the specified company that were (i) renewed and (ii) not renewed; (2) (a) why were the contract bonds that expired not renewed or called up and (b) what are the details of all contract bonds that (i) remain in place and (ii) will be utilised to complete the contracts that the specified company is unable to complete; (3) whether any Eskom officials were held responsible or accountable for not ensuring that the contract bonds were not renewed in time or, where necessary, called up; if not, why has no one been held responsible; if so, what are the relevant details of the Eskom officials who were held responsible in this regard? NW2505E

Reply:

The parliamentary question has been forwarded to the entities and the Ministry of Public Enterprises awaits their urgent response. Further information will be conveyed to Parliament as soon as the response is received.

 

07 January 2020 - NW1354

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

With reference to the reply to question 1269 on 16 July 2018, (a) what is the amount of the proceeds held in declared dividends, (b) in which bank account and account number are the dividends held and (c) who controls each bank account?

Reply:

The parliamentary question has been forward to the entities and the Ministry of Public Enterprises awaits their urgent response. Further information will be conveyed to Parliament as soon as the response is received.

07 January 2020 - NW1494

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Mente-Nqweniso, Ms NV to ask the Minister of Public Enterprises

(1) With reference to Ms Busisiwe Mavuso’s alleged statement that government interventions are hampering proper management and turnaround of Eskom, what were the interventions that he made that were against the plans of the Board and management teams at Eskom; (2) what was intended with his warning that Ms Mavuso must be careful?

Reply:

At the outset, it must be noted that it will take a long time for Eskom to recover fully from the damage caused by the State Capture.

The Memorandum of Incorporation of Company (including Eskom) sets out the responsibilities, duties and rights of the shareholder and directors. The shareholder, particularly 100% shareholder as in the case with government and many state owned companies, can have a range of rights in relation to the governance of SOEs. The Shareholder Compact, prescribes the various performance targets expected to be met by an entity.

In the case of Eskom, targets will include plant performance (the level of energy availability factor to be achieved), financial targets (reduction in overall costs including primary energy cost) or implementation of various “turnaround” plans. Within these parameters, the Board must hold management to account on delivery of these targets. Likewise, the shareholder department must hold the Board accountable. Where necessary, usually at critical stages of an entity, the shareholder may initiate processes to assist both the shareholder and Board to both diagnose a problem and suggest solutions: examples being the Presidential Sustainability Task Team (to make recommendations on the future direction of Eskom given the challenges and changes in the electricity market) and the Ministerial Technical Review Team (to make recommendations on improving plant performance).

07 January 2020 - NW1558

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Hinana, Mr N to ask the Minister of Public Enterprises

(1) With reference to his reply to question 241 on 19 August 2019, (a) what category of infrastructure are the pylons in (i) Kempton Park and (ii) Edenvale and (b) how often should these be inspected; (2) whether any pylons, during the last inspection in the above areas, were found to be (a) unstable and/or (b) decaying due to rust; if so, what number (i) was identified and (ii) has been repaired to date? NW2883E

Reply:

The parliamentary question has been forwarded to the entities and the Ministry of Public Enterprises awaits their urgent response. Further information will be conveyed to Parliament as soon as the response is received.

07 January 2020 - NW1668

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Hill-Lewis, Mr GG to ask the Minister of Public Enterprises

What are the details of the contingency measures and/or plans of the SA Airways (SAA) that are in place to assist its passengers when flights are grounded due to strikes?

Reply:

According to the information received from the South African Airways:

  1. SAA initiated the airlines Re- Accommodation Policy which provide customers with alternatives (Date Changes, Rebooking on other airlines).
  2. SAA customers are able to book on partner airlines, including SA Express, Mango, SA Airlink and Codeshare Partner Airlines, as well as Star Alliance partner Airlines.
  3. SAA provides hotel accommodation for those passengers who cannot be booked on a flight.
  4. SAA book passengers on South African Airways flights for a later date at no extra charge.
  5. SAA extends the validity of the affected tickets to a date determined by the airline.
  6. SAA offers refunds to customers who decide to cancel their flights.
  7. SAA opens multiple channels of communication and extend the Call Centres operating hours.
  8. SAA deploys additional resources to assist with passenger interaction at all airports, the airline operates from, with the bulk of resources at SAA’s hub at OR Tambo International Airport, in Johannesburg.

07 January 2020 - NW1669

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Hill-Lewis, Mr GG to ask the Minister of Public Enterprises

Whether, with regard to the recent strike action at SA Airways, the striking unions complied with the law in holding a strike ballot among their members; if not, what is the position in this regard; if so, (a) which organisation and/or persons supervised the ballot and (b) was the ballot conducted by secret vote?

Reply:

According to the information received from SAA:

Yes, the striking unions complied with the law in holding a strike ballot.

(a) Union of Metal Workers of South Africa (NUMSA) and the South African Cabin, Crew Association (SACCA). SAA also deployed its own observers for the supervision.

(b) Yes.

07 January 2020 - NW1686

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De Freitas, Mr MS to ask the Minister of Public Enterprises

With reference to the reply of the Minister of Transport to question 498 on 18 November 2019, (a) What are the details of the flight strategy that is mooted to boost tourism, (b) how was the conclusion regarding the flight strategy reached, (c) on what date was the flight strategy concluded, (d) what is the name of each stakeholder who was involved in drawing up the strategy and (e) what are the (i) mechanisms, (ii) milestones and (iii) timelines linked to the strategy?

Reply:

This question, I presume is referring to the National Airlift Strategy. The question will be better responded to by the Minister of Transport.

The Department of Transport (DoT) is the custodian of the National Airlift Strategy which is supporting the National Tourism Sector Strategy.

 

07 January 2020 - NW1709

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Public Enterprises

Whether the Eskom generation entity will be 100% state-owned; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

Accordingly to the information received from Energy Team

The Eskom Generation entity will remain 100% state owned under Eskom Holdings consisting mainly of the current power plant base, which will be separated into a number of feasible smaller generation units.

Consideration for the creation of multiple generation companies (GENCOs) within Eskom Generation is currently under examination with the aim of introducing inter-company competition and drive efficiencies in generation. Each power station will have its own Power Purchase Agreement with predefined, fixed and guaranteed tariffs for energy with the Transmission Entity.

06 December 2019 - NW16

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Lees, Mr RA to ask the Minister of Public Enterprises

Whether he has received the response from the SA Airways since his reply to question 3735 on 9 January 2019; if so, what (a) are the (i) full names and (ii) details of the (aa) middle person supplier and (bb) original manufacturer of equipment, parts, consumables and services procured by (aaa) the SA Airways and (bbb) its subsidiaries since 1 April 2017, (b) is the value of supplies of each commodity procured from each middle person supplier and (c) is the actual or estimated price premium paid for each commodity?

Reply:

According to the information received from South African Airways:

SAA Corporate mainly procures in the following categories: cleaning services, employee assistance services, facilities and maintenance, financial services, insurance, IT services, legal services, recruitment, medical services, security services, rates and taxes etc. These items and services do not fall under the definition of original equipment manufacturing.

All food and beverage is procured from source e.g. wines from Zorgvliet and Weltevreden Wineries, soft drinks from Coca Cola Beverages South Africa and beer from SAB.

The SAA Group buys all fleet vehicles from OEM’s through the relevant channels and using the necessary National Treasury Transversal agreements for ground fleet.

SAA is unable to provide detail per line item on middlemen and premium paid without expending significant man-hours and cost for the following reasons:

1. Due to the current system utilisation, SAA buys most of their items on free text. This makes a procurement history analysis an extremely time intensive exercise [manually matching various different description into a normalised description], then identifying the various vendors and identifying which ones are OEMS and middlemen and then determining an estimated premium paid.

2. SAA is in the process of implementing the SAP ARIBA solution with an expected go-live date of April 2020. This system will enable SAA to provide this information from the transaction history based on master data, within a year after go live.

Subsidiaries

The SAAT utilises the AMOS system that carries item masters for traceability purposes as required by aviation legislation and Air Chefs are more advanced in the utilisation of the SAP system, thus can provide the information as required. Air Chefs uses Bill of materials in procuring their requirement hence this information can be reported by Air Chefs as follows.

Air Chefs, the catering subsidiary of SAA, procures mainly meat, fruit and vegetables, confectionery products and dry groceries in order to produce meals, either directly from producers or from third party suppliers at market related prices. Some third parties have arrangements with producers based on volumes offering better competitive pricing.

Mango: 95% of Mango spend is attributed to fuel, aircraft and engine maintenance by SAA Technical, navigation, property rentals by ACSA, licensing by SACAA, aircraft leases, ground handling services, catering services and advertising services. Mango does not procure through any middle person supplier. Mango contracts directly with suppliers that are supplying the goods and services after a robust procurement processes.

Please find the list of foreign supplier from April 2017 to date:

Aergen Aircraft Five Limited

Airline Tariff Publishing Company

CRED Acro Aircraft Seating Ltd

CRED Amadeus IT Group SA

CRED APB Winglets Company LLC

CRED Aviation Performance Solutions

CRED Aviation Quality Services GmbH

CRED Aviation Safety and Quality Solutions

CRED Celestial Aviation Trading 41 Ltd C/O GE Capital Aviati

CRED ENGINE LEASE FINANCE CORPORATION

CRED ezy Webwekstaden

CRED Flitepartners Ltd

CRED Galley Tours and Safaris

CRED GOOGLE IRELAND LIMITED

CRED HADID International Services FZE

CRED HONEYWELL INTERNATIONAL

CRED JEPPESEN GMBH

CRED Jordan Aircraft Maintanance Limited

CRED Lufthansa Technic AG

CRED Macquarie Aircraft Leasing Services (Ireland) Limited

CRED MOMONDO A/S

CRED PACKAGING USD CONTROL ACC

CRED RESOURCE AND REVENUE MANAGEMENT

CRED SAMA JET INTERNATIONAL FZE

CRED Scaleout Software Inc

CRED START IRELAND LEASING  LIMITED

CRED The Boeing Company

CRED Travelpoint International LTD

SAA Technical (SAAT)

SAAT procured spares/components/material that were sourced from 383 different suppliers during the period under review. A list (Annexure A) with suppliers from whom South African Airways Technical SoC procured equipment, parts, consumables and services is attached containing:

a) full names and (ii) (a) details of the middle person supplier (ii) (bb) name of original manufacturer

b) Value of supplies per commodity per middle person supplier (Annexure B)

c) Estimated premium paid per supplier

06 December 2019 - NW1536

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Public Enterprises

Please give reasons why Purchase Order number 4500441320 of Transnet National ports Authority, contractor Fegro Enterprise – a SMME, was cancelled?

Reply:

According to the information received from Transnet:

Fergo Enterprise was issued with PO number 4500441320 dated 04 April 2019, in the amount of R48 300.00 (Incl. VAT) to conduct NDT on the Synchrolift Hoist Base and Main Beams on a quotation issued on 29 March 2019.

Upon receipt of the said PO, Fegro Enterprise informed Transnet National Ports Authority that their quoted prices do not cover the entire scope of works as per the quote issued and explanation in the RFQ briefing session.

A decision was then taken to re-issue the RFQ, to the same initial three (3) companies and Fegro Enterprise quoted price [R91 540.00 (Incl. VAT)] was above the other responses received. (Whilst the other companies did maintain their initial quoted price).

On this basis PO number 4500441320 was then cancelled and a new Purchase Order number 4500447708, dated 26 September 2019, was issued to Entabeni Global Group (Pty) Ltd (Also a Level 1 BBBEEE company) in the amount of R59 028.64 (Incl. VAT).

06 December 2019 - NW368

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Phillips, Ms C to ask the Minister of Public Enterprises

What (a) number of official international trips is (i) he and (ii) his deputy planning to undertake in the 2019-22 medium term expenditure framework, (b) will the (i) destination, (ii) date, (iii) purpose and (iv) number of persons who will travel with the delegation be and (c) is the detailed breakdown of the expected cost of (i) flights, (ii) accommodation and (iii) any other expenses in each case?

Reply:

The Ministry is yet to finalize its international engagement programme but ordinarily, Ministers and Deputy Ministers undertake these trips at the request and permission of the President or in response to invitations from the international organizations of relevance to their mandates. Attendance by officials and costs thereof, will depend on the nature of the engagement.

28 November 2019 - NW670

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Hill-Lewis, Mr GG to ask the Minister of Public Enterprises

On what date will his department publish the promised policy position paper on the future of the energy sector in the Republic, with particular reference to the future structure of Eskom?

Reply:

The Special Paper on the Roadmap for Eskom in a Reformed Electricity Supply Industry was published on 29 October 2019.

28 November 2019 - NW1411

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Joseph, Mr D to ask the Minister of Public Enterprises

Which types of functions or skills have been declared non-core in Eskom, (b) What is the budget attached to the non-core functions and/or skills as declared by Eskom and (c) How does Eskom intend to deal with the functions and/or skills that have been declared non-core?

Reply:

Accordingly to the information received from Eskom

a) Eskom does not have specific functions that have been declared non-core. However, a general view of the business refers to the Generation, Transmission and Distribution businesses as core and critical, while functions such as Human Resources, Finance, Information Technology and similar functions as non-core. However, it has to be noted that even functions referred to as non-core are essential to the functioning of the business and will always be required by Eskom. Therefore the use of core and non-core business in classifying functions will mainly be referring to primary business operations and support functions respectively. The primary business operations mainly refers functions such as the design, engineering, construction, operations and maintenance of plants and supply of electricity to end users.

b) Based on the above definition of Eskom critical workforce segments, it is not possible to provide budget details.

c) As explained above, the non-core functions are required by the business to support the operations.

28 November 2019 - NW1388

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Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1) What number of chief executive officers has? (a) Eskom, had since 1 January 2009; (2) (a) what number of the specified chief executive officers were (i) permanent appointments and (ii) temporary appointments in each specified entity and (b) for what period was each specified appointment in each entity; (3) whether he will make a statement on the matter?

Reply:

According to the information received from Eskom

(1)(a) Eskom had 12 Chief Executives since 2009.

(2)(a)(i)(ii) and (2)(b) Table 1 below provides the nature of appointments of Eskom Chief Executive Officers and the period of each appointment

Table 1: List of Acting Chief Executive and Chief Executives since 2009

Name

Designation

Period

Nature of appointment

P J Maroga

Designate CE

01/02/2007 - 31/04/2007

Permanent

 

Chief Executive

01/05/2007 - 30/11/2009

 

M Makwana

Acting CE

01/12/2009 - 30/06/2010

Non-executive Director

 

 

 

Non-Permanent

B A Dames

Chief Executive

01/07/2010 - 31/03/2014

Permanent

M C Matjila

Board Member

28/06/2011 - 01/04/2014

Non-executive Director

 

Acting CE

01/04/2014 - 30/09/2014

Non-permanent

 

Board Member

01/10/2014 - 31/12/2014

 

T J Matona

Chief Executive

01/10/2014 - 31/05/2015

Permanent

Name

Designation

Period

Nature of appointment

Z Khoza

Interim CE

13/03/2015 - 19/04/2015

Non-executive Director

 

 

 

Non-permanent

B Molefe

Seconded CE

20/04/2015 - 24/09/2015

 

 

Chief Executive

25/09/2015 - 31/12/2016

Appointed on a 5 year contract

M M Koko

Interim CE

01/12/2016 - 21/06/2017

Permanent

J A Dladla

Acting CE

22/06/2017 - 04/10/2017

Permanent

S Maritz

Interim CE

06/10/2017 - 28/02/2018

Permanent

P S Hadebe

Interim CE

22/01/2018 - 31/05/2018

 Interim

 

Chief Executive

01/06/2018 - 31/07/2019

Appointed as a contractor

J A Mabuza

Acting CE

01/08/2019 -

Non-executive Director

(3) It is clear to the Department that the attrition rate of CEOs at Eskom has been extra-ordinarily high and is a concern. The appointment of a new CEO, is the beginning of stabilizing the leadership at Eskom.

28 November 2019 - NW1275

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Ndlozi, Dr MQ to ask the Minister of Public Enterprises

Whether Eskom has any relationship with a certain news site (Daily Maverick); if not, what is the position in this regard; if so, (a) what is the nature of the relationship and (b) which staff of the specified news site is advising Eskom and/or the Chairperson of the Eskom Board of Directors?

Reply:

Accordingly to the information received from Eskom

(a)

Eskom would like to confirm that its relationship with the Daily Maverick is no different from its relationship with any other publication or media house. We categorically place on record that we do not have any special arrangements with any media house, including the Daily Maverick.

(b)

There is no media house or publication that consults or provides any communication services to Eskom, with the exception of reporting on our business operations.

15 November 2019 - NW724

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McGluwa, Mr JJ to ask the Minister of Public Enterprises

In view of the fact that Transnet awarded a five-year outsourcing contract to a certain company (name and details furnished) in 2018 and in light of the huge sum of money paid in settlement by the Department of Home Affairs to the specified company (details furnished), why are the services of the company being used by his department?

Reply:

According to the information received from Transnet:

Transnet embarked on a five year tender for IT Data Services concluded in 2017 where Gijima was identified as the preferred bidder through an open tender process.

The Transnet Board at the time, decided to award the business to the second ranked bidder, however, after a court process, Transnet received a declaratory order in December 2018 to change its decision and award as per the outcome of the process to Gijima.

Following the declaratory order, Transnet has since engaged with Gijima to transition the contract. As part of the contractual process, the services are currently transitioning from T-Systems to Gijima as of the 1st of September 2019. The transition process has been without any interruptions to Transnet business. Currently Transnet is consuming services from Gijima with very minimal issues.

Transnet cannot comment on the statement regarding the 2011 payment as that transaction relates to the “Who am I Online” project under Department of Home Affairs.

06 November 2019 - NW1107

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George, Dr DT to ask the Minister of Public Enterprises

Whether, with reference to the closure of the Outeniqua Choo Tjoe train, operating between George and Knysna, any progress has been made to restore the line and re-open it; if not, why not; if so, what are the relevant details of (a) any progress made to date and (b) estimated date of re-opening?

Reply:

According to information received from Transnet SOC LTD:

No progress has been made to physically restore the line. Significant planning towards the restoration and re-opening is taking place. (a) A proposal from the private sector has been received and is currently in the final process of evaluation. The earliest time that the proposal can be fully supported and approved will be at the end of the first quarter of 2020. (b) The work towards the restoration will commence at the end of 2020 with initial operations, not on the full extent of the line, will be towards the end of 2021.

 

06 November 2019 - NW1229

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Schreiber, Dr LA to ask the Minister of Public Enterprises

(1)What number of (a) public service employees are currently employed in each entity reporting to him and (b) the specified public service employees are appointed in the (i) senior and (ii) middle management levels; (2) what is the average remuneration package of public service employees appointed at (a) senior management and (b) middle management levels in each entity; (3) what is the current total amount spent on salaries for senior and middle management managers in the entities reporting to him?

Reply:

(1) (a) None (b)(i) none (ii) none

(2) (a) Not applicable (b) not applicable

(3) Not applicable

06 November 2019 - NW1174

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Faber, Mr WF to ask the Minister of Public Enterprises

Whether his department incurred any costs relating to the (a) inauguration of the President of the Republic of South Africa, Mr M C Ramaphosa, held in Pretoria n 25 May 2019; if so, in each case, (i) what costs were incurred and (ii) for what reason? Nw2335E

Reply:

(a) The Department did not incur any costs during the inauguration of the President on 25 May 2019.

(i) No costs were incurred;

(ii) Not applicable

(b) The Department did not incur any costs during the State of the Nation Address held in Cape Town on 20 June 2019.

(i) No costs were incurred;

(ii) Not applicable

06 November 2019 - NW1000

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Joseph, Mr D to ask the Minister of Public Enterprises

(1)What is the total number of international governments and private companies to whom Eskom provided electricity? (2) What; (a) is the total amount of outstanding payments to Eskom by the respective clients, (b) are the reasons for the outstanding cost and (c) type of disputes are delaying payment of the outstanding cost; (3) What are the implications of the outstanding payments to Eskom on its debt or the special appropriations that Eskom is requesting from the Government; (4) What type of supply and payment solutions will Eskom implement to international clients? NW2152E

Reply:

According to the information received from Eskom

1) As at 19 September 2019, the total number of international governments and private companies to whom Eskom provides electricity is 10.

(2)(a) As at 19 September 2019, the total amount of outstanding payments to Eskom by the respective clients is R632 million.

(2)(b) There are three clients who have outstanding payments to Eskom and the reasons for these are displayed in the table below.

 

Client

Outstanding Balance Rm

(2)(b) Reasons

1

ZESA

Zimbabwe

R322 million

Zimbabwe has economic challenges due to political challenges which have led to it being unable to honour its debt obligations. Eskom and ZESA currently have a payment plan agreement for the settlement of the debt and ZESA is paying off the debt as per the agreement.

2

Electricidade de Mocambique (EDM)

R221 million

Eskom supplies EDM with standby power. The utility has financial constraints due to their generation mix which includes IPP’s which are contracted on a take-or-pay basis.

3

ZESCO

Zambia

R89 million

ZESCO owes Eskom due to power supplied during the previous drought period. The country has economic challenges which have led to it being unable to honour its debt obligations. Eskom owes ZESCO for energy imbalance which arises out of managing the regional system. Eskom and ZESCO are currently concluding a payment plan agreement for the settlement of the debt.

(2)(c) All the monies owed to Eskom are not in dispute. Eskom’s clients acknowledge their debt and attribute economic challenges as well as financial constraints as the cause of their delays in settling the outstanding debt.

(3) These funds could assist minimally with Eskom’s cash flows.

(4) Eskom will ensure that future contracts are designed to avoid build-up of debt in future.

25 October 2019 - NW574

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Komane, Ms RN to ask the Minister of Public Enterprises

(1) What number of (a) security, (b) cleaning and (c) general worker personnel who work in buildings, facilities and all other infrastructure are employed through tenders obtained by their companies or third party service providers at (i) Eskom, (ii) Transnet, (iii) SA Airways, (iv) SA Express, (v) SA Forestry Company and (vi) Denel; (2) What total amount does Eskom, Transnet, SA Airways, SA Express, SA Forestry Company and Denel spend from their current budget on security, cleaning and general worker personnel who work in their buildings, facilities and all other infrastructure?

Reply:

According to the information received from Alexkor

Information submitted on behalf of Alexkor Head Office:

(1) (a) Security – None

(b) Cleaning – None

  1. General workers – None

Information submitted on behalf of Alexkor /RMC JV:

(a) Security - 84 people

(b) Cleaning – Two people;

(c) General Workers – None;

(2) Current budget on the following are part of the staff compliment (permanent workers) as mentioned on PQ 586

(a) Security – None

(b) Cleaning – 2 (Office cleaners at Head Office)

  1. General workers – 8 (at the mine)

Alexkor / RMC JV spends R1, 233,487.21 / month on Security Services (this include the portion the mining contractors pays);

Alexkor /RMC JV spends R 10 600.00/month on Cleaning Service

According to the information received from Denel:

1(a) 138 security

(b) 185 (cleaning)

(c) 32 (general worker personnel who work in buildings, facilities and other infrastructure

 

2 Security = R17 433 106.89 per annum

Cleaning = R13 517.92 per annum

General worker personnel = R3 106 365.35 per annum

According to the information received from Eskom

(1)(a)(b)(c)(i) Eskom generally contracts for a service and not necessary personnel; as a result Eskom does not have readily available records on the number of personnel employed through tenders obtained by their companies or third party service providers.

(2) Eskom is not able to provide a spent on personnel employed through tenders obtained by their companies or third party service providers. However, we provide total amounts that Eskom spent on security, cleaning and general worker services for the current financial year in the table below.

Financial Year 2019/20

Security

R225 874 543.32

Cleaning

R241 439 141.14

General Worker

R69 198 544.15

TOTAL

R 536 512 228.61

According to the information received from SAFCOL

  1. (a) SAFCOL has 107 security personnel employed through tenders obtained by their respective companies.

(b) SAFCOL has no cleaning personnel employed through tenders. All cleaning personnel are permanently employed by SAFCOL. However, SAFCOL incurred expenses for cleaning materials required through tenders.

(c) SAFCOL has no general worker personnel employed through tenders. All general worker personnel are permanently employed by SAFCOL.

(2) SAFCOL incurred expenses for security personnel employed through tenders obtained by their respective companies as per the table below:

Actual Spent as at 31 March 2019

Services

Amounts

Security personnel

R10 019 283,59

SAFCOL does not have cleaning and general worker personnel employed through tenders. However, SAFCOL incurred expenses for cleaning materials as per the table below:

Actual Spent as at 31 March 2019

Services

Amounts

Materials for cleaning services

R1 458 793,41

According to the information received from South African Express:

1(a) SA Express Airways’ cleaning services and security services are outsourced.

(b) SA Express Airways facilities are taken care of in-house (5 incumbents employed in the facilities department)

(c) None

2. SA Express pays an approximate amount of R67 000.00 per month towards cleaning, facilities and general workers. SA Express pays an approximate amount of R20 000.00 per month towards security services.

According to the information received from South African Airways:

1 SAA utilizes the below number of staff obtained through a tender process from third party service providers;

Function

Number of personnel

(a) Security (Reshebile Protection and Aviation Services)

679

(b) Cleaning and General services (Morena Corporate Services)

368

2 SAA spends (for all stations and premises in SA), the following on the specified services:

Function

Annual Spend

(a) Security

R100 564 693.00

(b) Cleaning and General services

R 25 560 753.00

According to the information received from Transnet

Transnet’s response attached as Annexure A.