Questions & Replies: Public Enterprises

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2010-08-11

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QUESTION NO.: 3561

DATE OF PUBLICATION: 26 November 2010

3561. Mr J F Smalle (DA) to ask the Minister of Public Enterprises:

How many employees did Alexkor employ in a full-time capacity in the (a) 2000 calendar year and (b) during the period 1 January 2010 up to the latest specified date for which information is available? NW4401E

REPLY

(a-b) The table below indicates the number of employees that were employed on a full-time capacity in 2000 and those employed on full-time capacity in 2010 at Alexkor.

Full-time employees at Alexkor:

In the 2000 financial year

669

In the 2010/11 financial year

105


Alexkor has been subjected to a number of business constraints, including the land claim which the Richtersveld Community previously filed against Alexkor and the State under the terms of the Restitution of Land Rights Act of 1994 for a parcel of land situated in Alexander Bay. These constraints have resulted in decreasing diamond recoveries over the years. The deed of settlement for the land claim was signed in April 2007.

The Deed of Settlement obligates Alexkor to, inter alia:

• Transfer the agricultural and maricultural assets to the Richtersveld Agricultural Holding Company;

• Transfer its land mining rights to the Richtersveld Community, and

• Transfer the mining operations to a Pooling and Sharing Joint Venture.

As a consequence of the transfer of the agricultural assets and land mining rights of Alexkor to the Richtersveld Community as well as the imminent formation of the Pooling and Sharing Joint Venture, Alexkor embarked on a restructuring programme. This has resulted in the reduction in the number of full-time employees from 669 in 2000 to 105 in the 2010/11 financial year.

QUESTION NO.:3477

DATE OF PUBLICATION: 26 November 2010

3477. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(a) How many employees of (i) his department and (ii) any entities reporting to his department who are on level 11 salary scale and above have been suspended with full pay (aa) in the 2009-10 financial year and (bb) during the period 1 April 2010 up to the latest specified date for which information is available and (b) what is the total amount of money that was paid by his department in respect of these salaries? NW4312E

REPLY

(a)(i-ii)(aa-bb)(b) A response regarding employees of the Department of Public Enterprises (DPE) that were suspended on level 11 with full pay is provided in the table below. The challenge is to provide similar information on State Owned Enterprises (SOE) reporting to the Department, since the salary levels are quite different to the Department's.

DPE

(a) (i) How many employees who are on level 11 salary scale and above have been suspended with full pay at DPE?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by DPE in respect of these salaries?

1

1

None

R 474 645.50

Alexkor

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at Alexkor?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by Alexkor in respect of these salaries?

2

2

none

R 1 04 601.00

Broadband Infraco

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at Broadband Infraco?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by Broadband Infraco in respect of these salaries?

None

n/a

n/a

n/a

Denel

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at Denel?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by Denel in respect of these salaries?

None

n/a

n/a

n/a

Eskom

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at Eskom?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by Eskom in respect of these salaries?

24

11

13

R 2 975 013

PBMR

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at PBMR?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by PBMR in respect of these salaries?

None

n/a

n/a

n/a

SAA

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at SAA?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by SAA in respect of these salaries?

9

5

4

R 2 603 440.60

SAFCOL

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at SAFCOL?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by SAFCOL in respect of these salaries?

None

n/a

n/a

n/a

SAX

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at SAX?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by SAX in respect of these salaries?

None

n/a

n/a

n/a

Transnet

(a)(ii) How many employees who are on level 11 salary scale and above have been suspended with full pay at Transnet?

(aa) In the 2009-10 financial year?

(bb) And during the period 1 April 2010 up to the latest specified date for which information is available?

(b) What is the total amount of money that was paid by Transnet in respect of these salaries?

10

1

9

R 3 002 344.00

QUESTION NO.:3416

DATE OF PUBLICATION: 12 November 2010

3416. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(1) (a) When were Transnet's Search and Rescue (SASAR) division's retirement premises in (i) Boksburg, (ii) Pretoria, (iii) Kimberley, (iv) Durban and (v) Worcester privatised in terms of a decision by Transnet and (b) what are the further relevant details;

(2) (a) what was the agreement entered into with prospective Transnet pensioners who, prior to their retirement, had contributed financially to this retirement housing benefit and (b) what are the relevant details? NW4254E

REPLY

(1)(a)(i-v)(b)(2)(a)-b).Transnet has never owned the Search and Rescue (SASAR) division's retirement premises in Boksburg, Pretoria, Kimberley, Durban and Worcester.

QUESTION NO.:3273

DATE OF PUBLICATION: 12 November 2010

3273. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

What (a) was the reason for the property and infrastructure collapse in Lyttelton Manor, Centurion (details furnished), and (b) measures are in place to upgrade this specific area? NW4090E

REPLY

(a-b) Transnet's investigation of the property and infrastructure at Lyttelton Manor in Centurion has revealed that the property is owned by the Passenger Rail Agency of South Africa (PRASA), not Transnet. PRASA would therefore be in a better position to respond.

QUESTION NO.:3272

DATE OF PUBLICATION: 12 November 2010

3272. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(a) Why have Transnet and the Passenger Rail Agency of South Africa (Prasa) (i) jointly and (ii) separately discontinued certain routes for passenger transport, (b)(i) which routes have been suspended and (ii) in respect of which train groupings have these routes been suspended and (c)(i) when will these routes be reopened and (ii) what are the further relevant details? NW4089E

REPLY

(a)(i-ii)Transnet Limited has not terminated any passenger services, as the only passenger service that is currently owned by Transnet is the Blue Train, which is still in service.

(b)(i-ii)The Passenger Rail Agency of South Africa (PRASA) unilaterally suspended its entire long distance passenger train service, Shosholoza Meyl on 13 August 2010.

(c)(i-ii) It is expected that by 30 November 2010 the Shosholoza Meyl services should be resumed in time to cater for demand at the start of the peak season in December.

QUESTION NO.:3232

DATE OF PUBLICATION: 12 November 2010

3232. Mrs J F Terblanche (DA) to ask the Minister of Public Enterprises:

What is the (a) total cost and (b) number of copies of each (i) annual report and (ii) report on strategic plans that was produced by (aa) his department and (bb) any of its entities in the 2009-10 financial year? NW4047E

REPLY

(a-b)(i-ii)(aa-bb) The total cost and number of copies of annual reports and strategic plans produced by the Department of Public Enterprises (DPE) and State Owned Enterprises (SOE) reporting to the DPE are attached in Annexure A.

QUESTION NO.:3169

DATE OF PUBLICATION: 05 November 2010

3169. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

Whether his department is planning the suspension of any financial aid to Denel over the period of the medium-term expenditure framework; if not, why not; if so, what are the relevant details? NW3973E

REPLY

Although Denel has made some progress since 2005, the solvency position of Denel continues to pose serious challenges. The trading losses in all the trading entities (barring Denel Saab Aerostructures) have been brought down. However, although net equity is in the black, Denel is overloaded with debt and is not generating enough gross profit to secure its survival. The business has been relying, to a large extent, on debt financing with the help of government guarantees. The use of guarantees to finance the business is not sustainable. More sustainable support mechanisms are currently being assessed. Appropriate support mechanisms will be developed based on a robust turnaround plan to be developed by Denel that pursues financial recovery and stability through improvements in its operational and financial performance to secure its long term viability.

QUESTION NO.:3168

DATE OF PUBLICATION: 05 November 2010

3168. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(1) Whether flight routes to African countries represent one of the major business components of the SA Airways (SAA); if not, why not; if so, what are the relevant details;

(2) what measures has the SAA introduced to protect the business aspect of its routes to African countries should competition with other airlines increase? NW3972E

REPLY

(1) Yes, flight routes to African countries represent one of the major business opportunities to South African Airways (SAA). SAA is one of the leading carriers in Africa offering air services to over 21 destinations across the continent.

The following are the destinations that SAA serves in Africa:

· Zimbabwe – Harare & Victoria Falls

· Zambia- Lusaka & Livingstone,

· Malawi – Lilongwe & Blantyre;

· Namibia – Windhoek;

· Botswana Gaborone;

· Mozambique- Maputo;

· Mauritius – Port Louis;

· Kenya – Nairobi;

· Tanzania – Dar es Salaam;

· Uganda – Entebbe;

· Ethiopia – Addis Ababa;

· DRC – Kinshasa;

· Gabon – Libreville;

· Cameroon – Doula;

· Ghana – Accra,

· Nigeria – Lagos; and,

· Senegal – Dakar.

(2) Measures taken by SAA in response to competition are commercially sensitive and part of the airline's ongoing commercial and risk management. In particular, SAA offers convenient schedules with high quality air services of assured regularity and safety, for which it has received numerous airline quality awards.

QUESTION NO.:3135

DATE OF PUBLICATION: 05 November 2010

3135. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

(1) Whether any of the entities reporting to him have funded the trips of members of Parliament overseas since 1 January 2010; if so, with regard to each entity that funded such trips, (a) what was the (i) cost, (ii) destination and (iii) purpose of each trip, (b) what are the names of the members of Parliament whose trips were funded, (c) what were the reasons provided by the entity for funding the trip in each case and (d) from which budget was the funding appropriated;

(2) whether any of the entities reporting to him have received applications from members of Parliament for the funding of trips; if so, with regard to each entity that received such applications, (a) what was the (i) anticipated cost, (ii) destination and (iii) purpose of each trip and (b) what are the names of the members of Parliament who applied for funding? NW3935E

REPLY

(1) Yes, one of the nine State Owned Enterprises (SOE) reporting to the Department of Public Enterprises (DPE) namely Transnet, has funded the former Chairperson of the Portfolio Committee on Public Enterprises on a trip to China in August 2010. Alexkor, Broadband Infraco, Denel, Eskom, PBMR, South African Airways, SAFCOL and South African Express have not funded trips of members of Parliament overseas since 01 January 2010.

(1)(a)(i) The cost of the trip was R155, 456.00.

(1)(a) (ii) The destination was China.

(1)(a)(iii) The purpose of the trip was to participate in the President's State Visit to China.

(1)(b) The former Chairperson of the Portfolio Committee on Public Enterprises (the name of the member is on the records of Parliament).

(1)(c) The reasons for funding the trip are as follows:

· The former Chairperson, in her request for the sponsorship, indicated that on 19 August 2010 she had received an invitation from the Department of Trade and Industry (DTI) to participate in the President's State Visit to China and given that she had only received the invitation on 19 August 2010, she would not be able to obtain the applicable approval for the costs of an international travel.

According to her, it would have taken up to 14 days (in terms of the applicable policy of Parliament) to obtain approval for the costs of an international trip. Such approval (assuming the maximum 14 days was taken to obtain the necessary approval) would therefore be obtained long after the President's State Visit to China had been concluded.

· It was indicated by the former Chairperson that her participation (as invited) in the President's State Visit would benefit her in gaining better insight and understanding relative to the exercise of her responsibilities as the Chairperson of the Portfolio Committee on Public Enterprises as it would allow her to engage with, amongst others, Chinese State Owned Enterprises (SOEs) involved in rail.

· Transnet like many other corporates in South Africa, values a deeper understanding of the economy of the People's Republic of China and the role of SOEs in that economy. Many commodities that Transnet rails from source and handles in the ports prior to being shipped to their import destinations are destined for China.

· Transnet believes that any informed knowledge and understanding of SOEs that participate in the public freight logistics of the People's Republic of China would benefit the former Chairperson and her Committee, in general, in the exercise of their oversight role of SOEs.

· The former Chairperson provided Transnet with a copy of the invitation extended to her by the DTI. As the request for financial assistance had been sent by the Personal Assistant of the former Chairperson and not the former Chairperson herself, it was requested that she confirm the contents under her signature, which she did.

(1)(d) The funds were appropriated from Transnet's sponsorship budget.

(2)(a)(i-iii)(b) Except with regard to the information provided above, no SOE has received applications from members of Parliament for funding of trips.

QUESTION NO.:3134

DATE OF PUBLICATION: 05 November 2010

3134. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

(1) Whether Transnet funded a certain person's (name furnished) trip to China in August 2010; if so, (a) what was the amount paid by Transnet to fund this trip, (b) from which budget were these funds appropriated, (c) what were the reasons for funding this trip and (d) what is the breakdown of the funding paid by Transnet;

(2) Whether Transnet funded any other overseas trips of members of Parliament (MPs) in the past; if so, in each case, (a) what is the name of the MP, (b) when did the trip occur, (c) what was the destination and (d) what is the reason for funding the trip;

(3) Whether Transnet has a budget for the specific purpose of funding trips by MPs; if so, how (a) long has this budget been in existence and (b) much funds have been used since its inception? NW3934E

REPLY

(1) Yes, Transnet has funded the former Chairperson of the Portfolio Committee on Public Enterprises on a trip to China in August 2010.

(1)(a) The amount funded for the trip was R155, 456.00.

(1)(b) The funds were appropriated from Transnet's sponsorship budget.

(1)(c) The reasons for funding the trip are as follows:

· The former Chairperson, in her request for the sponsorship, indicated that on 19 August 2010 she had received an invitation from the Department of Trade and Industry (DTI) to participate in the President's State Visit and given that she had only received the invitation on 19 August 2010, she would not be able to obtain the applicable approval for the costs of an international travel.

According to her, it would have taken up to 14 days (in terms of the applicable policy of Parliament) to obtain approval for the costs of an international trip. Such approval (assuming the maximum 14 days was taken to obtain the necessary approval) would therefore be obtained long after the President's State Visit to China had been concluded.

· It was indicated by the former Chairperson that her participation (as invited) in the President's State Visit would benefit her in gaining better insight and understanding relative to the exercise of her responsibilities as the Chairperson of the Portfolio Committee on Public Enterprises as it would allow her to engage with, amongst others, Chinese State Owned Enterprises (SOEs) involved in rail.

· Transnet like many other corporates in South Africa, puts a lot of value in understanding the economy of the People's Republic of China and the role of SOEs in that economy. A lot of commodities that Transnet rails from source and handles in the ports prior to being shipped to their import destinations are destined for China.

· Transnet believes that any informed knowledge and understanding of SOEs that participate in the public freight logistics of the People's Republic of China would benefit the former Chairperson and her Committee, in general, in the exercise of their oversight role of SOEs.

· The former Chairperson provided Transnet with a copy of the invitation extended to her by the DTI. As the request for financial assistance had been sent by the Personal Assistant of the former Chairperson and not the former Chairperson herself, it was requested that she confirmed the contents under her signature, which she subsequently did.

1(d) The table below indicate the breakdown of the funding of a trip to China funded by Transnet.

AA (i) ACCOMMODATION

DATE

HOTEL

AMOUNT PAID

In 23-08-2010 –

Out 26-08- 2010

China World Summit Hotel - Beijing

R 6,530.00

In 26-08- 2010 –

Out 27-08-2010

Portsman Ritz Carlton Hotel - Shanghai

R 10,970.00

TOTAL

R 17,500.00

(ii) AIRTICKETS

DATE

DEPARTURE-ARRIVAL AND CLASS

AMOUNT PAID

22 – 08 - 2010 and

28 – 08 - 2010

Cape Town to Johannesburg and Johannesburg to Cape Town (Business Class)

R 4,856.00

22-08-2010

23-08-2010

25-08-2010

27-08-2010

28-08-2010*

Johannesburg – Dubai, (First Class)

Dubai – Beijing, (First Class)

Beijing - Shanghai, (Economy Class)

Shanghai – Dubai, (First Class)

Dubai – Johannesburg, (First Class)

R 133,100.00

TOTAL

R 137,956.00

GRAND TOTAL

R 155,456.00

* Different time zones

(2) No, Transnet did not fund any other overseas trips of Members of Parliament in the past.

QUESTION NO.:3096

DATE OF PUBLICATION: 29 October 2010

3096. Mr P D Dexter (Cope) to ask the Minister of Public Enterprises:

(1) Whether the head office of Alexkor mine is situated on the mine premises; if not, where is it situated; if so,

(2) whether she can furnish supporting travel and access documentation confirming when the chief executive officer (name furnished) was present and on duty at the mine; if not, why not; if so, what are the relevant details;

(3) whether the CEO has spent on average two weeks per month at work at the mine; if not, what is the position in this regard; if so, what are the relevant details? NW3822E

REPLY

(1) The Alexkor head office is not situated on the mine premises. It is located in Johannesburg.

(2) Annexure A (attached hereto) indicates the dates when Alexkor's CEO was present at the mine during the period January 2008 to November 2010.

(3) The CEO does not necessarily spend two weeks a month at the mine. She has to attend to other strategic matters which are coordinated from the head office in Johannesburg for logistical ease. Operational managers including the Mine Manager, the Mine Engineer and the Chief Financial Officer are on site at the mine at all times.

QUESTION NO.:3032

DATE OF PUBLICATION: 29 October 2010

3032. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

Whether the completion of the Medupi power plant will be delayed; if so, (a) what is the new expected date of completion, (b) by when is the station expected to come online, (c) what are the reasons for the delay, (d)(i) what will the new budget for the project be as a result of the delay and (ii) from which budget will this additional revenue be funded and (e) what (i) impact will the delay have on the power supply generated nationally and (ii) measures have Eskom put in place to ensure that the delay will not have an impact on power supply? NW3750E

REPLY

(a-c) The first unit of Medupi power plant will be delayed by three months due to primarily additional geo technical work but will not affect the commissioning of the first unit as planned, in 2012. A full commissioning of Medupi power plant is expected to be late 2015 and currently no delays are envisaged.

(d)(i) The cost for Medupi power plant has not changed and remains at R125 billion including interest capitalized at R25 billion.

(d)(ii) (e)(i-ii) Not applicable.

QUESTION NO.:3030

DATE OF PUBLICATION: 29 October 2010

3030. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

Whether Eskom has implemented any cost-saving measures in the 2009-10 financial year; if not, why not; if so, (a) what was the total amount of money saved and (b) what specific measures were implemented to achieve this cost-saving? NW3748E

REPLY

(a) Eskom achieved savings of R20 billion in the 2009/10 financial year.

(b)The areas of savings were primarily in controlling coal costs (actual savings), maintaining manpower numbers and forced cash savings on capital projects (deferred savings) as contracts were not signed due primarily to funding challenges.

In particular: R0,7 billion was saved in coal purchasing costs, water usage and limited use of Open Cycle Gas Turbines (OCGT); permanent manpower numbers were less than budget which together with less contract labour required on Kusile and other employee cost savings resulted in total employee cost savings of R1,1 billion. Excluding interest capitalised, the rest of the savings (cash deferrals) were in the capital projects as follows: Kusile R 5 billion, Medupi R 5 billion, Transmission Lines R 3 billion (mainly due to access to land issues), R1,4 billion on Majuba Rail project (suspended), R 1,4 billion delays in Generation "betterment" projects, R 1 billion deferment in Demonstration and Pilot projects and delays (R 1 billion) in full costs mine capital projects

QUESTION NO.:3030

DATE OF PUBLICATION: 29 October 2010

3030. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

Whether Eskom has implemented any cost-saving measures in the 2009-10 financial year; if not, why not; if so, (a) what was the total amount of money saved and (b) what specific measures were implemented to achieve this cost-saving? NW3748E

REPLY

(a) Eskom achieved savings of R2 billion in the 2009/10 financial year.

(b)The areas of savings were primarily in controlling coal costs (actual savings), maintaining manpower numbers and forced cash savings on capital projects (deferred savings) as contracts were not signed due primarily to funding challenges.

The actual savings of R2 billion are broken down as follows: R0, 7 billion was saved in coal purchasing costs, water usage and limited use of Open Cycle Gas Turbines (OCGT); permanent manpower numbers were less than budget by 409, which together with less contract labour required on Kusile and other employee cost savings resulted in total employee cost savings of R1, 1 billion.

The rest of the "savings" of R18 billion are cash deferrals which were in the capital projects as follows: Kusile R 5 billion, Medupi R 5 billion, Transmission Lines R 3 billion (mainly due to access to land issues), R1, 4 billion on Majuba Rail project (suspended), R 1,4 billion delays in Generation "betterment" projects, R 1 billion deferment in Demonstration and Pilot projects and delays (R 1 billion) in full cots mine capital projects. Without the R20 billion equity injection these projects will not materialise.

QUESTION NO.:2977

DATE OF PUBLICATION: 22 October 2010

2977. Mr P D Dexter (Cope) to ask the Minister of Public Enterprises:

Whether she has taken any steps to ensure that the expertise gained from the Pebble Bed Modular Reactor (PBMR) project are not lost through decommissioning the project; if not, why not; if so, (a) how will she ensure the longevity and future of nuclear projects and the usage of the technology and (b) what are the further relevant details? NW3670E

REPLY

(a-b) It has been difficult to retain PBMR developed nuclear skills in the absence of an approved and implemented nuclear build programme. Clarity on the extent and nature of a South Africa Nuclear Power Station build programme will only be obtained early in 2011 with the finalization of the Integrated Resource Plan (IRP).

There are a number of Government Departments, including the Departments of Energy, Science and Technology, Higher Education and Public Enterprises that are engaged in discussions around the retention and development of the necessary nuclear skills required to successfully implement a nuclear build programme of the scale envisaged in the draft IRP.

QUESTION NO.:2957

DATE OF PUBLICATION: 22 October 2010

2957. Mr T D Harris (DA) to ask the Minister of Public Enterprises:

(1) Whether, with reference to the 2010-11 to 2012-13 Industrial Action Plan (details furnished), shareholder contracts with Eskom and Transnet have been strengthened; if not, why not, in each case; if so, in each case, (a) when was this process completed, (b) how was local value added introduced as a key variable and (c) what was the total cost of this process;

(2) Whether the public has access to the revised shareholder contracts; if not, why not; if so, what are the relevant details? NW3648E

REPLY

(1) Eskom and Transnet:

Yes. Shareholder Compacts are strengthened annually to ensure that all Government policies including the Industrial Action Plan are addressed appropriately by the SOEs. In the case of Eskom, there is a section in the Key Performance Areas that specifically deals with supporting the developmental objectives of South Africa and this is broken down into different aspects that are monitored by the Department in terms of compliance.

a) The Eskom shareholder compact was completed and signed in October and the Transnet Shareholder Compact was signed during April 2010.

b) The Eskom Compact has two specific indicators that deal with local content. The first indicator includes a percentage of local content in all the contracts that are issued by the Eskom.

In the case of Transnet, the local content requirement is included under the Competitive Supplier Development Programme (CSDP) as part of the Strategic Initiatives Schedule.

c) There is no specific cost associated with the process to conclude Shareholder Compacts, the process forms part of the overall shareholder oversight role of the Department.

(2) Shareholder Compacts concluded with Eskom and Transnet can be shared with any member of the public on request in line with Promotion of Access to Information (PAIA) Act, 2000 (Act 2 of 2000). The reason for it to be shared through the PAIA is because Shareholder Compacts are legal binding documents. However the performance targets set in the annual Shareholder Compacts and the actual results achieved are included in the Annual Reports of both Eskom and Transnet.

QUESTION NO.:2864

DATE OF PUBLICATION: 15 October 2010

2864. Mr N J J van R Koornhof (Cope) to ask the Minister of Public Enterprises:

Whether he has taken any steps to resolve the impasse between Transnet and the Passenger Rail Agency of SA (Prasa) to enable trains on popular tourism routes to run again; if not, why not; if so, (a) what steps and (b) when does she expect an outcome? NW3547E

REPLY

On 27 October 2010 the (former) Minister of Public Enterprises and the Minister of Transport instructed PRASA and Transnet to work together to ensure the recommencement of the suspended Shosholoza Meyl service.

(a) Work streams were formed by delegated personnel from Transnet and PRASA to discuss and address issues leading to the impasse, including network access arrangements, as well as the payment and pricing system.

(b) It is expected that on 30 November 2010 the Shosholoza Meyl services should be resumed in time to cater for demand at the start of the peak season in December.

QUESTION NO.:2848

DATE OF PUBLICATION: 15 October 2010

2848. Mr T D Harris (DA) to ask the Minister of Public Enterprises:

What portion of the amount of R846 billion that was committed to infrastructure-related spending was spent (a) by state-owned enterprises, (b) as part of public private partnership (PPP) spending and (c) by Eskom as at the latest specified date for which information is available? NW3531E

REPLY

(a-c) R846 billion has been committed towards infrastructure spend across Government over a three year period, 2010 to 2012/13. This amount is not earmarked for State Owned Enterprises but includes national and provincial departments, municipalities and PPPs. Three of the nine State Owned Enterprises (SOE) reporting to the Department of Public Enterprises namely Eskom, Transnet and Broadband Infraco are currently undertaking infrastructure build programmes, which are part of the R846 billion infrastructure spend commitment.

Of the R846 billion total commitment, R261 billion has been allocated across government for the 2010/11 financial year. More than 45 percent of the amount is committed to the electricity, freight rail, ports sectors and other related sectors. Infrastructure spend in respect of Eskom, Transnet and Broadband Infraco is provided in the table below:

Name of SOE

Amount Spent

Relevant Period

Broadband Infraco

R365 million

April 2010 to September 2010

Transnet

R10 billion

April 2010 to September 2010

Eskom

R19 billion

April 2010 to September 2010

QUESTION NO.:2777

DATE OF PUBLICATION: 15 October 2010

2777. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

With reference to the announcement by Eskom's Chief Executive Officer (name furnished) during his presentation to Parliament that the sustainable supply of electricity can only be guaranteed by Eskom up to 2017, (a) what does this announcement encompass and (b) what are the further relevant details? NW3455E

REPLY

(a)(b)The South African electricity supply-demand balance will remain tight until the first unit of the next large base load power station, Medupi, comes on line in late 2012 as the anticipated rate of growth in demand will be higher than the rate of the generation capacity that is being added. In order to ensure security of supply in this period and to set the country on a path of increased efficiency and sustainability, the focus in the next three years must be on energy efficiency across our consumer base, the introduction of independent power producers in the areas of renewable energy technologies and co-generation and sustainable performance from the existing Eskom generation fleet. Eskom, Government, Business, Labour and Civil Society need to work together to ensure that the appropriate mechanisms are put in place to enable this to happen. There is commitment from our social partners to do so.

Government and Eskom are committed to building the Medupi and Kusile power stations and the completion of these plants between 2012 and 2018 will support security of supply in this period.

Decisions on the next generation capacity to be built after 2017/18 and the mix of energy sources will be made by the Department of Energy in due course as part of the process of finalizing the country's 20 year Integrated Resource Plan for Electricity.

QUESTION NO.:2775

DATE OF PUBLICATION: 15 October 2010

2775. Dr P J Rabie (DA) to ask the Minister of Public Enterprises:

Whether her department has conducted an assessment to establish whether an 11% pay increase for Transnet workers will result in (a) job losses, (b) an increase in the cost of business and (c) the decline of commodity exports; if not, why not; if so, what are the relevant details in each case? NW3453E

REPLY

Transnet Limited has conducted an assessment to establish whether an 11% pay increase for Transnet workers would result in job losses, an increase in the cost of business and the decline of commodity exports.

(a)The cost of the wage settlement resulted in an 11% increase which included the restructuring of salary elements such as housing and medical allowances. This will have a favourable impact on the wage bill going forward as housing is no longer an add-on to the basic salary, and the medical benefit has been standardised to a fixed value (not a % of basic salary). It is not anticipated that there will be any job losses as a result of the wage increase. (See (b) for further explanation)

(b) The increase in labour costs will be circumvented by, inter alia:

· Not filling non-critical vacancies resulting from natural attrition; and

· Other cost reduction initiatives implemented in the year to minimise the impact on Transnet's overall cost structure, including better management of overtime.

(c) The lead up to settling the salary increase resulted in operational activities being hampered by the three-week strike. Although the export lines (coal & iron ore) were negatively affected, management has implemented recovery plans to substantially reduce the impact.

QUESTION NO.:2767

DATE OF PUBLICATION: 15 October 2010

2767. Mrs J D Killian (Cope) to ask the Minister of Public Enterprises:

Whether he has put any systems in place to ensure 100% compliance by state-owned enterprises with procurement prescripts in terms of the Public Finance Management Act, Act 1 of 1999; if not, why not; if so, what are the relevant details? NW3443E

REPLY

The Minister of Public Enterprises has put measures in place to ensure compliance by State Owned Enterprises (SOEs) with procurement prescripts in terms of the Public Finance Management Act No 1 of 1999 (PFMA) and other applicable procurement legislation which regulates organs of state such as the Preferential Procurement Policy Framework Act No. 5 of 2000 and the Treasury Regulations. For example, before concluding any significant and material transaction, SOEs must obtain the Minister's approval for such transaction in terms of the PFMA. This provides the Minister with line of sight into transactions that may have procurement implications. The Minister also concluded a significant and materiality framework specifying thresholds for such transactions in respect of each SOE. The transactions approved by the Minister in terms of these provisions are monitored through the DPE's dashboard system, and SOE are required to report on the progress of these transactions quarterly.

Over and above these, SOEs also have internal audit functions which require audit compliance of SOEs with all applicable procurement prescripts. This is further audited by the Auditor-General or the external auditors of each SOE.

DPE also monitors SOEs compliance with legislation and regulations and uses this as an accountability measure for SOE performance at Annual General Meetings. Further, in terms of applicable legislation (PFMA and Companies Act), SOEs report on legislative compliance in their Annual Reports and this forms part of the auditor's report to the shareholder.

QUESTION NO.:2728

DATE OF PUBLICATION: 27 September 2010

2728. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(1) Whether Mango hires airplanes from the SA Airways (SAA) at a rate lower than the market rate; if not, why not; if so, what are the relevant details;

(2) (a) what does the SAA's financial responsibility towards Mango entail, (b) what amount has Mango borrowed from the SAA since its inception, (c) when was each loan concluded, (d) what did each loan amount to and (e) which of these loans (i) has and (ii) has not been paid back;

(3) what was Mango's financial position in the 2009-10 financial year in respect of (a) liquidity, (b) asset-to-liability ratio, (c) profit-to-loss ratio and (d) expenditure-to-income ratio;

(4) whether the competition playing field is made uneven regarding other airlines because the SAA is favouring Mango by way of transfers from his department; if not, what is the position in this regard; if so, what are the relevant details? NW3399E

REPLY

(1) No. Lease agreements between Mango and SAA are concluded on a commercial basis in accordance with applicable laws.

(2)(a-e)(i-ii) At inception in 2006, Mango borrowed R100 million from SAA. This R100 million loan, which accrued interest at the prime-lending rate, was settled in full during the financial year ending March 2008. No other loans exist between SAA and Mango.

(3)(a-d) Mango achieved a pre-tax profit margin of 2.80% for the fiscal year ending March 2010. The company's cash position exceeded its current liabilities by 52% whilst its asset-liability ratio reflected as 2.5:1.0 as at year-end.

(4) Since its inception in 2006, Mango has contributed to the stimulation of the domestic low-cost market and resultant increase in consumer choice. No other transfers have been made to Mango since the R100 million loan which has been repaid in full.

QUESTION NO.:2727

DATE OF PUBLICATION: 27 September 2010

2727. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(a) In what way does her department communicate with the Department of Energy in respect of Eskom's strategic planning as provider and distributor of electricity, (b) how often does such communication take place and (c) what does it entail? NW3398E

REPLY

(a) The Department of Public Enterprises (DPE) engages with the Department of Energy (DoE) in relation to the mandate of the DoE as the energy policy department. However, the DPE as an oversight department has a responsibility to ensure that Eskom's strategic plans and implementation thereof are aligned with the energy policy.

(b) The DPE and DoE have regular engagements at officials level, some of which are scheduled meetings to discuss broader energy issues and resolve any impediments to the implementation of energy policies. Further, Cabinet has approved that the Minister of Public Enterprises convenes an Inter-Ministerial Committee (IMC) on Energy. The IMC on Energy consists of the following Ministries: Public Enterprises, Energy, National Treasury, Planning Commission, Economic Development, Trade and Industry, Science and Technology, Environmental and Water Affairs, Transport and Cooperative Governance and Traditional Affairs. The IMC has met eight (8) times this year since February 2010 and the engagements between the two departments at officials level takes place on a monthly basis.

(c) Discussions at meetings between the DPE and DoE and at IMC level entails addressing areas of misalignment with energy policy or the implementation thereof, emerging energy trends, and includes amongst others discussion on:

· Eskom's long terms funding and expansion requirements;

· South Africa's long-term energy strategy within the context of its developmental objectives;

· Government intervention in energy that could be prioritised in the short-term;

· Electricity challenges facing the country and to present a comprehensive solution to Cabinet.

Through the IMC, solutions including directives, policies, legislation and regulations are proposed to ensure that the electricity challenges are resolved.

QUESTION NO.:2726

DATE OF PUBLICATION: 27 September 2010

2726. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(a) In what way do her department and the Department of Transport communicate in respect of Transnet's strategic planning as provider of transport services, (b) how often does such communication take place and (c) what does it entail? NW3397E

REPLY

(a) The Department of Public Enterprises (DPE) engages with the Department of Transport (DoT) in relation to the mandate of the DoT as the transport policy department. As an oversight department, DPE ensures that Transnet's strategic plans and the implementation thereof are aligned with the transport policy.

(b) The DPE and DoT officials have regular engagements, some of which are scheduled meetings to discuss and resolve any outstanding issues in the implementation of policies. Engagements take place at least three times in a quarter at officials' level, as well as scheduled Ministerial bilateral meetings to address specific issues that require intervention.

(c) Discussions at such meetings would entail addressing areas of misalignment with transport policy or the implementation thereof, emerging transport trends, DPE inputs in the policy development process and a range of other issues.

QUESTION NO.:2653

DATE OF PUBLICATION: 17 September 2010

2653. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

What (a) are the names of the current top ten debtors who owe money to Eskom, (b) amount is owed by each debtor and (c) was the date by which each debtor was required to settle their debt? NW3310E

REPLY

(a-c) The information requested relates to confidential commercial information and other proprietary information of third parties and therefore cannot be made public. These parties are private companies and divulging such information may expose Eskom to legal and financial prejudice. Eskom has concluded supply agreements with its customers with restrictive provisions on communications and disclosure of any part of the agreement. These agreements provides for disclosure of the contents thereof subject to consensus by the other contracting party. Thus, if Eskom is to disclose any proprietary information, such disclosure must be agreed to by both parties.

Should it proceed unilaterally, Eskom will inevitably, attract financial, legal and reputational risk which would culminate in serious liability for both Eskom and the Department.

QUESTION NO.:2609

DATE OF PUBLICATION: 10 September 2010

2609. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1) How many kilometers of railway track in each province has declined to the extent that it is no longer suitable for railway transport;

(2) whether Transnet will repair such railways; if not, why not; if so, (a) when, (b) what is the estimated cost, (c) how will Transnet acquire the funds for this and (d) what are the further relevant details;

(3) whether Transnet will conclude agreements with the private sector for the repair and private use of the railways; if not, why not; if so, what are the relevant details? NW3264E

REPLY

(1) There are 3 255 kilometres of closed branch lines located in the provinces.

The table below indicates kilometres of the closed branch lines per province.

Provinces

Closed Branch lines: rail km

Eastern Cape

1 202

Free State

563

Gauteng

82

KwaZulu Natal

324

Limpopo

281

Mpumalanga

176

North West

None

Northern Cape

451

Western Cape

176

Total

3 255

(2)(a-d) No. Transnet will not repair the closed branch lines. Approval has been granted to Transnet by the Minister of Public Enterprises in terms of section 54 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) to concession branch lines (closed branch lines and active branch lines) to private operators. Transnet has registered 115 interested parties in the published branch lines concession opportunities.

(3) Yes, Transnet issued a subsequent call for Expressions of Interest (EOI) in branch lines concession opportunities on 12 September 2010. The closing date for EOIs is 25 October 2010. The proposed model to concession branch lines provides that Transnet will conclude long-term concession agreements with private operators following a competitive process. These private operators will assume responsibility of investment in the branch lines, and maintain and operate the lines to an agreed standard for the concession period.

QUESTION NO.:2606

DATE OF PUBLICATION: 10 September 2010

2606. Mr M E George (Cope) to ask the Minister of Public Enterprises:

(1) Whether the terms and conditions attached to the World Bank loan extended to Eskom was thoroughly scrutinised by Government; if not, why not; if so,

(2) whether any of these terms and conditions to secure the loan is expected to have any impact on future generations; if not, how was this conclusion reached; if so, what is the nature of the impact? NW3258E

REPLY

(1)Yes. The Government was party to the negotiation of the loan, therefore, the loan was thoroughly scrutinised and signed off by Government as part of the process.

(2) The World Bank loan is a specific investment loan and does not contain the conditionalities associated with a development policy loan. Furthermore, the loan is favourable due to its tenor (final maturity 28½ years) and pricing (Libor, plus 0.5% and a variable spread); thus reducing the financial burden associated with other sources of commercial funding. In order to repay the loan, Eskom would have to be financially sustainable.

QUESTION NO.:2603

DATE OF PUBLICATION: 10 September 2010

2603. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:†

(a) Whether the 49% share that was awarded to the Richtersveld community in terms of a land restitution claim has been transferred to this communty; if not, why has the share not yet been transferred and (b) what steps is the Government taking in this regard in order to ensure the transfer of the 49% share in Alexkor to this community; if so, (i) when was the transfer effected and (ii) in the name of which entity has the said share been registered? NW3253E

REPLY

(a) The Richtersveld community was not awarded a 49% share in Alexkor. Alexkor is a public company with the State as sole shareholder. Alexkor holds diamond mining rights on land and in the sea. In terms of the Deed of Settlement and Court Order relating to the Richtersveld community's land claim, Alexkor's land mining rights will be transferred to the Richtersveld community's mining company. Alexkor will retain the sea rights. The agreement provides for the formation of a Pooling and Sharing Joint Venture (PSJV) between Alexkor and the Richtersveld Mining Company (RMC) on the following basis:

· Alexkor will remain the holder of its marine mining rights and RMC will remain the holder of its land mining rights;

· Alexkor and RMC will respectively put their marine mining rights and their land mining rights under the full control of a Joint Board of the PSJV for purposes of mining both the marine and land resources;

· Alexkor will have a 51% interest in the PSJV and RMC a 49% interest.

(b)(i-ii) In order for the land mining rights to be transferred to the RMC, Alexkor's prospecting and mining rights had to be converted from old order to new order rights in terms of the Minerals and Petroleum Resources Development Act, No 28 of 2002. Alexkor submitted the applications for conversion to the Department of Mineral Resources in the first quarter of 2009. The conversion of Alexkor's land mining rights to new order mining rights was executed in May 2010. The transfer of these new order land mining rights to RMC is in process. The only outstanding requirement is for RMC to pass a Board resolution accepting to receive the said mining rights and thereafter it will be sent to the Minister of Mineral Resources for consent. Alexkor anticipates the transfer to be completed during the current financial year.

QUESTION NO.:2592

DATE OF PUBLICATION: 10 September 2010

2592. Mr M H Steele (DA) to ask the Minister of Public Enterprises:

(1)(a) Who are the current members of the board of directors of each state-owned enterprise (SOE) and (b) on which SOE boards did current SOE board members serve prior to serving in their current positions;

(2) whether any of the current members of SOE boards also serve on other SOE boards; if so, on which board in each case? NW3238E

REPLY

Tables below indicate current Boards of Directors of SOE, previous boards served prior to current positions and other boards in SOE.

Alexkor

(1)(a-b)(2) The table below indicates the current Alexkor Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Ms V Makin

None

None

Ms K M Maseko

None

None

Mr R Muzariri

None

None

Ms S S Ngoma

None

None

Mr R Paul

None

None

Mr C L Towel

None

None

Broadband Infraco

(1)(a-b)(2) The table below indicates the current Broadband Infraco Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Mr C Groesbeek

None

None

Ms S Mabaso-Koyana

None

None

Mr L N Letele

None

None

Mr S T Mabalayo

None

None

Mr W T Magasa

None

None

Mr S Maharaj

None

None

Mr S A U Meer

None

None

Mr A F B Mthembu

None

None

Ms M J Singer-Saul

None

None

Mr D R Smith

None

None

Denel

(1)(a-b)(2) The table below indicates the current Denel Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Ms S H Chaba

None

None

Mr G C Cruywagen

None

None

Mr A Hirsch

None

None

Mr LC Jones

None

None

Mr N R Z Kunene

None

None

Prof T Marwala

None

None

Mr F Mhlontlo

None

None

Ms B N Paledi

None

None

Mr M T Sadik

None

None

Dr S P Sibisi

None

None

Ms M J van Rensburg

None

None

Eskom

(1)(a-b)(2) The table below indicates the current Eskom Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Mr C J Campbell

None

None

Ms L C Z Cele

None

None

Mr B Dames

None

None

Mr S D Dube

None

None

Mr B L Fanaroff

None

None

Mr L G Josefsson

None

None

Mr H B Lee

None

None

Ms W E Lucas-Bull

None

None

Mr P M Makwana

None

None

Ms B Mehlomakhulu

Pebble Bed Modular Reactor

None

Mr J Mirenge

None

None

Mr J R D Modise

None

None

Ms U Z Nene

None

None

Mr P 'O Flaherty

None

None

PBMR

(1)(a-b)(2) The table below indicates the current PBMR Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Mr R M Adam

None

None

Mr L Dlamini

None

None

Mr G S Gouws

None

None

Mr R A Matzie

None

None

Mr X H Mkhwanazi

None

None

Mr S A Molepo

None

None

Ms R Neethiling

None

None

Mr R T Pearce

None

None

Mr P H Readle

None

None

Mr A Ruiters

None

None

Mr S A Tsela

None

None

South African Airways (SAA)

(1)(a-b)(2) The table below indicates the current SAA Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Mr A A Bouchon

None

None

Ms C Carolus

None

None

Mr T Daka

None

None

Mr T C Jantjies

None

None

Ms Y Kwinana

None

None

Prof D Lewis

None

None

Mr R Loubser

None

None

Mr B F Mohale

None

South African Express Airways

Ms D C Myeni

None

None

Ms S Mzimela

South African Express Airways Board

None

Mr J Ndlovu

None

None

Adv L Nkosi-Thomas

None

None

Mr L Rabbets

None

None

Mr Z J Sithole

None

None

Ms M Whitehouse

None

None

South African Express Airways (SAX)

(1)(a-b)(2) The table below indicates the current SAX Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Ms L G Boyle

None

None

Mr E Bunyenyezi

None

None

Mr C Christodoulou

None

None

Mr V Cuba

None

None

Mr L Ledwaba

None

None

Mr B F Mohale

None

South African Airways

Mr A Ntshngase

None

None

Ms B Ssamula

None

None

Mr G van Heerden

None

None

Ms M Vuso

None

None

Mr S Zulu

None

None

SAFCOL

(1)(a-b)(2) The table below indicates the current SAFCOL Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Mr A Abdo

None

None

Ms F Blakeway

None

None

Mr J K Breed

None

None

Prof R Hassan

None

None

Mr M Kharva

None

None

Mrs V N Magwentshu

Adv G Malindi

None

None

Ms M M Matome

None

None

Ms N Medupe

None

None

Ms K Njobe

None

None

Transnet

(1)(a-b)(2) The table below indicates the current Transnet Board members and their involvement on other SOE Boards.

Name

Previous SOE Board

Other SOE Board

Prof. G K Everingham

None

None

Ms N B P Gcaba

None

None

Mr M J Hankinson

None

None

Dr N D Haste

None

None

Mr P G Joubert

South African Airways Board

None

Ms N N N Matyumza

None

None

Mr M P Moyo

None

None

Ms N R Ntshingila

None

None

Ms K C Ramon

None

None

Mr A Singh

None

None

Mr CF Wells

None

None

QUESTION NO.:2579

DATE OF PUBLICATION: 10 September 2010

2579. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:†

(a) What amount (i) will Eskom be spending on financing its capital investment programme during the period 1 April 2010 until 31 March 2011 and (ii) does Eskom still have to obtain in this regard and (b) how will those funds be obtained? NW3221E

REPLY

(a)(i-ii) The budgeted amount (including interest capitalised) for all Eskom capital expenditure was R92 billion for the year to 31 March 2011. However, due to the delays in finalising the Kusile funding plan this is now projected at R71 billion.

(b) The capital expenditure will be funded through cash balances on hand and current undrawn secured facilities that are in place.

QUESTION FOR WRITTEN REPLY

QUESTION NO.: 2520

DATE OF PUBLICATION: 03 September 2010

2520. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:†

(1) What tonnage of iron ore did Transnet transport from Sishen to Richard's Bay in (a) 2007, (b) 2008 and (c) 2009;

(2) whether there was a drop in Transnet's transportation of iron ore; if not, what is the position in this regard; if so, what are the reasons;

(3) whether she will make a statement on the matter ? NW3097E

REPLY

(1) Transnet does not transport iron ore from Sishen to Richards Bay, but rather, Transnet transports iron ore from Sishen to Saldanha Bay. The table below indicates the tonnage of iron ore transported from Sishen to Saldanha Bay during the financial years 2007/08, 2008/09 and 2009/10.

Years Ending March

Rail

Export

(a) 2007/8

31.92Mt

29.80Mt

(b) 2008/9

36.81Mt

32.96Mt

(c) 2009/10

44.73Mt

44.68Mt

(2) Transnet did not experience any drop in transportation of iron ore from Sishen

to Saldanha Bay. Rather, a consistent increase in throughput was achieved for the period in question, which is in line with the planned ramp-up to an annual throughput of 60.7mtpa by mid 2012.

(3) No statement will be made in this regard.

QUESTION NO.:2512

DATE OF PUBLICATION: 03 September 2010

2512. Mr D A Kganare (Cope) to ask the Minister of Public Enterprises:

(1) Whether any municipalities owe money to Eskom for electricity supplied; if so,

(a) which municipalities and (b) how much does each municipality owe;

(2) whether Eskom has taken any steps to recover the money; if not, why not; if so, what steps? NW3087E

REPLY

(1)(a-b) Yes. As at the cut-off date for the period ending 30 July 2010 there were municipalities that had not settled their accounts in full by the due date. The names and amounts owed by the said municipalities are reflected in the attached Annexure A.

(2) All customers who do not settle their outstanding debts by the due date are contacted and reminded to settle the outstanding amounts. If no payment is received the customer is served with a formal notification that the supply may be subject to disconnection. Accounts of customers identified as key customers e.g. metros and larger municipalities are managed through a customer account executive channel where interaction takes place. Should the municipality not make arrangements to settle the outstanding debt a notice for the curtailment of electricity supply is then served on the municipality.

QUESTION NO.:2438

DATE OF PUBLICATION: 03 September 2010

2438. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1) Whether her department or any of its entities is owed any monies by other government departments, including their respective entities; if so, (a) which departments or entities have not paid their debt and (b) in each case, (i) what amounts are owed, (ii) for what was the debt incurred and (iii) how long has the debt been outstanding;

(2) whether any steps have been taken to recover the outstanding amounts; if not, why not; if so, what steps? NW3006E

REPLY

(1)(a-b)(i-iii) The Department of Public Enterprises (DPE) and six State Owned Enterprises reporting to it are owed money by other government departments or institutions. Broadband Infraco, Denel and South African Express are not owed money by any government institutions. The relevant details are attached as Annexure A.

QUESTION NO.:2410

DATE OF PUBLICATION: 27 August 2010

2410. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

Whether (a) her department or (b) any of its entities has signed any contractual agreements with a certain company (name furnished) or any of its affiliates (i) in the (aa) 2006-07, (bb) 2007-08, (cc) 2008-09 and (dd) 2009-10 financial years and (ii) during the period 1 April 2010 up to the latest specified date for which information is available; if so, (aaa) what is the nature of each contract, (bbb) what is the monetary value of each contract, (ccc) what is the (aaaa) start and (bbbb) end date of each contract, (ddd) what are the details of the process that was followed for the signing of each contract, (eee) who else tendered for each contract that was awarded and (fff) what amount did each tenderer quote in each case? NW2979E

REPLY

The Department of Public Enterprises and the SOE reporting to it, except for Transnet, did not sign any contractual agreements with the referred company. Details are attached in annexure A.