Questions & Replies: Public Enterprises
2011-03-07
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QUESTION NO.: 3734
DATE OF PUBLICATION: 25 November 2011
3734. Dr A Lotriet (DA) to ask the Minister of Public Enterprises:
(1) Whether Eskom, through the Government's support by means of guarantees, has compiled a 7-year funding plan from 1 April 2010; if not, how was this conclusion reached; if so, what are the relevant details;
(2) Whether he has found that a 7-year funding plan is sufficient in dealing with the long-term energy needs of the Republic; if not, what steps does he intend to take to deal with future funding requirements; if so, how was this conclusion reached;
(3) Whether his department has identified any Eskom funding requirements after 2017 in order to maintain a sustainable electricity supply; if not, why not; if so, what are the relevant details;
(4) What measures has he put in place to ensure that electricity blackouts after 2017 will be dealt with successfully? NW4523E
Reply:
(1) Eskom has compiled a comprehensive 7-year funding plan (until 2017) and it was included in the entity's Annual Report for the financial year ending 2011.The funding plan has been communicated with all relevant stakeholders. Significant progress has been made indicating the funding that has been secured, sources of funding and draw-downs which were included in Eskom's recently published interim results for the period ending 30 September 2011.
A summary of interim results as at on 30 September 2011 is provided below:
(2-3) The 7-year funding plan is adequate and has been devised to deal with the currently committed projects that Eskom is undertaking up to and including the completion of Kusile power station.
Discussions on Eskom's longer term funding requirements (post 2017) are already underway, but can only be concretised once Eskom's allocations of further new build in terms of the Integrated Resource Plan (IRP) 2010 have been provided. In the interim, the Department of Public Enterprises (DPE), National Treasury, the Department of Energy and Eskom continue to engage and consult on evaluating various financial models with different scenarios that take into account the relevant factors to ensure sustainability of supply, cost reflective tariffs and affordability.
(4) The implementation of the IRP 2010, which is driven by the Department of Energy, is intended to address the future capacity needs of the country.
QUESTION NO.: 3733
DATE OF PUBLICATION: 28 November 2011
3733. Dr A Lotriet (DA) to ask the Minister of Public Enterprises:
(1) Whether the Transnet National Ports Authority has submitted a tariff hike, which is more than three times the inflation rate, to the harbour regulator for the financial year 2012-13; if not, what is the position in this regard; if so, what are the relevant details;
(2) What financial impact does he anticipate a further tariff hike will have on international (a) trade and (b) competitiveness? NW4522E
REPLY
The Transnet National Ports Authority (TNPA) submitted an application for tariff adjustment on 31 July 2011 for the financial year 2012-13 in the prescribed manner and in accordance with the National Ports Act of 2005 (Act no. 12 of 2005), regulations and directives approved in July 2010 and amended on 29 January 2011. TNPA submitted an application requesting an overall revenue increase of 18.06% which builds in the fact that the ports need to invest in infrastructure to provide additional capacity and to refurbish and modernise existing infrastructure as the economy grows. The tariff adjustment complies with the tariff methodology accepted by the Ports Regulator. The Ports Regulator will ultimately decide on the tariff adjustment application taking into account all the inputs which have been made by TNPA, ports users and other interested stakeholders.
(2)(a-b) According to the World Bank report on supply chain competitiveness, South Africa commands a leading position in the upper-middle income countries. As the capacity of ports is expanded and efficiencies improve from the modernised infrastructure, South Africa's competitiveness will be further enhanced. A sustainable logistics sector must be accompanied by an economically efficient tariff regime. Whilst increases in port tariffs may appear to be higher than inflation, the adjustments to the tariff will positively impact on the competitiveness of the economy due to the superior quality of the ports infrastructure.
QUESTION NO.: 3731
DATE OF PUBLICATION: 25 November 2011
3731. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(1) What are the reasons for Broadband Infraco indicating a loss of R83 million in the 2011-12 financial year;
(2) Whether Broadband Infraco applied for R370 million from the National Treasury despite Broadband Infraco receiving a qualified audit during the specified financial year; if not, what is the position in this regard; if so, what are the relevant details in this regard;
(3) Whether his department has put any measures in place to ensure that no further fruitless expenditure is incurred by Broadband Infraco; if not, why not; if so, what measures? NW4520E
Reply:
Broadband Infraco did not post a loss of R83 million in the 2011-12 financial year.
(1). According to Broadband Infraco, the main contributors to the loss incurred in 2010/2011 financial year are due to growth in the infrastructure expenditure, for example, co-location cost and fibre lease cost.
Furthermore, R72 million increase in operating costs is mainly due to increase in depreciation as more assets were put in operation (capitalized). Broadband Infraco also increased its staff compliment by 89, mainly in maintenance and operations, resulting in increased cost of staff.
(2) Broadband Infraco did not apply for any financial assistance from National Treasury for the period under review.
(3). During the year under review Broadband Infraco implemented stricter approval processes for projects and expenditure, from the initiation stage to final payment stage in order to avoid any fruitless and wasteful expenditure
QUESTION NO.: 3624
DATE OF PUBLICATION: 18 November 2011
3624. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:
Whether his department has provided infrastructure in rural areas to unlock job opportunities; if not, what is the position in this regard; if so, (a) how and (b) what are the further relevant details?NW4403E
REPLY
(a-b) The lead responsibility for the rural infrastructure is with the Department of Rural Development and Land Reform, with other Departments like the Department of Public Enterprises (DPE), the Department of Trade and Industry (DTI), the Department of Agriculture, Forestry and Fisheries (DAFF) etc, State Owned Companies (SOC) and Development Finance Institutions being actual or potential supporting partners, along with the private sector. The DPE does not directly have a budget in this regard, but promotes alignment of the investments and other economic activities of the SOC under DPE with Government's rural development policies and plans, as set out in several official documents.
QUESTION NO.: 3279
DATE OF PUBLICATION: 28 October 2011
3279. Mr J J Mc Gluwa (ID) to ask the Minister of Public Enterprises:
What amount in orders has been placed, with each specified travel agency that has been contracted by his office, (a) in the 2010-11 financial year and (b) during the period 1 April 2011 up to the latest specified date for which information is available? NW3749E
REPLY
The amount is indicated in the table below.
| Year | Amount |
| 2010/11 | R 4 664 065.83 |
| 2011/12 (1 April 2011 to 31 October 2011) | R 5 813 230.85 |
QUESTION NO.: 3261
DATE OF PUBLICATION: 21 October 2011
3261. Mr L Ramatlakane (Cope) to ask the Minister of Public Enterprises:
Whether any mechanisms are in place to (a) protect whistle blowers and (b) ensure that whistle blowing is encouraged; if not, what is the position in this regard; if so, what are the relevant details? NW3877E
REPLY
Yes, the Department of Public Enterprises (DPE) has a whistle blowing policy and an integrated fraud and anti-corruption strategy.
Some of the measures ensure the following:
· Internal Confidentiality reporting box is accessible by all officials;
· Awareness emails, on the Protected Disclosure Act , are sent out monthly to Dpe officials;
· The training of officials, where necessary, on fraud and anti-corruption across all business units (seven employees have been trained so far);
· The National Anti corruption hotline numbers are published on posters and in the lifts; and
· Investigations are budgeted for separately within the Internal Audit Directorate.
QUESTION NO.: 3201
DATE OF PUBLICATION: 21 October 2011
3201. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
Whether he intends introducing amendments to the Constitution of the Republic of South Africa, 1996, in order for Eskom to manage municipal power networks distribution infrastructure to provide available electricity to towns and cities; if not, what is the position in this regard; if so, what are the relevant details? NW3809E
REPLY
No. Following the disbanding of the Regional Electricity Distributors formation process, Cabinet tasked the Department of Energy with the role of reviewing the distribution industry with a view to developing a holistic approach to revitalising infrastructure and enhancing energy security as well as the financial implications thereof. It may be possible for Eskom to provide technical and capacity building assistance to municipalities upon request and this will be considered on a case-by-case basis with the view that Eskom is not exposed to additional financial or technical risks and its own business operations are not impacted adversely.
QUESTION NO.: 3153
DATE OF PUBLICATION: 14 October 2011
3153. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:
Whether Eskom has a register/database to monitor (a) electricity theft and illegal connections and (b) electricity cable theft; if not, why not, in each case; if so, in each case, (i) what has been the trend over the past three calendar years, (ii) how does his department deal with these issues and (iii) what are the further relevant details? NW3680E
REPLY
(a-b)(i) According to Eskom, distribution technical and non-technical losses have been maintained below the target of 6 percent for the past three years. Technical losses refer to line losses due to design factors and non-technical losses to factors such as electricity theft and illegal connections. From a monitoring perspective, Eskom's energy losses and equipment theft figures are tracked and a register is kept on all incidences in Eskom supply areas. Eskom keeps its records in terms of a financial and not calendar year basis.
Futhermore, Eskom's conductor theft register forms part of the South African Chamber of Commerce and Industry (SACCI) Copper Theft Barometer. The Barometer figures, however, cover Eskom, Transnet and Telkom. Details provided in the table below:
| Description | 2011 FYE | 2010 FYE | 2009 FYE |
| Non-technical distribution losses (as a % of total energy flow) | 1.70% | 1.76% | 1.64% |
| Number of reported cable theft incidences | 1896 | 2078 | 2323 |
(ii) In light of the concerns that the Department has with theft of electricity and cables, the Department has initiated discussions with other departments on proposals to deal with these issues. In this context, options being considered include possible legislation that would criminalise theft of copper and trading in stolen copper.
The Departments being engaged include the Department of Mineral Resources; Energy and Justice and Constitutional Development. Regarding electricity theft, the Minister supports Eskom and its partners in the Operation Khanyisa initiative to curb electricity theft and has called on all South Africans to support the initiative.
QUESTION NO.: 3109
DATE OF PUBLICATION: 14 October 2011
3109. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:†
(a) With reference to his reply to question 1841 on 5 October 2011, what was the total expenditure on (a) rented motor vehicles, (b) flights, (c) trains and (d) other specified modes of transportation for the (i) executive and (ii) non-executive members of Eskom's board (aa) in respectively (aaa) 2009 and (bbb) 2010 and (bb) during the period 1 April 2011 up to the latest specified date for which information is available? NW3633
REPLY
Eskom keeps its financial records in terms of a financial year as opposed to a calendar year basis, and the above questions are responded to accordingly. The attached table sets out the required.
(*) Information for 2012 will be released at the end of the financial reporting period.
QUESTION NO.: 3071
DATE OF PUBLICATION: 14 October 2011
3071. Mr M S F de Freitas (DA) to ask the Minister of Public Enterprises:
(1) Whether (a) he, (b) the Deputy Minister and (c
) any senior officials of his department intend to visit or have visited New Zealand during the 2011 Rugby World Cup Tournament; if so, what is the (i)(aa) name, (bb) rank and (cc) position or designation of each specified person accompanying (aaa) him, (bbb) the Deputy Minister and (ccc) each specified senior official and (ii)(aa) nature and (bb) official reason for the visit;
(2) What (a) total amount will be spent or has been spent on the trip and (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs? NW3593E
REPLY
(1-2) Neither the Minister, Deputy Minister nor officials of the Department travelled to New Zealand during the 2011 Rugby World Cup Tournament.
QUESTION NO.: 3005
DATE OF PUBLICATION: 14 October 2011
3005. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(1) Whether he has found that the delay of the Pooling and Sharing Joint Venture (PJSV) has had any impact on the performance of Alexkor; if not, what is the position in this regard; if so, what are the relevant details;
(2) Whether he has found that the performance of Alexkor improved as a result of the PJSV; if not, what is the position in this regard; if so, to what extent? NW3489E
REPLY
(1) During the period of the Richtersveld land claim dispute, Alexkor's business was constrained. Alexkor's land mining activities were limited to the north of the mine where plant capacity existed, but where the diamond resource was the most depleted due to an interdict by the Richtersveld Community to mine in the southern areas. The land mining activities were thus loss making.
Following the signing of the Richtersveld Deed of Settlement, Alexkor placed its land mining operations on care and maintenance and initiated a restructuring programme to address the company's losses as well as to preserve the diamond resources on land for the Richtersveld Community, whilst the process to give effect to the Pooling and Sharing Joint Venture (PSJV) was unfolding. Alexkor has recorded improvements in its financial performance during this period, mainly as a result of higher carat production coupled with better cost management.
(2) The commencement of the PSJV was subject to the fulfilment of a number of suspensive conditions, namely:
· that the Richtersveld Mining Company (RMC) and Alexkor must obtain the required approvals to implement the pooling transaction from the Competition Authorities under Competition Act 1998;
· that the Land Claims Court grants an order confirming or noting the Deed of Settlement, and to the extent necessary, the terms, provisions and conditions of the PSJV;
· that the existing Environmental Management Plan of Alexkor be amended as contemplated in the Deed of Settlement; and
· that the land mining rights are transferred to RMC with the permission of the Minister of Minerals Resources, as contemplated in clause 8.2 of the Deed of Settlement.
The PSJV came into effect on 7 April 2011, after all the suspensive conditions had been fulfilled. Effectively this means that Alexkor's operations in Alexander Bay now fall under the control of the Joint Board of the PSJV. Until Alexkor procures new mining ventures to secure new revenue streams beyond Alexander Bay and independent of the PSJV operations, the company's only source of revenue is income from the 51% interest in the profits of the PSJV operations. It is not expected that the mining operations under the PSJV will generate positive returns within the first three years, as the PSJV will first have to embark on exploration.
QUESTION NO: 3004
DATE OF PUBLICATION: 14 October 2011
3004. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(1) Whether he has visited Alexkor to attend to all unresolved issues of poor performance personally; if not, why not; if so, why do so many of the issues remain unresolved;
(2) Whether there are issues that remain unresolved; if so, (a) how many and (b) why do they remain unresolved? NW3488E
REPLY
(1) No. The Minister of Public Enterprises does not need to visit Alexkor in order to attend to its issues.
Alexkor is delegated to the Deputy Minister but both the Minister and Deputy Minister have been personally, actively and regularly engaging with the Alexkor Board and Management to ensure effective performance. As a result, performance is improving.
(2) Yes.
(a) Two.
(b) Recruitment for the new CEO is underway and the properties in Alexander Bay will be transferred to the Richtersveld community once the upgrade of township infrastructure by the municipality is complete.
QUESTION NO.: 3003
DATE OF PUBLICATION: 14 October 2011
3003. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(1) Whether Eskom could save money by switching from diesel to imported methanol at all peak electricity producing facilities; if not, why not; if so, what are the relevant details;
(2) Whether PetroSA is able to provide methanol; if not, why not; if so, what are the relevant details;
(3) Whether methanol as a turbine fuel can produce the same quantity of electricity at less the price than with diesel; if not, why not; if so, (a) what are the relevant details and (b) why does Eskom not switch from diesel to methanol;
(4) Whether he has considered the proposals of the Institute for Democracy in South Africa (Idasa) against the Avon and Dedisa peaking power projects; if not, why not; if so, what are the relevant details? NW3487E
REPLY
(1-3) Eskom is conducting a study on the subject, and once this is completed, a final decision will be taken; and
(4) The matter has to be referred to the Department of Energy accordingly.
QUESTION NO.: 2970
DATE OF PUBLICATION: 23 September 2011
2970. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:
Whether his department's Youth Development Initiative has contributed to young people (a) setting up new and successful enterprises, (b) partnering with established enterprises and (c) creating mutually beneficial offshoots of state-owned enterprises; if not, why not, in each case; if so, in each case, (i) to what extent and (ii) what are the further relevant details? NW3446E
Reply:
The Youth Economic Participation Programme (YEP) for the Department of Public Enterprises (DPE) was launched by Minister of Department of Public Enterprises on 29 June 2011. The institutional support and budget for the YEP programme are part of the review of the Department's structure that is being undertaken with the Department of Public Service and Administration and National Treasury in the context of the Medium Term Expenditure Framework process.
The impact of the programme will be assessed once implementation has started and will be duly reported on thereafter. The YEP programme has to date engaged various stakeholders such as the National Youth Development Agency, youth formations, the State Owned Companies and government institutions with a view to further expand the programme offerings and secure partnerships and collaborations towards its success.
QUESTION NO.: 2913
DATE OF PUBLICATION: 23 September 2011
2913. Mr T D Lee (DA) to ask the Minister of Public Enterprises:
(1) Whether his department has placed any (a) companies or (b) persons on the List of Restricted Suppliers, thereby prohibiting the public sector to do business with them; if so, in each case, what is the (i) name of said entity or person, (ii) nature of their business, (iii) reason for restricting this service and (iv) date on which they were restricted;
(2) Whether any of the implicated (a) companies or (b) persons have since been removed from the list; if so, in each case, (i) which entity or person, (ii) when and (iii) what is the reason for removing the specified company or person from the list;
(3) Whether his department has conducted any business with any of the (a) companies that or (b) person who have been removed from the list; if so, in each case (i) with which companies or persons, (ii) with regard to which services, (iii) for which time period and (iv) why did his department engage the specified company or person despite previous conduct? NW3384E
Reply:
(1-3) No, the Department of Public Enterprises has never had to place any companies or persons on the List of Restricted Suppliers.
QUESTION NO.: 2798
DATE OF PUBLICATION:16 September 2011
2798. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:
Whether Alexkor has been able to deliver on its vision to transform the company into a competitive and sustainable mining company that will contribute positively toward the needs of all stakeholders; if not, why not; if so, what are the relevant details? NW3262E
REPLY
Over the past few years Alexkor has operated under difficult market conditions. However, since the beginning of the 2011/12 financial year, Alexkor has been posting a gross operating profit and is determine to continue its turnaround plan. The settlement agreement reached between Alexkor, the Government and the Richtersveld Community in the matter of the Richtersveld Community's land claim against Alexkor and the State entails, inter alia, that Alexkor has to transfer its land mining rights to the Richtersveld Mining Company (RMC).
In the interim, the parties agreed to form a Pooling and Sharing Joint Venture (PSJV) between Alexkor and the RMC. The Deed of Settlement with the Richtersveld Community has considerably changed the strategic outlook of Alexkor. Alexkor is actively seeking opportunities to procure new mining ventures beyond Alexander Bay and independent of the PSJV operations in order to secure new revenue streams. This will ensure Alexkor's future growth and sustainability and enable the company to effectively address its historical obligations and liabilities.
Alexkor is also exploring opportunities for downstream beneficiation to contribute to the creation of new jobs, the development of requisite skills, investment in research and development, economic growth, sustainable development and cost-effective support for the broader policies of Government.
The formation of the PSJV and the new mining ventures will contribute to the socio-economic development of the region and positively impact all stakeholders.
QUESTION NO.: 2797
DATE OF PUBLICATION:16 September 2011
2797. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:
Whether his department will furnish details regarding Alexkor's employment profile; if not, why not; if so, (a)(i) how many vacancies exist and (ii) at what level are they, (b)(i) how many temporary or contract employees does the company employ and (ii) at which level in each case and (c) what is the ratio of temporary/contract staff to permanent employees? NW3261E
REPLY
(a)(i) According to Alexkor, there are eight existing vacancies at Alexkor.
(ii) Of the existing vacancies, two are at senior management, one at professional, four at skilled and one at semi-skilled level.
(b)(i)There are 53 temporary employees directly employed by Alexkor. In addition, there are 841 external contractors employed by the Pooling and Sharing Joint Venture (PSJV) between Alexkor and the Richtersveld Mining Company.
(ii) Of the 53 temporary employees employed by Alexkor, three are employed at skilled, 22 at semi-skilled and 28 at unskilled level.
(c) Alexkor has 108 employees directly employed on a permanent basis and 53 employees directly employed on a temporary basis. The ratio of directly employed temporary/contract staff to permanent employees is therefore 1.2. If the 841 external contractors employed through the PSJV are included, the ratio of temporary/contract staff to permanent employees is 8.3.
QUESTION NO.: 2741
DATE OF PUBLICATION: 09 September 2011
2741. Mr E J Marais (DA) to ask the Minister of Public Enterprises:
(1)(a) Who is the preferred service provider that is used by his department for the hiring of vehicles and (b) why is the specified service provider preferred;
(2) Whether his department has a fixed contract with the specified service provider; if not, why not; if so, what are the relevant details;
(3) What is the (a) name of the service provider and (b) reason for using the specified service provider in each instance where vehicles have been hired for use by him or his Deputy Minister since March 2010? NW3202E
REPLY
(1)(a-b) All rental vehicles are sourced via the Department's travel agent. Avis and EuropCar are the most frequently used providers, due to the quality of service.
(2) There is no fixed contract with the service providers as bookings are done through travel agency.
(3) Responded in (1)(a-b) above.
QUESTION NO.: 2616
DATE OF PUBLICATION: 09 September 2011
2616. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:
(1) Whether any South African Airways (SAA) flight routes fly (a) to or (b) through Tripoli, Libya; if not, why not; if so, for how long has SAA flown to Tripoli;
(2) Whether, in view of the current political unrest in Libya, SAA will continue to fly to and through Tripoli; if not, why not; if so, why? NW3032E
REPLY:
(1)(a) According to South African Airways (SAA) the airline has never operated to Tripoli or any other point within Libya. Historically, the number of passengers travelling between South Africa and Libya is very small and does not warrant a direct flight between the two countries.
(b) South African Airways in the past did fly over Libya's airspace on route to Frankfurt and Munich from Johannesburg; however this flight path was re routed when the "No fly zone" was imposed on Libyan airspace. The "No fly zone" was imposed by the United Nations Security Council on the 18th of the March 2011.
(2) SAA will adhere to the "No fly zone" restriction imposed by the United Nations and will not operate over Libyan airspace until the restriction has been uplifted.
QUESTION NO.: 2575
DATE OF PUBLICATION: 09 September 2011
2575. Mr N Singh (IFP) to ask the Minister of Public Enterprises:
(1) Whether the Africa, routes have proven to be profitable for SA Airways after they withdrew their direct flights between Durban and Cape Town in order to use the aircraft on the Africa routes; if not, why not; if so, what are the relevant details;
(2) Whether SA Airways plans to re-introduce the flights between Cape Town and Durban; if not, why not; if so, what are the relevant details? NW2988E
REPLY:
(1) Yes, according to SAA the African routes have always been profitable long before the withdrawal of direct flights between Durban and Cape Town.
Additional aircraft that have been deployed on African routes:
Johannesburg to Harare - Increased frequency from 14 to 18 frequencies per week.
Johannesburg to Dar Es Salaam - Increased frequency from 9 to 10 frequencies per week.
Johannesburg to Entebbe - Increased frequency from 6 to 7 frequencies per week.
Johannesburg to Windhoek - Increased frequency from 14 to 20 frequencies per week.
(2) South African Airways has not advised of any intention to reintroduce services between Cape Town & Durban and will continue to serve this route through a codeshare partnership with its low cost airline, Mango Airlines.
QUESTION NO.: 2416
DATE OF PUBLICATION: 02 September 2011
2416. Mr N D du Toit (DA) to ask the Minister of Public Enterprises:
What amount was (a) claimed by and (b) paid to (i) him and (ii) his deputy minister for subsistence and travel in each month in the 2010-11 financial year? NW2811E
Reply:
The amount claimed by the Minister for Public Enterprises for subsistence and travel (S&T) during the 2010/11 financial year was R3 725.05. This was claimed in March 2011. The Deputy Minister for Public Enterprises did not claim S&T for the 2010/11 financial year.
QUESTION NO.: 2402
DATE OF PUBLICATION: 02 September 2011
2402. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:†
(1) Whether Denel has withdrawn its guarantees from the Denel Pension Fund; if so, (a) why and (b) what (i) estimated comprehensive financial benefit will Denel gain from the said withdrawal and (ii) guarantees are there for the sustainability of the Denel Pension Fund;
(2) Whether the amount was reflected in the annual report, if not, why not.
(3) Whether he will make a statement on the matter? NW2793E
Reply:
(1) According to Denel, the company reached an agreement with the trustees of Denpen Fund (a defined benefits pension fund) through which Denel, as employer, withdrew from the fund and the fund became a pensioner alone fund. The process was completed within the rules of the fund, voted on by the trustees and approved by the Financial Services Board.
(a) Denel embarked on the above exercise mainly to limited exposure of pensioners to Denel and also to minimize exposure of Denel towards the fund due to capital market fluctuations and funding risk.
(a)(i) The Fund had a surplus which was distributed on a 50/50 basis between the members and Denel. Denel was allocated R463m which was recognised in the 2010/11 financial statementss. The assets underlying the actuarial surplus allocated to Denel have been transferred to the Denel Retirement (DenRet) Fund (a defined contribution fund) and are accessed by Denel through a contribution holiday over the next four years.
(ii) The assets in the Denel Pension Fund are fully hedged with AAA+ government bonds and have been matched to pension liability. In addition, a risk reserve of R1b was left in the fund to cover any contingencies. The fund is, therefore sustainable.
2) The surplus received by Denel is R463m and has been declared in the most recent Denel Annual Report. Details are on pages 130 and 175 of Denel's 2010/11 Annual Report.
(3) No statement will be made.
QUESTION NO.: 2397
DATE OF PUBLICATION: 02 September 2011
2397. Mr N Singh (IFP) to ask the Minister of Public Enterprises:
(1) Whether his department intends buying the old Durban international airport site to develop it into a dug-out port; if not, why not; if so,
(2) Whether a study has been done on the impact this will have on other ports; if not, why not; if so, what are the findings? NW2788E
REPLY
(1)Transnet intends buying the old Durban International Airport (DIA) site.
(2) Yes. The development of the DIA site into a dig-out port is part of an integrated and co-ordinated national development plan for all ports in the South African port system. This is contained in the Transnet Infrastructure Plan (TIP) which identifies the role of each port in the country and its future development framework plan to support this role. In this context the dig-out will not negatively impact other ports in the country but will play a complementary role.
QUESTION NO.: 2358
DATE OF PUBLICATION: 26 August 2009
2358. Mr G R Morgan (DA) to ask the Minister of Public Enterprises:
(1) Whether he has been informed of the security risks that the unguarded railway line through Kloof in the eThekwini Metropolitan Municipality poses to surrounding communities since it gives criminals access to their properties; if not, what is the position in this regard; if so,
(2) Whether Transnet Rail Freight and the railway police are prepared to conduct ongoing enforcement operations along this stretch of railway line to improve security for the surrounding community; if not, why not; if so, what are the relevant details;
(3) Whether Transnet Rail Freight intends to station permanent guards at sections of this railway in order to improve security for the surrounding community; if not, why not; if so, what are the relevant details;
(4) Whether Transnet Rail Freight is prepared to offer an ongoing stakeholder engagement with relevant stakeholder bodies and civic associations involved in improving security in that area; if not, why not; if so, what (a) are the relevant details and (b) is the (i) name, (ii) designation and (iii) contact details of each person in Transnet Rail Freight with whom the community should be engaging? NW2734E
REPLY
(1) Yes, two enforcement operations were conducted over the past six months. During these joint operations different approaches of dealing with the various forms of crime were used including the mophotouch machine (fingerprint identification) with the intention of identifying criminal elements in the surrounding areas. Guards have been deployed on an ad-hoc basis as and when requested by the community in order to control the influx of trespassers.
(2-3) At this stage it is not Transnet's intention to permanently deploy guards to this area. However, it should be noted that Transnet is currently monitoring the situation via its engagements with the Community Forum in order to assess the risk and deploy guards on an ad-hoc basis.
(4) Yes, Transnet has started and is willing to participate in these ongoing stakeholder engagements with all the relevant bodies and civic associations. The company is also encouraging the community to continue to mobilise and assist in fighting crime in the area. The Transnet Freight Rail (TFR) Security and Communications Departments have already made inroads in this community through their interactions with the community structures where some decisions were made including regular patrols by TFR, completing the erection of a fence by the Community Forum and TFR infrastructure's pledge to make the company's signage visible.
QUESTION NO.: 2335
DATE OF PUBLICATION: 26 August 2009
2335. Mr M W Rabotapi (DA) to ask the Minister of Public Enterprises:
(1) Whether (a) his department and (b) any entity reporting to him was approached by a certain political organisation (name furnished) to contribute to its centenary celebrations; if so, in each case, (i) which entities and (ii) what was the (aa) nature and (bb) value of the contribution that was requested;
(2) Whether (a) his department and (b) any entity reporting to him has a policy that provide for such funding; if so,
(3) Whether (a) his department and (b) any specified entity reporting to him has (i) agreed to the request or (ii) made financial contributions to the said political organisation in the absence of such an approach for funding; if not, why not, in each case; if so, in each case, (aa) who approved the request, (bb) on what grounds was the decision made, (cc) from which budget was it (aaa) agreed to pay the contribution or (bbb) paid, (dd) what amount was paid, (ee) who made the decision to provide the specified funds to the said political organisation and (ff) how is this (aaa) decision and (bbb) amount justified? NW2711E
REPLY
(1-4) With the exception of Transnet, neither the Department of Public Enterprises nor the other State Owned Companies reporting to the Department were approached by the political party referred to.
Transnet declined the request because its Donations and Sponsorship Policy does not allow funding to political parties.
QUESTION NO.: 2256
DATE OF PUBLICATION: 26 August 2011
2256. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:†
(1) With reference to his answer to question 1868 on 12 August 2011, (a) what was the total remuneration package for the chief executive officer of every other specified public enterprise in the (i) 2008-09, (ii) 2009-10 and (iii) 2010-11 financial year and (b) in each case, which part of the package was paid out as a bonus in each specified financial year;
(2) Whether he will make a statement on the matter? NW2627E
REPLY
The tables below contain the remuneration packages and bonuses of the chief executive officers' (CEOs) of the State Owned Companies (SOC) reporting to the Department of Public Enterprises. As indicated in the question above, this response excludes Eskom because the information was provided in Parliamentary Question 1868 in August 2011. It should be noted that the total package includes fixed remuneration plus other variables such as allowances, medical aid and housing.
Tables are here: www.pmg.org.za/questions/2256-tables.doc
QUESTION NO.: 2232
DATE OF PUBLICATION: 29 July 2011
2232. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(1) Whether (a) he, (b) his deputy minister, (c) any specified officials and (d) any other persons have been issued with a government or official credit card during the period 1 April 2010 up to the latest specified date for which information is available; if so, what are the relevant details for him, his deputy minister and each holder of a credit card in respect of the (i) name, (ii) job title, (iii) credit limit, (iv) outstanding amount as at the latest specified date for which information is available, (v) monthly expenses incurred for each month since receiving the credit card, (vi) reason for such persons being issued with a credit card and (vii) uses that such a credit card is intended for;
(2) Whether any such credit cards are over their credit limit; if so, (a) whose credit cards are over the limit and (b) what is the reason for the credit cards exceeding the limit;
(3) Whether any action has been taken against such persons for exceeding their credit card limits; if not, why not; if so, what are the relevant details? NW2607E
Reply:
(1)(a-d) The Minister, Deputy Minister, and Director General have Diners Club cards. The former Chief of Staff in the Ministry had a Diners Club card only for the period specified below.
(i,ii,v) The table below indicates the positions and credit cards amount used from 01 April 2010 to July 2011.
| Month | MINISTER OF PUBLIC ENTERPRISES (from November 2010 to date) | DEPUTY MINISTER OF PUBLIC ENTERPRISES (from November 2010 to date) | DIRECTOR GENERAL OF PUBLIC ENTERPRISES (from January 2011 to date) | FORMER CHIEF OF STAFF (from April to October 2010) |
| Apr-10 | - | - | - | R5 075.30 |
| May-10 | - | - | - | - |
| Jun-10 | - | - | - | - |
| Jul-10 | - | - | - | - |
| Aug-10 | - | - | - | - |
| Sep-10 | - | - | - | - |
| Oct-10 | - | - | - | - |
| Nov-10 | - | - | - | - |
| Dec-10 | R707.00 | - | - | - |
| Jan-11 | R602.45 | - | - | - |
| Feb-11 | R814.00 | - | - | - |
| Mar-11 | R2 225.42 | R176.40 | R8 795.31 | - |
| Apr-11 | R1 387.80 | R485.25 | - | - |
| May-11 | R476.60 | R318.40 | R1 988.00 | - |
| Jun-11 | R1 711.80 | R410.00 | R1 409.80 | - |
| Jul-11 | R2 458.13 | - | R1 626.00 | - |
| TOTAL | R10 383.20 | R1 390.05 | R13 819.11 | R5 075.3 |
(iii) The total credit limit on all three of the current cards are R75 000.00
(iv) There are no outstanding amounts as these accounts are paid every month.
(vi and vii) The Diners Club cards are issued for incidental expenditure when the Minister, Deputy Minister and Director General are not in the office.
(2) The credit cards are not over the limit.
(3) Not applicable as the cards are not over the limit.
QUESTION NO.: 22137
DATE OF PUBLICATION: 19 August 2011
2137. Mrs G M Borman (ANC) to ask the Minister of Public Enterprises:
Whether his department has (a) budgeted for, (b) identified the personnel and (c) developed a business plan to run the Youth Development Initiative programme of his department which is aimed at (i) developing the participation of the youth in the economy and (ii) enabling them to access information and opportunities in state-owned enterprises; if not, why not; if so, what are the relevant details? NW2444E
REPLY
DPE Specific
(a)(b)(i)(ii) The Department of Public Enterprises annually allocates a budget in each financial year specifically for youth development, and for the 2011/12 Financial Year an amount of R1.7 million has been allocated. This budget is managed within the Corporate Services Unit through the Human Resource Development function, and the Communications Unit,.
The programmes that are undertaken by DPE include:
· Graduate Development Programme: this targets full-time students at universities to further their studies at Honours and Masters Levels relevant to the DPE's scarce and critical skills. On completion, the students will be given a two–year-contract in the department and later considered for full-time employment based on operational requirements and vacancies available in the department.
· Internship programme:this targets graduates at universities and universities of technology and provides work experience for a year.
· Take a Girl Child to Work Programme: focuses on grade 11 and 12 pupils from historically disadvantaged backgrounds, from schools in the surrounding areas, for exposure to DPE work.
· Outreach activities to raise awareness on the initiatives of DPE and its State Owned Companies (SOCs) to promote youth empowerment, including participation in the Youth month activities as prescribed by government
DPE and State Owned Companies (SOC)
(a)(b)(i)(ii) In June 2011, the DPE launched a Youth Development Initiative with the aim of ensuring coordination and increased efforts to youth empowerment by DPE and through the SOCs.
The DPE is undergoing a structural review, as part of its Estimates of National Expenditure (ENE) submission for consideration by DPSA, and National Treasury to support its new strategic direction, which includes institutional capacity for this Youth Initiative to ensure that it is fully implemented.
A Steering Committee made up of relevant business units within the department is currently driving the programme on youth and will align it to the transformation focus of DPE, in support of its contribution to the New Growth Path and related developmental outputs.
The initiative focuses on opportunities for youth economic empowerment through the SOC, in the following areas:
· Employment (direct & indirect).
· Skills development.
· Entrepreneurship promotion.
· Corporate Social Investment and related issues.
The intention is to ensure meaningful participation of youth in the economy through facilitating responsive strategies and programmes of DPE and SOCs.
To date, a Career/Job exhibition has been undertaken with all SOCs to expose youth to available programmes of relevance to them. This includes those commitments, and targets set by SOCs that are part of the National Skills Accord. The Department is also in collaboration with the DHET in finding ways to help the SOCs support and stretch their training capacity to bring in more young people, especially in scarce and mostly required areas of the economy.
An electronic link through DPE's website has been created to allow youth and broader public access to information about the programme; and its link to SOCs. This will be supported by an Annual Youth Information Booklet that will be launched before the end of 2011 to capture the thrust of the programme and programmes that youth can access.
QUESTION NO.: 2136
DATE OF PUBLICATION: 12 August 2011
2136. Mrs G M Borman (ANC) to ask the Minister of Public Enterprises:
Whether the review of the remuneration of senior management and nonexecutive directors of state-owned enterprises by the panel appointed by the former Minister has been completed; if not, why not; if so, what are the relevant details? NW2443E
REPLY:
The panel's report and recommendations on the review of the Department of Public Enterprises' (DPE) Remuneration Guidelines for Non-Executive and Executive Directors of State Owned Companies (SOC) was submitted to the Department in December 2010 and was presented to Cabinet for consideration in March 2011. Subsequently, Cabinet mandated the Minister of Public Enterprises to conduct further closed consultations before a revised remuneration model is approved. In this regard, the Department anticipates doing a submission to Cabinet by the end of November 2011.
QUESTION NO.: 2098
DATE OF PUBLICATION: 12/08/ 2011
2098. Mr M Waters (DA) to ask the Minister of Public Enterprises:
Whether he received correspondence from Mr M Waters on 2 June 2011 (details furnished) with regard to the building of a transformer in the Edenvale area; if so, what is his response to the said correspondence? NW2372E
Reply:
The correspondence from the Honourable Member was received. The Department and Eskom are working together to compile a comprehensive report regarding the incident. A response will be furnished in due course to the Member.
QUESTION NO.: 2022
DATE OF PUBLICATION: 05 August 2011
2022. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(a) At how many (i) international and (ii) domestic hotels/guest houses were (aa) he and (bb) his Deputy Minister accommodated during the period 1 April 2009 up to the latest specified date for which information is available and (b) what (i) was the (aa) name, (bb) star rating and (cc) city location of each specified establishment, (ii) was the (aa) duration and (bb) purpose of the stay in each case and (iii)(aa) was the total cost of the accommodation and (bb) is the breakdown of the accommodation cost in each case? NW2268E
Reply:
Information on former and current Ministers of the Department of Public Enterprises on the number of international and domestic hotels or guest houses accommodated them abroad and in the country is provided in the table attached as Annexure A. The response covers the period from 1st April 2009 to the 31st March 2011 financial year. The information on the 2011/12 financial year is unaudited and therefore cannot be made public.
QUESTION NO.: 2022
DATE OF PUBLICATION: 05 August 2011
2022. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:
(a) At how many (i) international and (ii) domestic hotels/guest houses were (aa) he and (bb) his Deputy Minister accommodated during the period 1 April 2009 up to the latest specified date for which information is available and (b) what (i) was the (aa) name, (bb) star rating and (cc) city location of each specified establishment, (ii) was the (aa) duration and (bb) purpose of the stay in each case and (iii)(aa) was the total cost of the accommodation and (bb) is the breakdown of the accommodation cost in each case? NW2268E
Reply:
Information on former and current Ministers of the Department of Public Enterprises on the number of international and domestic hotels or guest houses accommodated them abroad and in the country is provided in the table attached as Annexure A. The response covers the period from 1st April 2009 to the 31st March 2011 financial year. The information on the 2011/12 financial year is unaudited and therefore cannot be made public.