Questions & Replies: Public Enterprises

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2011-11-17

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QUESTION NO.: 1948

DATE OF PUBLICATION: 29 July 2011

1948. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(a) How many (i) international flights and (ii) domestic flights were undertaken by (aa) him and (bb) his deputy minister using (aaa) military aircraft, (bbb) chartered aircraft or (ccc) commercial aircraft during the period 1 April 2010 up to the latest specified date for which information is available, (b) what class did he and his deputy minister travel in each case and (c) what amount did his department spend with regard to each specified flight? NW2186E

REPLY

(a)(i-ii)(aa-bb)(aaa-ccc)(b-c) Ministers and Deputy Ministers may use business class / first class travel for official purposes at the expense of their Departments. Official trips include, amongst others, those travelled from Pretoria to Cape Town for Parliamentary Sittings and appearances, as well as international trips, which require Ministers to execute official duties.

All flights are used for official duty and this is an enabling factor for Public Participation Programmes of Ministers who have to meet demanding schedules.

Members may also use chartered aircraft for official purposes and for reasons including the facilities of other airlines not being cost-effective and / or readily available in a specific instance.

The Ministry (and its support staff) is responsible for determining the cost-effectiveness of all trips carried out by Ministers and Deputy Minister's and ensure that the intended journeys meet the requirements of relevant guidelines.

The table below indicates the international and domestic flight trips the former Minister, the former Deputy Minister and the current Minister and Deputy Minister undertook and costs incurred by the Department of Public Enterprises. The table is here: www.pmg.org.za/questions/1948-table.htm

QUESTION NO.: 1914

DATE OF PUBLICATION: 29 August 2011

1914. Mrs A Steyn (DA) to ask the Minister of Public Enterprises:

Whether he has employed a ministerial special advisor; if so, (a) what are the duties of the advisor, (b) at which post level was the appointment made, (c) what is the salary level of the advisor, (d) what is the duration of the employment contract entered into with the advisor and (e) why was it necessary to appoint this advisor? NW2152E

REPLY

Yes.

(a) To give special advice to the Minister.

(b-c) The post and salary levels are prescribed by the Public Service Act, Section 12A and relevant regulations.

(d) The duration of the employment contract coincides with the term of the Minister.

(e) To aid the Minister in discharging his duties.

QUESTION NO.: 1868

DATE OF PUBLICATION: 29 July 2011

1868. Mr S C Motau (DA) to ask the Minister of Public Enterprises:

What was the breakdown of the total cost to company for each executive director employed at Eskom in the (a) 2007-08, (b) 2008-09, (c) 2009-10 and (d) 2010-11 financial years? NW2106E

Reply:

(a-d) The table below indicates the amount paid to Eskom's executive directors in the form of salaries and bonuses from 2007 to 2011.

2007/08

Salary

Short-term bonus

Long-term bonus

Other Payments

(*)

Total cost to company

TS Gcabashe

R3 557 000

R 0.00

R4 205 000

R 0.00

R7 762 000

PJ Maroga

R3 914 000

Did not accept the amount forwarded to him

R681 446

R 0.00

R4 595 446

B Nqwababa

R2 781 000

R487 000

R678 941

R 0.00

R3 946 941

2008/09

Salary

Short-term bonus

Long-term bonus

Other Payments

(*)

Total cost to company

PJ Maroga

R4 960 000

R1 266 000

R1 057 000

R 0.00

R7 283 000

B

Nqwababa

R2 168 000

R 0.00

R 0.00

R 0.00

R2 168 000

2009/10

Salary

Short-term bonus

Long-term bonus

Other Payments

(*)

Total cost to company

PJ Maroga

R3 447 000

R 0.00

R 0.00

R 0.00

R3 447 000

PS O'Flaherty

R825 000

R289 000

R 0.00

R 0.00

R1 114 000

2010/11

Salary

Short-term Bonus

Long-term Bonus

Other

Payments (*)

Total cost to company

BA Dames

R3 399 000

R1 309 000

R821 000

R212 000

R5 741 000

PS O'Flaherty

R3 512 000

R1 407 000

R 0.00

R 0.00

R4 919 000

(*)Fees related to security services and operating vehicles expenditure.

QUESTION NO.: 1841

DATE OF PUBLICATION: 29 July 2011

1841. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:

(1) What (a) was the total expenditure on (i) hotel accommodation, (ii) functions, (iii) transport and (iv) incidental expenses for Eskom's board members (aa) in the (aaa) 2009-10 and (bbb) 2010-11 financial years and (bb) during the period 1 April 2011 until the latest specified date for which information is available and (b) were the reasons for the various expenses;

(2) What were the (a) salaries, (b) bonuses and (c) percentage increases in salary of Eskom's (i) board members and (ii) senior management (aa) in the (aaa) 2009-10 and (bbb) 2010-11 financial years and (bb) during the period 1 April 2011 up to the latest specified date for which information is available;

(3) What percentage of Eskom's budget (a) in the (i) 2009-10 and (ii) 2010-11 financial years and (b) during the period 1 April 2011 up to the latest specified date for which information is available was spent on the (aa) salaries and (bb) bonuses of its (aaa) board members and (bbb) senior management? NW2077E

Reply:

It is expected of Board members to attend meetings both locally and internationally and Eskom is committed to ensure that no wasteful expenditure is incurred during these engagements. The amount set out below in response (1)(a)(i) for hotel and transport costs for Non-Executive Board members for the period 2009/10 and 2010/11 relates to both the Board and sub-committee meetings which were held at Eskom's head office in Johannesburg. However, some of the non-Executive Board members during the period in question were travelling abroad. In addition, the Chairperson attended conferences and meetings in the country and abroad. Transport (included air travel and hired cars) and accommodation costs were therefore incurred for these.

The increase in hotel accommodation and transport costs from R1,485,733 (2009/10) to R1,721,275 (2010/11) was as a result of the following: the number of meetings attended abroad has increased from 10 in 2009/10 to 14 in 2010/11 and additional costs were incurred as a result of a board training programme implemented in 2010/11 where some board members attended conferences abroad. Incidental expenditure consists of printing board documentation, catering, courier and postage costs for board and committee meetings. In addition, subsistence allowance and protection costs Chairperson are included in incidental expenses.

(1)(a)(i-iv)(aa)(aaa-bbb)(bb)(b)(2)(a-c)(i-ii)(aa)(aaa-bbb)(3)(a)(i-ii)(aa-bb(aaa-bbb). The table attached indicates the amount incurred on accommodation, transport and other services by Eskom's board members from 2010 to 2011. Information relating to the period from 01 April to date is not audited and therefore is unavailable

QUESTION NO.: 1836

DATE OF PUBLICATION: 29 July 2011

1836. Mr L W Greyling (ID) to ask the Minister of Public Enterprises:

Whether he intends tabling legislation to regulate the conduct of business between state-owned enterprises and political parties following the findings of the Public Protector in its investigation into the conflict of interest regarding Chancellor House's financial interest in the Eskom tender for boiler construction in 2008; if not, why not; if so, when will this legislation be tabled? NW2070E

Reply:

At this stage, the Department of Public Enterprises does not have the authority or the jurisdiction to develop and introduce legislation as recommended in the Public Protector's Report.

Section 236 of the Constitution of the Republic of South Africa, Act 108 of 1996 provides that:-

"To enhance multi-party democracy, national legislation must provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis".

In terms of Proclamation No 26 of 26 April 2001, the administration of the Act has been assigned to the Minister of Justice and Constitutional Development. Therefore, the responsibility for developing legislation to regulate the conduct of business between government entities and political parties lies with the Minister of Justice and Constitutional Development.

QUESTION NO.: 1754

DATE OF PUBLICATION: 01 July 2011

1754. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

Whether the eleven institutions that serve on the Inter-ministerial Committee for Energy took any decisions that delayed Eskom's capital investment programme; if so, what are the relevant details with regard to the decisions made by each institution in this regard? NW1981E

REPLY

The work of the Inter-Ministerial Committee on Energy (IMC) was tasked mainly with the long -term energy plan i.e. Integrated Resource Plan 2 (IRP2010) which was finalised earlier this year. Eskom's currently approved capital investment programme up to 2017 which was covered by the first Integrated Resource Plan published in December of 2010 (IRP1) was not a specific focus area for the IMC on Energy.

QUESTION NO.: 1711

DATE OF PUBLICATION: 24 June 2011

1711. Mrs A Steyn (DA) to ask the Minister of Public Enterprises:

(1) What is the detailed expenditure breakdown for the Ministry sub-programme under Programme 1: Administration in the (a) 2007-08, (b) 2008-09, (c) 2009-10 and (d) 2010-11 financial years;

(2)(a) What was the actual budget increase each year, expressed as a percentage, for funds allocated to this sub-programme and (b) how is the increase for each specified financial year justified? NW1925E

REPLY

(1)(a-d) The expenditure breakdown for the respective years is indicated in the attached annexure A.

(2)(a) The actual budget increases each year expressed as a percentage are as follows:

- 2007-08 - 37.62%

- 2008-09 - 70.51%

- 2009-10 - 29.85%

- 2010-11 - 29.85%

(2)(b) In 2008/09 – the normal inflationary increase as per National Treasury was factored into the budget. The budget increase was due to the gratuity paid to the outgoing Minister and the adjusted Ministerial salaries.

In 2009/10 – the normal inflationary increase as per National Treasury guidelines was factored into the budget. The increase in the budget was attributed to the establishment and funding of a Deputy Ministry in the department. A gratuity was also paid to the outgoing Minister and the department leased two additional vehicles during this period.

In 2010/11 – the normal inflationary increase as per National Treasury guidelines was factored into the budget. The department settled two vehicle leases and purchased a new vehicle during this period. A gratuity was paid to the outgoing Minister, and the Deputy Ministry was fully resourced during the latter part of the year.


Programme

Administration

Subprogramme name

Ministry

2007/08

2008/09

2009/10

2010/11

2011/12

Outcome

Medium term estimates

Rand thousand

Main Sub-subprogrammes

Ministry

8,439

11,614

16,637

19,077

17,168

Deputy Ministry

-

-

3,166

6,637

7,381

Total

8,439

11,614

19,803

25,714

24,549

Economic classification

Current payments

8,439

11,614

19,803

23,893

24,549

Compensation of employees

5,084

6,987

12,593

15,183

14,239

Salaries and wages

5,084

6,987

12,593

15,183

14,239

Social contributions

-

-

-

-

-

Goods and services

3,355

4,627

7,210

8,710

10,310

Administrative fees

-

35

-

-

-

Advertising

1

37

2

1

8

Assets less than the capitalisation threshold

-

22

16

6

13

Bursaries: Employees

1

-

-

-

-

Catering: Departmental activities

75

81

53

69

118

Communication

130

189

287

436

159

Computer services

-

2

-

-

-

Consultants and professional services: Business

and advisory services

23

-

-

-

34

Consultants and professional services: Legal

costs

-

-

100

716

2,000

Contractors

-

37

32

51

-

Agency and support / outsourced services

-

381

-

-

-

Entertainment

26

65

135

8

116

Fleet services (including government motor

transport)

-

-

-

298

860

Inventory: Materials and supplies

-

-

1

5

-

Inventory: Other consumables

-

-

9

25

1

Inventory: Stationery and printing

31

43

98

68

24

Lease payments

-

-

282

462

347

Travel and subsistence

2,749

3,443

6,014

6,339

6,232

Training and development

-

-

23

-

10

Operating expenditure

79

168

158

213

228

Venues and facilities

240

124

-

13

160

Payments for capital assets

-

-

-

1,821

-

Machinery and equipment

-

-

-

1,821

-

Transport equipment

-

-

-

1,821

-

Total

8,439

11,614

19,803

25,714

24,549

Budget increase, expressed as a percentage

37.62

70.51

29.85

-4.53

QUESTION NO.: 1678

DATE OF PUBLICATION: 24 June 2011

1678. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1) Whether his department envisages any power cuts similar to those experienced in 2008; if not, what is the position in this regard; if so, what are the relevant details;

(2) Whether Eskom is considering implementing additional (a) saving mechanisms and (b) quotas on the direct users of energy; if not, why not; if so, what are the relevant details in each case;

(3) Whether Eskom has imposed any such mechanisms on third-level government institutions; if not, why not, in each case; if so, what are the relevant details? NW1891E

REPLY

(1)The Department does not envisage any power cuts like those of 2008 due to electricity generation shortages whilst recognition must be given to the tightness of the system and the need to remain vigilant and redouble our efforts to ensure our current generating capacity is maximised in the face of a constrained system. Much also needs to be done on the energy efficiency and demand side front and a small contribution to reducing electricity usage through more efficient practices by each consumer would yield significant benefits in terms of system stability and security of electricity supply.

(2)(a) Eskom is currently running an intensive energy savings campaign (the 49 million saving campaign), which is aimed at voluntary participation by all South Africans to utilise electricity more efficiently and in so doing reduce the current levels of electricity consumption in support of the security of electricity supply.

(b) Eskom has Interruptible Contracts with its big customers to curtail their power supply during periods of shortages and has a programme to "buy-back" capacity from certain qualifying and contracted customers during times of need.

There are no immediate plans to place quotas on the direct users of electricity, but a mandatory Energy Conservation Scheme which would seek to impose certain efficiency/savings requirements on power users is under development and a broad consultation is in progress.

(3) Eskom has not imposed any savings measures on Local Government as that would need to be done as part of a comprehensive national demand and consumption reduction strategy directed by Government and would only form a component of the overall strategy.

QUESTION NO.: 1677

DATE OF PUBLICATION: 24 June 2011

1677. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

With regard to his statement on the private sector's role in providing energy, made at a certain university (name furnished) in June 2011, what tax incentives will be given to the private sector to assist with their involvement with his department in this regard? NW1890E

REPLY

The Government is committed to promoting private sector participation in power generation as envisaged in the Cabinet approved Policy-Adjusted Integrated Resource Plan (IRP2010) of March 2011. In order to incentivise Independent Power Producers (IPPs), Government has embarking on the Renewable Energy Feed-In Tariff (REFIT) programme to provide the necessary tariff incentives to encourage IPPs to invest in the sector.

In addition, the Department of Public Enterprises, together with the Department of Energy (DOE) and National Treasury (NT) is working on implementing the Cabinet decision on the establishment of Independent System and Market Operator (ISMO) to facilitate IPP investment in the energy sector.

Furthermore, NT has introduced incentives for both renewable based electricity generation and transport fuel initiatives:

· Three year depreciation allowance of 50:30:20 per cent for biofuels production;

· Biodiesel fuel tax concession - Biodiesel is taxed at a lower rate than conventional fossil based diesel to reflect environmental benefits of the fuel;

· Electricity generation levy – applies to electricity generated from non-renewable sources at the rate of 2.5 c/kWh. Renewable based electricity generation is exempt from the levy;

· Electricity generation levy – proposal to exempt renewable based cogeneration from the electricity levy; and,

· Broader carbon tax reforms – Treasury is developing a carbon tax policy to price carbon and internalise the external costs of climate change. The tax will help create incentives to shift to low carbon, cleaner alternatives such as renewables. The options being explored are a tax on actual emissions and a proxy carbon tax on the fossil fuel inputs used.

Therefore, any IPP that wants to play an active role in the energy space will be supported within the confines of the current energy and tax policies.

QUESTION NO.: 1654

DATE OF PUBLICATION: 24 June 2011

1654. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:

(1) Whether he has any plans in place to prevent (a) the implementation of load shedding and (b) lengthy interruptions in the supply of electricity in the 2011 winter season; if not, why not, in each case; if so, what are the relevant details, in each case;

(2) Whether he will make a statement on the matter? NW1861E

REPLY

(1) (a) To prevent load shedding, there are number of interventions that Eskom has identified to ensure security of electricity supply, which include:

· Commissioned 315 MW additional capacity from return-to-service (RTS) programme;

· Maximise Eskom contracted imports, from Cahora Bassa to (1 500MW);

· Procurement of generation capacity from municipalities of about 400 MW (200MW reliably available) and 373 MW from the medium-term power purchase programme;

· Modifications to one of Eskom generators have yielded an additional 30 MW capacity;

· Maximisation of Generation plant availability (reduce maintenance over winter);

· Internal Eskom energy savings pf 26.2 GWh against a Target = 24GWh;

· Accelerated energy efficiency (EE) and demand side management (DSM) programme. The DSM programme has yielded 354 MW against financial year target of 301 MW;and,

· Increased usage of emergency open cycle gas turbines (OCGTs).

(b) Eskom has instituted a quarterly power system alert briefing to the public and has indicated that whilst the system is tight, it envisages being able to mitigate any power supply shortages this winter. It has also highlighted that the risks to the system are set to increase as we go forward until the delivery of power from the first unit of Medupi Power Station and that the contribution by every South African to use electricity more efficiently is needed to ensure security of electricity supply in the medium term.

(2) There is currently no need to make a statement on the matter as it is adequately covered by the Eskom power system alert briefings to the public.

QUESTION NO.: 1644

DATE OF PUBLICATION: 17 June 2011

1644. Mr N S Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department will disclose details of the violent strikes that erupted at the Kusile and Medupi Power Plants in May 2011; if not, what is the position in this regard; if so, (a) how many working hours were lost, (b) what was the total cost of the strike, (c) what damage was caused by protestors and (d) how will the strikes affect the project deadlines? NW1851E

REPLY

The striking workers at both Medupi and Kusile power stations were not Eskom's employees but those of the contractors on the sites.

MEDUPI POWER STATION

(a) A total of 627 000 man hours (equivalent to 69 667 man days) were lost.

(b) The total costs include both labour related costs and damage to the plant and buildings. The costs for labour downtime cannot be estimated at this time. The plant and buildings damaged are estimated at R4million and are covered by insurance taken out by the contractors as per normal course of business.

(c) The damage consisted of the burning of an office, a bus, and two cars; and in addition three cars were overturned.

(d) Based on the revised schedules submitted by the contractors, which have been reviewed and integrated by Eskom, the strike will have no impact on the delivery of the project.

KUSILE POWER STATION

(a) A total of 1 368 000 man hours (equivalent to 152 000 man days) were lost to date.

(b) The total costs include both labour related costs and damage to the plant and buildings. The costs for labour downtime cannot be estimated at this time. The plant and buildings damaged are estimated at R100million and are covered by insurance taken out by the contractors as per normal course of business.

(c) Eleven contractor vehicles, seven offices, two large mobile cranes, and the west wing of the KCW office block were set alight. In addition, vehicles were stoned, and offices and stores were looted.

(d) Based on the revised schedules submitted by the contractors for the critical paths, which have been reviewed and integrated by Eskom, the strike will have no impact on the delivery of the project.

QUESTION NO.: 1643

DATE OF PUBLICATION: 17 June 2011

1643. Mr N S Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether the Government intends to sell the Denel subsidiary Denel Saab Aerostructures (DSA) in light of the increased losses that have been experienced by the entity; if not, what is the position in this regard; if so, what are the relevant details? NW1850E

REPLY

A number of options are being explored to resolve Denel Saab Aerostructures (DSA). The options under consideration include the sale of DSA to a local aerostructures company and the revision of the DSA business plan.

QUESTION NO.: 1642

DATE OF PUBLICATION: 17 June 2011

1642. Mr N S Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether the Government intends to grant an extension on the R1,8 billion guarantee to Denel's subsidiary Denel Saab Aerostructures (DSA); if not, what is the position in this regard; if so, (a) for how long, (b) on what terms and (c) what measures will be put in place to ensure that the company is turned around? NW1849E

REPLY

(a) The Government guarantee is not for DSA alone, but for the entire Denel Group. The three existing guarantees of R1.85 billion (R880 million, R420 million and R550 million) have been extended until September 2012 to ensure that Denel is able to continue as a going concern.

(b) Denel is required to develop a strategy to return the business to sustainability, gradually reducing its reliance on Government support in the form of guarantees and recapitalisation.

(c) Denel must develop an implementation plan to return to sustainability. This plan must be agreed to by the Department of Public Enterprises, the National Treasury, the Department of Defence and the Department of Trade and Industry. Denel will be monitored against this implementation plan.

QUESTION NO.:1531

DATE OF PUBLICATION: May 2011

1531. Mr S C Motau (DA) to ask the Minister of Public Enterprises:

(1) Whether any agreement has been signed with a certain company (name furnished) to construct South Africa's proposed six unit 9 600 MW nuclear power plant production sites; if not, what is the position in this regard; if so, (a) what is the total cost of this building programme, (b) how will this programme be financed, (c) what is the pay-back period and (d) what will the building costs be for each MW/h;

(2) Whether the tender process was followed in making the selection; if not, why not; if so, which other companies bid for this project? NW1696E

REPLY

(1)(a-d)(2) No agreement has been signed with the company referred to. The procurement of South Africa's nuclear fleet has not commenced and there is no basis therefore for the questions on details in this regard.

QUESTION NO.:1524

DATE OF PUBLICATION: June 2011

1524. Mr D C Ross (DA) to ask the Minister of Public Enterprises:

(1) What are the relevant details, including compensation to the entities in question, of shut-down agreements that Eskom has entered into with (a) each aluminum smelter and (b) any other large consumers of electricity;

(2) What are the financial implications for Eskom in light of Eskom compensating these entities for the loss in electricity when the shut-down agreements are implemented,

(3) Whether any such shut-down agreements have been implemented; if so, (a) with which entity/entities and (b) what were the costs incurred by Eskom to compensate the said entity in each case? NW1689E

REPLY

(1)(a-b) Eskom has not entered into shut-down agreements with any of its customers. Eskom does, however have demand market participation (DMP) agreements with 21 large electricity users as well as contracting for interruptability with aluminium smelters. The aluminium smelters are not compensated for interruptions.

(2) There are no shut-down agreements and therefore no financial implications for Eskom in this regard.

(3)(a-b) As indicated above, Eskom has not entered into shut-down agreements with any of its customers.

QUESTION NO.: 1472

DATE OF PUBLICATION: 03 June 2011

1472. Mr J J van der Linde (DA) to ask the Minister of Public Enterprises:

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport (i) him and (ii) his Deputy Minister and (b) in each case, (i) what was the cost of hiring the vehicle, (ii) for what reason was the vehicle hired, (iii) for how many days, (iv) what (aa) make and (bb) model of vehicle was hired and (v) what total distance was travelled? NW1639E

REPLY

(a)(i-ii)(b)(i-iv)(aa-bb)(v) The current Minister and Deputy Minister were not in the Department of Public Enterprises during the period between 1 March 2010 and 30 October 2010. Their term of office in the department commenced in November 2010.

The table below provides information in respect of the former Minister and Deputy Minister of Public Enterprises for the period 1 March 2010 to 30 October 2010 as well as information related to the current Minister and Deputy Minister from November 2010 to date.

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport him and his Deputy Minister?

(b)(i) In each case, what was the cost of hiring the vehicle?

(ii) For what reason was the vehicle hired?

(iii) For how many days?

(iv)(aa-bb) What make and model of vehicle was hired?

(v) And what total distance was travelled?

Amount used to hire a vehicle for the former Minister of Public Enterprises from March 2010 to October 2010

30 Sept to 1 Oct 2010

R3878.25

Official use in the Pretoria office (Minister did not make use of it)

One day

Audi Q7

1km

1-5 Oct 2010

R11997.77

Official use in Johannesburg and Pretoria, whilst the official car was being repaired.

Four days

Mercedes E300

996 km

Amount used to hire a car for the former Deputy Minister of Public Enterprises from March 2010 to October 2010

25-27 July 2010

R6525.41

Official use in the Pretoria office.

Two days

Mercedes E300

350km

Amount used to hire a vehicle for the current Minister of Public Enterprises from November 2010 to date

16 Nov 2010

R2435.95

Getting to and from official engagements in and around KwaZulu Natal Province.

one day

Mercedes

E200

129 km

19-20 Nov 2011

R4793.87

Getting to and from official engagements in and around KwaZulu Natal Province.

Two

days

Mercedes E300

369 km

28-30 Nov 2010

R4982.89

Official use in the Pretoria Office while awaiting provision of a ministerial car by the Department.

One day

Mercedes

E300

110 km

09-11 Dec 2010

R8733.67

Getting to and from official engagements in and around KwaZulu Natal Province.

Three days

Mercedes

E200

922 km

12-14 Jan 2011

R4372.00

Getting to and from official engagements in and around Mpumalanga Province

Two days

Mercedes E200

466 km

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport him and his Deputy Minister?

(b)(i) In each case, what was the cost of hiring the vehicle?

(ii) For what reason was the vehicle hired?

(iii) For how many days?

(iv)(aa-bb) What make and model of vehicle was hired?

(v) And what total distance was travelled?

Amount used to hire a vehicle for the current Minister of Public Enterprises from November 2010 to date (continued)

23-24 Jan 2011

R3656.47

Getting to and from official engagements in and around Mpumalanga Province.

Two days

Mercedes E200

466 km

30-31 Jan 2011

R2129.32

Official use in the Cape Town Office while waiting for the delivery of a ministerial car by the Department.

One day

Mercedes

E200

90 km

03 Feb 2011

R3023.98

Getting to and from official engagements in and around Mpumalanga Province.

Two days

Mercedes

C Class

194 km

18-20 Feb 2011

R5547.86

Getting to and from official engagements in and around KwaZulu Natal Province.

Two days

Mercedes

E200

417 km

1-3 April 2011

R17272.20

Getting to and from official engagements in and around KwaZulu Natal Province.

Three days

Mercedes E Class

476 km

29 April-1May 2011

R28853.45

Getting to and from official engagements in and around KwaZulu Natal Province.

Three days

Mercedes E Class

1271 km

15-16 May 2011

R13452.49

Getting to and from official engagements in and around Mpumalanga Province.

Two days

Mercedes E Class

152 km

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport him and his Deputy Minister?

(b)(i) In each case, what was the cost of hiring the vehicle?

(ii) For what reason was the vehicle hired?

(iii) For how many days?

(iv)(aa-bb) What make and model of vehicle was hired?

(v) And what total distance was travelled?

Amount used to hire a car for the current Deputy Minister of Public Enterprises from November 2010 to date

4-5 Nov 2010

R7743.11

Getting to and from official engagements in and around KwaZulu Natal Province.

One day

Mercedes E 300

355 km

12-15 Nov 2010

R5795.20

Official use in the Pretoria Office while awaiting provision of a ministerial car by the Department.

Three

days

Mercedes E 300

218 km

3-4 Dec 2010

R2513.79

Official use in the Cape Town Office while awaiting provision of a ministerial car by the Department.

One day

Mercedes C 180

253 km

4-7 Dec 2010

R4626.78

Getting to and from official engagements in and around KwaZulu Natal Province.

Three days

Mercedes C 180

455 km

10-12 Dec 2010

R1887.90

Official use in the Cape Town Office while awaiting provision of a ministerial car by the Department.

Two days

BMW 320i

199 km

14-15 Jan 2011

R13328.64

Getting to and from official engagements in and around KwaZulu Natal Province.

One day

VW Touareg

801 km

21-23 Jan 2011

R3844.09

Getting to and from official engagements in and around KwaZulu Natal Province.

Two days

Mercedes C 180

540 km

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport him and his Deputy Minister?

(b)(i) In each case, what was the cost of hiring the vehicle?

(ii) For what reason was the vehicle hired?

(iii) For how many days?

(iv)(aa-bb) What make and model of vehicle was hired?

(v) And what total distance was travelled?

Amount used to hire a car for the current Deputy Minister of Public Enterprises from November 2010 to date (continued)

2-4 Feb 2011

R11986.21

Getting to and from official engagements in and around KwaZulu Natal Province.

Two days

Mercedes C Class

716 km

13 Mar 2011

R5757.50

Getting to and from official engagements in and around KwaZulu Natal Province.

One day

Mercedes

C Class

513 km

11-15 May 2011

R22765.20

Getting to and from official engagements in and around KwaZulu Natal Province.

Four days

Mercedes

E Class

513 km

QUESTION NO.: 1448

DATE OF PUBLICATION: 03 June 2011

1448. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1)(a) Which trains derailed earlier in 2011 on the main line between Laingsburg and Beaufort-West in the Western Cape, (b) what are the reasons for Transnet not making this incident public, (c) how many (i) locomotives and (ii) wagons were (aa) damaged and (bb) damaged beyond repair and (d) what is the cost of (i) repairing and (ii) replacing the (aa) locomotives and (bb) wagons in each case;

(2) Whether he found that poor maintenance was the cause of the accident; if not, what was the cause of the accident; if so, what are the relevant details;

(3) Whether this line has been declared safe for use again; if not, why not; if so, what are the relevant details;

(4) Whether this line is used by passenger trains; if not, why not; if so,

(5) Whether he has found that this line holds any dangers for passengers; if so, what are the relevant details? NW1614E

REPLY

(1)(a) One train derailed on the main line between Laingsburg and Beaufort–West in the Western Cape earlier in 2011. It was a general freight train originating from Beaconsfield Yard. The incident occurred on 10 February 2011 at 20H10.

(b) All incidents are reported to the relevant authorities, amongst others, the Railway Safety Regulator.

(c)(i) Three electric locomotives derailed and only one locomotive was damaged.

(c)(ii) There were 23 wagons that derailed and all were damaged beyond repair.

(d)(i)(aa) The cost of repairing the locomotives is estimated at R3 million.

(d)(ii)(bb) The cost of replacing the wagons is estimated to R23.2 million.

(2) Poor maintenance was not the cause of the derailment; the rail track is still in a good condition. The cause of derailment was the severe storm weather that resulted in flooding and tampered with the channel.

(3) The line was declared safe for use and it was opened on 14 February 2011 with the speed restriction of 15km/h. The speed restriction was lifted at the end of March 2011.

(4) Yes, the line is used by passenger trains travelling between Cape Town and Johannesburg; and between Cape Town and East London.

(5) The line does not hold any dangers for passengers.

QUESTION NO.: 1442

DATE OF PUBLICATION: 03 June 2011

1442. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1)(a) How many labour strikes have taken place at the construction site of the Medupi power station since construction commenced and (b) how many workdays have been lost as a result of these strikes;

(2) Whether Eskom is involved in resolving the latest labour dispute of 31 May 2011; if not, why not; if so, what are the relevant details;

(3) Whether Eskom has any plans in place to prevent similar strikes at construction sites of future power stations; if not, why not; if so, what are the relevant details? NW1608E

REPLY

(1)(a-b) There have been six labour strikes since the construction of Medupi power station commenced in 2007. A total of 65 work days were lost as at 6 June 2011.

(2) There was no labour dispute on 31 May 2011 at any of the Eskom sites.

(3) Eskom includes various labour related obligations in its contracting arrangements with contractors on site.

Contractors have sound industrial relations policies and procedures in place to:

(i) achieve harmonious labour relations on site.

(ii) ensure that industrial relations issues are resolved amicably and expeditiously.

(iii) ensure that industrial relations disputes are minimised and/or effectively resolved.

· Eskom facilitated the conclusion of the Project Labour Agreement (PLA) which it viewed necessary. This is a collective agreement between contractor organisations and the recognised trade unions on issues pertinent to the works on site. The PLA provides for a dedicated dispute resolution structure to facilitate the resolution of disputes (including disputes which would ordinarily be the subject of collective action) so as to minimise the potential for strike action in labour matters related to the works on site.

· Notwithstanding that Eskom is not a party to the PLA, Eskom pays the cost of the PLA dispute resolution structure.

· Contractor's policies and procedures are fair and conform to applicable law.

Eskom's role, by virtue of it not being the employer of contractor personnel on site is limited to ensuring compliance by the contractors with their contractual obligations and facilitating the resolution of disputes through the contractual mechanisms, as and when these arise.

It is in the interest of Eskom that no disputes negatively impact on project schedule and that all parties are accommodated in such a manner as to ensure future electricity supply, fair treatment of employees and job creation and skills development.

QUESTION NO.:1386

DATE OF PUBLICATION: 28 May 2011

1386. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

Whether his department or any of the entities reporting to it sponsored political party advertisements for the 2011 local government elections; if so, (a) which entity, (b) for which political party, (c) on what grounds and (d) what (i) are the terms and conditions and (ii) was the monetary value of the sponsorship in question? NW1553E

REPLY

The Department of Public Enterprises and State Own Enterprises that report to it did not sponsor any political party advertisements for the 2011 local government elections.

QUESTION NO.:1380

DATE OF PUBLICATION: 28 May 2011

1380. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department has issued any directives to entities to refrain from using recruiting agencies to fill posts where this task could be done by using internal mechanisms; if not, why not; if so, what are the relevant details? NW1547E

REPLY

At this stage, no directive on the use of recruitment agencies has been submitted to the entities reporting to the Department.

Given that the proposed amendments to the labour legislation are still in the consultation phase, the Department is awaiting the promulgation of the final Act, as well as any regulations and directives as put out by the Department of Labour before engaging the entities on the implications and implementation thereof.

QUESTION NO.:1378

DATE OF PUBLICATION: 28 May 2011

1378. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether, in light of the fact that only five independent power producers (IPPs) are currently in operation locally, his department has set any timeframes for achieving the stated policy of 30% of all new generation capacity to be supplied by private developers; if not, why not; if so, what are the relevant details? NW1543E

REPLY

The timing and extent of the introduction of Independent Power Producers (IPPs) is determined by the Minister of Energy and will be addressed through the implementation of the recently approved Integrated Resource Plan (IRP2010) for Electricity Generation Capacity.

QUESTION NO.:1377

DATE OF PUBLICATION: 28 May 2011

1377. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department has identified any specific original equipment manufacturers (OEMs) as partners to provide locomotives for his department's locomotive fleet renewal strategy; if not, what is the position in this regard; if so, (a) how many OEMs have been identified, (b) what are their names, (c) on what basis have they been chosen and (d) what are the further relevant details? NW1542E

REPLY

(a-d) No original equipment manufacturers (OEMs) have been selected in terms of a fleet procurement process which will establish the platform for a long term partnership between the OEMs and Transnet. This will be done through competitive tender processes.

QUESTION NO.: 1320

DATE OF PUBLICATION: 21 March 2011

1320. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(1) Whether any radioactive material has been stolen from (a) Pelindaba Nuclear Research Facility, (b) Koeberg nuclear power station or (c) any other user of nuclear products in the (i) 2005-06, (ii) 2006-07, (iii) 2007-08, (iv) 2008-09 and (v) 2010-11 financial years; if so, what are the relevant details in each case;

(2) Whether anyone was (a) arrested and (b) convicted for the specified thefts; if not, why not; if so, what are the relevant details in each case;

(3) Whether the nuclear material was retrieved in each case; if not, what is the position in this regard; if so, what are the relevant details in each case;

(4) Whether the stolen material can be used to build a dirty bomb or a weapon of mass destruction; if so, what is being done to retrieve the stolen material;

(5) Whether the (a) SA Nuclear Energy Corporation (Necsa) and (b) National Nuclear Regulator (NNR) of SA reports on each specified incident are available to members of Parliament; if not, why not; if so, where can copies of the reports be obtained? NW1463E

REPLY

(1)(2)(3)(4)(5) No radioactive material has ever been stolen from Koeberg nuclear power station or from any of Eskom's power stations.

QUESTION NO.: 1317

DATE OF PUBLICATION: 21 March 2011

1317. Mr P van Dalen (DA) to ask the Minister of Public Enterprises:

(1) What will be the costs to Eskom to cancel the (a) Hillside, (b) Bayside and (c) BHP Billiton's Mozal smelter contracts, broken down for each remaining year of the contract in question;

(2) Whether the cancellation of these contracts will solve the energy supply shortage; if not, why not; if so, what are the relevant details;

(3) What is the (a) start and (b) end dates of each respective contract;

(4) Whether these contracts are open-ended; if not, why not; if so, how did expansions/upgrades at these smelters over the past 15 years influence the nature of these contracts;

(5) (a) How much power is estimated to be added to the national grid upon the cancellation of these contracts and (b) how would this secure the supply of energy? NW1460E

REPLY

(1)(a)(b)(c)(2) No decision has been made to cancel the contracts referred to above.

(3)(a)(b) The table below indicates the names, the start and the end dates of contracts.

Name of smelters

Start Date

End Date

Bayside

August 1995

July 2020

Hillside Potlines 1&2

August 1995

July 2020

Mozal

April 2001

Mar 2026

Hillside Potline 3

July 2003

June 2028

(4) The contracts were entered into for a 25 year period with fixed termination dates as detailed above. They are, therefore, not open-ended contracts.

(5)(a-b) No decision has been made to cancel the contracts referred to above.

QUESTION NO.:1237

DATE OF PUBLICATION: 15 April 2011

1237. Mr M Waters (DA) to ask the Minister of Public Enterprises:

(1) Whether, with reference to his reply to question 317 on 9 March 2011, any sign boards have been erected on site notifying the residents of the installation of the substation; if not, why not; if so, on what date were the sign boards erected;

(2) Whether any study has been conducted with regard to the potential noise pollution generated by the generators; if not, why not; if so, what are the findings of the study;

(3) Whether he intends conducting a study into the potential detrimental health effects of the magnetic fields; if not, what assurances will he give to the residents that there will be no detrimental health effects; if so, (a) when will the study be conducted and (b) who will conduct the study;

(4) Whether he has been informed of any research indicating that magnetic fields can cause cancer; if so,

(5) Whether there are any groups of persons, such as children and pregnant women, that are more vulnerable than others; if so, which groups? NW1379E

REPLY

(1) The appointed consultants informed Eskom that they fully complied with Regulation 56 on Public Participation of the Environmental Impact Assessment (EIA), which includes the erection of notices on site for the duration of the Public Participation process. The Department of Environmental Affairs and Tourism further issued an Environmental Authorisation stating that sufficient public participation had been conducted. The erection of notices forms an essential aspect of any approval for the participation process.

(2) There is a small generator on site (5,000 Watt) which is used only when needed. The Maximum noise level is 75db at full load. A study has been done which concluded that the measured A-weighted noise levels at present meet the required noise levels as specified by the Gauteng Noise Regulations and SANS 10103 standard.

(3)(a)(b)The substation will be operated at 132/44/6.6 kilovolts, which is much lower than the highest voltage transmission lines. This level is lower than the maximum limit of 5 kilovolts per metre (kV/m) suggested for continuous general public exposure by the International Commission on Non-ionising Radiation Protection (ICNIRP), which forms part of the World Health Organisation. Under such circumstances there is no need to conduct any studies into the potential detrimental effects of magnetic fields. Eskom has however conducted an Electric and magnetic Fields (EMF) base-line study for further assurance.

From the measurements conducted, it can be concluded that the measured electric and magnetic fields measured comply with the reference levels for the general public of the ICNIRP guideline, which is also endorsed by the Department of Health (of South Africa). Once the transformers are in operation, another measurement will be conducted to test and compare the levels of the base-line study to when the station was in operation. The substation is expected to be in operation mid June 2011, and once the findings are confirmed, Eskom will provide feedback to the community.

(4) There is no research to date that indicates a causal link between magnetic fields and cancer. Research has indicated that 50Hz electric and magnetic fields do not cause any damage to the genetic material of cells and show no evidence that EMF poses any health risks. While statistical studies in children with leukaemia have suggested that there is an association between the proximity of distribution lines to the houses where children live, but an attempt to correlate this directly with the magnetic field from lines have not been successful.

Notwithstanding lack of scientific evidence, Eskom takes all possible steps to reduce exposure where this can be achieved. A review published by the World Health Organization in June 2007 recommended using exposure guidelines published by the International Commission on Non-Ionizing Radiation Protection (ICNIRP). Eskom and the Department of Health (of South Africa) support these recommendations.

(5) Vulnerable groups are indicated in part (4) of the response.

QUESTION NO.:1236

DATE OF PUBLICATION: 15 April 2011

1236. Mr M Waters (DA) to ask the Minister of Public Enterprises:

(1) With reference to his reply to question 317 on 9 March 2011, (a) in what form did the consultation take place, (b) who was consulted, (c) on what date was the community consulted, (d) who attended such meetings, (e) what consultation methods were stipulated in the contract with Bohlweki-SSI Environmental and (f) who in his department was responsible for ensuring that consultation took place;

(2) Whether any studies were conducted that indicated that residents of Edenvale use the Bedfordview Library more than the local Edenvale Library; if not, why were the briefing documents made available at the Bedfordview Library and not the Edenvale Library; if so, what were the findings of the study;

(3) Whether the contract stipulated any specific conditions with regard to the placement of the advertisement; if not, why not; if so, what are these conditions;

(4) Whether the advertisement met these specifications; if not, why not; if so, what are the relevant details;

(5) (a) how many residents in Edenvale received the letters notifying them that the environmental authorisation was being issued, (b) what are their addresses and (c) on what date were the letters posted? NW1378E

REPLY

1(a) The initial consultations took the form of a focus group meeting to notify interested and affected persons (I&AP) about the intended development and to clarify the participation process. Subsequent consultations took the form of receiving comments on the draft report prior to its finalization and submission.

1(b) All registered I&AP were consulted.

1(c) Consultations took place between 5 November 2008 and 12 December 2008.

1(d) The meetings referred to in 1(a) were attended by all registered I&AP.

(1)(e) The consultation methods comply with the minimum requirements stipulated

in the Environmental Impact Assessment (EIA) Regulations 2006 (GNR 385).

(1)(f) The authority that determines whether effective consultation has taken place is the Department of Environment and Water Affairs (Previously Department of Environmental Affairs and Tourism (DEAT). DEAT's Environmental Authorisation states that sufficient public participation was conducted and that the consultant has met the minimum requirements as prescribed in the EIA Regulations, GNR 385 (2006) for public involvement.

(2) No studies were conducted to assess the extent of use of the libraries within the Ekurhuleni Municipal area. Libraries and such related institutions fall under the jurisdiction of the municipality, hence Eskom could not conduct studies in relation to the use of libraries in the area.

(3) The professional services contract between Eskom and Bohlweki-SSI makes specific reference to compliance with the EIA Regulations GNR 385 (2006). In terms of the placement of advertisements, it is stipulated that the advert should be placed in one local newspaper or any official gazette that is published specifically for the purpose of providing public notice of applications and submissions made in terms of these regulations. It is also further specified what contents should be included in such adverts (GNR 385 section 56 and 57 dealing with public participation).

(4) The adverts fulfilled the requirements of the professional services contracted referred to in (3) above.

5(a) Of the twelve registered I&AP, three were from Edenvale.

5(b) Eskom is not at liberty to disclose such confidential information without the consent of the people who registered.

5(c) The letters were posted to all I&AP on the 6th of February 2009.

QUESTION NO.:1186

DATE OF PUBLICATION: 15 April 2011

1186. Mr S J F Marais (DA) to ask the Minister of Public Enterprises:

(1) Whether he has found that the SA Forestry Company Ltd (Safcol) has a restraining effect on the economy; if so, what are the relevant details;

(2) Whether his department intends privatising this enterprise; if not, why not; if so, what are the relevant details? NW1321E

REPLY

SAFCOL's economic impact is currently under review as part of a process to review Cabinet's decision in 2007 to restructure Komatiland Forests (KLF) and wind up SAFCOL. The Department of Public Enterprises is currently reassessing whether this Cabinet decision is still relevant, and in doing so will take in account the potential role that SAFCOL can play in the advancement of rural development.

QUESTION NO.:1172

DATE OF PUBLICATION: 15 April 2011

1172. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department will furnish information regarding the 32 locomotives that Transnet is in the process of acquiring from Mitsui in Japan; if not, what is the position in this regard; if so, (a) how many companies tendered for the contract to deliver the locomotives, (b) on what grounds did Transnet select Mitsui, (c) what is the total value of the transaction, (d) when will these locomotives be delivered and (e) what are the further relevant details? NW1303E

REPLY

The information in respect of the 32 locomotives that Transnet is in the process of acquiring from Mitsui in Japan is as follows:

(a) No company tendered for the contract to deliver the 32 locomotives from Mitsui in Japan because the procurement of these additional 32 locomotives was confined to Mitsui.

(b) Transnet selected Mitsui because it is already manufacturing 44 of this specification of locomotives.

(c) The total value of the transaction cannot be made public because it is commercially sensitive.

(d) The table below indicates the delivery schedule for the 32 locomotives:

2012

2013

TOTAL

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

TOTAL

2

2

2

2

2

3

2

1

2

2

2

2

3

2

2

1

32


(e) There is no further relevant information.

QUESTION NO.:1171

DATE OF PUBLICATION: 15 April 2011

1171. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department will furnish information regarding the three independent power producers (IPPs) who were selected on a contracted power purchase basis to assist Eskom with boosting its power supply; if not, why not; if so, (a) what are the names of the three entities, (b) what criteria were used in selecting the candidates and (c) what are the further relevant details? NW1302E

REPLY

(a) The information regarding the independent power producers (IPPs) that have concluded their contract with Eskom are provided below:

· Sasol Synfuels Pty Ltd,

· SAPPI Manufacturing (Pty) Ltd t/a as SAPPI Ngodwana,

· SAPPI Manufacturing (Pty) Ltd t/a SAPPI Saiccor,

· Newcastle Co-generation (Pty) Ltd (IPSA) and;

· Tangent Mining Pty Ltd.

(b) Eskom followed an open tender process and invited submissions from prospective IPPs. The tender was open from February to December 2008. National Energy Regulator of South Africa's (NERSA) role in the process was to approve the power purchase agreements. The selection criteria which were set within NERSA's framework included the following key aspects:

· Commercial operation date: The Medium-term Power Purchase Programme (MTPPP) was limited to the plants that would be in commercial operation by June 2012.

· Contract duration: The maximum contract duration was 10 years ending December 2018.

· Project size: Projects with a maximum size of 1 000 MW and a minimum of 5 MW per project were eligible to participate in the programme.

· Type of technology solution: The MTPPP was open to all technology solutions that were to be newly built, incremental capacity increases, or refurbishments of existing plants.

· Plant location: The MTPPP was only open to plants that were located within South Africa.

· Contract currency: The contract currency was in the South African rand (ZAR).

· Capacity: The total maximum capacity to be contracted in terms of the MTPPP was 3 000 MW.

· Contract price: The ceiling price and maximum programme price levels were published.

(c) The table below indicates the ceiling and maximum programme price profiles until the year 2018. It is based on the 2008 rates indexed at Producer Price Index (PPI). The escalation clauses have been applied to the contracts signed:

Price

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Ceiling price

65

65

65

65

65

60

50

40

35

35

Maximum programme price

105

105

105

105

105

85

75

60

40

35

QUESTION NO.:1165

DATE OF PUBLICATION: 15 April 2011

1165. Dr G W Koornhof (ANC) to ask the Minister of Public Enterprises:

With reference to the planned infrastructure build programme on (a) energy, (b) rail and (c) port investment for the next five years, what (i) projected amount in actual numbers will be needed to train and employ (aa) scientists, (bb) engineers and (cc) artisans with regard to each specified type of investment, (ii) plans have been put in place to (aa) train and (bb) employ the necessary skilled labour nationally and internationally and (iii) plans are in place to retain such skilled labour for state-owned entities? NW1288E

REPLY

Eskom

(a)(i)(aa)(bb)(cc) Eskom's build programme over the next five years will require the following critical skills: 160 scientists, 2145 engineers and 2951 artisans (on average) per annum.

(ii)(aa)(bb) Eskom's recently launched Eskom Academy of Learning (EAL), in addition to partnerships with tertiary institutions and supplier networks are collectively used as key enablers for skills development.

The objective of the EAL is to coordinate and integrate all learning throughout Eskom in line with business needs. The key focus is on developing engineers, technologists, technicians and artisans. The following Academy faculties have been created namely, Engineering, Artisan, Services, Project management, Leadership and Finance.

In addition, commercial contracts have been entered into with suppliers on Eskom's build programme with clauses that deal with knowledge transfer and training.

There are currently 5283 learners in the pipeline, 4240 (80%) of whom are studying in the Engineering and Technical fields. Eskom has an additional 5000 learners, 2500 of whom are unemployed matriculants in trades training and 2500 are unemployed graduates in internships.

Learners in the supplier network are contracted by the contracting company while Eskom is the primary employer in the Learner Pipeline.

(iii) The retention plans for current and future skilled labour are as follows:

· Employment Value Proposition (EVP) – Eskom provides a sound EVP to new and existing employees by paying above market related remuneration and implementing flexible benefits that meet the needs of diverse generations.

· Continuous Professional Development (CPD) – Eskom provides and facilitates CPD to ensure that its professionals stay relevant to new technologies and processes.

· Talent management and career development processes – Talent Boards are in place in each Eskom Division to ensure that high potential is strategically discussed and that succession planning is followed through.

· Turnover targeting – Eskom has set limits to manage external losses. The turnover over the last year has been 3.8% which is low according to industry norms.

Transnet

(b)(c)(i)(aa)(bb)(cc)(ii)(aa)(bb)(iii)

To ensure that Transnet acquires and retains the necessary skills in support of its core business, national training interventions have been developed and the following skills development targets have been set as shown below. This excludes supplier development training figures.

2011

In System

2012

New Intake

2013

New Intake

2014

New Intake

2015

New Intake

2016

New Intake

Scientists

-

-

-

-

-

-

Engineers

427

60

60

60

60

60

Artisans

1412

500

500

500

500

500

Transnet spends R144m per annum on its Engineering bursaries and R73m on its Artisan Training and currently places all of its Engineering bursars and 80% of the qualified Artisans exiting in its programme. The remainder of the skilled labour is available for absorption by the broader economy.

Although opportunities exist to grow the intake of artisans, this will require additional funding to upgrade facilities and ensure adequate resources. Preliminary estimates indicate a requirement for R212 million for an additional 1 000 trainees and R325 million for an additional 2000 trainees.

The Department of Public Enterprises and the Department of Higher Education and Training are currently working together to deal with this issue as the National Skills Fund currently does not fund infrastructure investment. Transnet actively implements an appropriate skills retention strategy.

QUESTION NO.: 1087

DATE OF PUBLICATION: 01 April 2011

1087. Dr S M van Dyk (DA) to ask the Minister of Public Enterprises:

(a) Which ports are equipped with facilities to receive goods by rail, (b) what is the (i) maximum and (ii) actual amount of (aa) maize and (bb) grain, in tons, that (aaa) can be handled by each of these ports each day and (bbb) is delivered by (aaaa) rail and (bbbb) truck to each of these ports each day, (c) how many trucks deliver grain to each of these ports each day and (d) what plans are in place to (i) decrease road transportation of grain and (ii) to fully utilise the rail facilities at our ports to transport grain? NW1209E

Reply:

1(a) The following ports have facilities to receive goods by rail in South Africa:

· Port of Cape Town;

· Port of Durban;

· Port of East London; and

· Port of Port Elizabeth.

1(b)(i) The maximum amount of maize and grain in tons that can be handled by each of these ports each day is as follows:

Port of Cape Town

Fresh Produce Terminal - 5000 tons per day.

Agricultural and Ro Ro Terminal - 4500 tons per day.

Port of East London

East London -Grain Terminal- 5120 tons per day.

Port of Port Elizabeth

Multi-Purpose Terminal - 3000 tons per day.

Port of Durban

SA Bulk Terminal - 1250 tons handled per day on rail and road split with full rail supply the terminal can push up to 1786 tons per day as maximum throughput.

Agriport Terminal - 2143 tons handled per day on road and rail split with a full rail supply, the terminal can push up to a maximum of 2976 tons per day.

Durban Bulk Shipping Terminal - 2530 tons handled per day on rail and road split with a full rail supply, the terminal can push up to a maximum of 4464 tons per day.

1(b)(ii)(aa-bb)(aaa-bbb)The table below indicates the actual volumes of maize and grain in tons -exported between April 2010 to February 2011.

Name of the port

Maize

*Grain

Port of Durban

1 116 846.7

16 280

Port of East London

28 175

-

Port of Port Elizabeth

-

-

Port of Cape Town

-

-

1(b)(ii)(aa-bb)(aaa-bbb)The table below indicates the actual volumes of maize and grain in tons -imported between April 2010 to February 2011.

Name of the port

Maize

*Grain

Port of Durban

22 531

1 299 452.2

Port of East London

-

111 929

Port of Port Elizabeth

-

95 254

Port of Cape Town

-

213 209

*Includes wheat as a subcategory of Grain

1(aaaa) Rail deliveries per day are as follows:

Port of East London ( Maize and Grain)

Grain terminal in Port of East Londonhandles 1760 tons per day.

Port of Durban (Maize and Grain)

Port of Durban handlesan estimated 2200 tons per day or 2200 tons are railed through Durban Bulk Shipping (DBS) and South African Bulk Terminal (SABT):

· Agriport handles 1 train per day carrying 16 - 44Ton wagons.

· SABT handles 1 train carrying 18 – 44Ton wagons per day.

· DBS handles 1 train with an average of 4 wagons per day.

Port of Port Elizabeth (Grain)

Approximately 100 to 120 Wagons are assigned per shipment with a capacity of 44 tons per wagon-Loading performed on 1 train per day carrying 36 wagons.

Port of Cape Town (Grain)

150 to 200 Wagons are assigned whilst the vessel is in the port – which equates to loading 1 train carrying 28 - 40Ton wagons per day as the port only handles imports.

1(bbbb) & (c) Truck deliveries per day are as follows:

Port of East London (Maize and Grain)

None by road.

Port of Durban ( Maize and Grain)

25-40 ton trucks between all three terminals can reach approximately 360 tons on busy days but average at approximately 50 to 80 per day per terminal.

Port of Cape Town (Grain)

8 (40Ton) Trucks per day.

Port of Port Elizabeth (Grain)

6 (33Ton) Trucks per day.

1(d)(i)(ii) There is a government integrated strategy involving the relevant government stakeholders to incentivise the use of rail to transport freight and increase rail market share. In addition, Transnet's internal initiatives to promote rail as a preferred mode and ensure that the port facilities are also fully optimised for handling of freight from rail are being reviewed.

QUESTION NO.:1021

DATE OF PUBLICATION: 25 March 2011

1021. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:

(1) Whether any damage was caused to the turbines of Eskom's Duvha generating facility; if so, (a) what was the damage, (b) what caused the damage, (c) what are the costs of repairing the damage and (d) when will the repairs be completed;

(2) Whether he will make a statement on the matter? NW1138E

REPLY

(1) Unit 4 of Eskom's Duvha Power station was damaged on 9 February 2011 in the course of a routine, scheduled, turbine over-speed protection test. This is a statutory test that is conducted once a year. In order to conduct the test, the unit is disconnected from the grid.

(a-c) In the execution of the test, the protection on the unit failed, causing severe mechanical damage. Eskom immediately launched an investigation into the incident. The investigation is still underway and will cover an assessment of the damage, the cause thereof and the cost and time to repair. It will not be possible to answer the questions raised in (a) through (d) until the investigation is completed.

(2) A statement will be issued once the investigation has been completed.

QUESTION NO.:1015

DATE OF PUBLICATION: 25 March 2011

1015. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:

How many (a)(i) African, (ii) Coloured, (iii) Indian and (iv) white (aa) men and (bb) women are currently employed at each service level of each of the state-owned enterprises that report to him and (b) posts are vacant in each such specified public enterprise? NW1130E

REPLY

(a)(i-iv)(aa-bb)(b) The table below indicates people who are currently employed at the State Owned Enterprises (SOE) as per their gender and race. SOE don't have similar service level structures as government does. The response is inclusive of all service levels at SOE.

Alexkor

(a)(i) (aa) How many African people are currently employed in each service level (or position) at Alexkor?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

4

1

70

8

0

1

21

2

(b) How many vacant posts are at Alexkor?

7

Broadband Infraco

(a)(i) (aa) How many African people are currently employed in each service level (or position) at Broadband Infraco?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

81

46

1

4

7

1

10

6

(b) How many vacant posts are at Broadband Infraco?

4

Denel

(a)(i) (aa) How many African people are currently employed in each service level (or position) at Denel?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

1 239

379

216

122

74

23

2 154

517

(b) How many vacant posts are at Denel?

50

Eskom

(a)(i) (aa) How many African people are currently employed in each service level (or position) at Eskom?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

17410

7978

2357

1071

1007

580

5978

2457

(b) How many vacant posts are at Eskom?

482

PBMR

(a)(i) (aa) How many African people are currently employed in each service level (or position) at PBMR?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

10

13

04

04

02

01

42

08

(b) How many vacant posts are at PBMR?

None (9 permanent employees and the rest are on contract)

SAA

(a)(i) (aa) How many African people are currently employed in each service level (or position) at SAA?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

1917

1483

355

360

231

202

2227

663

(b) How many vacant posts are at SAA?

596

SAFCOL

(a)(i) (aa)(bb) How many African people are currently employed in each service level (or position) at SAFCOL?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

1467

391

5

15

2

4

79

54

(b) How many vacant posts are at SAFCOL?

91

SAX

(a)(i) (aa)(bb) How many African people are currently employed in each service level (or position) at SAX?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

232

190

41

49

18

17

340

95

(b) How many vacant posts are at SAX?

80

Transnet

(a)(i) (aa)(bb) How many African people are currently employed in each service level (or position) at Transnet?

(ii)(aa)(bb) Coloured?

(iii)(aa)(bb) Indian?

(iv)(aa)(bb) and White?

M

F

M

F

M

F

M

F

23 073

6 705

3 746

987

1 490

381

10 264

1 404

(b) How many vacant posts are at Transnet?

1710

QUESTION NO.: 980

DATE OF PUBLICATION: 18 March 2011

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

(1)(a) How many (i) artisans, (ii) technicians and (iii) engineers have (aa) resigned and (bb) retired (aaa) in (aaaa) 2008, (bbbb) 2009 and (cccc) 2010 and (bbb) during the period 1 January 2011 until the latest specified date for which information is available and (b) what is the race of each person in each specified category who (i) resigned and (ii) retired in each specified period;

(2)(a) How many of the 5 225 learners who are registered with Eskom are (i) artisans, (ii) technicians and (iii) engineers, (b) what is the racial composition of the 5 225 learners in respect of each specified category and (c) what do the measures entail that were introduced in order to wipe out the shortfall of 24 000 artisans in respect of the Government's energy development programme;

(3) Whether these measures are calculated to be sufficient in preventing a shortfall in artisans from developing; if not, why not; if so, what are the relevant details;

(4) Whether he can guarantee that the transformation measures to be implemented by his department will not lead to a shortfall in scarce skills; if not, what is the position in this regard; if so, what are the relevant details;

(5) Whether he will make a statement on the matter? NW1098E

REPLY

Information on artisans, technicians and engineers that retired and resigned from Eskom since 2008 to date is provided in the tables below.

The table below indicates technical skills resignation per race from 2008 to date.

Profession

2008

2009

2010

2011 to Date

A

I

C

W

A

I

C

W

A

I

C

W

A

I

C

W

Artisans

63

1

15

100

30

1

6

24

23

3

3

20

3

0

1

2

Technicians

102

2

11

72

52

4

5

19

49

2

1

19

3

0

1

0

Engineers

142

26

18

68

46

15

5

19

54

16

9

22

9

3

2

1

A = African/Black, I = Indian, C = Coloured, W = White

The table below indicates technical skills retirement per race from 2008 to date.

Profession

2008

2009

2010

2011 to Date

A

I

C

W

A

I

C

W

A

I

C

W

A

I

C

W

Artisans

6

0

0

12

13

0

4

9

8

0

4

6

3

0

0

4

Technicians

0

0

0

9

2

0

0

12

0

0

0

13

0

0

0

2

Engineers

0

0

0

2

0

0

0

2

0

0

0

7

1

1

0

0

A = African/Black, I = Indian, C = Coloured, W = White

(2)(a)(i-iii)(b) During the 2009/10 financial year Eskom had 5225 learners in its pipeline. Of the 5225 learners, 3997 learners were Engineering/Technical Learners. The balance is made up of 1258 non–technical learners (Commerce, Finance, Legal, Human Resources and so on).

The table below indicates learners who are registered with Eskom in the technical skills areas as per their race.

Profession

African

Indian

Coloured

White

Artisans

1835

26

142

135

Technicians

465

16

36

30

Engineers

768

174

48

322

(2)(c) Eskom's measures comprise the following initiatives:

· To keep the Eskom Learner Pipeline at a baseline of 2500 artisan learners constantly. As these learners qualify (at a current rate of 1200 per annum), Eskom will consciously recruit and maintain the baseline.

· Ensuring that the Supplier Network which supplies services to Eskom is well trained.

· Entering into a Joint Project with other State Owned Enterprises to train an additional 1500 trade persons per annum, by making use of underutilised training facilities in the sector.

As the system gears up, Eskom will begin to produce at least 2500 qualified artisans per year.

(3-4) The Measures taken by Eskom are adequate to prevent the shortage of artisans. The initiatives implemented will need to be reviewed and monitored on an ongoing basis to ensure delivery of the required outputs.

(5) No statement will be made.

QUESTION NO.: 952

DATE OF PUBLICATION: 18 March 2011

952. Mr G R Morgan (DA) to ask the Minister of Public Enterprises:

(1) With reference to his reply to question 441 on 9 March 2011, (a) on which date did each mine from which Eskom procures coal first begin to supply coal and (b) how much money has been set aside for water rehabilitation post closure in respect of each of these mines;

(2)(a) Which of these mines are currently not in possession of water use licences and (b) on what date did each of these specified mines apply for such licence;

(3)Whether Eskom will underwrite all environmental and water rehabilitation costs for the full life cycle of the mines which are not in possession of water use licences (a) during the mining period, (b) after decommissioning and (c) in the closure phase, should the mine not be in a financial position to pay for its pollution; if not, why not; if so, what are the relevant details;

(4) Whether, in cases of mines that have applied for water use licences but have not yet been granted these licences, Eskom has made any applications to any courts in terms of the Promotion of Administrative Justice Act, Act 3 of 2000, in order to compel the Department of Water and Environmental Affairs to make a decision; if not, why not; if so, what are the relevant details? NW1070E

REPLY

(1)(a) Eskom manages a portfolio of supply contracts that span a duration of up to 45 years, some of which commenced in 1978, while in later contracts, supply commenced in 2010. The power stations are regarded as national key points and as such caution needs to be exercised to ensure that the disclosure of information relating thereto could not in any way be used to prejudice or threaten security of supply. Accordingly, information relating to the details of each mine supplying the power stations cannot be disclosed publicly.

(b) Eskom has the financial obligation to provide for rehabilitation and closure of mines that are contracted with it only. As at the end of 31 March 2010, R1.9 billion was set aside for water rehabilitation post closure.

(2)(a-b) The disclosure of the status regarding water use licenses for each mine may result in the disclosure of the mines supplying Eskom that should not be disclosed for the reasons explained in 1(a) above. In addition, such information may be regarded as private and confidential information to a third party.

(3)(a-c) Eskom has the financial obligation to provide for rehabilitation and closure of mines that are contracted with it only.

(4) Eskom is engaged in a consultative process with the Department of Water Affairs to expedite the applications granted and/or in the process of being granted to ensure compliance with the requirements as stipulated in the National Water Act (Act 36 of 1998).

QUESTION NO.: 935

DATE OF PUBLICATION: 18 March 2011

935. Mr I O Davidson (DA) to ask the Minister of Public Enterprises:

(1) With reference to his reply to question 441 on 9 March 2011, what is the (a) name and (b) location of each mine from which Eskom procures coal;

(2) Whether there is a mine closure plan in place with regard to each specified mine; if not, how is Eskom engaging with the mine to rectify the situation; if so, what are the relevant details;

(3) Whether there is a new order mining right in place with regard to each specified mine; if not, how is Eskom engaging with the mine to rectify the situation; if so, what are the relevant details;

(4) Whether his department has found evidence of regularly completed performance assessment reports with regard to each specified mine; if not, how is Eskom engaging with the mine to rectify the situation; if so, what are the relevant details? NW1053E

REPLY

(1)(a-b) The power stations are regarded as national key points and as such caution needs to be exercised to ensure that the disclosure of information relating thereto could not in any way be used to prejudice or threaten security of supply. Accordingly, information relating to the details of each of the mines supplying the power stations cannot be made public.

(2) The Department of Mineral Resources deals with the regulation and administration of mine closure plans as part of its environmental regulation function in terms of the Mineral Petroleum Resources and Development Act (Act 28 of 2002). Eskom reviews each mine's compliance with requirements on an ongoing basis.

(3) The process of the conversion of an older mining right to that of a new order mining right is administered by the Department of Mineral Resources. Eskom reviews each mine's compliance with these requirements on an ongoing basis.

(4) Where Eskom notices any non-compliance of the mines from its regular reviews, it formally addresses each mine and follows up on the rectification of any transgressions.

QUESTION NO.:823

DATE OF PUBLICATION: 11 March 2011

823. Mr J J van der Linde (DA) to ask the Minister of Public Enterprises:

Whether (a) his department or (b) any of its affiliated entities have purchased any tickets for the ICC Cricket World Cup 2011; if not, why not; if so, (i) what process has been followed to purchase these tickets, (ii) how many tickets have been purchased, (iii) for which matches, (iv) what has been the total cost of these tickets, (v) what are the reasons for purchasing these tickets, (vi) to whom will each of these tickets be allocated and (vii) on what was the decision for the allocation of these tickets based? NW895E

REPLY

(a-b)(i-vii) The Department of Public Enterprises (DPE) and State Owned Enterprises (SOE) namely Alexkor, Broadband Infraco, Denel, Eskom, PBMR, SAA, SAFCOL, SAX and Transnet, that report to DPE have not purchased ICC Cricket World Cup 2011 tickets.

QUESTION NO.:756

DATE OF PUBLICATION: 11 March 2011

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

(1) How many (a) flight attendants and (b) pilots of the SA Airways (SAA) were arrested abroad (i) in (aa) 2005, (bb) 2006, (cc) 2007, (dd) 2008, (ee) 2009 and (ff) 2010 and (ii) during the period 1 January 2011 up to the latest specified date for which information is available;

(2)(a) In which countries were the (i) flight attendants and (ii) pilots arrested in each specified year, (b) for what offences in each case and (c) how many (i) flight attendants and (ii) pilots (aa) were convicted, (bb) acquitted and (cc) are awaiting the outcome of their cases;

(3) Whether he will make a statement on the matter? NW771E

REPLY

(1)(a-b)(i)(aa-ee)(ii) (2)(a)(i-ii)(b-c)(aa-cc) The table below indicates the number of flight attendants of South African Airways (SAA), offence committed and countries where they were arrested from 2005 to date.

Year

Number of flight attendants and pilots arrested

Countries where they were arrested

The nature of an offence

SAA flight attendants

SAA pilots

SAA flight attendants

SAA pilots

SAA flight

attendants

SAA pilots

2005

2

0

South Africa and Australia

0

Offence: Possession of cocaine.

Outcome: Unknown to SAA and a criminal case followed. Employee was dismissed by SAA.

Offence: Possession of narcotics.

Outcome: Sentenced to 10 years in prison without parole for 5 years.

0

Year

Number of flight attendants and pilots arrested

Countries where they were arrested

The nature of an offence

SAA flight attendants

SAA pilots

SAA flight attendants

SAA pilots

SAA flight attendants

SAA pilots

2006

2

0

United Kingdom

0

Offence: Alleged possession of cocaine and marijuana.

Outcome: Deported back to South Africa and banned from the UK. The case was dropped since UK officials were unable to provide evidence.

0

2007

2

0

Switzerland

0

Offence: Possession of drugs.

Outcome: Charged and convicted.

0

2008

0

0

0

0

0

2009

1

0

United Kingdom

0

Offence:

Alleged trafficking in marijuana.

Outcome: Not caught in possession in the UK, released and charged in SA on fraud. Received a fine of R5 000 and a suspended sentence of 5 years.

0

2010

1

0

United Kingdom

0

Offence: Possession of cocaine.

Outcome: Convicted and sentenced to 7 years in prison.

0

2011

1

0

Brazil

0

Offence: Alleged possession of cocaine.

Outcome: Pending court appearance.

0

(3) No statement will be made on the matter.

QUESTION NO.: 742

DATE OF PUBLICATION: 07 March 2011

742. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether environmental sustainability is an integral part of his department's primary and objective strategic of financial sustainability and delivering on its strategic objectives, in ensuring a future for the entities and generations to come; if not, why not; if so, what are the relevant details? NW811E

REPLY

The Department of Public Enterprises (DPE) considers environmental sustainability an important area in delivering on its strategic objectives and in ensuring State Owned Enterprise shareholder oversight. Environmental compliance plays an important role in this process and SOE are required to comply with a wide range of environmental legislation. DPE participates in the national climate change agenda and plays a role in monitoring Environmental Impact Assessments (EIA) in respect of Strategically Important Developments related to Eskom and Transnet's Build Programmes.

QUESTION NO.: 553

DATE OF PUBLICATION: 25 February 2011

553. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether he has identified any areas of concern as a result of his department intensifying its efforts to monitor the trends of state-owned enterprises in their (a) financial and operational performance, (b) capital investment programmes, (c) governance practices and (d) socioeconomic impact; if not, why not; if so, what are the relevant details? NW603E

REPLY

(a) In the past, many SOE were involved in numerous activities that fell outside their core mandate and business focus. This has resulted in sub-optimal delivery of the core business activities of these entities and increased risks arising from the Boards of Directors and Management reduced focus and attention on SOE core mandates.

The balance sheet of SOEs reporting to DPE needed to be strengthened on a sustainable basis, with a view to increase their access to the capital markets, and thereby reducing their dependence on fiscus. The Department has initiated an efficient, real time monitoring system, the "Isibuko Dashboard", to oversee SOE financial and operational performance. In the case of Transnet, Transnet has declared good financial results in its financial statements over the last few years. However in port and rail efficiencies there are still major areas of weaknesses which need to be addressed.

A number of improvements have been achieved in the form of the following interventions:

- Shareholder Compact with clear KPI's between DPE and SOE;

- Regular KPI-based reporting on various SOE based on an in-depth analysis of financial and operational performance of SOE; and

- The development of a rigorous shareholder management model by DPE, which still need to be fully implemented.

The Department has developed an additional performance monitoring and evaluation system called the Strategic Intent Statement. It is the primary communication tool of the Minister's expectation of the SOE strategy.

(b) The Department has developed a capital structure decision making framework. This will be used to assess and indicate with a specified level of certainty the amount of capital required given the investment time horizon and projected capital infrastructure requirements whilst maximizing the value of the enterprise by optimally allocating the required capital between equity and debt. It will also serve as a basis for recommending an appropriate capital structure and dividend policy for the SOE.

In the case of Transnet most projects are on track to remain within budget. However in the case of the New Multi-Product Pipeline, the cost and time overruns are being investigated by a panel of specialists, whose work is expected by the end of April 2011.

(c) In the last three years, DPE has made significant strides in conducting and developing a governance review of SOE operating within its portfolio. The purpose of the review was to examine SOE reform processes relating to appropriate shareholder measures to be used in improving SOE leadership, the appropriateness of the entities' corporate form and accounting arrangements, the effectiveness of the governance and human resource practices and the fairness and transparency of SOE procurement procedures. The Department also developed shareholder guidelines on remuneration, founding documents and shareholder agreements, as well as Board members inductions through regular interactions with the governing bodies of SOE. This review resulted in a number of written reports and various SOE guidelines and frameworks issued by the DPE (and some approved by Cabinet).

(d) It is critical that a high level of consensus is achieved as to the role of the SOE in the national economic strategy and that this role is explicitly and precisely defined. The Department's revised mission and strategic plan is organized around the need to actively engage with stakeholders, both within and outside of government, to achieve alignment regarding the role of the SOE in economic strategy and to ensure that sectoral policies and regulations support this alignment.

QUESTION NO.: 552

DATE OF PUBLICATION: 25 February 2011

552. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether he has identified any specific areas of concern as a result of his department focusing on the improvement of shareholder oversight responsibilities; if not, why not; if so, (a) what are the relevant details and (b) what steps will he take to deal with these issues? NW602E

REPLY

SOEs are in a unique position to unlock growth through driving a sustained programme of investment in plant, technology and skills. Therefore, the role of the DPE is to drive investment, efficiencies and transformation in its portfolio of SOE, their customers and theirsuppliers to unlock growth, create jobs and develop skills.

In doing this, the Department seeks to enhance shareholder oversight to create greater alignment between the developmental policies of the State and the SOE mandate thereby enhancing the competitiveness of the economy through improved infrastructure services.

The areas identified cover a wide range of issues which the Department intends focusing on. These include, inter alia:

• Ensuring that competent people are placed on SOE Boards and executive management to improve their ability to interpret the SOE mandate and apply its resources economically and efficiently;

• Actively overseeing efficiency initiatives in the SOE;

• Active stakeholders engagement in respect of the SOE mandate and government's strategic objectives;

• The provision of shareholder support to allow SOEs to access capital from external sources;

• Increased governance oversight of the Boards in respect of performance management against agreed targets that is aligned to an effective remuneration model;

• DPE will continue to monitor the regulatory environment and act accordingly to help ensure the appropriate contribution of these SOEs to the South African economy;

• The consistent application of performance monitoring tools to ensure SOEs performance is in accordance with agreed strategic objectives and targets; and

• Create an alignment between developmental policies, sector policies and shareholder polices through a strategic intent for the SOEs.

QUESTION NO.: 551

DATE OF PUBLICATION: 25 February 2011

551. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

(1) Whether the Isibuko Dashboard, which is used in assisting his department in monitoring performance of state-owned enterprises (SOEs), has been able to identify any lack of performance by any of the SOEs; if not, why not; if so,

(2) Whether he has taken any steps to deal with this lack of performance by SOEs; if not, why not; if so, what (a) steps and (b) are the further relevant details? NW601E

REPLY

(1) The Isibuko dashboard is used to monitor trends to determine whether SOE performance is on track with the corporate plans, whether strategic objectives have been met and to highlight any emerging risks. The Isibuko dashboard has enabled early identification of underperformance by SOE or significant changes in the SOE's environment that may impact its performance.

(2) Investor briefs are issued to the SOE Boards on a quarterly basis on emerging SOE performance trends and, in particular, highlighting the need for corrective action in the event of any deviation from the agreed key performance areas and indicators. The SOE Board is expected to put in place measures to address highlighted concerns or mitigate emerging risks.

QUESTION NO.: 504

DATE OF PUBLICATION: 25 February 2011

504. Mr J J van der Linde (DA) to ask the Minister of Public Enterprises:

Whether (a) his department or (b) any (i) agency or (ii) institution which receives transfers from his departmental budget employs staff to perform the duties set out in the Minimum Information and Security Standards (Miss) that were adopted by Cabinet on 4 December 1996 or any subsequent version of the Miss; if not, why not, in each case; if so, in each case, (aa) how many and (bb) what (aaa) is the job title, (bbb) is the employment level, (ccc) are the academic qualifications, (ddd) is the salary and (eee) are the other benefits of each specified staff member? NW550E

REPLY

(a)(b)(i-iii)(aa-bb)(aaa-ddd) The applicable statutory provisions, regulations and policy instruments include the following:

· Constitution of the Republic of South Africa, 1996

· Promotion of Access to Information Act, 2002

· Intelligence Services Act, 2002

· Protection of Information Act, 1982

· National Archives of South Africa Act, 1996

· Minimum Information Security Standards, 1996

· Internal Manuals and Codes of Conduct.

In addition, regular inspections and advisory services have been conducted by the National Intelligence Agency, as part of its counter-intelligence responsibility, evaluating the implementation of the Minimum Information Security Standards. With regards to Electronic Communications Security, the Electronic Communications Security Pty Ltd has, working in close collaboration with the Department National Intelligence Agency, Department of Public Service and Administration and the State Information Technology Agency has also worked together to ensure the security and robustness of the electronic communications of the state.

All these state entities have provided training to various government departments and associated entities, this one included.

QUESTION NO.:441

DATE OF PUBLICATION: 25 February 2011

441. Mr M J Ellis (DA) to ask the Minister of Public Enterprises:

(1) Whether, with reference to replies to questions 1602 by the Minister of Water and Environmental Affairs on 8 June 2010 and 1810 on 5 July 2010 by his predecessor, he has been informed that there are mines from which Eskom is procuring coal that are not in possession of a valid water licence; if not, what is the position in this regard; if so, how can he condone this;

(2) Why has Eskom concluded contracts with coal providers who have not yet secured a valid water licence despite the fact that the previous Minister's reply to question 1810 confirming that all mines need to have appropriate water-use licences before a contract is concluded;

(3) Whether Eskom will place a moratorium on signing contracts with coal providers until such time as the providers have a valid water-use licence; if not, why not; if so, what are the relevant details;

(4) Whether Eskom is committed to good environmental governance; if not, what will be done to rectify the situation; if so, how was this conclusion reached? NW471E

REPLY

(1) It is a prerequisite of the Eskom coal contracting process that a potential coal supplier (mines) shall have been granted and/or have applied for an Integrated Water Use License, or are in possession of old water use permits. The prescribed water use authorization process to be followed has resulted in an administrative backlog as acknowledged by the Department of Water Affairs. Eskom has a consultative process in place with the Department of Water Affairs to verify the applications granted and/or in the process of being granted to ensure compliance with the requirements as stipulated in the National Water Act (Act 36 of 1998).

(2) In order to meet the coal demand, Eskom has concluded contracts with coal providers who have not yet secured a valid water use license but have demonstrated that they have met the requirements in terms of the Mineral Petroleum Resources and Development Act (Act 28 of 2002) and that the applications for licenses have been submitted to the Department of Water Affairs. Eskom has conducted assurance on these sources and monitors the risks and mitigation measures as included in their applications to the Department of Water Affairs. These water-use licence applications submitted by Eskom suppliers form part of the backlog that is currently being cleared by the Department of Water Affairs. Eskom and the suppliers are in regular contact with the Department to follow up on the progress of these applications.

(3) Continuity of coal supply is a critical consideration as well as the prescribed requirements of the prevailing legislation and thus a moratorium on signing contracts will not always be feasible, given the administrative delays. The risk has been mitigated to a large extent through the co-operation between the Department of Water Affairs and Eskom in monitoring the progress of the applications of Eskom suppliers. In the event that the coal provider is found to be non-compliant with the requirements of the Department of Water Affairs in particular, the contract provisions allow for the suspension of the operation of the contract pending the rectification of such non compliance as directed by the Department. Should the non-compliance not be capable of remedy, the contract would be terminated.

(4) Eskom is committed to good environmental governance. In the particular instance of coal contracting, it has established a procedure which sets out the environmental requirements and considerations for coal contracting purposes and the ongoing monitoring and evaluation of compliance thereto subsequent to the awarding of the contract.

QUESTION NO.:411

DATE OF PUBLICATION: 18 February 289

411. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether the implementation of investment programmes (details furnished) are on track to be completed in three years' time; if not, why not; if so, (a) what are the relevant details and (b) where will the estimated R115 billion be generated from? NW445E

REPLY

The estimated total capital expenditure from 1 April 2010 until 2017 the year in which Kusile will be completed is R548 billion. These programmes are on track with Medupi's first unit expected to be in operation at the end of 2012 and the rest of the units in six months intervals thereafter. The placing of contracts and construction of Kusile is back on track after there was a delay in finalising Eskom's funding plan and Government support. The build programme is funded by a combination of equity and borrowings and Eskom, with the assistance of Government guarantees, continues to borrow money on the capital markets to fund this programme.

The R115 billion was the actual unfunded cash requirement, in 2013 (as identified in April 2010) in respect of the Eskom investment programme (build programme) for committed projects comprising mainly of Medupi, Ingula and Kusile; the return to service stations and strengthening of the transmission network. A funding plan with identified sources both secured and committed is now in place and no funding gap is anticipated looking ahead.

QUESTION NO.:317

DATE OF PUBLICATION: 18 February 289

317. Mrs S P Kopane (DA) to ask the Minister of Public Enterprises:

(1) Whether Eskom consulted the residents of a certain housing complex in Gauteng (details furnished) regarding large transformers that are being built next to the complex; if not, (a) why not and (b) what is the policy in this regard; if so, (i) what form did the consultations take, (ii) what information was provided to the residents, (iii) on what dates did the consultations take place and (iv) who represented Eskom in each case;

(2) Whether any study has been conducted into the (a) potential increase in noise, (b) decrease in property value and (c) risk of explosion and damage to property; if not, why not; if so, what are the relevant details;

(3)(a) How many transformers will be built on the site and (b) what (i) will be the level of magnetic fields radiating from the transformers, (ii) is the internationally acceptable norm in this regard and (iii) health risks are associated with high levels of magnetic fields? NW341E

REPLY

(1)(a-b)(i-iv) Consultation with Interested and Affected Parties (I&APs) was done and Eskom appointed Bohlweki-SSI Environmental as an Independent Environmental Assessment Practitioner to undertake the required Environmental Studies and Public Consultation Process for the project.

The following activities/consultations were undertaken as part of the Public Participation process for the Basic Assessment:

· Briefing Document – copies of the briefing document with comment forms were distributed to the nearby communities where the project was proposed to take place as well as to the Bedfordview Library in September and November 2008.

· The briefing document was intended to notify I&APs about the project and also to request them to register as interested and affected parties for the project as well as to provide their comments and concerns

· Advertisement – an advertisement was also published in the Bedfordview and Edenvale Newspapers dated 12 November 2008, notifying I&APs about the availability of the Draft Basic Assessment Report (BAR), Environmental Management Plan (EMP) and requesting I&APs, including registered stakeholders, to review the Draft BAR (including EMP) and provide comments on the project. The copies of the draft BAR and EMP were made available at the Kempton Park library, Bedfordview library, SSI Environmental Offices in Woodmead and on the SSI Environmental website.

· Meetings – a focus group meeting was held with councillors on 5 November 2008 at the Bedfordview Auditorium. This meeting was aimed at informing - councillors about the project and also at holding one-on-one consultation to clarify issues of concern.

· Environmental Authorisation – notification letters were sent to all I&APs registered on the project, notifying them of the environmental authorisation issued on 06 February 2009.

The following listed activities were commenced for the project and the Basic Assessment Process:

· The construction of facilities or infrastructure, including associated structures or infrastructure for the transmission and distribution of electricity above ground, with a capacity of more than 33 kilovolts and less than 120 kilovolts.

· The construction of a road that is wider than 4 metres or that has a reserve wider than 6 metres, excluding roads that fall within the ambit of another listed activity or which are access roads of less than 30 metres in length.

· The transformation or removal of indigenous vegetation of 3 hectares or more of any size, where transformation or removal would occur within a critically endangered or an endangered ecosystem listed in terms of section 52 of the National Environmental Management: Biodiversity Act, 2004 ( Act No. 10 of 2004).

· The substation upgrade, to assess the environmental impacts associated with the aforementioned scope of work and also to take mitigation measures in compliance with the requirements of the National Environmental Management Act (Act No. 107 of 1998) (as amended).

(2)(a-c) The following were conducted:

· Potential increase in noise – yes, but only a baseline noise study was conducted for the project as no significant noise impacts were expected to occur during the construction phase of the project. An EMP was compiled to provide mitigation measures for all the potential environmental impacts (i.e. construction and operational phases) emanating from the project.

· Decrease in property value – no valuations were done as Lombardy is an existing Eskom substation that has been registered in Eskom's name for 54 years and the project was intended to upgrade the existing substation.

· Risk of explosion and damage to property – this was considered as part of the design where fire walls will be built between transformers and adjacent to the property of the Hills.

(3)(a-b)(i-iii) Number of transformers to be installed and Electromagnetic field radiation:

· Four (4) transformers are to be installed on site (1 x 80 MVA 132/44 kV and 3 x 20 MVA 132/66 kV).

· No studies were done regarding the Electricity Magnetic Field (EMF) as it was not raised as a concern or seen as a necessity during public participation (and Eskom had met the minimal Basic Impact Assessment requirements). It should however be noted that a typical maximum value of the electric field at the servitude boundary of the highest voltage transmission line in South Africa, namely 765 000 volt, is about 3 kV/m. This level is lower than the maximum limit of 5 kV/m suggested for continuous general public exposure by the International Commission on Non-ionising Radiation Protection (ICNIRP), which forms part of the World Health Organisation. The substation will be operated at 132/44/6.6 kV – much lower than the highest voltage transmission lines.

QUESTION NO.:289

DATE OF PUBLICATION: 18 February 2011

289. Mr J F van der Linde (DA) to ask the Minister of Public Enterprises:

(1) How many documents have (a) his (i) ministry and (ii) department and (b) any (i) institution or (ii) agency which receives transfers from his departmental budget classified as (aa) top secret, (bb) secret, (cc) confidential and (dd) restricted under the provisions of the Minimum Information Security Standards that were adopted by the Cabinet on 4 December 1996 in the (aaa) 2005-06, (bbb) 2006-07, (ccc) 2007-08, (ddd) 2008-09 and (eee) 2009-10 financial years;

(2) What is the (a) name and (b)(i) rank or (ii) employment level of the official who decided on the classification at each specified public body? NW311E

REPLY

(1) The classification and categorization of documents and the nature of their sensitivity are listed below as requested for the financial years 2005-06 to 2009-10. Please note that the classification and the categorization of documents is the same for the 2005-06 to 2009-10 financial years.

(a)(i) MINISTRY

Top secret: There are two (2) categories of Top Secret documents in the Ministry. These are Cabinet memoranda and Cabinet decisions.

Secret: There are four (4) categories of Secret documents in the Ministry. These are memoranda, meeting packs, reports and correspondence.

Confidential: There are three (3) categories of Confidential documents in the Ministry. These are meeting packs, staff case files and reports.

Restricted: There are two (2) categories of Restricted documents in the Ministry. These are staff case files and reports.

(a)(ii) DEPARTMENT

Top secret: Top secret documents in the Department are classified into two (2) categories. These are Cabinet memoranda and Cabinet decisions.

Secret: Secret documents are classified into two (2) categories. These are correspondence and reports.

Confidential: Confidential documents are classified into ten (10) categories. These are correspondence; reports; agreements; contracts; memoranda of understanding; memoranda of agreement; service level agreements; meeting packs; leases; personnel and staff case files.

Restricted: Restricted documents are classified into eight (8), namely: correspondence, reports, case files, PFMA applications, shareholder compacts, corporate plans, meeting packs, and personnel/staff case files.

(b) (i) and (ii) In respect of State Owned Entities (SOE) reporting to the Department, all the SOE are required to comply with various legislation regulating disclosure and classification of documents.

(2) What is the name and rank or employment level of the official who decided on the classification at each specified public body?

The classification of documents for the Ministry and the Department is done by the Director General who is designated the Chief Information Officer according to the Promotion of Information Act 2 of 2000. The classification is regulated by the Minimum Information Security Standards. Therefore, the Director-General in consultation with the Ministry followed the Minimum Information Security Standards to classify records for both the Ministry and the Department according to Top Secret, Secret, Confidential and Restricted. The classification is more fully set out in the Department's manual developed in 2007/8 pursuant to the Promotion of Access to Information Act 2 of 2000. The Manual is available on the Department's website at www.dpe.gov.za.

QUESTION NO.:251

DATE OF PUBLICATION: 18 February 251

251. Mrs S V Kalyan (DA) to ask the Minister of Public Enterprises:

(1) Whether the National Ports Authority, pending the roll-out of the licensing of waste disposal activities in terms of sections 57 and 74(3) of the National Ports Act, Act 12 of 2005, has issued temporary waste disposal licences to waste disposal service providers in the ports of (a) Richards Bay and (b) Durban; if not, why not; if so, what are the relevant details;

(2) When is the roll-out of the licensing of waste disposal activities expected to be concluded;

(3) Whether any action has been taken against any waste disposal service providers in the ports of (a) Richards Bay and (b) Durban since 1 January 2010 for illegally removing waste from vessels; if so, what are the relevant details; if not, why not;

(4) Whether procedures are in place to monitor waste disposal activities in the ports of (a) Richards Bay and (b) Durban; if not, why not; if so, what are the relevant details;

(5) Whether the National Ports Authority monitors whether the operations where waste from vessels in the ports of (a) Richards Bay and (b) Durban is taken for final treatment and disposal are compliant with environmental legislation; if not, why not; if so, what are the relevant details? NW272E

REPLY

(1) (a) The process of issuing temporary waste licences to waste disposal service providers in the Port of Richards Bay commenced in November 2010. The Acting Port Manager at Port of Richards Bay advised the Chief Executive Officer of the South African Association of Ship Owners and Agents about the process. The closing date for the submission of the applications was 28February 2011.

(b) The Port of Durban issued temporary waste disposal licences to waste disposal service providers contracted to vessel agents. The process was initiated in July 2010 when the Port Manager of Port of Durban issued a letter to the Chief Executive Officer of South African Association of Ship Owners and Agents. Sixteen (16) applications were received from waste disposal companies and 14 temporary waste disposal licences were issued.

Application Process:

A formal correspondence was sent out to all the applicants in both ports reflecting the licence application process that was to be followed and all the information to be provided together with supporting documentation. The terms and conditions of the temporary licence were also attached to the correspondence.

Licence Conditions applicable to all TNPA Ports:

The conditions of the temporary waste disposal licence are contained as an extract from the Transnet National Ports Authority's (TNPA) Implementation Manual for Agreements, Licences and Permits in terms of the National Ports Act 2005 (Act No.12 of 2005).

(2) The roll-out of the licensing of waste disposal activities is expected to be concluded in April 2011.

(3) (a) A non-conformance report was issued by the Port of Richards Bay for a once-off incident to a company that failed to comply. Regular inspections are conducted by the Port Environmental Officers to monitor legal compliance and appropriate actions are taken when non-compliance is observed. TNPA, the operating division of Transnet, has a contract with a service provider to handle and dispose Galley Waste from vessels.

(b)The Port of Durban advised specific waste contractors to provide details of their operations.

(4) (a) The Port of Richards Bay has developed and implemented the Port Waste Management Procedure in line with the environmental legal requirements which includes the handling and management of Galley Waste. Compliance with the procedure is being monitored.

(b) The Port of Durban has a dedicated resource within the Legal and Compliance Portfolio to conduct daily berth inspections. When any non-compliant activity is identified, a non-conformance report is issued to the relevant waste contractor requiring corrective measures to be implemented or information to be provided (e.g. safe disposal certificates or waste manifest documents). This is part of TNPA's Safety Health and Environment Integrated Management System. The Port of Durban engaged the local authority, the eThekwini Municipality to verify whether the waste contractors have a Scheduled Trade Permit from the local authority for collection of waste. An approved list of the waste contractors that are permitted to operate within the eThekwini Municipal jurisdiction has been established.

(5) (a) TNPA has established the Port Waste Management Procedure for tracking waste. In the Port of Richards Bay, waste contractors, landfill site and treatment facility audits are conducted and a report is forwarded to the audited entities for corrective measures to be implemented.

(b) In the Port of Durban, waste contractors, landfill site and treatment facility audits are also conducted and a report is forwarded to the audited entities for corrective measures to be implemented.

The following five (5) entities have been engaged in terms of auditing their operations:

- Enviroserve;

- Waste Trans;

- Commercial Waste;

- Tinamar; and

- Wasteman.

The auditing process is ongoing and other entities will be engaged in future. In 2010 engagements with other relevant authorities and stakeholders were initiated with the aim of sharing information on audit findings and operations that are illegal. This process will continue in 2011 wherein regular meetings and joint audits will be conducted.

QUESTION NO.: 192

DATE OF PUBLICATION: 10 February 2011

192. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether he ordered any review of the salaries of the boards of directors of any state-owned enterprise reporting to him; if not, why not; if so, (a) which entities and (b) for what purposes? NW208E

REPLY

A review of the remuneration and benefits of executive and non-executive directors of the State Owned Enterprises (SOE) reporting to the Department of Public Enterprises was commissioned early in 2010. Given that the issue of remuneration of public entities is a complex and widely debated topic, the Minister at the time set up a panel to undertake this review. A process of consultation with Parliament is imminent before the Department is in a position to determine the final outcome and implementation plan towards a rational, consistent and uniform remuneration model.

In addition, the Presidential Review Committee on SOEs, which is currently underway, is also expected to address this matter, and will contribute to an informed and objective outcome in this regard.

QUESTION NO.:176

DATE OF PUBLICATION: 10 February 2011

176. Mr M A Nhanha (Cope) to ask the Minister of Public Enterprises:

Whether his department has made any strides in improving the quality of leadership and management that was identified as a challenge facing state-owned enterprises; if not, why not; if so, (a) what is the current (i) number of vacancies and (ii) vacancy rate in each specified state-owned enterprise at management level and (b) how many management positions have been filled in SOEs in the current financial year? NW191E

REPLY

(a)(i-ii)(b) A response regarding the leadership and Management of State Owned Enterprises (SOE) that report to the Department of Public Enterprises (DPE) is populated in the table below.

DPE

Whether DPE has made any strides in improving the quality of leadership and management that was identified as a challenge facing state-owned enterprises?

In the last three years, DPE has made significant strides in developing a governance model for SOE operating within its portfolio. The department has examined SOE reform processes relating to appropriate shareholder measures to be used in improving SOE leadership, the appropriateness of the entities' corporate form and accounting arrangements, the effectiveness of the governance and human resource practices and the fairness and transparency of SOE procurement procedures. This resulted in a number of written reports and various SOE guidelines and frameworks issued by the DPE (and some approved by Cabinet).

ALEXKOR

(a)(i) What is the current number of vacancies at ALEXKOR's management/Exco level?

(ii) And vacancy rate in ALEXKOR at management/Exco level?

(b) How many management positions have been filled in ALEXKOR in the current financial year?

Four

57%

one

BROADBAND INFRACO

(a)(i) What is the current number of vacancies at BROADBAND INFRACO's management/Exco level?

(ii) And vacancy rate in BROADBAND INFRACO at management/Exco level?

(b) How many management positions have been filled in BROADBAND INFRACO in the current financial year?

Three

30%

None

DENEL

(a)(i) What is the current number of vacancies at DENEL's management/Exco level?

(ii) And vacancy rate in DENEL at management/Exco level?

(b) How many management positions have been filled in DENEL in the current financial year?

Zero

0%

None

ESKOM

(a)(i) What is the current number of vacancies at ESKOM's management/Exco level?

(ii) And vacancy rate in ESKOM at management/Exco level?

(b) How many management positions have been filled in ESKOM in the current financial year?

One

4.5%

Four

PBMR

(a)(i) What is the current number of vacancies at PBMR's management/Exco level?

(ii) And vacancy rate in PBMR at management/Exco level?

(b) How many management positions have been filled in PBMR in the current financial year?

Zero

Current management positions at Exco level are acting positions to assist with the handover phase.

None

SAA

(a)(i) What is the current number of vacancies at SAA's management/Exco level?

(ii) And vacancy rate in SAA at management/Exco level?

(b) How many management positions have been filled in SAA in the current financial year?

One

14.29%

Five

SAFCOL

(a)(i) What is the current number of vacancies at SAFCOL's management/Exco level

(ii) And vacancy rate in SAFCOL at management/Exco level?

(b) How many management positions have been filled in SAFCOL in the current financial year?

Zero

0%

none

SAX

(a)(i) What is the current number of vacancies at SAX' management/Exco level?

(ii) And vacancy rate in SAX at management/Exco level?

(b) How many management positions have been filled in SAX in the current financial year?

Three

27.2 %

one

TRANSNET

(a)(i) What is the current number of vacancies at TRANSNET's management/Exco level?

(ii) And vacancy rate in TRANSNET at management/Exco level?

(b) How many management positions have been filled in TRANSNET in the current financial year?

Two

14%

two

QUESTION NO.: 162

DATE OF PUBLICATION: 01 April 2011

162. Mr H B Groenewald (DA-NW) to ask the Minister of Public Enterprises:

(1) With reference to the Council for Geosciences' intention to start drilling at the Thyspunt Nuclear site in March 2011, what are the terms of reference for this project;

(2) Whether this project forms part of the Environmental Impact Assessment; if not, what is the position in this regard; if so, what are the relevant details;

(3) Whether these planned activities will result in a Basic Assessment in terms of the National Environmental Management Act, Act 107 of 1998; if not, why not; if so, what are the relevant details;

(4) Whether (a) Eskom or (b) the Council for Geosciences has a permit from the SA Heritage Resources Agency for this project; if not, why not; if so, what are the relevant details;

(5) Whether Eskom plans to drill on (a) the Thyspunt site, (b) the Rocky Coast farm site and (c) any other site which is not situated on the Rocky Coast farm; if not, what is the position in this regard; if so, what are the locations of these drilling sites in relation to the possible water aquifers? CW199E

Reply:

(1) Eskom has commissioned an enquiry to provide additional input to the assessment of the seismic hazard at the Thyspunt nuclear site. This enquiry follows international best practice, e.g. US NRC Regulatory Guide 1.208. The drilling to be undertaken by the Council for Geoscience (CGS) in the Cape St Francis area will provide information on the elevation and age of ancient marine terraces. As part of the drilling, sediment samples will be collected for dating analysis.

The proposed drilling will penetrate the unconsolidated sand aquifer and possibly also the hard rock TMG aquifer, but will have no impact on these aquifers as no groundwater abstraction will occur. The drilling will use standard drilling techniques that will not pollute existing groundwater aquifers. No water abstraction will be undertaken. There will be a geologist on site to monitor and direct the drilling operations.

(2) No, the current activity that the CGS is undertaking does not form part of the Environmental Impact Assessment. The activities are being undertaken in support of meeting the requirements of the National Nuclear Regulator for the sitting of proposed nuclear power stations. These studies will provide additional input into the seismic hazard analysis for the Thyspunt site.

(3) The proposed activities as spelt out under the response to question 1 are not included in the list of activities stipulated in Government Notice No. R. 386 of 2006 for which a Basic Assessment would be required. Under this notice activities that would require a Basic Assessment include:

• Construction, earthmoving activities or destruction of vegetation within the zone, a 100m from the high water mark;

• Construction of infrastructure;

• Large scale soil/sand displacement;

• Abstraction of groundwater;

• Road construction; and

• Reconnaissance, prospecting, mining or retention operations as provided for in the Mineral and Petroleum Resources Development Act, 2002, (28 of 2002).

(4) Eskom's contract with CGS stipulates that CGS should obtain all the requisite permits to perform the work, including a permit from the SA Heritage Resources. As per Eskom's agreement with CGS, no drilling will be undertaken until SAHRA approvals have been obtained. As is customary in such activities, all the proposed drill sites will be inspected by an archaeologist before the processes start. In addition, an archaeologist will be present throughout the drilling of archaeologically sensitive areas.

(5)(a-c) It is envisaged that the investigations of the CGS in the vicinity of the Thyspunt nuclear site will include the drilling of boreholes on Eskom property and near the Thyspunt site, on the Rocky Coast farm site, as well as on vacant land along the Cape St Francis urban edge. The final borehole positions will be informed by the archaeological site inspections and through consultation with SAHRA. All the requisite approvals will be obtained before the commencement of such drilling.

QUESTION NO.:138

DATE OF PUBLICATION: 10 February 2011

138. Mr J J van der Linde (DA) to ask the Minister of Public Enterprises:

What (a) statutory provisions, (b) regulations, (c) policy instruments and (d) practices govern the (i) classification, (ii) protection against the release or access, (iii) protection for other purposes such as preservation and (iv) release upon request for access of (aa) documented information and (bb) undocumented information held by (aaa) his department or (bbb) any other entities who receive budgetary transfers from his department? NW150E

REPLY

THE FOLLOWING STATUTORY PROVISIONS, REGULATIONS, POLICY DOCUMENTS AND PRACTICES GOVERN THE DEPARTMENT OF PUBLIC ENTERPRISES (DPE) INFORMATION AND DOCUMENT MANAGEMENT:

(a) Minimum Information Security Standards (MISS) document;

(b) National Archives and Records Service Act of South Africa 46 of 1996 as amended (NARS Act);

(c) DPE records management Policy;

(d) Promotion of Access to Information Act 2 of 2000 as amended (PAIA).

(i) Classification

The Minimum Information and Security Standards (MISS) regulate the classification of information according to whether it is confidential, restricted, secret and top secret.

(ii) Protection against the release of documents

· The access to the records of the Department for internal utilization is regulated by the DPE Records Management Policy (which is the prototype of the NARS Act).

· PAIA also regulates the release of documents.

(iii) Protection for other purposes such as preservation of records

The National Archives and Records Service of South Africa (NARS) is responsible for other purposes such as preservation of records.

(iv)(aa)(aaa-bbb) Release upon request for access of documented and undocumented information by the Department or any other entities who received budgetary transfers from his department?

The release upon request for access to documents is governed by PAIA, which is applicable to both the Department and its entities. Pursuant to section 14 of this legislation, the Department has developed a Manual which amongst others provides for the documents/information that the Department keeps in its possession.

The information/documents are classified according to top secret, secret, restricted and confidential. The Manual goes so far as providing the details of the information/documents which is not restricted and is therefore readily available to members of the public. The Manual is loaded on the Department's website at www.dpe.gov.za.

QUESTION NO.: 136

DATE OF PUBLICATION: 01 April 2011

136. Mr K A Sinclair (COPE-NC) to ask the Minister of Public Enterprises:

Whether he intends granting any performance bonuses to entities reporting to him based on appropriate institutional aggregates rather than to certain persons holding top positions; if not, why not; if so, how will team performance be rewarded? CW169E

Reply:

The granting of performance bonuses to any individual working in a State Owned Enterprise (SOE) is not the jurisdiction of the Minister of Public Enterprises. It is the function of the Board.

The Board executes this function in accordance with the SOE Remuneration Guidelines (2007).

QUESTION FOR WRITTEN REPLY

QUESTION NO.: 117

DATE OF PUBLICATION: 11 March 2011

117. Mr K A Sinclair (COPE-NC) to ask the Minister of Public Enterprises:

Whether Eskom will sign any new independent power producers' (IPPs) contracts in 2011 in order to assist with power supply; if not, what is the position in this regard; if so, (a) how many applications have been received to date, (b) how many have been turned down, (c) what are the reasons for the applications not being selected and (d) what goal has Eskom set in terms of the number of IPPs for the period 2011 to 2014? CW153E

REPLY

Eskom has signed five contracts under the Medium Term Power Purchase (MTPP) programme with a maximum capacity of 373MW. This was done in the 2010/11 financial year.

Eskom has also signed short-term agreements with the City of Johannesburg and Tshwane to run licenced generation plants in their jurisdiction.

(a-c) The Department of Energy is managing the procurement process for the Renewable Energy Feed-in tariff (REFIT) programme and the IPP open-cycle gas turbine programme. NERSA has allocated a portion of the tariff that Eskom collects for the REFIT programme and Eskom is ready to connect and pay for IPPs that are successful under the REFIT programme.

Eskom cannot consider any unsolicited IPP power purchase agreement requests that fall outside the ambit of the New Generation Regulations of August 2009.


(d) Eskom will support Government in meeting the IPP targets set in the Integrated Resource Plan. That includes 400MW from the MTPP programme by 2011 and 1025MW from the REFIT programme by 2013. Just over 1000MW is targeted from the Department of Energy's IPP open-cycle gas turbine programme.

QUESTION NO.:65

DATE OF PUBLICATION: 10 February 2011

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

Whether any gala events or functions were hosted by Eskom for their head office staff in the Gauteng Province during the period 1 September 2010 to 31 October 2010; if so, (a) what were the reasons for hosting the events or functions, (b) what was the nature of the event or function, (c) what were the costs involved and (d) why were the events or functions not disclosed in his reply to question 3031 on 3 December 2010? NW75E

REPLY

There were no gala events that were hosted by Eskom for its head office staff in the Gauteng province during 1 September 2010 to 31 October 2010. However, there were functions that took place during that period and details were provided in Parliamentary Response (PQ 3031) and submitted to Parliament for the Honourable Member.

QUESTION NO.:47

DATE OF PUBLICATION: 10 February 2011

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

(1) What is (a) the current amount and (b) amount in arrears owed to Eskom by the owners of Aurora Mine on the East Rand;

(2) Whether efforts have been made by Eskom to collect outstanding amounts from the owners of Aurora Mine; if not, why not; if so, what are the relevant details;

(3) Whether Eskom disconnected the electricity supply to the mine at any time since 1 January 2010; if not, why not; if so, what are the relevant details;

(4) Whether Eskom intends disconnecting the electricity supply to the mine in the future until the outstanding amounts are settled; if not, why not; if so, what are the relevant details? NW56E

REPLY

(1)(a-b)(2)(3)(4) The information requested relates to confidential commercial information or other proprietary information of third parties in the possession of Eskom. Therefore the information cannot be made public.

QUESTION NO.: 938

DATE OF PUBLICATION: 18 March 2011

938. Mr S B Farrow (DA) to ask the Minister of Public Enterprises:

(1) In respect of (a) 2008, (b) 2009 and (c) 2010, (i) how many rubber-tyred gantry (RTG) cranes were (aa) purchased for our ports and (bb) allocated to each port and (ii) what was the purchase value of each RTG crane landed and erected;

(2) Whether any research has been done (a) before and (b) subsequent to these purchases as to (i) the effectiveness and (ii) wind sensitivity of these cranes; if not, why not; if so,

(3) Whether his department will (a) phase out these cranes or (b) relocate them to less windy ports or (c) place an immediate moratorium on any future purchases of these cranes; if not, why not, in each case; if so, what are the relevant details in each case;

(4)(a) What down time has been experienced with regard to these cranes in the past 12 months as a result of wind at each of the ports where they are being used and (b) what has been the cost of the specified down time at each port? NW1056E

REPLY

(1) The table below indicates the years, the total number of Rubber-Tyred Gantry (RTG) cranes purchased and allocated to each port and the purchase value of each RTG crane.

Year

(aa) and (bb)

Ports

(i) Number of

RTG cranes

(ii)

Purchase value

(a) 2008

Port of Ngqura

10

R133,748,758

(b) 2009

Port of Ngqura

12

R163,478,431

Port of Cape Town

16

R263,610,237

(c) 2010

Port of Cape Town

12

R212,433,150

Port of Durban, Pier 1

4

R72,293,576

Total

54

R845,564,152

(2)(a-b)(i-ii) Transnet undertook extensive research before it decided to either convert the straddle operations into RTGs at the Durban Container Terminal and the Cape Town Container Terminal, or purchase of the new RTGs in the Ngqura Container Terminal. Transnet Port Terminals (TPT) appointed a Netherlands based Container Simulation Company, to undertake computer simulations of the terminals to confirm capacity, operations, impact assessments of various scenarios and productivity levels, prior to the investment being made in all the handling equipment. The computer simulations allowed for wind disruptions based on those recorded over the past 10 years which are 6 hours of wind delays per week (off-peak season) and 12 hours of wind delays per 5 days (peak season).

The RTGs are structurally able to work up to wind speeds of 90 km/h. However, the RTGs' speed reduces to 80% of normal operating speed between wind speed of 70 and 80 km/h and to 60% of normal operating speed between wind speeds of 80 and 90 km/h. The RTGs need to be parked when the wind speed reaches 90 km/h. For safety reasons the machines will not be operated at wind speeds in excess of 80 km/h to allow the operator sufficient time to park the machine.

(3) The Department of Public Enterprises will not recommend to Transnet to phase out these cranes; or relocate them to less windy ports; or place an immediate moratorium on any future purchases of these cranes for the following reasons:

· The primary benefit of the RTG system over the straddle carrier system is about increasing terminal capacity (higher container stacks) especially in cases where land (container ground slots) is constrained. This would not be possible with the continued use of the dated straddle carrier system. For example, if Transnet chose to remain with the status quo then the annual throughput capacity of 750,000 TEU's in the Cape Town Container Terminal would be a major constraint on economic growth and cause even more significant congestion, not only during the windy season.

· The decision to switch to RTGs was considered against a number of competing priorities. It was informed by detailed technical studies and computer simulations. The chosen technology is the best the market can offer. Both suppliers are well respected in the market and have robust and proven products. The switch to RTG technology in a container terminal already fitted with straddle carriers is not an overnight change. Typically, it takes between 2 – 3 years for the transformation to fully realise its ultimate objectives. This expectation is reinforced by similar case studies of other international container terminals that completed their modernisation programmes.

· The Straddle-RTG transformation journey requires an appreciation from all parties that the system has a natural lead time for change to fully take effect. It requires equipment operators to be able to adapt to the new technology with the confidence needed to fully achieve the targeted potential – that could be an 18-24 months process.

· The berth deepening sub-stream of the Cape Town Expansion Project is also a current imperative that is limiting the berthing capacity at the terminal and once complete, Cape Town Container Terminal will be a vibrant and modernised terminal.

· The ship-to-shore cranes that either load or unload containers from a vessel are more sensitive to wind than the RTGs. This is due both to their height as well as to the added torsion of their reach over the vessel. The determination of a terminal being wind-bound is made due to the cranes having to be raised due to high wind speeds and not the RTGs.

(4) As stated above the down time at the terminals due to high wind speed is caused by the cranes having to be halted and not the RTGs. In high wind speeds above 65km/h it becomes increasingly dangerous to run a ship-to-shore crane, even in creep mode. Therefore, the number below reflects the number of hours that the terminals that utilised RTGs have been wind-bound due to the ship-to-shore cranes having to be halted.

The following figures in hours are for the past 11 months:

· Durban Container Terminals (Pier 1) – 1231,5 hours;

· Ngqura Container Terminal – 1308,76 hours; and

· Cape Town Container Terminal – 746,03 hours.

Transnet will exceed its volume targets for containers in this financial year, evidence that infrastructure decisions made to increase capacity have and will continue to prove their worth.