Questions & Replies: Public Enterprises
2013-08-19
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Reply received: November 2013
QUESTION NO.: 3144
DATE OF PUBLICATION15 November 2013
3144. Mrs N W A Michael (DA) to ask the Minister of Public Enterprises:
(1) Whether his department received any funds for the Expanded Public Works Programme in the (a) 2010-11, (b) 2011-12 and (c) 2012-13 financial years;
(2) Whether any of these funds were earmarked for (a) capital or (b) infrastructure related projects; if so, (i) what are the names of these projects, (ii) where are these projects situated, (iii) what is the value of each project and (iv) how many jobs have been created by each project
(3) In each case, what process was followed to appoint project (a) implementers and (b) consultants;
(4) In each case, were funds transferred to project implementers (a) in a lump sum or (b) through progress payment;
(5) Whether any projects have been impeded due to maladministration or corruption; if so, (a) which projects have been affected and (b) what action has been taken in each case? NW3702E
Reply:
(1-5) The Department of Public Enterprises did not receive any funds or participate in the Expanded Public Works Programme.
Reply received: December 2013
QUESTION NO.: 3039
DATE OF PUBLICATION: 08 November 2013
3039. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:
(1) Whether the trustees of the Transnet Second Defined Benefit Fund (TSDBF) and the Transport Pension Fund (TPF) have taken a decision to amend the 2% rule for annual increases so that higher annual pension increases will be paid; if not, (a) why not and (b) what was the reason for this; if so, (i) what is the process to be followed, (ii) how long will it take to implement the amendments and (iii) will the funds receive a financial injection so as to ensure an annual pension increase of over 2%; if not, why not; if so, what are the relevant details;
(2) Whether (a) he and (b) Transnet are in support of the amendment;
(3) Whether the rules have been amended to give pensioners a 50% representation on the board of trustees of both funds; if not, why not; if so, from what date have these amendments been in force;
(4)(a) How is the problem of a tie of votes dealt with in terms of the amended rules and (b) when will the next election of trustees for the respective funds take place? NW3593E
Reply:
According to Transnet:
(1)(a) Yes, a rule amendment to provide for increases in addition to the statutory 2% has been approved by the Board of Trustees of the Defined Benefit Fund (TSDBF) and the Transnet Sub Fund of the Transport Pension Fund (TPF).
(b)(i) The proposed rule amendments have been approved by Transnet, and are awaiting the approval of the Minister of Public Enterprises together with the concurrence of the Minister of Finance.
(b)(ii) The rules are the final stage of formal approval as stated in (1)(b)(i) and thereafter will be applied when financial circumstances permit.
(b)(iii) There will be no financial injection to the funds to guarantee annual increases to pensions in excess of 2%. The Funds will continue to pay benefits as defined in the Rules.
(2)(a-b) Both funds are governed by the rules, and Transnet is in agreement with the amendment and has approved the amendments and recommended them to the Minister of Public Enterprises for approval together with the concurrence of the Minister of Finance.
(3) The rules in respect of the Funds have been amended to give pensioners a 50% representation on the board of trustees of both funds. These rules will be enforced with effect from 1 April 2014 for TSDBF and for the TPF have been enforced since 1 April 2013.
(4)(a) In terms of the rules of the TSDBF, the chairperson has a casting vote. No provision has been made for a tie in the rules of the TPF and the trustees will have to consider the applicable remedies available in law at such point in time if consensus cannot be reached.
(4)(b) In relation to the TSDBF, new pensioner trustees will be elected with effect from 1 April 2014. For the TPF, new pensioner trustees will be elected with effect from 1 April 2016.
Reply received: December 2013
QUESTION NO.: 2929
DATE OF PUBLICATION: 25 October 2013
2929. Mrs M Wenger (DA) to ask the Minister of Public Enterprises:
(1) How much has (a) his department and (b) each of the entities reporting to him spent on advertisements placed on the Africa News Network 7 (ANN7) news channel;
(2) Were these advertisements placed through the Government Information and Communications System? NW3480E
REPLY:
Department of Public Enterprises (DPE) and State Owned Companies (SOCs) that report to it did not spend any amount to the Africa News Network 7 (ANN7) news channel.
Reply received: December 2013
QUESTION NO.: 2896
DATE OF PUBLICATION: 25 October 2013
2896. Mr D C Ross (DA) to ask the Minister of Public Enterprises:
(1) What amount has (a) his department and (b) each of the entities reporting to him spent on advertising (i) in The New Age newspaper and (ii) on its website between 1 December 2012 and 31 August 2013;
(2) Were these advertisements placed through the Government Information and Communication System? NW3447E
Reply:
The following State Owned Companies (SOCs) reporting to the Department of Public Enterprises (DPE) did not spend any amount on advertising in The New Age newspaper and/or on their websites between 1 December 2012 and 31 August 2013, namely Broadband Infraco, SAFCOL, South African Express (SAX), South African Airways (SAA) and Transnet. However, SOCs have spent huge amount of money to other newspapers during the same period; see Annexure A (attached) http://www.pmg.org.za/rnw2896a-131203
DPE:
(1)(a)(i) R153 900
(ii) None.
(2) GCIS was consulted and advised the Department during the process.
According to Alexkor:
(1) (b)(i) R15.732
(ii) None.
(2) Not applicable.
According to Denel:
(1) (b)(i) R62 100
(ii) None.
(2) Not applicable.
According to Eskom:
(1)(b)(i) R1 065 974
(ii) None.
(2) Not applicable.
Reply received: November 2013
QUESTION NO.: 2807
DATE OF PUBLICATION: 18 October 2013
2807. Mr N D du Toit (DA) to ask the Minister of Public Enterprises:
(1) What amount has (a) his department and (b) each of the entities reporting to him spent on advertisements placed on the SABC 24 hour news channel;
(2) Were these advertisements placed through the Government Communication and Information System? NW3312E
Reply:
(1)(2) The Department of Public Enterprises (DPE) and its State Owned Companies did not spend money on the SABC 24 hour news channel.
Reply received: November 2013
QUESTION NO.: 2788
DATE OF PUBLICATION: 18 October 2013
2788. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:†
Why is Transnet, and specifically the Passenger Rail Agency of South Africa (Prasa), going ahead with billions of rands' worth of expansion and capital expenditure programmes while the proven deficiencies in the Transnet Second Defined Benefit Fund (TSDBF) and the Transport Pension Fund (TPF) are not being supplemented so that pensioners who helped to build up Transnet may receive more than 2% increase per year? NW3292E
Reply:
The Passenger Rail Agency of South Africa (Prasa) reports to the Department of Transport (DoT), therefore, DoT is best positioned to provide a response.
Reply received: November 2013
QUESTION NO.: 2744
DATE OF PUBLICATION: 18 October 2013
2744. Mr K J Mileham (DA) to ask the Minister of Public Enterprises:
(a) Which properties owned by Transnet and/or its subsidiaries are classified as heritage buildings and (b) what steps does each specified owner intend to take to ensure the continued preservation of these properties? NW3244E
Reply:
The National Heritage Resources Act, 1999 places the onus on the South African Heritage Resources Agency (SAHRA)/Provincial Heritage Resources Agency in terms of sections 27, 30 and 31 of Act 25 of 1999, to identify, compile and maintain a heritage register with a list of the heritage resources that are considered conservation-worthy. The assessment criteria is set out in section 3(3) and prescribed under section 7 of the Act. Therefore, a classified list of heritage buildings in the country can be obtained as indicated above from the SAHRA.
Reply received: December 2013
QUESTION NO.: 2742
DATE OF PUBLICATION: 15 October 2013
2742. Mr KS Mobu (DA) to ask the Minister of Public Enterprises:
What are the expected benefits of the Transnet infrastructure roll-out programme in Saldanha Bay with regard to (a) the establishment of an industrial development zone, (b) job creation in the area and (c) economic stimulation? NW3242E
Reply:
(1)(a) The following will be the benefits of the Transnet infrastructure roll-out programme in Saldanha Bay with regards to the establishment of an Industrial Development Zone (IDZ):
· Through the IDZ, the proposed legislation pertaining to a Customs Cleared Area (CCA) can also be applied to land owned by Transnet (similar to a bonded area) which will create an enabling environment (facilitating the ease of doing business) for the establishment of an Oil and Gas Services Complex focussed on the offshore oil and gas sector. The complex will comprise of a Supply Base, Maintenance and Repairs facilities and a liquid Bulk terminal to accommodate bunkering, storage, blending, and transhipments.
· The IDZ will facilitate the establishment of back of port logistics aimed at servicing the oil and gas industry in respect of light to medium industry to support the supply base and repairs and maintenance facilities.
· Through concerted joint and integrated planning efforts, the port and the IDZ will be able to establish an Offshore Oil and Gas Services Complex (similar to the Australian marine repair complex) focusing on the supply facilities, maintenance and repairs and bulk liquid petroleum facilities.
· The port has re-prioritised its capital programme to meet the demand for critical port infrastructure to be in a position to accommodate offshore vessels (including rigs and drill ships) in need of maintenance and repair activities, supply base services and bulk petroleum liquid facilities. The Port had to hold back on some projects to ensure integration and alignment with the Saldanha Bay IDZ (which has now received its Operator Licence.
(b) The benefits of the Transnet infrastructure roll-out programme in Saldanha Bay with regard to job creation is due to its strategic location and deep water berth in relation to the West African Offshore Oil and Gas exploration activities. Vessels call at the port for a repair and maintenance activities and require extensive engineering skills (welders, electricians, boilermakers, millwrights, fitters and turners, mechanics (diesel and petrol), riggers, auto-electricians, sheet metal workers etc).
The number of jobs created per rig range from between 100 – 700 direct jobs per rig depending on the extent of the maintenance and repairs required.
The ship repair activities also create indirect jobs within the hospitality, catering, laundry services, transport, security, entertainment, and health and safety sectors.
This is an opportunity to uplift and improve skills development and competence levels of local people and thereby improving the quality of life of the local community, alleviate poverty in the region.
(c) By targeting the offshore oil and gas industry, South Africa will be gaining a market share in the global oil and gas sector, which contributes to the economic growth of not only the area, but also at national level. Being a targeted sector this industry can boost GDP and positively impact the trade balance of the SA economy.
Reply received: November 2013
QUESTION NO.: 2647
DATE OF PUBLICATION: 11 October 2013
2647. Mr M Swart (DA) to ask the Minister of Public Enterprises:
(1) Whether any performance bonuses were paid to employees in his department in the 2012-13 financial year; if so, what is the total (a) number of employees that received bonuses and (b) amount paid out by his department for these bonuses;
(2) What percentage of outputs were achieved by his department as measured against each target set in its Annual Performance Plan in the 2012-13 financial year? NW3136E
REPLY
(1)(a) Performance bonuses were paid for 2012-13 financial year - 108 employees. Only non-SMS members received bonuses.
(b) R1 979 924. 90.
(2) More than 67% of output was achieved by the Department of Public Enterprises as measured against each target set out in its Annual Performance Plan in the 2012-13 financial year.
Reply received: December 2013
QUESTION NO.: 2582
DATE OF PUBLICATION: 11 October 2013
2582. Mr D C Smiles (DA) to ask the Minister of Public Enterprises:
How much has (a) his department and (b) each of the entities reporting to him spent on promotional events organised by The New Age newspaper between 1 September 2012 and 30 August 2013? NW3069E
Reply:
(a) Department of Public Enterprises (DPE) and the following State Owned Companies (SOCs) that report to it did not spend money on promotional events organised by The New Age newspaper between 1 September 2012 and 30 August 2013, namely Alexkor, SAFCOL, South African Airways (SAA) and South African Express (SAX). However, SOCs have spent huge amount of money to other newspapers during the same period; see Annexure A (attached link : http://www.pmg.org.za/rnw2582a-131203
According to Broadband Infraco:
(b) They have spent the following amounts per engagement:
• Industry Breakfast Briefing event with former Minister of Communications
at Sandton Convention Centre on Thursday 25th April 2013, a table of ten (10) for R7, 130.00; and
• Breakfast Briefing event with the current Minister of Communications on
Monday 30th September 2013, a table for ten (10) for R7,130.00.
According to Denel:
(b) They purchased 2 tables for 20 people to attend the Minister of Public Enterprises' Business Briefing held in November 2012 and the amount was R14 261.
According to Eskom:
(b) The total amount they spent during the period in question is R6 680 777.58.
The benefits for Eskom include a speaking slot during the breakfast, as well as advertisement space in the The New Age. In addition, the Business Briefing Breakfasts afford Eskom with an opportunity to educate participants and viewers on the need to conserve electricity, and to inform them on progress Eskom is making in this area.
According to Transnet:
(b) They have spent R 18 042 781.00 on promotional events organised by The New Age newspaper between 1 September 2012 and 30 August 2013. These promotional events relate to the SABC/New Age Business Briefing sessions.
Reply received: September 2013
QUESTION NO.: 2274
DATE OF PUBLICATION: 23 August 2013
2274. Ms B D Ferguson (Cope) to ask the Minister of Public Enterprises:
Whether any contractors have gone into liquidation as a result of the problems at Medupi power station; if not, what is the position in this regard; if so, (a) how many, (b) how does this affect the completion of the plant and (c) what are the further relevant details? NW2706E
Reply:
(a-c) According to Eskom, they deal directly with their main contractors, and as regards the Medupi Project, none of the main contractors have gone into liquidation. In the event that Eskom does become aware of an individual contractor becoming seriously financially stressed, the company will consider the available contractual support mechanisms to assist, taking commercial and other risks into account.
Reply received: September 2013
QUESTION NO.: 2273
DATE OF PUBLICATION: 23 August 2013
2273. Ms B D Ferguson (Cope) to ask the Minister of Public Enterprises:
Whether Eskom has secured funding for all of its programmes that are needed to curb electricity demand; if not, what is the position in this regard; if so, what are the relevant details? NW2705E
Reply
According to Eskom:
There are two types of interventions in place at Eskom for curbing electricity demand.
Firstly, Eskom has the Demand Response Interventions (DRI) which include the incentive Demand Market Participation (DMP) programme targeted at industrial and municipal customers to reduce electricity consumption temporarily during times of power system constraint in return for compensation. NERSA has granted Eskom funding of R1,856 billion over the next two years in order to fund the DMP programme.
Secondly, Eskom has the Integrated Demand Management (IDM) interventions which are geared towards demand reduction through a range of energy efficiency incentive programmes for businesses and homes. Eskom applied to NERSA for funding of R13,090 billion over the next five years for its IDM programme. The funding was required in order to achieve a demand reduction of 1 730 Megawatts (MWs).
In response NERSA granted Eskom an amount of R5,183 billion, which leaves a shortfall of R7.907 billion. Eskom is in discussions with the Government in relation to this matter.
Reply received: September 2013
QUESTION NO.: 2213
DATE OF PUBLICATION: 23 August 2013
2213. Mr J F Smalle (DA) to ask the Minister of Public Enterprises:
(1) What are the reasons for the increase in cost for Transnet's new pipeline between Durban and Gauteng;
(2) How will the increase in costs be funded;
(3) How will future increase in costs of this project be prevented;
(4)(a) What process was followed in the awarding of the tender for the construction of the pipeline and (b) who tendered bids for the construction? NW2631E
Reply:
(1) According to Transnet, the increase in costs of the company's new pipeline between Durban and Gauteng is due to the complexity of the project, which extends over long distances, going through different terrains (49 main river crossings, 95 km of major wet land crossings and 169 trenchless crossings) and subject to a number of legislative and regulatory requirements. Factors to be considered were the number of individual properties involved, negotiations with landowners and local community leaders, (servitudes rather than expropriation) as well as industrial actions/unrest and the resultant impact on productivity. These factors impacted significantly on the schedule and delivery. In addition to the schedule changes, the Transnet Board approved the revised cost estimates for the NMPP to R23.4 billion in November 2010. The revised schedule and cost are attributed to a number of factors including engineering and EIA-driven changes in scope, a construction schedule that was too tight at the outset, and significant increases to commodity (steel) and equipment costs compared to original estimates. The approved R23.4 billion escalation mentioned above has not changed since.
(2) The total project including the increase in costs is funded from Transnet's operations and from borrowings in the global and local market on the strength of the company's balance sheet. Transnet has received a levy of R4,5 billion (including taxes) from the National Treasury (administered by the Department of Energy) for the NMPP over a three-year-period in terms of the grant funding agreement between Transnet and the Department of Energy (DoE) in lieu of the security of supply requirement change in original scope (from a 16" to a 24' diameter). The grant fund levy reduces the Regulatory Assets Base (RAB) which will result in lower tariffs when the pipeline is in use.
(3) The project is being managed through a strict governance process spearheaded by a sub-committee of the Transnet Executive Committee chaired by the Transnet Group Chief Executive. Lessons learnt have been incorporated to ensure prudent management of project costs.
(4)(a) A call for Expressions of Interest (EOI) was advertised in a number of newspapers in March 2007 (Sunday Times, Business Day, City Press, The Star, etc). Based on the evaluation of the EOI, tenders were issued to shortlisted contractors with a closing date of 31 March 2008. These tenders were evaluated and a preferred tenderer was selected.
(4)(b) The following entities bid for the construction:
· GLMC-NMPP Joint Venture (Grinaker LTA, McConnell Dowell, Consolidated Contractors International Company LTD)
· SICIM S.P.A
· Group Five – Amec Spiecapag JV
· Mandlethu Civils
· CSC Pipelines JV (Cycad Pipelines, Shearwater Construction Pty Ltd, Cerimele Construction Company)
· WBHO & Insitu JV (WBHO and Insitu Pipelines)
· Covec SA Pty LTD
· Imbani JV (17th Chine Metallurgical Construction Company and Daqing Oilfield Construction Company Ltd)
/
Reply received: September 2013
QUESTION NO.: 2139
DATE OF PUBLICATION: 16 August 2013
2139. Mrs J F Terblanche (DA) to ask the Minister of Public Enterprises:
(1) Whether any staff member in his department (a) performed work in addition to the responsibilities related to his or her work, outside normal working hours, in the (i) 2008-09, (ii) 2009-10, (iii) 2010-11, (iv) 2011-12 and (v) 2012-13 financial years and (b) has been performing such work during the period 1 April 2013 up to the latest specified date for which information is available; if not, how is it determined whether such work is being performed or not; if so, in each case, (aa) how many staff members and (bb) in what job or work categories are the specified staff members employed;
(2) Whether approval for such work was obtained in each case; if not, what are the relevant details; if so, (a) what is the policy of his department in this regard, (b) by whom are such applications considered and approved, (c) how many contraventions of this policy were brought to the attention of his department in the (i) 2010-11, (ii) 2011-12 and (iii) 2012-13 financial years and (d) what steps have been taken against transgressors? NW2561E
REPLY
The information required in relation to the staff performing work in addition to the responsibilities related to his or her work, outside normal working hours, is provided in the tables below.
Table 1 below indicates the number of staff performing work in addition to their responsibilities in the department.
| (1)(a) Whether any staff member in his Department (a) performed work in addition to the responsibilities related to his or her work, outside normal working hours? | (i)(aa-bb) in 2008-09, and type of job or work category | (ii)(aa-bb) in 2009-10, and type of job or work category | (iii)(aa-bb) in 2010-11, and type of job or work category | (iv)(aa-bb) in 2011-12, and type of job or work category | (v)(aa-bb) and in the 2012-13 financial years, and type of job or work category | (b) and has been performing such work during the period 1 April 2013 up to date |
| Yes | 2 (Legal and Finance) | 3 (Legal, Finance and Skills Development) | 5 (Legal, FinancialAnalysis and Youth Development) | 5 (Legal and Finance) | 14 (Legal, Finance, Engineering (manufacturing ) Monitoring and Evaluation, Youth Development, Project Administration, Skills Development and Energy sector. | Same as in (v) (aa-bb) |
Table 2 below indicates the number of the staff members that contravened the policy.
| (2)(a) Whether approval for such work was obtained in each case; if not, what are the relevant details; if so, what is the policy of his Department in this regard? | (b) By whom are such applications considered and approved | (c)(i) How many contraventions of this policy were brought to the attention of his Department in the 2010-11 financial year | (ii) In 2011-12 | (iii) And the 2012-13 financial year | (d) And what steps have been taken against transgressors? |
| The Public Service Act is applied. | Minister or any person delegated by the Minister. | 5 | 4 | 14 | None, investigations are underway. Awareness will be created; disciplinary action taken for all those who will be contravening the Act henceforth and the process to pay back the remuneration received into revenue will also be facilitated. Ethics Committee comprising of HR, Risk, Legal and Internal Audit will be established. |
Reply received: August 2013
QUESTION NO.: 2106
DATE OF PUBLICATION: 16 August 2013
2106. Mrs P C Duncan (DA) to ask the Minister of Public Enterprises:
(a) Does his department prepare quarterly interim financial statements and (b) are these statements considered by the Audit Committee? NW2528E
Reply:
(a) Yes, the Department prepares quarterly interim financial statements which are signed-off by the Director-General.
(b) The statements were not previously presented to the Audit Committee. However, going forward these statements will be submitted to the Audit Committee for review.
Reply received: September 2013
QUESTION NO.: 2026
DATE OF PUBLICATION: 16 August 2013
2026. Dr C P Mulder (FF Plus) to ask the Minister of Public Enterprises:†
Whether, in the light of an application for the certification of a class action against Transnet by the pension beneficiaries of the Transnet Second Defined Benefit Fund (TSDBF) and Transport Pension Fund, subsequent to which an amount of R85 billion will be claimed, he will now consider a financial injection into the fund in order to ensure increased pensions, inflation-linked annual increases and annual bonuses; if not, why not; if so, what are the relevant details? NW2378E
Reply
According to Transnet:
The application for certification of a class action and leave to form a class action has not been heard yet. The Respondents are opposing the application, therefore it is not known whether it will be granted or not. Consequently, this matter is sub-judice and it will be premature to comment on the impact of the R85 billion claim on the pensioners and/or the Funds. The Funds will continue to pay benefits in terms of the existing Rules of the Funds.
Reply received: August 2013
QUESTION NO.: 1971
DATE OF PUBLICATION: 08 August 2013
1971 Mr PJ Groenewald (FF Plus) to ask the Minister of Public Enterprises:
(1) Who is the contractor who performed welding of inferior quality on the boilers at the Medupi power plant?
(2) Whether any continuous inspections of the welding on the boilers was done by (a) Eskom and (b) Hitachi; if not, why not; if so, why was the inferior quality of the welding not addressed.
(3) What steps have been or are being taken against the contractor who produced welding of inferior quality?
(4) When will the Medupi power plant be operational for the first output of electricity?
(5)Whether he will make a statement on the matter?
Reply:
According to Eskom:
(1) It concluded a contract with Hitachi Power Africa and Hitachi Power Europe GmbH for the execution of boiler works at the Medupi Power Station.
(2)(a) There are regular on and off-site inspections. Hitachi appointed a Third Party Inspectorate, which undertakes the inspections on and off-site in order to ensure compliance with specifications and relevant codes.
The off-site inspections are carried out by an Approved Inspection Authority (AIA). The defects in the off-site procedures were detected after the witnessing and approval of procedures by an AIA
The on-site inspections are conducted by TUV as stated above, and by Eskom directly. Various tests are conducted from time to time for purposes of determining the quality of the works carried out.
Hitachi is responsible for the execution of the boiler works as stipulated in the contract. Notwithstanding that certain works are carried out by sub-contractors, Hitachi remains responsible for ensuring compliance with the terms of the contract. Ensuring compliance with the contract would necessitate inspection of the works carried out.
(2)(b) The matter of the inferior quality of welding is being addressed.
The issue of welding without an approved welding procedure was identified by TUV and Eskom representatives. A Notice of Defect was issued by Eskom and a non-conformance report was issued by the Third Party Inspectorate.
Further, Hitachi has provided written commitment that the welding issues identified will be addressed expeditiously without causing further delays to the original date of December 2013.
(3) Eskom has contractual remedies against Hitachi under the contract (who in turn may have recourse against its sub-contractors under the relevant sub-contract agreements). These remedies are being pursued and include issuing a Notice of Defect and possible claims for damages.
(4) The synchronisation of Unit 6 is expected in the second half of 2014.
(5) No statement will be made.
Reply received: August 2013
QUESTION NO.: 1834
DATE OF PUBLICATION: 26 July 2013
1834. Dr D T George (DA) to ask the Minister of Public Enterprises:
(1) How many consultants has his department contracted and/or appointed (a) in the (i) 2009-10, (ii) 2010-11, (iii) 2011-12 and (iv) 2012-13 financial years and (b) since 1 April 2013;
(2) How many consultants contracted and/or appointed by his department (a) in the (i) 2009-10, (ii) 2010-11, (iii) 2011-12 and (iv) 2012-13 financial years and (b) since 1 April 2013 are former officials of his department and/or former public servants? NW2182E
Reply:
(1) (a-b) The table below indicates years' and the number of consultants used In the Department of Public Enterprises.
| Year | Number of consultants |
| 2009 - 2010 | 125 |
| 2010 - 2011 | 62 |
| 2011 - 2012 | 55 |
| 2012 - 2013 | 63 |
| 2013 - 2014 | 1 |
(2) (a-b) The Department of Public Enterprises did not appoint or contract former officials of the department and/or former public servants as consultants.
Reply received: August 2013
QUESTION NO.: 1800
DATE OF PUBLICATION: 26 July 2013
1800. Mr S J F Marais (DA) to ask the Minister of Public Enterprises:
What (a) buildings under the administration of (i) his department and (ii) entities reporting to him are national key points and (b) criteria were used to classify them as such? NW2147E
Reply:
As you would be aware, the Minister of Police is responsible for national key points. The Minister of Police previously informed Parliament through an answer that he has established a Task Team to audit all key points. He also indicated that he will report to Parliament once this process is finalised.
Reply received: July 2013
QUESTION NO.: 1539
DATE OF PUBLICATION: 14 June 2013
1539. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:
(1) How will Transnet, the Transnet Second Defined Benefit Fund and the Transport Pension Fund finance the legal costs in the court case involving a class action claim that has been instituted against them;
(2) whether any of the parties will make use of legal insurance policies; if not, why not; if so, what are the relevant details;
(3) how will Transnet, in the light of the magnitude of this claim, be able to negotiate loans for the R300 billion expansion programme;
(4) (a) when and (b) with which (i) local, (ii) multinational and (iii) foreign institutions (aa) have loan applications been submitted and (bb) will loan applications be submitted? NW1886E
Reply:
According to Transnet:
(1) A class action claim has not been instituted against them, the Transnet Second Defined Benefit Fund (TSDBF) or the Transport Pension Fund (TPF). Transnet has not been sued for payment of any amount. The current case is an application to the North Gauteng High Court in Pretoria to permit the applicants to approach the general body of pensioners of the TSDBF and the TPF in order to establish and define a class, in order that the class can launch an action against several defendants (including Transnet).
Transnet is however responding to the application, as are the TSDBF and TPF. Transnet is funding the current legal costs from operational cash flows. In addition, the legal costs of the TSDBF and TPF come from the operating budgets of the TSDBF and the TPF, which in the case of TSDBF is funded 100% by Transnet, while in the case of the TPF the operating budget is funded by the respective principal employers, being Transnet, PRASA and SAA.
(2) No. See response in paragraph (1) above.
(3) Notwithstanding the fact that no class action has been instituted, in the event that an action is instituted, it will significantly impact Transnet's ability to negotiate loans for the R300 billion expansion programme.
(4) Transnet is not in a position to provide the information requested at this stage given the ongoing commercial discussions between them and various financial institutions.
Reply received: June 2013
QUESTION NO: 1437
DATE OF PUBLICATION: 07 June 2013
1437. Mr E J Marais (DA) to ask the Minister of Public Enterprises:
(1) What does Eskom plan to spend on the upgrading of the bulk electrical distribution network in the Saldanha Bay Municipality;
(2)(a) how will Eskom roll out this planned upgrading of infrastructure over the next two years and (b) which specific projects will be put in place for this purpose? NW1780E
Reply:
According to Eskom:
(1-2) With regard to the electrical distribution network and ensuring optimal investment, Eskom's approach to new capital investment is informed by the requirements of the system. The process is that a customer first commits to a development which will require significant infrastructure and therefore significant investment on Eskom's part. Eskom then assesses the extent of infrastructure required and related investment, and develops a plan that will ensure that the area has sufficient capacity and consistent power supply. In case of Saldanha Bay Municipality, there are no plans to invest in upgrading the current distribution network as there are no firm commitments from developers.
Reply received: June 2013
QUESTION NO: 1423
DATE OF PUBLICATION: 07 June 2013
1423. Mr K S Mubu (DA) to ask the Minister of Public Enterprises:
What amount did his department spend on (a) promotional items and (b) cocktail receptions on the occasion of his 2013 Budget Vote debate? NW1765E
Reply:
(a-b) The amount spent by the Department on promotional items and cocktail receptions on the occasion of the 2013 Budget Vote debate is not audited.
Reply received: June 2013
QUESTION NO.: 1331
DATE OF PUBLICATION: 31 May 2013
1331. Mrs H Lamoela (DA) to ask the Minister of Public Enterprises:
(1) Whether (a) he, (b) his deputy minister, (c) any specified officials and (d) any other
persons have been issued with a government or official credit card (i) in the (aa) 2011-12 and (bb) 2012-13 financial years and (ii) since 1 April 2013; if so, in each instance, what is the (aaa)(aaaa) name and (bbbb) job title of each person to whom a credit card was issued, (bbb) credit limit, (ccc) outstanding amount as at the latest specified date for which information is available, (ddd) monthly expenses incurred for each month since receiving the credit card, (eee) reason for such a person being issued with a credit card and (fff) uses that such a credit card is intended for;
(2) whether the credit limit of any specified credit card was exceeded at any time since
it was issued; if so, (a) whose credit cards are over the limit and (b) what is the reason for the credit card exceeding the limit? NW1661E
Reply:
(1)(a)(b)(c) The Minister, Deputy Minister and Director-General have been issued with official credit cards.
(d) No other officials have been issued with an official credit card.
(i) (aa-cc) These were issued to the above-mentioned in the 2011/12 financial year and they are applicable to the current date.
(aaa)(aaaa-bbbb) Mr Malusi Gigaba - Minister
Mr Ben Martins - Deputy Minister (until to 2012)
Mr Tshediso Matona - Director-General
Mr Bulelani Magwanishe - Deputy Minister (April 2013)
(ccc) There is a R30 000 collective monthly credit limit on the three cards (no limit per individual).
(ddd) Mr Malusi Gigaba – Minister – R1 009.00 (payment due at the end of June).
Mr Tshediso Matona – Director-General – R1003.00 (Payment due at the end of
June). Mr Bulelani Magwanishe – Deputy Minister – R0.00.
(eee) See annexure A – the expenditure includes renewal of subscriptions on each card.
(fff-ggg) Incidental parking or any emergency situation which may arise while out of the office.
(2) None of the credit cards issued have exceeded the limit.
Reply received: June 2013
QUESTION NO.: 1293
DATE OF PUBLICATION: 31 May 2013
1293. Mr J Smalle (DA) to ask the Minister of Department of Public Enterprises:
(a) Which substations supply electricity to the Nandoni pipeline and (b) what is currently the spare capacity of those substations? NW1623E
Reply:
According to Eskom:
(a-b) There are three main Eskom sub-stations in Limpopo supplying the Nandoni Pipeline at different points of the pipeline. The 2012/13 peak load and spare capacity of the three main sub-stations are reflected in the table below:
| Substation | 2012/13 Peak load | 2012/13 | |
| 1 | Malamulele 132/22kV 3x20MVA | 26 MVA | 34 MVA |
| 2 | Nesengani 132/11kV 2X20MVA | 6 MVA | 34 MV |
| 3 | Ribolwa 132/22kV 1x20MVA | 15 MVA | 5 MVA |
Reply received: June 2013
QUESTION NO.: 1277
DATE OF PUBLICATION: 31 May 2013
1277 Dr G W Koornhof (ANC) to ask the Minister of Public Enterprises:
Whether Transnet is on track to accelerate the migration from road to rail over the next two decades in terms of (a) time frames and (b) budget; if so, what are the relevant details? NW1556E
Reply:
According to Transnet:
(a-b) It is on track in terms of budget to accelerate the migration from road-to-rail over the next two decades.
The Market Demand Strategy (MDS), whose objectives also include plans to support the migration from road to rail, is expected to deliver 350 million tons of traffic on rail by 2019. Whilst the strategic intent of the MDS remains, growth has been constrained by the slowdown in global and local economic activity. The slow economic growth in South Africa, especially since the second half of 2012, in conjunction with external factors such as declining commodity prices, and labour unrest in the mining, road and agricultural sectors have negatively impacted freight available for transport and – in certain sectors – have increased competition from road. On the other hand, high fuel and electricity prices placed cost pressures on all operators in the transportation industry.
Reply received: June 2013
QUESTION NO.: 1253
DATE OF PUBLICATION: 24 May 2013
1253. Adv A de W Alberts (FF Plus) to ask the Minister for the Public Enterprises:
In light of the Government's aim to use the pension funds of state-owned entities in order to bring about greater investment in the economy, (a) on which Act or legal prescript is she relying so as to direct this request or instruction to the pension funds of state-owned entities to invest more in the economy without prejudicing the independent administration of these funds, (b) which pension funds have been earmarked in this regard, (c) what kinds of investments are envisaged in terms of this plan and (d) what do the (i) timescales and (ii) project plan of this initiative entail? NW1500E
Reply:
(1)(a-d) The Department of Public Enterprises' (DPE) shareholder oversight mandate is premised, amongst others, on the Department's ability to encourage the State Owned Companies (SOC) to consider alternative sources of finance and budget support in order to minimise the use of implicit or explicit guarantees for SOC borrowings. The reality of the SOC borrowing is that funding from the financial markets has shrunk. And as such SOC are compelled to develop domestic resource mobilisation strategy which includes raising capital through sale of bonds in the Bond Market and as well as consideration of raising capital from SOC pension funds to fund the roll out of the economic infrastructure.
Many countries around the world, in particular, those with the same shareholder oversight function as DPE, are using their SOC pension funds as well as existing public pension reserves as alternative sources to fund their SOC investment programmes.
This trend is parallel to the growing shift towards fully-funded, privately managed pension systems, which has in turn heightened the role of pension funds in the broader economy compared to retirement income arrangements.
Given the current fiscal constraints in South Africa being as a result of competing social priorities, the Department was requested to initiate a joint process with the SOC within the DPE portfolio to consider the utilisation of pension funds in order to leverage their contribution in SOC investment in the economy. The process is still at its infancy stage and details on the feasibility and implications on both the Department and the SOC will be shared with Parliament and other stakeholders as the process unfolds.
Reply received: June 2013
QUESTION 1244 FOR WRITTEN REPLY
1244. Ms E More (DA) to ask the Minister of Trade and Industry:
What amount has his department spent on (a) catering and (b) entertainment in the (i) 2012-13 financial year and (ii) since 1 April 2013? NW1490E
Response:
Entertainment is defined as expenditure incurred by senior staff in the performance of their duties, and includes but is not limited to expenses during lunch and dinner meetings between staff, foreign delegations and other individuals outside the public sector.
Catering is defined as expenditure incurred by the provision of food and refreshments for official events, and includes but is not limited to the provision of such services at workshops, conferences, "bosberade", lekgotla's, meetings, interviews and in-house training courses.
Spending on catering and entertainment by the dti is informed by the policy of the dti on Entertainment and Catering, as reviewed during 2011/12 and approved by the Director-General on 28 August 2011. The approval of related expenditure also takes place in accordance with the departmental procurement policies and the departmental Financial Delegations of Power. The spending should be read in the context of the dti having an average of 1334 employees and 7 divisions, whose operations necessitated spending from time to time on catering and entertainment.
The majority of the expenses on catering and entertainment were incurred in respect of events that supported the strategic objectives of the dti, which include but are not limited to the following objectives:
· The promotion of investments and exports, where intensive consultation is required with local and foreign stakeholders;
· Meetings and negotiations with stakeholders and clients in respect of the implementation of the industrial policy, with specific reference to IPAP 2;
· Meetings with entities and the public in respect of the regulation responsibilities of the dti through its CCRD division;
· Initiatives to promote SMME development and the BBBEE strategy of the dti, inclusive of the "Taking the dti to the people" campaigns;
· Meetings in respect of the promotion and regulation of the incentive schemes of the dti, and the various industrial development zones; and
· Marketing initiatives and strategies of the dti in terms of its programmes and projects via the Communications and Marketing unit.
The spending of the dti for the 2012/13 and 2013/14 financial years in respect of (a) catering and (b) entertainment is as follows:
| Item | 2012/13 financial year | 2013/14 financial year (up to 27 May 2013) |
| (a) Catering | 4 450 699,48 | 553 580,32 |
| (b) Entertainment | 1 306 968,64 | 13 194,40 |
Catering expenses were mainly in respect of the following programmes / projects:
| Event | 2012/13 financial year | 2013/14 financial year |
| Contralesa roll-out | 1 300 831 | |
| Year of Cooperatives | 334 850 | |
| Youth programmes | 258 971 | |
| Economic policy dialogue | 244 608 | |
| FER Programmes | 185 600 | |
| Taking the dti to the people | 167 180 | |
| IDZ public participation | 121 225 | |
| World AIDS day | 105 640 | |
| Proudly South Africa | 110 637 | |
| Secretary to Parliament | 45 750 |
Entertainment expenses were mainly incurred by mission offices, on programmes / projects such as the following:
| Event | 2012/13 financial year |
| 40th Anniversary of bilateral Chamber of commerce, Buenos Aires | 72 829 |
| SA Pavilion, New York | 71 617 |
| Official dinner, Geneva | 44 605 |
| Marketing of SA , Kinshasa | 36 858 |
| Film festival Toronto | 36 526 |
| Wine Exhibition, Moscow | 28 271 |
| Investment seminar of Harlem Chamber of commerce, New York | 27 268 |
| EMIA ITI | 23 331 |
| Defense market, Seoul | 21 217 |
Reply received: May 2013
Reply received: June 2013
QUESTION NO.: 1234
DATE OF PUBLICATION: 24 May 2013
1234. Mr M M Swathe (DA) to ask the Minister of Public Enterprises:
What amount has his department spent on (a) catering and (b) entertainment in the (i) 2012-13 financial year and (ii) since 1 April 2013? NW1480E
Reply:
(a-b)(i) The Department spent R1 340 646.70 on catering and R32 542.34 on social events during the 2012/13 financial year.
(ii) The information is not audited as yet.
Reply received: September 2013
QUESTION NO.: 1099
DATE OF PUBLICATION: 17 May 2013
1099. Mr S Esau (DA) to ask the Minister of Public Enterprises:
(1) What total amounts has (a) his department and (b) each specified entity reporting to him spent on (i) print and (ii) broadcast advertising in the (aa) 2009-10, (bb) 2010-
11, (cc) 2011-12 and (dd) 2012-13 financial years;
(2) in each case, (a)(i) by which radio or television station were the advertisements
broadcast and (ii) in which newspapers were the advertisements published in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12 and (dd) 2012-13 financial years and (b) at
what cost in each specified case? NW1332E
Reply:
The information on the amount used on print and broadcast advertising by the Department and State Owed Companies (SOC) reporting to it, is provided as indicated below.
Department of Public Enterprises (DPE)
(1)(a)(i-ii)(aa-dd)(2)(a)(iii)(aa-dd)(b) With regard to DPE see annexure A attached.
According to Alexkor:
(1)(b)(i-ii)(aa–cc) Due to Alexkor's financial challenges during the 2009/10, 2010/11 and 2011/12 financial years, no material expenses were incurred with regard to any broadcast advertising.
(1)(b)(i-ii)(dd) The only payment made was R20 916 in the 2012/13 financial year with regard to an advertisement placed profiling DPE and its SOC.
(2)(a)(i-ii)(aa–cc) and (b) Due to financial challenges during 2009/10, 2010/11 and 2011/12 no advertisements were placed.
(2)(a)(i-ii)(dd) and (b) The one advertisement was placed in the Financial Mail, as part of profiling DPE and its SOC in 2012/13.
According to Broadband Infraco:
(1)(b)(i-ii)(aa-cc) and 2(a)(i)(ii)(aa-cc) and (b) For the start-up financial years 2009/2010, 2010/2011 and 2011/2012 Broadband Infraco did not undertake any significant above the line brand building campaigns.
(1)(b)(i-ii)(dd) and (2)(a)(i-ii)(dd) and (b) Broadband Infraco undertook a significant brand repositioning campaign in the 2012/2013 financial year, see annexure B attached.
(1)(b)(i-ii)(aa-dd) (2)(a)(iii)(aa-dd)(b) With regard to Denel please see annexure C attached.
(1)(b)(i-ii)(aa-dd)(2)(a)(iii)(aa-dd)(b) With regard to Eskom please see annexure D attached.
According to SAFCOL the amounts spent are as follows:
(1)(b)(i)(aa) R183 554.41 on print advertising for the 2009/10 financial year.
(1)(b)(i)(bb) R270 766.65 on print advertising for the 2010/11 financial year.
(1)(b)(i)(cc) R168 417.41 on print advertising for the 2011/12 financial year.
(1)(b)(i)(dd) R 138 211.92 on print advertising for the 2012/13 financial year.
(1)(b)(ii)(aa-dd) No broadcast advertising was placed during the 2009/2010, 2010/2011, 2011/2012 and 2012/2013 financial years.
(2)(a)(i)(b) No radio or TV advertisements were placed during the 2009/2010, 2010/2011, 2011/2012 and 2012/2013 financial years.
(2)(a)(ii)(b) Print advertisements for the 2009/10, 2010/11, 2011/12 and 2012/13 financial years were placed in various publications (See Annexure E attached).
(1)(b)(i-ii)(aa-dd)(2)(a)(iii)(aa-dd)(b) With regard to South African Airways, see Annexure F attached.
(1)(b)(i-ii)(aa-dd)(2)(a)(iii)(aa-dd)(b) With regard to South African Express Airways, see Annexure G attached.
According to Transnet the amounts spent are as follows:
(1)(b)(i)(aa) R17 923 000 on print advertising during the 2009/10 financial year.
(1)(b)(i)(bb) R22 587 000 on print advertising during the 2010/11 financial year.
(1)(b)(i)(cc) R43 829 000 on print advertising during the 2011/12 financial year.
(1)(b)(i)(dd) 47 295 398 on print advertising during the 2012/13 financial year.
(1)(b)(ii)(aa) No expenditure on broadcast advertising was incurred in the year.
(1)(b)(ii)(bb) R5 178 359.50 on broadcast advertising during the 2010/11 financial year.
(1)(b)(ii)(cc) R27 758 309.68 on broadcasting advertising during the 2011/12 financial year.
(1)(b)(ii)(dd) R76 000 on broadcasting advertising during the 2012/13 financial year.
(2)(a)(i)(aa) No expenditure on broadcast advertising was incurred during the 2009/10 financial year.
(2)(a)(i)(bb) It broadcasted on SABC, eTV, M-Net and DSTV packages during the 2010/11 financial year.
(2)(a)(i)(cc) It broadcasted on SABC, eTV, M-Net and DSTV packages during the 2011/12 financial year.
(2)(a)(i)(dd) It broadcasted on CNBC during the 2012/13 financial year.
(2)(a)(ii)(aa) The advertisements were published in newspapers from Caxton, Avusa, Independent News, Naspers, Financial Mail, and Creamer Media during the 2009/10 financial year.
(2)(a)(ii)(bb) The advertisements were published in newspapers from Caxton, Avusa, Independent News, The New Age, Naspers, Financial Mail, Creamer Media, Skyways, PAMESA, Mining News, African Leader, Finweek and Financial Journal during the 2010/11 financial year.
(2)(a)(ii)(cc) The advertisements were published in newspapers from Caxton, Avusa, Independent News, The New Age, Naspers, Financial Mail, Creamer Media, Skyways, PAMESA, Mining News, African Leader, Finweek and Financial Journal, The Thinker and New Agenda during the 2011/12 financial year.
(2)(a)(ii)(dd) The advertisements were published in newspapers from Caxton, Avusa, Independent News, The New Age, Naspers, Financial Mail, Creamer Media, Skyways, PAMESA, Mining News, African Leader, Finweek, Financial Journal, The Thinker and New Agenda during the 2012/13 financial year.
(2)(b)(i)(aa) No expenditure on broadcast advertising was incurred during the 2009/10 financial year.
(2)(b)(i)(bb) R5 178 359.50 on broadcast advertising during the 2010/11 financial year.
(2)(b)(i)(cc) R27 758 309.68 on broadcasting advertising during the 2011/12 financial year.
(2)(b)(i)(dd) R76 000 on broadcasting advertising during the 2012/13 financial year.
(2)(b)(ii)(aa) R17 923 000 on print advertising during the 2009/10 financial year.
(2)(b)(ii)(bb) R22 587 000 on print advertising during the 2010/11 financial year.
(2)(b)(ii)(cc) R43 829 000 on print advertising during the 2011/12 financial year.
(2)(b)(ii)(dd) For print advertising during the 2012/13 financial year see table below:
| Media Houses | 2012/2013 |
| Caxton Media | R 2 454 683.20 |
| Avusa Media | R 8 659 222.25 |
| Independent News and Media | R 2 862 082.21 |
| The New Age | R 7 143 150.42 |
| Naspers | R 12 053 914.03 |
| Other (Specialist Publications) | R 14 122 345.91 |
| Total | R47 295 398.02 |
Reply received: May 2013
QUESTION NO.: 1041
DATE OF PUBLICATION: 10 May 2013
1041.Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:
With regard to his reply to question 578 on 26 April 2013, (a) when was Hitachi's performance bond called up, (b) what (i) were the circumstances and (ii) formed the basis of this action and (c) how (i) does the calling up of the bond affect and (ii) is it anticipated its calling up will affect, the relationship between Hitachi and Eskom? NW1269E
Reply:
According to Eskom:
(a) They made the demand on 12 February 2013.
(b)(i-ii) Failure to implement appropriate action plans to rectify its performance to Eskom's satisfaction.
(c)(i-ii) The calling up of a performance bond is considered to be a standard operating procedure agreed between the two.