Questions & Replies: Public Enterprises

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2014-03-19

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Reply received: November 2014

QUESTION NO: 2606

DATE OF PUBLICATION: 14 November 2014

Ms S Jongbloed (DA) to ask the Minister of Public Enterprises:

What amount has her Department spent on promotional magazines in the

(a) 2011/12, (b) (2012/13 and (c) 2013/14 financial years?

NW3244E

Reply

(a) 2011/12 R 25 080

(b) 2012/13 R 72 390

(c) 2013/14 R 452 671

Reply received: November 2014

QUESTION NO.: 2487

DATE OF PUBLICATION: 07 NOVEMBER 2014

2487. Mr E J Marais (DA) to ask the Minister of Public Enterprises:

With reference to the reply of the Minister of Science and Technology to oral question 225 on 14 October 2014, what are the relevant details of discussions with the Department of Science and Technology regarding the Houwteq Test Facility near Grabouw? NW3083E

REPLY:

The Houwteq facility is owned by Denel and has been since the formation of Denel in 1992. The facility houses strategic capabilities for the space industry and the country. Houwteq continues to be maintained and utilised by Denel and on occasion is used by other government departments.

There are no ensuing discussions nor plans to transfer the facility to DST or any other government institution.

Reply received: November 2014

QUESTION NO: 2462

DATE OF PUBLICATION: 7 November 2014

2462. Mr M Bagraim (DA) to ask the Minister of Public Enterprises:

How many work days has her department lost to (a) sick leave and (b) strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years? NW 2462

REPLY

(a) Sick Leave

Number of days

(i) 2011 - 12

829 days

(ii) 2012 - 13

750 days

(iii) 2013 - 14

1339 days

(b) Strike Action

Number of days

(i) 2011 - 12

0 days

(ii) 2012 - 13

0 days

(iii) 2013 - 14

0 days

Reply received: November 2014

QUESTION NO.: 2338

DATE OF PUBLICATION: 7 November 2014

Mr E J Marais (DA) to ask the Minister of Public Enterprises:

(a) in the (i) 2011-12 (ii) 2012-2013 and (iii) 2013-14 financial years, (aa) how many times has her Department received a request from the SA Human Rights Commission( SAHRC) in accordance with section 184(3) of the Constitution of the Republic of South Africa,1996, to provide a report on measures taken by her Department towards the realisation of the rights in the Bill of Rights concerning housing, health care, food, water, social security, education and the environment and bb) how many times did her Department submit such a report to the SAHRC in this regard and (b) in each case, was the report (i) made readily available to the public or (ii) tabled in Parliament.

Reply:

(a) The Minister of Public Enterprises has never received any request whatsoever from the South African Human Rights Commission from 2011- 2014 requiring her or her predecessor to provide a report on measures taken by her Department towards the realisation of the rights in the Bill of Rights concerning housing, health care, food, water, social security, education and the environment in accordance with section 184(3) of the Constitution of the Republic of South Africa.

(b) In light of 1 above, the Department has never had to submit any such a report to the SAHRC, make such a report available to the public or to table the such a report in Parliament.

Reply received: November 2014

QUESTION NO.: 2301

DATE OF PUBLICATION: 07 NOVEMBER 2014

2301. Mr D J Maynier (DA) to ask the Minister of Public Enterprises:

(1) With reference to the reply of the Minister of Defence and Military Veterans to question 1375 on 30 September 2014, what are the names of the (a) chief executive officer, (b) executive directors and (c) non-executive directors and (d) name of each company (i) contracted and (ii) subcontracted on the (aa) development, (bb) production and (cc) any other phase of Project Hoefyster;

(2) Whether, in respect of each specified company, the company is registered with the National Conventional Arms Control Committee; if not, in each specified case, why not; if so, in each specified case, why? NW2812E

REPLY:

(1) Information captured by the Denel procurement system for purposes of the procurement of product systems, sub-components or selection of bidding partners for defense acquisition programmes would typically be: tax clearance related information (including a Tax Clearance Certificate), company registration details, transformation information as per the BBBEE certificate and codes, and applicable jurisdictions, compliance regulations, arms control certifications and declarations(inclusive of declaration of interest).

The names of the companies are detailed in (d) below and this information can be used to source (a), (b) and (c) as these details are already in the public domain.

(i) Companies that are contracted as development and production partners with Denel on the Project are:

· Patria

· Safran

· Curtis-Wright

· BAE Dynamics

· Denel Dynamics

· Mtek

· Reutech Solutions

· PMP

· Rheinmetall Denel Munitions

· SAAB SA

· Sagem

· Tellumat

· ThoroughTec

· LMT

Denel is a prime contractor on the development and production of Project Hoefyster. It has been contracted on any other phase.

(ii) Denel procurement system does not capture information on subcontractors to the main contractors.

(2) Denel takes into account the NCACC requirements. The SOC has therefore put in place processes to ensure suppliers compliance with applicable regimes. There are non-controlled commercial off the shelf items integrated to the vehicle, whose suppliers would not require the same level of registration.

Reply received: November 2014

QUESTION NO.: 2260

DATE OF PUBLICATION: 31 October 2014

Mr E J Marais (DA) to ask the Minister of Public Enterprises:

(a) What is her department's position on the recommendation of introducing a Government Shareholder Management Bill and (b) what will the timeframe be to implement this Bill? NW2807E

REPLY:

(a) The Department intends developing the Government Shareholder Management (GSM) Bill during this financial year. In light of the need to closely align the Bill to the Presidential Review Committee Report which was made public in 2012, there is a need to ensure thorough engagement, primarily, with custodians of current legislation such as the Public Financial Management Act 1999 (PFMA) and the Companies Act 2008.

(b) I intended to take the Bill to Parliament during the 2014/15 financial year but due to the engagements that need to take place as indicated above, I will only be able to take the Bill to Parliament during the 2016/17 financial year.

Reply received: November 2014

QUESTION NO.: 2258

DATE OF PUBLICATION: 31 October 2014

Mr E J Marais (DA) to ask the Minister of Public Enterprises:

With regard to her authority to appoint Board members to the various State-Owned Companies, how does she intend to (a) strengthen and (b) monitor the output of Board members in line with their remuneration? NW2805E

REPLY:

(a-b) As the Board is the focal point of corporate governance and is ultimately accountable and responsible for the performance and affairs of the Company, it must ensure that an adequate and effective process of corporate governance is established and maintained in compliance with the codes of good practice. The framework to monitor the performance of the Board includes the performance against the Shareholder's Compact, the Quarterly Reports, the Annual Report and the Board Performance Evaluation Report. The supplementary framework includes the Protocol of Corporate Governance in the Public Sector (currently under review), the Board Induction Toolkit and the Board Charter.

Of particular relevance is the Board Induction Toolkit, a component of the Protocol, which places emphasis on the requirement for Directors to be inducted into the business of the SOC. The Toolkit also provides for on-going training and induction throughout a Director's term of office. The introductory induction, soon after appointment of Directors,is conducted by the Department, led by the Minister. Thereafter, the induction and on-going training of Directors is the responsibility of the SOC.

In this regard, it becomes critical that appointments, in the first instance, are made taking cognisance of each individual's skills, qualification and experience in relation to the SOC environment. This is to ensure that the Boards are adequately capacitated to fulfil their fiduciary duties.

In preparation for the Company's Annual General Meeting (AGM), the Performance against the Shareholder's Compact as well as the Board Evaluation report becomes the primary documents that assist in the assessment.

Remuneration of Non-Executive Directors is determined through the application of the Department's guidelines for the remuneration of directors. The current model was approved by Cabinet in 2007 and a new model is being phased in within the DPE portfolio. Non-Executive Directors receive standard board fees with no additional performance bonus.

Hence, areas of improvement that have been identified through the evaluation process must be followed up with appropriate action. For example, a specific intervention to empower Directors to gain more knowledge on the business may be to undertake regular site visits. However, this is the responsibility of the SOC. The attendance of Directors to Board and Committee meetings is also an indication of their availability to sufficiently attend to their fiduciary duties.

Should it be found that an individual Director is not performing their duties and responsibilities effectively and/or adequately, it is within my discretion (with Cabinet approval) to rotate the member either at an Annual General Meeting or a Special General Meeting and to appoint, retire or retain members in accordance with the Company's Memorandum of Incorporation (MOI).

Reply received: November 2014

QUESTION NO.: 2229

DATE OF PUBLICATION: 31 OCTOBER 2014

2229 - Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

(a) What are the details of each of the national routes of the SA Express Airways (SAX) and (b) which of these national routes (i) creates a profit and (ii) operates at a loss for the SAX? NW2773E

Reply:

(a) SA Express Airways provides an extensive feeder network in support of its alliance partnership with South African Airways to the majority of destinations in South Africa and regionally. The airline operates on 19 domestic routes from 3 national hubs (Johannesburg, Cape Town and Durban). The objective of operations is to connect secondary smaller hubs to the larger primary hubs.

Domestic Routes:

Johannesburg - Bloemfontein

Johannesburg - East London

Johannesburg - George

Johannesburg - Richardsbay

Johannesburg - Port Elizabeth

Johannesburg - Kimberley

Johannesburg - Hoedspruit

Johannesburg - Durban

Johannesburg - Nelspruit

Johannesburg - Pietermaritzburg

Cape Town - Bloemfontein

Cape Town - East London

Cape Town - Hoedspruit

Cape Town - East London

Cape Town - Port Elizabeth

Cape Town - George

Cape Town - Kimberley

Durban - Cape Town

Durban - Port Elizabeth

(b) The majority of the routes flown are commercially profitable. Due to the commercially sensitive nature of the airline's route profitability and loss details, SA Express is not in a position to provide this information. However, it continuously reviews the route network in termsof schedule optimisation, route profitability and air traffic demand.

In October 2014 the airline reviewed and optimised its domestic route network and terminated the following routes, as they were unprofitable at an operating level:

Cape Town - George

Cape Town - Kimberley

Johannesburg - Nelspruit

Johannesburg - Pietermaritzburg

Reply received: November 2014

QUESTION NO.: 2173

DATE OF PUBLICATION: 31 October 2014

2173. Dr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:

(1) What is the total annual remuneration of the chief executive officer of each entity that reports to her?

(2) Whether she will make a statement on the matter? NW2716E

Reply

(1)

Alexkor SOC Limited

The total remuneration of the Chief Executive Officer (CEO) of Alexkor for 2013/2014 Financial Year was:

Remuneration Element

Amount

Guaranteed pay

R2,600 000.00

Allowances

R24,000.00

Long term incentives payment

0

Total Cost to Company Per Annum

R2,624,000.00

Denel SOC Ltd

The total remuneration of the Group Chief Executive Officer (CEO) of Denel for 2013/2014 Financial Year was:

Remuneration Element

Amount

Guaranteed pay

R3,972,000.00

Allowances

0

Short-term incentives payment

R1,987,000.00

Long-term incentives payment

0

Total Cost to Company Per Annum

R5,959,000.00

Eskom SOC Ltd

The remuneration of the Chief Executive Officer (CEO) of Eskom as with the rest of the Exco members consists of a guaranteed pay, allowances, short-term incentives and long-term incentives. It should be noted that Mr. Brian Dames, previous CEO of Eskom, resigned on 31 March 2014 and his total remuneration for 2013/2014 for the Financial Year was:

Remuneration Element

Amount

Guaranteed pay

R6,031,000.00

Short-term incentives payment

0

Long-term incentives payment

R1,928, 000.00

Other

R7,408,000.00

Back pay increases

R1,900,000.00

Security and operating vehicle expenditure

R501,000.00

Termination payments

R5,007,000.00

Total Cost to Company Per Annum

R15,367,000.00

SAA SOC Ltd

The total remuneration of the Chief Executive Officer (CEO) of SAA for 2013/2014 for the Financial Year was:

Remuneration Element

Amount

Guaranteed Pay

R4,552, 980.00

Allowances

0

Short-term incentives payment

0

Long-term incentives payment

0

Total Cost to Company Per Annum

R4,552,980.00

SA Express SOC Ltd

The total remuneration of the Chief Executive Officer (CEO) of SA Express for the 2013/2014 Financial Year was:

Remuneration Element

Amount

Guaranteed Pay

R2 115 370

Car Allowance

R129 540

Other

R173 004

Short-term incentives payment

0

Long-term incentives payment

0

Total Cost to Company Per Annum

R2 417 914

Transnet SOC Ltd

The total remuneration of the Chief Executive Officer (CEO) of Transnet for 2013/2014 Financial Year was:

Remuneration Element

Amount

Guaranteed Pay (Total Cost to Company):

R6,300,000.00

Allowances:

0

Short-Term Incentive Payment:

R2,951,943.75

Long-Term Incentive Payment:

0

Total Cost to Company Per Annum

R6,678,000.00

SAFCOL SOC Ltd

The total remuneration of the Chief Executive Officer (CEO) of SAFCOL for the 2013/2014 Financial Year was:

Remuneration Element

Amount

Guaranteed Pay (Total Cost to Company):

R1,995,000.00

Allowances:

0

Short-Term Incentive Payment:

0

Long-Term Incentive Payment:

0

Total Cost to Company Per Annum

R1,995,000.00.

Reply received: November 2014

QUESTION NO.: 2147

DATE OF PUBLICATION: 24 OCTOBER 2014

2147. Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:

(1) What are the (a) financial sources and (b) reasons for using these specific sources in each separate case (i) for Transnet, (ii) for the Transport Pension Fund, (iii) for the Transnet Second Defined Benefit Fund and (iv) in the court case in respect of the class action between Government and the Transnet pensioners and the specified entities;

(2) whether, in light of the refusal of leave to appeal for Transnet and the two specified pension funds against the ruling in the request for recognition of a class action, she and the Government will consider entering into a settlement with the pensioners who form part of the class action; if not, why not; if so, what are the relevant details? NW2621E

Reply:

(1)(a)(i) Transnet settles all costs from available cash, being costs incurred by Transnet in the court case in respect of the class action.

(ii) The Transport Pension Fund: Transnet Sub Fund ("the TTPF") settles all costs from available cash, being costs incurred by the TTPF in the court case in respect of the class action.

(iii) The Transnet Second Defined Benefit Fund ("TSDBF") settles all costs from available cash, being costs incurred by the TSDBF in the court case in respect of the class action.

(b)(i) Transnet settles all costs from available cash. As cash is available, no alternative sources of funding are required, and therefore no specific sources of funding have been sought.

(ii) The Transport Pension Fund: Transnet Sub Fund ("the TTPF") settles all costs from available cash. As cash is available, no alternative sources of funding are required, and therefore no specific sources of funding have been sought.

(iii) The Transnet Second Defined Benefit Fund ("TSDBF") settles all costs from available cash. As cash is available, no alternative sources of funding are required, and therefore no specific sources of funding have been sought.

(2) The Ministers of Public Enterprises and of Finance (the State parties) filed notices against the class action application. In this regard, Judge Makgoba found that the draft particulars of claim did not disclose any claim against the State parties and that the State parties have nothing to defend in the application.

(2) No, I will not be making a separate statement in view of the fact that Parliament, through the Portfolio Committee and Select Committee, has received the tabled Integrated Report of the SOC containing the said information. The programme to present each report is underway.

Reply received: November 2014

QUESTION NO.: 2094

DATE OF PUBLICATION: 24 October 2014

Ms S P Kopane (DA) to ask the Minister of Public Enterprises (National Assembly):

(1) Whether, with regard to the threats by Eskom to cut off electricity supply to three

Free State municipalities, she has found any lasting agreement with the (a) Free State Provincial Government and (b) the (i) Dihlabeng, (ii) Ngwathe and (iii) Maluti-a-Phofung Local Municipalities for the payment of outstanding fees due to Eskom for the supply of bulk electricity; if not, why not; if so, what are the terms of the agreements reached between Eskom and each municipality;

(2) whether any measures have been put in place that will ensure the continued supply of bulk electricity to Free State municipalities in order to service (a) paying residents, (b) indigent residents and (c) essential services regardless of the failure by local municipalities to service their Eskom debt; if not, why not; if so, what are the relevant details;

(3) whether her department has adopted measures that would ensure that threats by

Eskom to suspend electricity supply for any Free State municipality does not happen again; if not, why not; if so, what are the relevant details?

NW2562E

REPLY:

(1) The challenges facing the municipalities cited in the PQ are complex and therefore

overcoming them requires a multi-departmental approach. The Minister of Co-operative Governance and Traditional Affairs Department (COGTA) is driving such a process and has established a task team in which the participants represent at least the Free State Province, the Department of Energy, National Treasury, National Energy Regulator of South Africa (NERSA) and includes Eskom. COGTA will present the proposed plans to the Department of Public Enterprises in due course.

(2 & 3) Eskom is legally bound by the Public Finance Management Act , No 1 of 1999

(PFMA) to manage debt and has a robust credit management policy in place which is employed to recover debt. Eskom continuously engages with defaulting municipalities' Mayors, Municipal Managers and Chief Financial Officers to understand their specific financial position and to propose payment plans to collect the arrear debt while at the same time making sure that the current account is paid in full and on time. In addition, the respective provincial premiers as well as National Treasury are kept informed of the debt levels and the progress being made with curbing the escalation. Eskom also participates in sessions driven by COGTA which facilitate further discussions with defaulting municipalities. In the event that a municipality defaults on the payment agreement, Eskom continues to work with key stakeholders to find alternative solutions. When these efforts fail, Eskom is left with no other option but to disconnect the electricity supply, but only as a last resort.

Prior to embarking on disconnections, however, Eskom follows a clear pre-disconnection process which is informed by the Promotion of Administrative Justice Act No. 3 of 2000 (PAJA). PAJA sets out the general principles regarding cases where an administrative act is likely to have an adverse effect on the affected communities. Prior to disconnections, Eskom embarks on an extensive communication and notification process, utilising a detailed checklist to ensure that all relevant stakeholders are informed of the pending disconnection. Information is circulated through, but not limited to, notices in the local newspapers and radio announcements.

Disconnections of the supply line may place a burden on the consumers inside the municipal boundary, as municipal customers may have paid their accounts in full and on time to the municipality, whereas others fall under the categories of the indigent or essential services. In engaging with municipalities, Eskom takes into account any possible impact on the end users. It is worth noting that Eskom's contractual relationship is with the municipalities directly, and that the end users remain the responsibility of the municipality.

The above notwithstanding, Eskom remains mindful of the consequent disruptions to all customers supplied by the municipality, therefore the decision to disconnect is preceded by extensive engagements, plans and prior notification, as set out above.

Reply received: November 2014

QUESTION NO: 2072

DATE OF PUBLICATION: 24 October 2014

Mr S J Masango (DA) to ask the Minister of Public Enterprises:

(a) How many copies of her department's annual report for the (i) 2012-13 and (ii) 2013-14 financial years were produced and (b) (i) at what cost were these reports produced and (ii) to whom were these reports circulated? NW2539E

Reply

(a) (i) 1000 copies.

(ii) 1000 copies.

(b) (i) 2012/13: R137 245.74.

2013/14: R146 889.00.

(ii) Auditor-General of South Africa, National Treasury, Parliament, and Department of Public Enterprises Heads of internal units.

Reply received: November 2014

QUESTION NO.: 2009

DATE OF PUBLICATION: 17 OCTOBER 2014

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 2009

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

(1) Information regarding candidates is confidential and may not be revealed without the approval of the candidate.

(2) why have two experienced directors of Eskom, Erica Johnson and Dr Steve Lennon resigned;

(3) what does she plan to do in order to ensure that capable appointments are made in their positions;

(4) whether these appointments will be made based on capability alone, or whether race will also be taken into account; if not, what is the basis upon which the appointments of directors of Eskom are made? NW2394E

REPLY:

(1) (a) and (b) Guided by Eskom's own recruitment policies, its Memorandum of Incorporation (MOI) in line with the DPE guidelines for the appointment of Chief Executive Officers (CEO), Eskom followed a recruitment process in filling the position of CEO. Only candidates who applied for the position were considered during the recruitment process. Dr SJ Lennon did not apply for the position of CEO and therefore, he could not be considered for appointment to the position. Furthermore, Dr Lennon was not a member of the Board of Directors in order to be considered within the racial composition of the Board.

(2) Both Dr SJ Lennon and Ms EL Johnson, group executives resigned for personal reasons. Both resignations were amicable and they have been serving six months notice periods.

(3) In filling positions within the organisation, Eskom strictly adheres to the principles of fairness, equality, employment equity and diversity provided for in the Constitution of the Republic of South Africa, 1996, the Employment Equity Act, 1998, and the Labour Relations Act, 1995. In accordance with Eskom's Employment Equity Plan, and its employment equity goals and targets, preference may be given but is not limited to, candidates from under-represented designated groups.

(4) To find the best candidates for Group Executive positions Eskom follows a rigorous transparent and effective recruitment and selection process to ensure that all potential candidates are considered. The filling of Executive positions is the responsibility of the Company. However, in the case of the CEO and CFO positions, the final decision is made by the Minister of Public Enterprises, in consultation with Cabinet.

Reply received: November 2014

QUESTION NO.: 1877

DATE OF PUBLICATION: 17 OCTOBER 2014

Prof N M Khubisa (NFP) to ask the Minister of Public Enterprises:

What number of (a) female pilots are employed by the (i) SA Airways and (ii) SA Express and (b) the specified pilots that have (i) licences to fly (aa) regionally and/or (bb) internationally and (ii) started their studies at the SAA Cadet Pilot Development Programme? NW21263E

Reply:

(a) (i) SAA has 69 female pilots

(ii) SAX has 24 female pilots

(b) (i) (aa) and (bb) With SAA, a commercial pilot has either a commercial Pilots licence or an Airline Transport Pilots licence. Both these licences allow the holder to operate an aircraft registered in South Africa (ZS registration) locally, regionally and internationally. With SAX, the holder of a commercial licence is allowed to fly regionally and internationally, but as SAX only flies regionally, they are restricted to regional flying.

(ii) In the case of SAA, approximately 40 female pilots qualified through the SAA Cadet Development Programme. In the case of SAX, none of the pilots started their studies through the SAA Cadet Pilot Development Plan, but 14 pilots started their studies through the SAX Cadet Pilot Development Plan.

Reply received: October 2014

QUESTION NO.: 1826

DATE OF PUBLICATION: 12 SEPTEMBER 2014

Mr E J Marais (DA) to ask the Minister of Public Enterprises:

What measures has Transnet put in place regarding irregular, fruitless and wasteful expenditure as raised in the 2012-13 annual report by the auditors? NW2199E

Reply:

Transnet has put in place numerous measures to achieve sustainable solutions to irregular, fruitless and wasteful expenditure as raised in the 2012-13 annual report by the auditors. These measures are outlined in "Annexure A" provided by Transnet which is attached hereto.

See the link: www.pmg.org.za/files/rnw1826a.pdf

Reply received: October 2014

QUESTION NO.: 1825

DATE OF PUBLICATION: 26 September 2014

1825. Mr. E J Marais (DA) to ask the Minister of Public Enterprises:

What are the required minimum general qualifications for a person to be appointed as a board member of a state-owned enterprise? NW2198E

Reply:

There is no defined "minimum". Boards are the sum of their parts so the individuals appointed to a Board are selected on the basis of having some expertise to contribute to the total skills set and experience required by the Board collectively.

A potential Board member must have substantial knowledge of and experience in at least two of the following areas: familiarity with the statutes which govern the conduct of the State-Owned Company (SOC) in general and the specific Company for which the individual has been nominated; the Public Sector context within which SOC operates; Law; Economics; Accounting; Auditing; Social and Business Ethics; Communications & Marketing; Human Resources; People Management in a Corporate Environment; Business Strategy and Leadership; Business Practice; Large-scale procurement; Risk Management; Finance; Corporate Governance & Compliance; Project Management and ICT.

A potential Board member is also required to have substantial knowledge of some of the recognised aspects or sub-disciplines of the core business of the Company for which they have applied.

Reply received: October 2014

QUESTION NO.: 1824

DATE OF PUBLICATION: 26 September 2014

Mr E J Marais (DA) to ask the Minister of Public Enterprises:

What is the remuneration of the (a) chairpersons, (b) vice-chairpersons and (c) members of the various boards of state-owned enterprises? NW2197E

Reply:

(a - c) The remuneration of the Chairperson and Non-Executive Directors of the various Boards of Directors for each State-Owned Company as at 31 March 2014 is recorded on the tables below. None of the Boards have a Vice or Deputy Chairperson.

TRANSNET:

(a) Board of Directors

(b) Total Cost to Company

Mr ME Mkwanazi (Chairperson)

1,050 000.00

Mr MA Fanucchi

472 000.00

Ms Y Forbes

653 000.00

Mr HD Gazendam

634 000.00

Ms N Moola

472 000.00

Ms NP Mnxasana

472 000.00

Ms NR NJeke

630 000.00

Mr IM Sharma

551 000.00

Mr IB Skosana

551 000.00

Ms ZE Tshabalala

574 000.00

Ms DLJ Tshepe

630 000.00

Mr N Choubey

98 000.00

TOTAL

R6,787 000.00

ESKOM:

(a) Board of Directors

(b) Total Cost to Company

Mr Z A Tsotsi (Chairperson)

1,789 000.00

Dr. B L Fanaroff

487 000.00

Ms R M Q Gungubele

437 000.00

Ms N Lesela

437 000.00

Ms B Luthuli

551 000.00

Ms C Mabude

468 000.00

Ms Y Masithela

468 000.00

Mr M C Matjila (appointed Acting CEO with effect from 1 April 2014)

493 000.00

Dr. B Mehlomakulu

493 000.00

Mr M E Mkwanazi

493 000.00

Mr S P Q Sedibe

493 000.00

Ms D E L Zondo

468 000.00

TOTAL

R7,007 000.00

BROADBAND INFRACO:

(a) Board of Directors

(b) Total Cost to Company

Mr M Ngcobo (Chairperson)

783 078.00

Ms Meta Maponya

263 562.00

Ms Xoliswa Kakana

372 829.00

Ms Nokuthula Selamolela

251 273.00

Mr Sydney Mabalayo

372 829.00

Mr Shakeel Meer

299 074.00

Dr. Anthony Githiari

277 904.00

Mr Salim Essa

246 073.00

TOTAL

R2,866 622.00

SOUTH AFRICAN AIRWAYS:

(a) Board of Directors

(c) Total Cost to Company

Ms D Myeni (Chairperson)

827 988.00

Mr A Khumalo

395 751.00

Mr A Mabizela

536 068.00

Dr R Naithani

446 556.00

Mr B Mpondo

1,062 401.00

Ms N Kubeka

858 564.00

Ms R Lepule

405 348.00

Ms C Roskruge

676 939.00

Ms Y Kwinana

637 872.00

TOTAL

R5,847 487.00

SOUTH AFRICAN EXPRESS AIRWAYS:

(a) Board of Directors

(b) Total Cost to Company

Mr A Mabizela (Chairperson)

702 913.00

Ms B Ssamula

347 615.00

Ms KT Nondumo

262 312.00

Mr GN Mothema

250 084.00

Ms BPB Dibate

276 590.00

Ms NM Moshimane

221 198.00

Ms NB Gxumisa

276 590.00

Mr PE Mabyana

250 084.00

TOTAL

R2,587 386.00

SAFCOL:

(a) Board of Directors

(b) Total Cost to Company

Ms NV Magwentshu (resigned on 20 June 2014 as Chairperson and NED)

733 211.00

Prof SPM Fikeni (appointed Acting Chairperson on 21 June 2014)

204 919.00

Ms N Medupe (resigned on 5 August 2014)

317 170.00

Mr M Kharva

317 848.00

Ms K Njobe

311 423.00

Ms F Blakeway

238 293.00

Ms MS Gilbert

229 107.00

Dr. SR Moephuli

204 262.00

TOTAL

R2,556 233.00

DENEL:

(a) Board of Directors

(b) Total Cost to Company

Mr NR Kunene (Chairperson-resigned at the 2014 AGM)

773 000.00

Adv. G Badela (Acting Chairperson as from 2014 AGM)

200 000.00

Dr GC Cruywagen

310 000.00

Ms MJ Janse van Rensburg (as from the 2014 AGM)

283 000.00

Prof T Marwala (resigned at the 2014 AGM)

76 000.00

Ms Z Mathenjwa

203 000.00

Ms NJ Motseki

136 000.00

Mr M Msimang

222 000.00

Mr BF Ngwenya

230 000.00

Prof SM Nkomo

354 000.00

Adv. MS Nthikila

226 000.00

Ms B Paledi

167 000.00

Mr MV Ratshimbilani

209 000.00

TOTAL

R3,389 000.00


ALEXKOR:

(a) Board of Directors

(b) Total Cost to Company

Mr R Bagus (Chairperson)

1,201 285.00

Mr M Bhabha

275 333.00

Mr B Grobbelaar

206 809.00

Dr. N Mathabathe

248 314.00

Ms Z Ntlangula

397 255.00

Mr DB Mkhwanazi

196 263.00

Dr. R Paul

632 063.00

Ms S Zilwa

214 958.00

TOTAL

R3,372 280.00

Reply received: October 2014

QUESTION NO.: 1763

DATE OF PUBLICATION: 26 September 2014

Mr G MacKay (DA) to ask the Minister of Public Enterprises:

Whether, with regard to Eskom in the Ekurhuleni Metropolitan Municipality, her department could provide a detailed report on all Eskom substations indicating:

(a) the age of each substation

(b) the number of outages per substation during the period 1 September 2012 to

30 September 2014

(c) a detailed maintenance schedule for each substation during the period 1 September

2012 to 30 September 2014

(d) which substations have been upgraded since September 2012 and

(e) which substations will be upgraded during the period 1 September 2014 to 30

September 2016?

NW2134E

REPLY:

Maintenance per plant item in a substation is planned or scheduled periodically (typically annually) and then executed as per the schedule. In addition, maintenance or repairs are done when there are breakdowns. The detailed maintenance tasks are generally per the manufacturers' recommendations and best practice. It is therefore not possible to provide a detailed maintenance schedule per substation for each of the financial years; however, below we provide an overview of typical maintenance tasks for Transmission and for Distribution substations. See the link: http://www.pmg.org.za/rnw1763-141021table

Transmission maintenance: typical maintenance tasks per substation

275kv Bus Coupler checks; Battery First Line Maintenance; 220v Main1 Charger alarm check; 220V Main1 DC system abnormal check; Battery Maintenance. Battery Charger Maintenance; Air Conditioner Maintenance; LPU check; SSB TX check; Line Trap Maintenance Sec Plant; Teleprotection Maintenance; Bay Maintenance; Protection Scheme Maintenance; NSD70 alarm check; MW value check; Servitude Gates and Access Maintenance; Servitude Bush Clearing; Servitude Ground Patrol; Line Air Patrol Fast; Servitude Grass Management; Servitude Bush Clearing; Protection Scheme Maintenance; Metering Verification

Oil Sampling Buchholz: DGA; kV & Water; Transformer Dry Keep Maintenance; Oil Sampling Buchholz: Age Assessment; Oil Sampling Buchholz: Inhibitor Quant. Tap Changer Test; Oil Sampling Diverter R-Ph: kV & Water; Oil Sampling Diverter W-Ph: kV & Water; Oil Sampling Diverter B-Ph: kV & Water; Isolator PMT (preventative maintenance); Breaker PMT; CT Care; Earth Switch Maintenance; Measurement Maintenance; Control Equip Maintenance; Aux Transformer Maintenance; Transformer Maintenance; Bushing Tan Delta Test; Tap Changer Maintenance breaker & isolator maintenance; capacitor-31 – tests; side all breakers tests; SS ERTU in Transit – tests; transit indications; partially scanning – tests; Bus Coup-A bus-1 tests; Control Equip ERTU Maintenance; ERTU not scanning checks.

Control Equip GPS Maintenance; Security System Maintenance; Security fence alarm; Access Gate Maintenance; Access Gate Control Maintenance; Safety Rep Inspection; Environmental Inspection Substation; Substation Monthly Routines; Building Maintenance Monthly; Substation Grass Cutting; Building Maintenance Monthly; Substation Monthly Routines; VT Test Sec Plant; InfraRed Scanning; Building Maintenance Monthly; Execute CCRA; VT Test Sec Plant; Fire Extinguisher Maintenance; Link Stick Tests; Portable Earthing Test; Metering Verification; Loadshed Panel Protection Maintenance; Control Equip Maintenance.

Distribution Maintenance: typical maintenance tasks per substation

AC/DC Minor Maintenance; AC/DC Major Maintenance; Metering - Stats Verification

Metering - Stats Maintenance; Metering - Tariff Verification; Metering - Tariff Maintenance; Telecontrol Minor Maintenance; Telecontrol Major Maintenance; Reclosers - Telecontrol & Protection; Protection - Routine Inspection; Protection - Major Maintenance; Protection – Recommissioning; Isolators; Busbar Isolators – Scanning; Breakers; Tap-changers; Transformer Maintenance and Testing; Infra Red and Ultra Sonic Scanning; Earth Resistance Tests; Oil Sampling – Routine; Oil Sampling – Furanic; Oil Sampling – PCB; Substation Routine Inspection - HV Subs.

Substation Routine Inspection - Brick Subs; HV Line Inspection, 1 Yearly Visual (National); HV Line Inspection, Defect Clearance (National); MV Line Inspection, 1 Yearly Visual (National); MV Line Inspection, Defect Clearance (National); Continuity Tests; Power Cable, HV 1C/3C, Oil Filled, Weekly Inspection; Power Cable, HV 1C/3C, Oil Filled, Monthly Maintenance; Power Cable, HV 1C/3C, Yearly Maintenance - Serving Tests; Power Cable, HV 1C/3C, Oil Filled, 3 Yearly Hydraulic Protection Maintenance; Power Cable, HV 1C, XLPE, Monthly Maintenance; Power Cable, HV 1C/3C, Yearly Circulating Current Measurements; "Power Cable, HV 1C/3C, 3 Yearly Maintenance - Sheath voltage limiting surge arrester testing; Power Cable, HV 1C/3C, Oil Filled, Yearly Hydraulic Protection Maintenance; Tap-changer Oil Sampling.

Reply received: October 2014

QUESTION NO.: 1700

DATE OF PUBLICATION: 19 September 2014

Mr G MacKay (DA) to ask the Minister of Public Enterprises:

Is the Koeberg Power Station being operated at reduced temperature; if so,

(a) for how long has it been operating at reduced temperature and

(b) what is the total current output of Koeberg in megawatts?

NW2062E

REPLY

No; (a) Not applicable.

(b) Koeberg's nominal "sent out output" is 1860 MW. The sent out output is influenced to a small degree by the temperature of the sea water used for condensing the steam that drives the turbines, and hence at times the actual amount of electricity supplied to the national transmission network by Koeberg may be slightly (5 – 10 MW) less than the nominal output.

Reply received: October 2014

QUESTION NO.: 1698

DATE OF PUBLICATION: 19 September 2014

Mr G MacKay (DA) to ask the Minister of Public Enterprises:

What is the total value of support contracts issued by Eskom to (a) all third party

suppliers and (b) specifically (i) Westinghouse and (ii) Areva in the (aa) 2009-10, (bb)

2010-11, (cc) 2011-12, (dd) 2012-13 and (ee) 2013-14 financial

years? NW2060E

REPLY

Table 1: The total value (as Rands in Millions) of support contracts issued by Eskom to all third party suppliers during 2009/10 until 2013/14 Financial years.

3rd Party Suppliers

(aa) 2009/10 R'm

(bb) 2010/11 R'm

(cc) 2011/12 R'm

(dd) 2012/13 R'm

(ee) 2013/14 R'm

Total R'm

(b)(i) Westinghouse

403

81

2,698

66

41

3,290

(b)(ii) Areva

1,127

108

544

104

91

1,973

Other 3rd Party Suppliers

92,508

149,170

52,515

63,101

179,599

536,893

(a) All 3rd Party Suppliers

94,039

149,359

55,757

63,271

179,731

542,156

Reply received: October 2014

QUESTION NO.: 1635

DATE OF PUBLICATION: 19 September 2014

1635. Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

Which posts in her department are vacant in the (i) highly skilled, (ii) highly skilled supervision, (iii) senior and top management levels and (b) in each case, what has been the duration of the vacancy? NW 1635

REPLY

(a)

Type of Skill

Posts

Status

Highly skilled

Project Officer: Economist (Energy)

Awaiting job evaluation.

Deputy Director: Mining

Awaiting approval for title conversion. Not yet advertised.

Highly skilled supervision

Deputy Director: Transformation

Advertised, in the process of being filled.

Deputy Director: Business Continuity Management

Advertised, in the process of being filled.

Deputy Director: Employee Relations

Advertised, in the process of being filled.

Senior and Top Management levels

Chief Director: Funding Mechanisms

Advertised, in the process of being filled.

Chief Director: Economic Impact

Advertised , in the process of being filled.

Chief Director: Environmental Alignment

Advertised, in the process of being filled.

Director: Freight (Transport)

Advertised, in the process of being filled.

Director: Transport

Advertised, in the process of being filled.

Director: Energy

Advertised, in the process of being filled.

Director: Legal and Governance

Advertised, in the process of being filled.

Director: Office of the DG

Advertised, in the process of being filled.

Director: Stakeholder Relations

Advertised, in the process of being filled.

Director: Internal Communications & Knowledge Management

Not yet advertised.

(b) in each case, what has been the duration of the vacancy?

Type of Skill

Posts

Duration from date of Advertisement

(as on 15 October 2014)

Highly skilled

Project Officer: Economist (Energy)

78 days. Not yet advertised; job evaluation in progress.

Deputy Director: Mining

317 days. Awaiting approval for title conversion. Not yet advertised.

Highly skilled supervision

Deputy Director: Transformation

37 days

Deputy Director: Business Continuity Management

37 days

Deputy Director: Employee Relations

79 days

Senior and Top Management levels

Chief Director: Funding Mechanisms

139 days, position not filled as no suitable candidate was identified. Headhunting option being implemented.

Chief Director: Economic Impact

158 days, position not filled as no suitable candidate was identified. Headhunting option being implemented.

Chief Director: Environmental Alignment

153 days, position not filled as no suitable candidate was identified. Headhunting option being implemented.

Director: Transport

37 days

Director: Energy

79 days

Director: Legal and Governance

37 days

Director: Office of the DG

79 days

Director: Stakeholder Relations

79 days

Director: Internal Communications & Knowledge Management

98 days. Awaiting title conversion, not yet advertised.

an>

DIRECTOR: REGIONAL OPERATIONS: KIMBERLEY

13

1

DIRECTOR: VALUATION SERVICES

13

1

DIRECTOR:REGIONAL OPERATIONS:NELSPRUIT

13

1

REGIONAL HEAD: PRETORIA

14

1

CHIEF DIRECTOR: MONITORING & EVALUATION SPECIALIST (EPWP)

14

1

DIRECTOR: ANALYST (EPWP)

13

1

DIRECTOR: ENVIRONMENT & CULTURE SECTOR (EPWP)

13

1

DIRECTOR:BUILDING MAINTENANCE & NAT YOUTH SERVICE

13

1

DIRECTOR:EPWP:PROGRAMME MANAGER:NORTHERN CAPE

13

1

CHIEF DIRECTOR: PROPERTY POLICY DEVELOPMENT

14

1

DEPUTY DIRECTOR GENERAL: POLICY

15

1

DIRECTOR: SENIOR POLICY SPECIALIST CONSTRUCTION POLICY

13

1

38

(c) There are 38 vacant positions currently.

Reply received: October 2014

QUESTION NO.: 1594

DATE OF PUBLICATION: 19 September 2014

Mr W M Madisha (Cope) to ask the Minister of Public Enterprises:

Whether Eskom has finalised loan arrangements with the European Investment

Bank to borrow €75m for the building of a 100MW concentrating solar power plant near Upington; if not, what is the position in this regard; if so,

(a) When was the work on the solar plant scheduled to begin and

(b) When was the plant expected to feed into the electricity grid?

NW1711E

REPLY

(a –b) Eskom and the European Investment Bank (EIB) concluded and signed a €75M loan facility for the partial financing of a 100MW CSP plant in Upington on 15 May 2014. Commencement of construction and commissioning of the power plant will become evident on conclusion of the procurement process, the current projection is mid 2016 for construction and early 2019 for feeding power to the Grid. Construction of the power plant is expected to commence in June 2016 with a projected 30 months to complete it. It is anticipated that the power plant will feed electricity into the grid during the first half of 2019.

Reply received: November 2014

QUESTION NO: 1513

DATE OF PUBLICATION: 12 September 2014

Mr MW Rabotapi (DA) to ask the Minister of Public Enterprises:

Whether

(a) her department and/or

(b) any entities reporting to her sponsored political party

(i) advertisements, (ii) events and/or (iii) paraphernalia in the

(aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years; if so,

(aaa) for which political party and (bbb) what was the monetary value of the sponsorship in each case?

NW1882E

Reply

(a – b) The State-Owned Companies in the Public Enterprises portfolio and the Department of Public Enterprises do not sponsor political parties in any way. This position applied during the years in question.

Reply received: October 2014

QUESTION NO: 1483

DATE OF PUBLICATION: 12 September 2014

Mr GR Krumbock (DA) to ask the Minister of Public Enterprises:

What is the quantum of funds spent by her department on all advertising for each financial year between 01 April 2010 up to the latest specified date for which the information is available.

NW1849E

Reply

Advertising is classified and consolidated under the Standard Chart of Accounts (SCOA) in the books of the Department and is made up as follows for the period 01 April 2010 to current:

2010

2011

2012

2013

2014

2015

TOTAL

Marketing

141,429.04

34,143.00

535,551.00

81,452.82

3,141,818.71

435,244.00

4,369,638.57

Promotional items

36,499.00

5,233.21

59,847.00

198,949.00

583,321.58

64,923.00

948,772.79

Advertising Recruitment

247,033.54

3,339,408.35

1,155,063.00

1,667,822.56

978,616.53

686,851.26

8,074,795.24

Advertising Tenders

-

-

-

12,457.34

1,396.86

109,371.22

123,225.42

TOTAL

424,961.58

3,378,784.56

1,750,461.00

1,960,681.72

4,705,153.68

1,296,389.48

13,516,432.02

Reply received: October 2014

QUESTION NO: 1450

DATE OF PUBLICATION: 12 September 2014

Mr D Bergman (DA) to ask the Minister of Public Enterprises:

(a) Which travel agents has her department used during the period 1 April 2012 up to the latest specified date for which the information is available; and

(b) What is the quantum of funds spent with each of the specified travel agents in the specified period.

NW1816E

Reply

(a) Duma Travel (Pty) Limited

(b) R 3 119 716.73

Reply received: October 2014

QUESTION NO.: 1387

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1387. Mr C H H Hunsinger (DA) to ask the Minister of Public Enterprises:

Has the Transnet National Ports Authority undertaken any measures to guard South African ports against the threat of exposure to the Ebola-virus posed by visiting vessels; if so, (a) what are these measures and (b) how are these measures (i) monitored and (ii) reported on? NW1752E

Reply:

(a) The mandate for the control of communicable diseases through SA's ports lies with the Department of Health, which has a Port Health office at each commercial port. However, Transnet National Ports Authority (TNPA) plays an important role in the access and control of coastal and foreign vessels and is always on alert.

The standard practice is for all Masters of vessels arriving from ports outside South Africa to declare the state of health for all crew on board their vessel to the Port Health Office.

Equatorial Guinea, Liberia and Sierra Leone are rated as high risk to the Ebola exposure, with Nigeria, Kenya and Ethiopia being rated at medium risk exposure to Ebola. As of the 23rd of September 2014, all vessels calling to South African Ports from these areas are required to be stringently screened by Port Health Officials at anchor, prior to the vessel entering into any South African commercial port. All vessels from high and medium risk areas will continue to be subjected to stowaway at anchorage, prior to entry into any South African Port, to ensure that there are no people illegitimately hiding in ships with the hope of gaining illegal access to the country. A written confirmation from the Master must be completed as an indication of the findings. The same will apply to off port limits interaction with any South African vessel.

As part of the routine ports control management procedures all South African commercial ports, in line with the Port Controls, are required to check the last three ports of call for every vessel calling our ports to make sure that what is reported by the Port Health Authorities matches with the security clearance list obtained from our TNPA's Security clearance office for the purpose of compliance with the International Ship and Port facility Security (ISPS) Code.

(b)(i) To monitor the implementation of these measures all ports submit weekly reports and are instructed to immediately report any suspicious cases to the Office of the Chief Harbour Master.

(b)(ii) The Harbour Masters for all the ports are in constant communication with the Port Health officials and report to them all relevant aspects that may require their intervention.

Reply received: October 2014

QUESTION NO.: 1372

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1372. Mr R A Lees (DA) to ask the Minister of Public Enterprises:

(1) Whether, with reference to Transnet's New Multi-Product Pipeline (NMPP) from Durban to Gauteng, the planned storage tanks in Durban have been constructed; if not, (a) why not and (b) what (i) are the relevant details of why some or all of these tanks are not being used, (ii) remedial action is required to make the tanks usable and (iii) will the cost of remedial action be; if so, are they being used to full capacity;

(2) What are the relevant details of the contractor and/or contractors who have been appointed to (a) construct these tanks or (b) carry out remedial action;

(3) What are the costs associated with the construction of these tanks as (a) contracted, (b) constructed to date and (c) an estimated final cost? NW1736E

Reply:

(1) The accumulator tanks at TM1 are still under construction and will be completed as per the original scope of the project.

(a) The first accumulator tank (A02) failed under hydro-testing in December 2012. The remainder of the accumulator and two intermix diversion tanks are currently undergoing Quality Control in preparation for completion, a process which will include hydro-testing.

(i) The probable cause determined by Fluor/Igoda Consultants is a combination of differential settlement of the foundation as well as stresses induced in the tank shell during construction. Following the failure of A02, the Contractor has declared a dispute on Tank A11 stating that he is unable to complete the construction of the tank due to foundation movement. Transnet disagrees with this view. This dispute process is underway and is at present under adjudication. It is expected that a ruling will be made by December 2014.

(ii) Transnet has appointed a Geotechnical Consultant Team as part of the remedial actions being undertaken, to conduct a further review of the tank foundations and to recommend any strengthening measures that may be required to ensure long-term stability of the tanks. Transnet and the contractor are also looking at additional constructability measures to implement in order to facilitate the completion of the tanks.

(iii) The cost of remedial action or rebuilding of Tank A02 should be covered by the NMPP project insurance. Any additional costs regarding foundation strengthening measures will be determined based on the Geotechnical review done.

(2) (a) The Contractor is a Joint Venture between Trotech and Group Five. They will undertake both the completion of the tanks as well as any remedial actions required.

(b) Joint Venture between Trotech and Group Five as stated in (2)(a) above.

(3) (a) The cost associated with the construction of these tanks as contracted and taking into account all compensation events to date is R 601 million.

(b) The expenditure to date associated with the construction of these tanks is R462 million.

(c) The present full scope contract value will be influenced by the dispute resolution process as well as any costs related to remedial actions taken.

Reply received: October 2014

QUESTION NO.: 1371

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1371. Mr R A Lees (DA) to ask the Minister of Public Enterprises:

(1) Whether, with regard to Transnet's New Multi-Product Pipeline from Durban to Gauteng, (a) all financial claims and (b) all claims due to damages and restoration from landowners over whose land the pipeline has been constructed, have been paid; if not, why not;

(2) (a) what are the relevant details of all claims made by affected landowners in KwaZulu-Natal and (b) how many of these claims have not been paid? NW1735E

Transnet Reply:

(1)(a) Ninety seven percent (97%) of all known financial and additional claims due to damages, restoration and loss of income have been paid. Three percent (3%) are in the process of being evaluated before payment. In terms of the servitude agreement proof of actual financial loss must be provided for payment to be made. In some cases outstanding documentation is delaying payment.

(1)(b) See reply in (1)(a) above.

(2)(a) The relevant details of all claims made in relation to the NMPP (including Kwa-Zulu Natal) are outlined in the table below:

TOTAL CLAIMS FOR NMPP IN KZN

Total Claims

Paid

% Paid

Not Paid

% O/S

Loss of income and damage to property

149

145

97%

4

3%

Occupational Rent

186

177

96%

9

4%

Borrow Pits

1

1

100%

0

0%

TOTAL

336

323

96%

13

4%

(b) As stated in point 2(a) above, 13 of these claims (i.e. three (4%) have not been paid.

Reply received: October 2014

QUESTION NO.: 1370

DATE OF PUBLICATION: 12 SEPTEMBER 2014

Mr R A Lees (DA) to ask the Minister of Public Enterprises:

With regard to Transnet's New Multi-Product Pipeline from Durban to Gauteng,has all the required cathodic protection been installed, particularly in relation to the portion between the Tugela River and Frere where the Eskom transmission line runs parallel and near the pipeline; if not,

(a) why not,

(b) when will all cathodic protection be installed,

(c) what will the cost be of installing the outstanding cathodic protection and

(d) what are the potential dangers of not having the required cathodic protection in place? NW1734E

Reply:

All Cathodic Protection installations in the section between the Tugela River and Frere have been completed as per the originally installed Eskom line. Eskom has since installed a new line in the area, requiring revision to the AC Mitigation systems (termed AC Augmentation).

(a) This is due to the recently installed new line.

(b) It is envisaged that it will take nine months to complete the revision to the AC Mitigation systems (termed AC Augmentation).

(c) The cost of this AC Augmentation of R7,1m is provided for within the current revised project budget.

(d) Without the Cathodic Protection, the integrity of the pipeline may be compromised. The potential dangers related to the integrity of the pipeline are mitigated by enhanced AC and DC current density monitoring in addition to the routine line monitoring in this area until the AC Mitigation Augmentation is complete.

Reply received: October 2014

QUESTION NO.: 1349

DATE OF PUBLICATION: 12 September 2014

1349. Mr. N Singh (IFP) to ask the Minister of Public Enterprises:

With reference to her reply to question 451 on 4 July 2014, what processes are being followed to fill the remaining vacancies for nonexecutive directors of the boards of (a) Eskom, (b) Broadband Infraco, (c) SA Airways, (d) SA Forestry Company Ltd and (e) Denel? NW1695E

Reply:

The Department has undertaken a Board review and appointment process, to ensure proper identification and selection of potential candidates for appointment to the SOC Boards. The process has begun with the issuing of a newspaper advert calling for Board nominations in this regard.

Once the Departmental processes are complete, the proposed short-listed candidates will be submitted to Cabinet for approval.

Reply received: October 2014

QUESTION NO.: 1348

DATE OF PUBLICATION: 12 September 2014

Mr J A Esterhuizen (IFP) to ask the Minister of Public Enterprises:

(1) Noting that, due to alleged bad management, Eskom's outstanding debt as at 31 March 2014 was R255 billion while primary energy costs rose by 14,5%, what does her department intend doing to

(a) mitigate the impact of energy price increases on the consumers and

(b) help to buffer consumers against any other possible electricity price increases;

(2) whether the National Treasury will be approached to bail out Eskom again; if so, what are the relevant details? NO1693E

REPLY

1) Eskom will be required to increase its debt within reasonable limits that can be supported by the balance sheet in this phase of construction of the power plants. Therefore the level of debt is not as a result of bad management, but it is normal for a company that is increasing its generation capacity by 25% to 30% by 2019.

(a) The increases in primary energy were mostly due to the increase in the use of diesel to minimize the risk of load shedding and increase in coal costs. Further the Department is having detailed discussions with Eskom to explore ways to reduce the costs to the levels agreed to with the Regulator. The Department is also looking into engaging the coal mining industry on the need to ensure security of coal supply to Eskom at affordable prices.

(b) All costs that Eskom incurs are subject to a prudency test or "efficiency test" by the energy regulator to determine if the costs were incurred efficiently and responsibly. Therefore not all costs (including bad management decisions) get passed to the consumer. The inclining block tariff structure and free basic electricity allocation remains in place to ensure that the most vulnerable South Africans are cushioned against possible high electricity prices.

2) Eskom's problems are primarily a result of inadequate capitalization revenue that is inadequate to cover the cost of supplying electricity. Cabinet approved a package to support Eskom following a proposal put together by the Inter-Ministerial Committee. The Minister of Finance has already indicated that the details will be made available in due course.

Reply received: October 2014

QUESTION NO.: 1346

DATE OF PUBLICATION: 12 September 2014

Ms N P Sonti (EFF) to ask the Minister of Public Enterprises:

(1) Whether, in view of the extent of the management of all entities under her department (ESKOM, TRANSNET, SAA, SAX and Broadband Infraco) and the fact that all of them required the taxpayers to bail them out after monies have been poorly managed and planned for, she has found that the specified entities will be better managed under the other specified departments (ESKOM under Department of Energy; TRANSNET, SAA and SAX under Department of Transport; and Broadband Infraco under Department of Communications) and thereby save a lot of money for the Government to spend elsewhere; if not, why not; if so, what are the relevant details;

(2) what role has her department played to ensure that these entities have good financial management? NO1675E

Reply:

(1 - 2) State Owned Companies (SOCs) are key institutions which, in a conducive environment, can drive investments in productivity, technologies, human resources and innovation in a developing economy. As such SOCs are both shaped by and play a central role in shaping the quality and rate of development in the economy. The use of government shareholding in the SOCs to drive economic development is thus extremely vital. This has been acknowledged by the democratic South Africa and is evident in the evolution of the Department, which began as an office of privatization. In recognizing that South Africa is a developmental state, the vision, mission and mandate of the Department underpins the government shareholder management objective aimed at providing strategic rationale for the SOCs.

Over the years there has been various reviews in government and the most recent one published in 2013 is that of the Presidential Review Committee (PRC) on State Owned Entities called "Growing the Economy – Bridging the Gap". South Africa currently has a centralized and decentralized government ownership model and the PRC Report highlights the need to clearly distinguish the roles of government as owner, policy maker, regulator and implementer. In the main, the need for separation should facilitate competitive neutrality (a level playing field) of the SOCs. The principle issue is that whether SOCs report to a policy department or a purely shareholder department such as DPE, the oversight functions must be consistent, transparent and accountable in line with prescribed requirements. There is a need to codify and harmonise shareholder management practices across government.

With regard to the competing priorities of government, there is a lot more work to be done in correcting the imbalances of the past and government's ability to balance the funding of SOCs vis-à-vis those of socio-economic priorities will always require careful attention. There will always be trade-offs in the allocation of funding. However, government continues to acknowledge the strategic value of SOCs in the economy.

The Honourable Member's question is incorrect in saying all SOCs require bail-outs. Transnet have been able to sustain growth in its build programme on the back of its own balance sheet. The airlines have been historically under capitalised and has required guarantees to address going concern issues. Eskom continues to be the major supplier of electricity. However, much of its challenges are due to inadequate capitalisation and lower than expected tariff increases.

Further, the statement that these SOCs are poorly managed is a broad generalization and requires further clarification as majority of the SOCs are well managed, with sophisticated governance systems and internal controls. Robust mechanisms are in place thought the Strategic Intent Statement and the Shareholder's Compact which are primarily designed to hold the Boards (and Management) to account for financial, operational and developmental performance indicators in the achievement of the mandates of SOCs.

Reply received: October 2014

QUESTION NO: 1345

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1345. Ms D B Letsatsi-Duba (ANC) to ask the Minister of Public Enterprises:

What is being done by her department to ensure alignment between state-owned companies' investment plans and those of provincial governments? NO1673E

REPLY

The Department of Public Enterprises (DPE) ensures alignment between the State Owned Companies' (SOCs) investment plans and those of provincial governments through the following three key areas:

· Regulatory approvals process,

· Provincial engagements

· Social impact

Regulatory approvals

In terms of regulatory approvals, the SOCs maintain alignment with provincial governments through close communication and regulatory approvals. For example there is provision of water usage licences and other permit approvals that are utilised for conducting businesses within the provinces. This course of action gives provincial government sufficient line of sight on future plans and activities of SOCs in the provinces. Furthermore, this action also involves close collaboration with local infrastructure project units with an objective of creating functional outcomes.

Provincial engagements

DPE reinforces the process by conducting provincial engagements led by the Deputy Minister which deliberately include SOCs, local governments, community representatives and local business associations, with an intention of alerting all stakeholders about the infrastructure planning prospects and possible opportunities that are to emerge. The benefit of this process is to provide the communities with an opportunity to plan and participate in the SOC infrastructure programme.

Social impact

DPE restructured itself and created a unit that focuses on the impact of the infrastructure rollout, the social benefits to be derived from the rollout and the introduction of measures on how the processes of redressing some of the social investment difficulties in the other spheres of government are addressed. This team works closely with the SOCs in trying to find functional solutions to some of the dire situations. This further improves the alignment between SOCs and other spheres of government.

Reply received: October 2014

QUESTION NO.: 1344

DATE OF PUBLICATION: 12 September 2014

Ms D Z Rantho (ANC) to ask the Minister of Public Enterprises:

What measures has her department put in place to support the Government's Renewable Energy Programme? NO1672E

REPLY

Eskom continues to support Renewable Energy Independent Power Producers (REIPP) and over the past year has seen some benefits on the supply-side as a result of the growth in this market. The Department has worked closely with the other government departments to conclude the Government Support Framework Agreement that facilitated the support required to minimize the risk of REIPP introduction to the power system.

As part of the Renewable Energy procurement programmes, Eskom has and will continue to enter into new long term (20 year) power purchase agreements (PPAs). In line with the Public Finance Management Act (PFMA) requirements, I have assessed and approved PFMA applications for the first three windows of the procurement process of REIPPs.

Eskom currently has more than 60 signed Power Purchase Agreements (PPAs) with these REIPPs with a total capacity of 4 280 MW (although not all of the capacity is operational). More companies are expected to be signing PPAs with Eskom as the program unfolds.

Further, the Department continues to work with and support Eskom in sharing and being more transparent on its infrastructure plans including the much needed transmission investment as required by the Eskom license conditions. It is in this regard that Eskom annually shares its 10 year transmission investment plan to assist the Renewable energy program on location of sites for projects to ensure ease of connection to the transmission network.

Reply received: October 2014

QUESTION NO.: 1343

DATE OF PUBLICATION: 09 September 2014

1343. Dr Z Luyenge (ANC) to ask the Minister of Public Enterprises:

How effective has he found the Denel Turnaround Strategy to have been since its inception, in terms of revenue and growth, organisational management, persons and transformation and technology and strategic relations? NW1671E

REPLY

The turnaround plan has proven to be effective:

1. Annual revenues have improved from around R2.7bn in 2010 to R4.6bn in the 2013-14 financial year. Exports constitute 50% of these revenues.

2. In the same period, net profit improved by R123-million to R194-million. And in 2013/14 Denel core divisions reported a positive operating profit – the first time in more than a decade.

3. The SOC leadership (Board and Executive Management) has stabilised over the period, which reflects in the results.

4. The business is putting greater focus on succession planning to address the challenge presented as a result of an ageing workforce. Dedicated programmes to fast-track acquisition and transfer of knowledge have been started at all divisions.

5. The representation of women, which is at 26% of the workforce, in all areas of the business, will also be receiving particular attention, with dedicated women technical and business management development programmes envisaged.

6. Denel throughout the challenging times have been able to maintain defense industrial capabilities and continues to invest in new capabilities in line with SANDF requirements.

7. Strategic Relations regarding the sustainability of Denel have improved significantly. The 2014 Defence Review specifically identifies Denel as a strategic national asset and the Department and Denel are engaging with the Department of Defence to leverage on the recommendations of the review.

Reply received: October 2014

QUESTION NO: 1338

DATE OF PUBLICATION: 12 September 2014

Ms PT van Damme (DA) to ask the Minister of Public Enterprises:

What are the (a) domestic and (b) international routes of the SA Airways at present? NW1536E

Reply

The list below details all the Domestic and International routes flown directly by SAA

Domestic Routes (Departing from JNB)

International and Regional Routes (Departing from JNB)

Cape Town

Luanda

Entebbe

Frankfurt

Durban

Mauritius

Dar Es Salaam

Munich

Port Elizabeth

Blantyre

Kinshasa

London

East London

Lilongwe

Doula/Libreville

Hong Kong

Maputo

Pointe Noire/Cotonou

Beijing

Lusaka

Lagos

Mumbai

Livingstone

Accra/Abidjan

Hong Kong

Ndola

Sao Paulo

Munich

Harare

New York

Washington

Victoria Falls

Nairobi


Reply received: October 2014

QUESTION NO.: 1336

DATE OF PUBLICATION: 12 September 2014

Ms D Carter (Cope) to ask the Minister of Public Enterprises:

Whether Eskom has paid any compensation to any supplier or suppliers of electricity in the period 1 January 2012 to 31 August 2014 in lieu of its failure to take up supply of electricity it had contractually undertaken to use; if not, has Eskom used all of the electricity supply from all external sources in accordance with the applicable agreements; if so, (a) what has been her department's reaction in that regard and (b) what are the further relevant details? NW1531E

REPLY

There are instances where Eskom has for various reasons not taken up the supply of electricity as per contractual undertakings, and as such is obligated to compensate only the suppliers who have met all requirements. The MYPD3 process outcome during 2013 resulted in significant funding constraints which have impacted the rate of completion of capital projects including network strengthening and grid connections. Some of the projects that were affected are necessary to taking up electricity supply from the PPAs concluded under the Renewable Energy Independent Power Producer Procurement Programme by the Department of Energy (REIPPP).

(a) The relationship between Eskom and the Department is amongst others governed by the Significant and Materiality Framework (SMF) which requires disclosure of transactions exceeding a pre-defined quantitative threshold and/or are qualitative material. For the period 1 January 2012 to 31 August 2014, the Eskom Board has indicated that there have been no significant transactions as per the SMF relating to IPP compensation.

(b) Eskom has concluded several Power Purchase Agreements (PPAs) as part of the REIPPP. Eskom, as the Buyer of electricity under these PPAs, has an obligation to pay Deemed Energy Payments if amongst other reasons the network provider (Eskom or Municipality) has delayed the Grid Connection beyond the contractual Grid Connection date, resulting in delays of Independent Power Producer Facility achieving its Commercial Operation Date. Eskom is currently paying Deemed Energy Payments to one project which began on 01 July 2014. The project is a 5 MW solar PV project and expected to be delayed for a period of one year and the estimated Deemed Energy cost is R 35 million calculated for the period 01 July 2014 to 01 July 2015.

Reply received: November 2014

QUESTION NO: 1285

DATE OF PUBLICATION: 5 September 2014

Mr EJ Marais (DA) to ask the Minister of Public Enterprises:

(1) How many (a) international and (b) domestic routes of the SA Airways (SAA) are (i) profitable and (ii) not profitable:

(2) For each of the routes that are not profitable, (a) what losses are incurred by SAA and (b) what are the reasons for keeping these routes? NW1578E

REPLY

(1) (i) Profitable Routes (at C3/Operating Profit level):

a) International (incl. Regional) = 28

b) Domestic = 4

(ii) Non Profitable Routes (at C3/Operating Profit Level):

a) International (incl. Regional) = 5

b) Domestic = 0

(2) Non Profitable Routes (at C3/Operating Profit Level):

a) Route Losses – Average Operating Profit Margin % = -31%

b) There are certain routes which by their very nature will be unprofitable; however, they are operated due to their important contribution to the Route Network.

A Route is an investment, hence it takes a few years to mature and become profitable.

Please note that for purposes of this response, the indication of profitability at C3 level is most appropriate as it relates to route profitability (excluding aircraft ownership, and other costs such as head office costs).

Annexure A is a detailed document explaining the profitability Levels. Due to the fact that this response will become publicly available, we are unable to provide further details on the extent of losses, as well as remedial measures undertaken, as this information will become available to SAA's competitors. See the link for Annexure: www.pmg.org.za/files/rnw1285a.pdf

The value of each route is reviewed regularly against a range of factors including, but not limited to, profitability.

Reply received: October 2014

QUESTION NO.: 1281

DATE OF PUBLICATION: 5 September 2014

1281. Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

(1) What is Transnet's current backlog in respect of maintenance and repairs of (a) pipelines, (b) port terminals, (c) rolling stock and (d) rail infrastructure, specifically (i) signalling, (ii) rail yards, (iii) communications systems and (iv) rail tracks;

(2) What amount is needed to eradicate these backlogs;

(3) Whether there are any plans to eradicate these backlogs; if not, why not; if so; what are the relevant details? NW1573E

REPLY

See Transnet's reply as attached as Annexure A Link www.pmg.org.za/files/rnw1281a.pdf.

Reply received: September 2014

QUESTION NO.: 1280

DATE OF PUBLICATION: 5 September 2014

1280. Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

(1) Whether, with regard to the Independent Review Mechanism of the African

Development Bank finding in December 2011 that no real effort has been made to identify such unmarked graves and the risk of desecration remains substantial, the process has been initiated to

(a) identify the graves of the 14 families at the Medupi Power Station construction site and

(b) prevent further desecration; if not, why not; if so, what are the relevant details;

(2) whether all the families affected were consulted before construction commenced;

if not, why not; if so, what are the relevant details;

(3) whether consultations will begin afresh; if not, why not; if so, what are the

relevant details? NW1572E

REPLY

(1) (a-b) Yes. The Independent Review Mechanism Report concluded that a proper Heritage Impact Assessment (HIA) was done and that every effort was put in place to ensure that adequate care was put into identifying graves at the project site. This was based on the documents provided by Eskom and the various discussions held with project environmental officers; Lephalale Municipal Council and Mayor; and the representative of the Archeological Team working for the National Cultural History Museum (NCHM) at the time on how the project handled the issue of gravesites.

(2) Eskom, the Department of Public Enterprises and I are not aware of any families who were not consulted.

(3) Subsequent to the Independent Review Mechanism Report, another inclusive

process led by the Department of Environmental Affairs involving Family Representatives, Limpopo Heritage Resources Authority (LIHRA), South African Heritage Resources Authority (SAHRA), African Development Bank (AFDB) and independent Environmental Control Officer (ECO) for Medupi, Eskom Medupi, and Eskom Mega Watt Park will be instituted. The next step in the heritage assessment process will be where the terms of reference shall be developed and an independent consultant hired to carry out another Heritage Impact Assessment (HIA) on Eskom-owned land related to the footprint of Medupi to validate the complaints lodged. The study is expected to be undertaken over a period of 3 months and the report is expected to shared with all interested parties in the third quarter of the current financial year.

Reply received: September 2014

QUESTION NO: 1266

DATE OF PUBLICATION: 5 September 2014

1266. Ms P T van Damme (DA) to ask the Minister of Public Enterprises:

(1) With regard to the contracts awarded to General Electric, China North Rail, China South Rail and Bombardier Transportation for the building of Transnet diesel and electric locomotives,

(a) which other companies bid for the contracts, and

(b) for what reasons were the tenders not awarded to the other bidders;

(2) Were the National Treasury local content requirements met for each of the contracts awarded; if not, why not; if so, what are the (a) names of the local consortiums partnering with the successful bidders,

(b) their directors and

(c) shareholders;

(3) Whether South Africans will receive marketable training and skills related to the building of the locomotives; if so, how? NW1557E

REPLY

(1) (a) For the diesel locomotives, CSR Loliwe Consortium and Electro-Motive Diesel Africa (Pty) Ltd were the two other companies who bid for the contracts.

For the electric locomotives, Siemens (Pty) Ltd, MARS-Ithemba Consortium, Alstom Southern Africa Holding (Pty) Ltd, CNR Consortium and Bongiveli Rail (Pty) Ltd were the five other companies who bid for the contracts.

(b) CSR Loliwe Consortium & Electro-Motive Diesel Africa (Pty) Ltd did not qualify for the final stage of the adjudication process.

Siemens (Pty) Ltd, MARS-Ithemba Consortium, Alstom Southern Africa Holding (Pty) Ltd and CNR Consortium did not qualify for the final stage of the adjudication process. Bongiveli Rail (Pty) Ltd did not meet a minimum Technical threshold of 80%.

(2) Yes.

(a) For CNR Consortium (CNR Rolling Stock South Africa (Pty) Ltd) the local consortium partnering with them includes Endinamix which is a consortium of Kopano ke Matla (Pty) Ltd, Linothando (Pty) Ltd, Makana Investment Corporation (Pty) Ltd, Azon Rail (Pty) Ltd, Mpumelelo Julias Nobanda, Global Railway Africa (Pty) Ltd, Cadiz Holdings Limited. For General Electric South Africa Technologies (Pty) Ltd the local consortium partnering with them includes GE Bets South Africa (Pty) Ltd, GE Infra South Africa, GE Infra SA from GE Bets South Africa (Pty) Ltd & GE Infra South Africa, GE South Africa Technologies (Pty) Ltd and Mine Workers Investment Company in their partnering with local consortiums.

Bombardier Transportation partnered with BT South Africa Trust participation, Employee Trust (ESOP), Business Trust (BBOS), whilst CSR E-Loco Supply Proprietary Limited partnered with Matsete Basadi Consortium as its local consortium.

(b) The Directors of the local consortiums partnering with the successful bidders are the following (Surnames followed by first names):

CNR Rolling Stock South Africa (Pty) Ltd

Local Consortium directors:

· Von Gericke Rowlen Ethelbert

· Nkosi Morley Zebulon

· Nobanda Mpumelelo Julius

· Von Gericke Johan Karl

· Von Gericke Martin Werner

· Gonsalves Roberto

· Shaw Fraser Charles

· Schmahl Charl

· Jahnig Richard Ivan

· Matjila Marake Collin

· Xate Lulamile Lincolin

· Ngcobo Lindiwe Barbara

· Xate Lulamile Lincoln

General Electric South Africa Technologies (Pty) Ltd

Local Consortium directors:

· Schweikert Tim Joel

· Kabi Mahlatse Martha

· Noormohamed Shakira

· Khaole Nchaupe

· Ebrahim Zeenith

· Zimba Gorman Gordon

· Cowan Karma

Bombardier Transportation

Local Consortium directors:

· Flint James Allan

· Van Biljon Johannes Hendrik

· Dayanand Sajeeth

· Lekwane Aubrey Mmudtswane

· Feher Calvin Laszlo

· Matolo Christinah Noko

· Dias Violette Rhoda

· Sampson Paul Ashley

· Ngcobo Armstrong Sthembiso

· Dlambulo Dumisa

CSR E-Loco Supply Proprietary Limited

Local Consortium directors:

· Mohapeloa Lietsiso

· Morongwe Malebye

· Xoliswa Matsiliza

· Juliet Mxhakaza

· Mapineng Seabi

· Matseliso Mohapeloa

· Nonhlanhla Ado Ntuli

· Mmmatlou Moraka

(c) Shareholders of the local consortiums partnering with the successful bidders are the following:

CNR Rolling Stock South Africa Pty Ltd:

· Cadiz Holdings

· Global Rail Africa (Pty) Ltd

· Azon Rail (Pty) Ltd

· Kopano Ke Matla Investment Company (Pty) Ltd

· Linothando Investments (Pty) Ltd

· Makana Investment Corporation (Pty) Ltd

· Mpumelelo Julius Nobanda

General Electric South Africa Technologies:

· GE Bets South Africa (Pty) Ltd

· GE Infra South Africa

· GE Infra SA from GE Bets South Africa (Pty) Ltd & GE Infra South Africa

· GE South Africa Technologies (Pty) Ltd

· Mine Workers' Investment Company

Bombardier Transportation South Africa Trust participation:

· Employee Trust (ESOP)

· Business Trust (BBOS)

CSR E-loco Supply (Pty) Ltd

· Matsete Engineering (Pty) Ltd

· Basadi Dirang (Pty) Ltd

· Matla a Sechaba Community Trust

· Loco Supply Employee Share Scheme

(3) Yes. The engineers and maintenance crews will be trained on how to maintain and repair the locomotives. Transnet will continue this process of skills development and skills maintenance by regularly upskilling the engineers as and when the up-skilling required.

Reply received: October 2014

QUESTION NO: 1246

DATE OF PUBLICATION: 5 September 2014

Ms P T van Damme (DA) to ask the Minister of Public Enterprises:

(1) What was the budget for SA Airways (SAA) in the (a) 2011-12, (b) 2012-13, (c) 2013-14 and (d) 2014-15 financial years

(2) What (a) amount and (b) percentage of these budgets was spent on (i) staff (aa) salaries, (bb) benefits and (cc) travel, (ii) office rental, (iii) bonuses for senior executives and (iv) fuel for SAA aircraft?

REPLY

(1) The budgeted cost for the airline was as follows:

(a) R23 billion in 2011/12

(b) R27 billion in 2012/13

(c) R28 billion in R2013/14

(d) R34 billion in 2014/15

(2) The amount and percentage spent on staff, office rentals, bonuses for senior executives and fuel annually from 2011/12 to 2014/15 financial years are shown in the table below:

March 12

March 13

March 14

March 15

Budget

Budget

Budget

Budget

i)

Staff

i) aa

Salaries

4,124

4,111

4,324

4,925

-as % of operating costs

18%

15%

15%

14%

i) bb

Benefits

515

543

609

629

-as % of operating costs

2%

2%

2%

2%

i) cc

Travel

20

26

25

32

-as % of operating costs

0.1%

0.1%

0.1%

0.1%

ii)

Office rental

91

93

105

110

-as % of operating costs

0.4%

0.3%

0.4%

0.3%

iii)

Bonuses for senior executives

-

-

-

-

-as % of operating costs

0%

0%

0%

0%

iv)

Fuel

7,493

9,624

10,196

11,847

-as % of operating costs

32%

35%

35%

34%

Reply received: October 2014

QUESTION NO.: 1187

DATE OF PUBLICATION: 29 August 2014

1187. Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

(1) Whether (a) she and (b) the Deputy Minister has each employed a ministerial special advisor; if so,

(2) (a) what is the name of special advisor, (b) when was the advisor appointed, (c) what are the duties of the advisor, (d) at what post level was the appointment made, (e) what is the salary level of the advisor, (f) what is the duration of the employment contract entered into with the advisor and (g) why was it necessary to appoint the advisor? NW1425E

REPLY

(1) (a) Yes I have appointed two ministerial special advisors.

(b) The Deputy Minister does not have an advisor.

(2) (a – g)

The appointment of special advisors to executive authorities is regulated by section 12A of the Public Service Act, 1994 and the dispensation approved by the national Cabinet in terms of section 12A. The special advisors acts in an advisory capacity and has been appointed in terms of the Public Service Act (section 12 A (1):

  • To advise the Executing Authority on the exercise or performance of the Executing Authority's powers and duties;
  • To advise the Executing Authority on the development of policy that will promote the relevant department's objectives; or
  • To perform such other tasks as may be appropriate in respect of the Executing authority's powers and duties.
  • Cabinet approved dispensation for the appointment and remuneration of special advisors sets out the different compensation levels that are applicable to special advisors.

    In determining a compensation level for a special advisor the individual's level of expertise and the stature in the particular field are taken into account. The dispensation provides for the following four different levels of compensation in order to accommodate different levels of expertise:

    Compensation level (I) (Director level in public service)

    - Enjoys noticeable national recognition as a competent expert.

    - Complexity advice to be rendered comparable to that given by a Director (Senior Management Service Grade A) in the Public Service.

    Compensation level (II) (Chief Director level in public service)

    - Enjoys national recognition as a competent expert.

    - Complexity of advice to be rendered comparable to that given by a Chief Director (Senior Management Service Grade B) in the Public Service.

    Compensation level (III) (Deputy Director-General in public service)

    - Enjoys recognition as a competent expert at national and to some degree international level.

    - Complexity of advice to be given comparable to that given by the Deputy Director-General (Senior Management Service Grade C) in the Public Service.

    Compensation level (IV) (Director-General level in the public service)

    - Enjoys recognition as a competent expert at national and international level

    - To appoint and retain persons with very high level skills and/or skills.

    - Complexity of advice to be rendered is comparable to that given by a Director-General (Senior Management Service Grade D) in the Public Service.

    Mr BN Roberts is compensated according to Compensation level III as stated above, while Mr. E Jordaan is compensated according to Compensation level II.

    The duration of the contract has been agreed upon between the Special Advisors and the Executing Authority. Regardless of the contract period, the contracts will terminate at the end of the month following the month that the Executive Authority vacates office for any reason.

    I require the services as outlined in the Public Service Act (section 12 A (1) to be provided.

    Reply received: October 2014

    QUESTION NO: 1136

    DATE OF PUBLICATION : 29 August 2014

    Mr A G Whitfield (DA) to ask the Minister of Public Enterprises:

    Whether the Grahamstown Railway Stations is owned by Transnet; if not, who owns it; if so, what (a) steps are being taken by Transnet to ensure that the railway station complies with the National Heritage Resources Act, Act 25 of 1999, and (b) what are the plans for the railway station for the next five years? NW1374E

    REPLY

    (a) Yes, Transnet is the owner of the Grahamstown Railway Stations of which ownership includes the actual railway line, the right of way on the railway line, the station buildings and the bridges and structures on site. The railway station complies with the National Heritage Resource Act, Act 25 of 1999.

    (b) Over the next five years, the plans for the railway station consist of work to be done by Transnet and as a result of a contractual obligation, some work to be done by PRASA. Transnet is still to complete the review of the user requirements and use of the buildings. Upon completion of this review, Transnet will subsequently develop a plan for full restoration, upgrade and refurbishment of the station. Transnet is responsible for the maintenance of the railway infrastructure. During the 2012/13 and 2013/14 financial years, Transnet proceeded with a limited yet measurable portion of maintenance on the Alicedale to Grahamstown railway line with the aim of eventually getting this railway line into operation. As a lessee over the Grahamstown station since 31 March 2009, PRASA has in accordance with its contractual responsibility, been and will continue to maintain the buildings and related infrastructure as and when operations proceed.

    Reply received: September 2014

    QUESTION NO.: 1133

    DATE OF PUBLICATION: 29 August 2014

    113. Dr M J Figg (DA) to ask the Minister of Public Enterprises:

    (1) What is the estimated final cost of the Medupi Power Station;

    (2) (a) what are the reasons for the costs escalating from the original R70 billion and

    (b) who is responsible for incurring these additional costs;

    (3) whether she plans on holding certain individuals or companies liable for the

    additional costs; if not, why not; if so, what are the relevant details;

    (4) when will the Medupi Power Station be operational? NW1371E

    REPLY

    1. The budget for Medupi Power station as reported in the Eskom Integrated Report for financial year 2014 is R105.0 billion (excluding capitalised borrowing costs). A review of the current budget is underway.

    2. (a) The budget of R70bn was approved in 2007. The subsequent cost increases can be attributed to the following main reasons:

    a. There were unexpected rock and site conditions which required more civil works thereby increasing costs;

    b. Inadequate level of upfront project development activities, due to project time pressures, meant that the necessary environmental permitting, geotechnical surveys and subsequent design activities could not be completed before the commencement of the project. This led to delays and an increase in scope.

    c. The equipment for Medupi was procured during an upturn in market conditions which led to an increase in costs from the original estimate.

    d. Since foreign exchange exposures are only hedged at contract award date when they become known and committed, the project costs had to account for changes in the economic planning parameters that have taken place until the contracts were eventually awarded, in particular the deterioration in the foreign exchange rates and inflationary outlook.

    e. The project schedule and thus cost has been adversely affected by poor contractor quality & productivity, site labour unrest and supporting infrastructure requirements such as roads, rail and housing, transmission integration.

    f. Eskom's project implementation team had to be significantly strengthened to oversee project quality and construction integration and to manage the large (and often complex) number of claims being put forward by contractors.

    2) (b) To execute the works Eskom employs principal contractors. These principal contractors in turn employ numerous sub-contractors. The responsibility and accountability for the cost increases are determined by the contractual relationship and contract conditions which regulate the relationships between Eskom, their principal contractors and sub - contractors.

    3) In terms of the contracts with the main contractors Eskom has various remedies against the contractors including:

    · Delay damages for completion delays; and

    · Specific remedies for under performance.

    Eskom follows and exercises its contractual remedies (and Eskom is submitting claims against contractors to the contractual Dispute Adjudication Boards, where applicable) and rigorously assesses claimed contractor entitlement.

    4) The first unit of Medupi (i.e. Unit 6) is planned to be synchronised to the grid by December 2014. The anticipated date for full operation of Unit 6 is the first half of 2015. Updates on relevant dates will continue to be communicated through Eskom's various platforms such as quarterly media updates, as progress evolves.

    Reply received: September 2014

    QUESTION NO.: 1075

    DATE OF PUBLICATION: 29 August 2014

    1075. Mr W M Madisha (Cope) to ask the Minister of Public Enterprises:

    Whether she is taking any steps to ensure that Eskom is able to retrieve the R10 billion owing to it by municipalities and other debtors; if not, why not; if so, what are the relevant details and outcomes thereof NW1245E

    REPLY

    Yes. I have asked Eskom to work very closely with the Department of Cooperative Government & Traditional Affairs, National Treasury, Provincial Premier and Provincial Treasuries to engange default municipalities.

    Eskom is legally bound by the Public Finance Management Act (PFMA) to manage debt and has a robust credit management policy in place, which is applied to recover debt. Acknowledgements of debt letters and realistic payment plans have been signed with some municipalities. As a generic payment plan, Eskom has requested all defaulting municipalities to firstly honor their current accounts and settle their arrear debt by 31 March 2015.

    In engaging with municipalities and other relevant Government departments, Eskom takes into account the possible impact on citizens and residential, commercial, industrial and other consumers of any action it may take.

    Reply received: September 2014

    QUESTION NO.: 946

    DATE OF PUBLICATION: 22 AUGUST 2014

    PQ 946: Adv. A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:

    (1) Whether the chairperson and directors of the board of directors of Transnet have voted to oppose the class action against Transnet instituted by pensioners of the Transnet Pension Fund and the Transnet Second Defined Benefit Fund; if so, which directors (a) voted in favour of opposing the court case, (b) voted against opposing the court case and (c) abstained from voting;

    (2) For what reasons do the directors want to oppose the court case;

    (3) Whether (a) the Chairperson of the Board of Trustees and (b) trustees of each of the two pension funds voted to oppose the class action; if so, which trustees (i) voted in favour of opposing the court case, (ii) voted against it and (iii) abstained from voting;

    (4) For what reasons did the trustees decide to oppose the court case? NW1095E

    REPLY:

    1) No. After extensive discussions by the Board of Directors of Transnet, the board did not vote on the matter but delegated this and other matters to the Group Chief Executive of Transnet including any legal matters related to this class action.

    2) Transnet opposed the court case on the basis that 1) the applicants failed to make a case for class action, 2) the applicants failed to satisfy the requirement of section 38 of the Constitution on class action 3) Transnet is of the view also that the applicants should pursue other avenue available (such as instituting individual action) to obtain remedial action.

    3) (a-b) The Board of Trustees and the Transnet Second Defined Benefit Fund (TSDBF) voted to appeal the judgment :

    I) The Four Transnet appointed trustees voted to proceed with the appeal,

    ii) The Four pensioner elected trustees voted against the appeal, and

    iii) The Chairman of the Board of trustees exercised the casting vote to proceed with the appeal.

    The Principal Officer of the Transport Pension Fund took the decision to appeal the judgment based on legal advice from the Fund's Legal team and Senior Counsel.

    4) The Transnet Second Defined Benefit Fund and Transnet Pension Fund took a decision to oppose the court case on the basis that 1) the applicants failed or did not articulate a triable issue in respect of any claims against both Funds of them 2) other reasons are based on issues of law such as the fact that i) the particulars of claim did not disclose a proper cause of action ii) the substantive portion of the claim against the Funds has prescribed iii) there was no principle in common law to justify the claim iv) that the concept of 'reasonable benefit expectation as espoused in the Pension Fund Act and sought to be enforced by the applicants was not applicable in this matter.

    Reply received: August 2014

    QUESTION NO: 849

    DATE OF PUBLICATION: 1 August 2014

    Mr J Vos (DA) to ask the Minister of Public Enterprises:

    (1) Whether she intends to undertake any economic research studies to ascertain and monitor the (a) viability and (b) sustainability of the direct flights by Airlink between Nelspruit and Vilanculous, Mozambique now that it has been established; if not, why not; if so, when;

    (2) At what capacity have the flights been running since the establishment of the route? NW937E

    Reply:

    1) a) No.

    b) No, SAA, a State-Owned Company within my portfolio, has a very small stake in SA Airlink (about 2,954%). To all intents and purposes SA Airlink operates independently from SAA. While viability and sustainability are of great interest to SAA, I am confident that SAA does not need the Ministry to undertake such research at this stage.

    2) Given that it is an independent company, to all intents and purposes, the question would best be answered by SA Airlink.

    Reply received: August 2014

    QUESTION NO: 810

    DATE OF PUBLICATION: 25 July 2014

    Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) Whether (a) she, (b) the Deputy Minister, (c) the Director-General or (d) any of her staff (i) attended, (ii) accepted an invitation and/or (iii) received tickets to the 2014 Soccer World Cup in their official capacity; if so, what are the relevant details including the (aa)(aaa) names and (bbb) positions of those who attended and (bb) breakdown of the amounts spent by her department on (aaa) travel, (bbb) accommodation, (ccc) entertainment and (ddd) any further specified expenses;

    (2) (a) what is the breakdown of the amount spent by her department on any persons accompanying (i) her, (ii) the Deputy Minister, (iii) the Director-General or (iv) any of her staff to attend the 2014 Soccer World Cup including (aa) travel, (bb) accommodation, (cc) entertainment and (dd) any further costs and (b) in each case, what is the (i) relationship and (ii) reason for accompanying the relevant person? NW897E

    Reply

    (1) (a)(b)(c)(d)

    (i) No

    (ii) No

    (iii) No

    (2) Not applicable.

    Reply received: August 2014

    QUESTION NO.: 761

    DATE OF PUBLICATION: 25 July 2014

    Mr E. J Marais (DA) to ask the Minister of Public Enterprises:

    How many judgments and ii) court orders were made against her Department in the aa) 2010-11, bb) 2011/2012, 2012-2013, and dd) 2013-2014 financial year and b) in each case, i) how many of these aa) were implemented and bb) await implementation by her Department and ii) what was the nature of the aa) judgment and /or bb) court order.

    NW848E

    Reply:

    ii) The judgments and court orders made against the Department were as follows:

    aa) bb) None.

    dd) Two.

    b) (i) The implementation of judgments and court orders were as follows:

    aa) Both referred as above.

    bb) None.

    (ii) The nature of the judgments and court orders were as follows:

    aa) bb)

    · Comair brought an application against the Department, National Treasury, Department of Transport and SAA in 2013, challenging the granting of a R5 billion guarantee to SAA by the Government

    in 2012. The main application has not been dealt with as yet. However, Comair brought an interlocutory in 2013 to compel the Department to provide Comair, amongst others, with minutes of monthly monitoring meetings between the Departments of Public Enterprises and Transport, National Treasury and SAA generated during the period for the consideration of the granting of such a guarantee. Comair was successful in its application and the Department was ordered by the court to provide such minutes. The Department has complied.

    · A certain Mr Du Toit, a pensioner with the Transnet Pension Funds, brought an application to complain about the adequacy of pension benefits received from those funds. The application is against Transnet, its pension funds and the previous Minister. The Department has always argued that it was inappropriate to include the previous Minister in this matter but Mr Du Toit was steadfast until the date of the court hearing on 5 October 2013 when he agreed to release the previous Minister just before the proceedings started. The previous Minister is no longer a party to these proceedings as the dispute is now strictly between Transnet, its pension funds and Mr Du Toit.

    Reply received: August 2014

    QUESTION NO: 621

    DATE OF PUBLICATION: 18 July 2014

    Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) How many (a) international and (b) domestic hotel bookings were made by (i) the (the Ministry/department) (ii) his predecessors and (iii) departmental officials attending (aa) workshops, (bb) seminars, (cc) oversight visits or (dd) any other relevant meetings of the relevant portfolio committee from 1 April 2013 up to the latest specified date for which information is available;

    (2) in respect of each specified booking, what was the (a) date, (b) name of the hotel, (c) number of delegates, (d) cost of the hotel booking for each delegate and (e) the nature of the relevant portfolio business dealt with?

    Response:

    Members of the Executive, by the very nature of their ministerial work are required to travel. Ministers and Deputy Ministers may choose to occupy a state-owned residence in the area, in which their seat of office resides. However, ministerial work is not limited to seats of office and their duties require them to visit provinces around the country and travel abroad in order to fulfill their duties, which include among others, interaction with communities and stakeholders in the course of delivering on their mandates. In these instances, Ministers and Deputy Ministers are accommodated in hotels or guest houses, when fulfilling official duty away from their ordinary place of residence, befitting their office requirements and as outlined in the relevant policies. Equally the departmental officials on an annual basis submit their Annual Performance Plans to their respective Portfolio Committee. Some of these plans require the officials to travel to effect the relevant actions.

    The 2013/14 financial year for which the information is required, has just been audited. It will be presented to Parliament and published for the general public. The honourable members will be able to obtain this information through the progress reported to be presented by the relevant officials against their pre-approved operational plans.

    It also important to highlight that the department has approved service providers and guidelines for the procurement of accommodation. These were further adjusted to align them with National Treasury Instruction Note 01 of 2013/14 on cost Containment Measures.

    Reply received: August 2014

    QUESTION NO: 528

    DATE OF PUBLICATION: 11 July 2014

    Dr P J Groenwald (FF Plus) to ask the Minister of Public Enterprises:

    (1) When will the Medupi Power Station be put into commission for the supply of electricity?

    (2) Whether only certain sections of the Medupi Power Station will be put into commission, if so, (a) which stations and (b) when will the Medupi Power Station become fully operational?

    Reply:

    1) The Medupi Power Station has six units which will be commissioned sequentially over approximately 4 years beginning in December 2014.

    2) a)-b) All units will be commissioned over the 4-year period, leading to Medupi being fully operational by the end of 2018.

    Reply received: July 2014

    QUESTION NO.: 452

    DATE OF PUBLICATION: 4 July 2014

    Mr N Singh (IFP) to ask the Minister of Public Enterprises:

    Whether she has found that there is a good working relationship between the management boards and the executive management of (a) Transnet, (b) Eskom, (c) Broadband Infraco, (d) SA Airways, (e) SA Express, (f) SA Forestry Company Ltd (SAFCOL), (g) Denel and (h) Alexkor? NW535E

    Reply

    a) Transnet – Yes.

    b) Eskom – Yes.

    c) Broadband Infraco – The relationship between the Board and Management appears sound.

    d) South African Airways – There are challenges in the relationship between the Board and Management.

    e) South African Express – The CFO resigned in March 2014 and the Board and Management are busy with the recruitment process. I am in discussions with the Board and note that there are challenges in the relationship between the Board and Management.

    f) SAFCOL – The Chairperson of the Board, Mrs Magwentshu, resigned at the end of June 2014 to pursue other interests and an acting Chairperson, Professor Somadoda Fikeni, has been appointed until the Annual General Meeting. I am not aware of any concerns in the relationship between the Board and Management.

    g) Denel – The relationship between the Board and Management appears sound.

    h) Alexkor – The relationship between the Board and Management appears sound.

    Reply received: August 2014

    QUESTION NO.: 451

    DATE OF PUBLICATION: 4 July 2014

    Mr N Singh (IFP) to ask the Minister of Public Enterprises:

    1. Whether all positions are filled on the management boards of (a) Transnet, (b) Eskom, (c) Broadband Infraco, (d) SA Airways, (e) SA Express, (f) SA Forestry Company Ltd (SAFCOL), (g) Denel and (h) Alexkor; if so,

    2. (a) who are all the current board members of the each specified enterprise and (b) what is the total cost to company including (i) allowances, (ii) salaries and (iii) emoluments for each of these board members? NW534E

    Reply:

    The details below refer to Non-Executive Directors of the Boards.

    1. (a) There is one vacancy on the Transnet Board of Directors.

    (b) There is one vacancy on the Board of Eskom.

    (c) There are two vacancies on the Board of Broadband Infraco.

    (d) There are five vacancies on the SAA Board

    .

    (e) There are two vacancies on the Board of SA Express.

    (f) There are three vacancies on the SAFCOL Board.

    (g) There is one vacancy on the Board of Denel.

    (h) There are no vacancies on the Alexkor Board.

    2. (a)(b) The Non-Executive members of the Boards of Directors for each State-Owned Company and the total cost to company for each State-Owned Company as at 31 March 2014 is as follows:

    Transnet:

    (a) Board of Directors

    (b) Total Cost to Company

    Mr ME Mkwanazi (Chairperson)

    1,050.00

    Mr MA Fanucchi

    472.00

    Ms Y Forbes

    653.00

    Mr HD Gazendam

    634.00

    Ms N Moola

    472.00

    Ms NP Mnxasana

    472.00

    Ms NR NJeke

    630.00

    Mr IM Sharma

    551.00

    Mr IB Skosana

    551.00

    Ms ZE Tshabalala

    574.00

    Ms DLJ Tshepe

    630.00

    TOTAL

    6 689.00

    Eskom:

    (a) Board of Directors

    (b) Total Cost to Company

    Mr Z A Tsotsi (Chairperson)

    1 374 000.00

    Dr. B L Fanaroff

    446 000.00

    Ms R M Q Gungubele

    416 000.00

    Ms N Lesela

    416 000.00

    Ms B Luthuli

    517 000.00

    Ms C Mabude

    459 000.00

    Ms Y Masithela

    446 000.00

    Mr M C Matjila

    470 000.00

    Dr. B Mehlomakulu

    470 000.00

    Mr M E Mkwanazi

    470 000.00

    Mr S P Q Sedibe

    470 000.00

    Ms D E L Zondo

    446 000.00

    TOTAL

    6 400.000.00

    Broadband Infraco:

    (a) Board of Directors

    (b) Total Cost to Company

    Mr M Ngcobo (Chairperson)

    587 308.20

    Ms Meta Maponya

    197 672.02

    Ms Xoliswa Kakana

    279 605.93

    Ms Nokuthula Selamolela

    188 439.00

    Mr Sydney Mabalayo

    279 605.93

    Mr Shakeel Meer

    299 074.13

    Dr. Anthony Githiari

    208 428.15

    Mr Salim Essa

    246 072.87

    TOTAL

    2 286 206.23

    South African Airways:

    (a) Board of Directors

    (c) Total Cost to Company

    Ms D Myeni

    68 999

    Mr A Khumalo

    31 676

    Mr A Mabizela

    42 503

    Dr R Naithani

    39 793

    Mr B Mpondo

    84 462

    Ms N Kubeka

    71 547

    Ms R Lepule

    33 779

    Ms C Roskruge

    63 712

    Ms Y Kwinana

    53 156

    TOTAL

    4 89 622

    South African Express Airways:

    (a) Board of Directors

    (b) Total Cost to Company

    Ms B Ssamula

    347 615.00

    Mr A Mabizela (Chairperson)

    702 912.48

    Ms KT Nondumo

    262 312.22

    Mr GN Mothema

    250 084.24

    Ms BPB Dibate

    276 589.62

    Ms NM Moshimane

    221 198.48

    Ms NB Gxumisa

    276 589.62

    Mr PE Mabyana

    250 084.24

    TOTAL

    2,587 385.90

    SAFCOL:

    (a) Board of Directors

    (b) Total Cost to Company

    Prof SPM Fikeni (appointed acting Chairperson on 21 June 2014)

    232 947.00

    Ms NV Magwentshu (Resigned on 20 June 2014 Chairperson and NED)

    733 211.00

    Ms N Medupe (Resigned on 5 August 2014)

    312 263.04

    Mr M Kharva

    306 573.00

    Ms K Njobe

    306 573.00

    Ms F Blakeway

    238 293.00

    Ms MS Gilbert

    270 018.96

    Dr. SR Moephuli

    238 293.00

    TOTAL

    2 638 172.00

    Denel:

    (a) Board of Directors

    (b) Total Cost to Company

    Mr NR Kunene (Chairperson)

    773

    Adv. G Badela

    200

    Dr GC Cruywagen

    310

    Ms MJ Janse van Rensburg

    283

    Prof T Marwala

    76

    Ms Z Mathenjwa

    203

    Ms NJ Motseki

    136

    Mr M Msimang

    222

    Mr BF Ngwenya

    230

    Prof SM Nkomo

    354

    Adv. MS Nthikila

    226

    Ms B Paledi

    167

    Mr MV Ratshimbilani

    209

    TOTAL

    3 389

    Alexkor:

    (a) Board of Directors

    (b) Total Cost to Company

    Mr R Bagus (Chairperson)

    673 235.38

    Mr M Bhabha

    215 313.15

    Mr B Grobbelaar

    244 415.07

    Dr. N Mathabathe

    244 415.07

    Ms Z Ntlangula

    192 603.04

    Mr DB Mkhwanazi

    231 879.65

    Dr. R Paul

    300 258.18

    Ms S Zilwa

    276 324.20

    TOTAL

    2 378 443,74

    Reply received: August 2014

    QUESTION NO.: 450

    DATE OF PUBLICATION: 4 July 2014

    Mr N Singh (IFP) to ask the Minister of Public Enterprises:

    (1) What is (a) the list of management vacancies and (b) the timeline for the filling of the specified vacancies at (i) Transnet, (ii) Eskom, (iii) Broadband Infraco, (iv) SA Airways (SAA), (v) SA Express, (vi) SA Forestry Company Ltd (SAFCOL), (vii) Denel and (viii) Alexkor;

    (2) Whether all these state-owned enterprises currently employ their full quota of senior management; if not, why not; if so, what are the relevant details;

    (3) What is the total cost to company of the senior management of these state-owned enterprises? NW533E

    Response:

    For purposes of consistency reference to senior management means the highest level of the Executive Management Committee of the SOC.

    (1) (a)(b) (i) The following positions within the Group Executive Committee of Transnet are vacant: Group Executive: Transnet Property and the Group Executive: Legal Services and Compliance. The positions will be filled once the restructuring of the Property Division, which is currently underway, has been finalized.

    (ii) The following positions in the Group Executive Committee of Eskom are currently vacant: Chief Executive: Human Resources, Group Executive: (Group) Capital as well as Group Executive: Customer Services. The process of appointing a new Chief Executive is at an advanced stage. Other vacancies at Executive level will be filled following the appointment of the new Chief Executive.

    (iii) There are two vacancies at Executive Management Committee of Broadband Infraco which are the Chief Financial Officer and the Chief Marketing and Sales Executive. The Board has concluded the recruitment process for the CFO and submitted the nomination to the Shareholders for concurrence. The position of Chief Marketing and Sales Executive will be filled within the next three months.

    (iv) There are four vacancies within the Group Executive Management of South African Airways which are General Manager: Stakeholder Management, Chief Financial Officer: SAA Technical, Chief Executive Officer: Airchefs and Chief Financial Officer: Airchefs. SAA estimate that it will take them approximately six months to fill the vacancies.

    (v) There is one vacancy within the Executive Management Committee of SA Express, being the Chief Financial Officer. The position is expected to be filled by 31 September 2014.

    (vi) SAFCOL has no vacancies within the Executive Management Committee.

    (vii) Denel has no vacancies within the Group Executive Management Committee.

    (viii) Alexkor has no vacancies within the Executive Management Committee.

    (2) No. No extraordinary reason. As with any business, posts fall vacant and are filled.

    (3)

    Transnet:

    This information is included in the company's 2013/2014 Integrated Report which has been tabled in Parliament.

    Eskom:

    This information is included in the company's 2013/2014 Integrated Report which has been tabled in Parliament.

    Broadband Infraco:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    South African Airways:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    South African Express Airways:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    SAFCOL:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    Denel:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    Alexkor:

    This information is included in the company's 2013/2014 Integrated Report which will be tabled in Parliament by 30 September 2014.

    Reply received: July 2014

    QUESTION NO: 342

    DATE OF PUBLICATION: 27 June 2014

    Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of all flowers purchased by her department for each year between 1 April 2009 up to the latest specified date for which information is available;

    (2) what are the details of (a)(i) the address and (ii) the name of the office where the specific flowers were displayed, (b) for whose benefit were the flowers purchased and (c) what was the purchase value of the flowers for each office where it was displayed;

    (3) in respect of flowers purchased for individuals, (a) what is the (i) name and (ii) relationship of the person to (aa) her and (bb) the Ministry and (b) what is the cost of each purchase;

    (4) what are the details of any (a) contractual arrangements and (b) plans to purchase flowers in the future? NW424E

    Reply

    (1) 2009/10 R12 375.00

    2010/11 R25 007.90

    2011/12 R57 903.60

    2012/13 R57 214.50

    2013/14 R74 265.00

    2014/15 to date R5 200.00

    (2) (a)(i) and (ii), (b) and (c)

    2(a)(i)

    2(a)(ii)

    2(b)

    2 (c)

    DPE offices Pretoria

    Reception areas, offices of the Minister, Deputy Minister and Director-General

    For the benefit of external people/delegations visiting the department and meeting with the Minister, Deputy Minister and Director-General

    2009/10 R11 775.00 2010/11 R22 344.40 2011/12 R57 703.60 2012/13 R56 914.50 2013/14 R73 765.00 2014/15 R5 200

    NB: Consolidated amounts provided for areas reported above

    (3) (a)(i) and (ii)(aa)(bb) and (c)

    3(a)(i)

    3(a)(ii)

    3(a)(ii)(aa)

    3(a)(ii)(bb)

    3(b)

    DPE Deputy Minister family bereavement

    Staff

    Staff

    Staff

    R600.00

    Bereavement – sent from DG office

    Staff

    Staff

    Staff

    R500.00

    Chris Forlee – in hospital

    Staff

    Staff

    Staff

    R640.00

    Portfolio Committee Chair – Family bereavement

    Stakeholder

    Stakeholder

    Stakeholder

    R250.00

    Bereavement – Joe Matthews

    Colleague

    Colleague

    Colleague

    R373.50

    Deputy Minister – Ben Martins

    Colleague

    Colleague

    Colleague

    R600.00

    Family for bereavement – Deputy Minister of Health

    Colleague

    Colleague

    Colleague

    R300.00

    Ellen Monyai – in hospital

    Staff

    Staff

    Staff

    R200

    Family of Mr D Zondi, a staff member who passed away

    Staff

    Staff

    Staff

    R300.00

    Sandy Hutchings – bereavement loss of son

    Staff

    Staff

    Staff

    R500.00

    (4) (a) and (b)

    (a) The Department has entered into a two-year contract with a supplier for the provision of flowers in the designated areas.

    (b) At the end of the current contract the situation will be reviewed.

    Reply received: March 2014

    QUESTION NO.: 311

    DATE OF PUBLICATION: 07 MARCH 2014

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

    (1) What is the (a) amount and (b) percentage of the capital expansion programme of Transnet and the Passenger Rail Agency of South Africa (Prasa) that (i) Transnet, (ii) Prasa, (iii)(aa) South African and (bb) international banks and (iv) (aa) South African and (bb) international institutions (aaa) are financing and (bbb) will be financing;

    (2) Which sections of the capital expansion programme are under discussion in each entity;

    (3) (a) which (i)(aa) South African and (bb) international banks and (ii)(aa) South African and (bb) international institutions are involved with the capital expansion programme in each case and (b) how was their involvement obtained? NW364E

    According to Transnet:

    (1)(a)(i) R209 billion of the R312 billion capital investment plan will be funded by Transnet from internally generated cash and R103 billion will be funded through the debt capital markets.

    (1)(a)(ii) Not applicable. The Passenger Rail Agency of South Africa (PRASA) does not report to the Department of Public Enterprises (DPE).

    (1)(a)(iii) Table 1 below indicates the funding sources between domestic and international:

    (aaa-bbb)

    Status

    (aa)

    South African

    (bb)

    International

    Financing as at 30 September 2013

    R46 682

    R34 048

    Will be financing

    ~R62 200

    ~R41 400

    (1)(b)(i) 66% of the R312 billion capital investment plan will be funded by Transnet Treasury from internally generated cash and 34% will be funded via the debt capital markets.

    (1)(b)(ii) Not applicable. PRASA does not report to DPE.

    (1)(b)(iii) Table 2 below indicates the percentage in terms of funding sources:

    (aaa-bbb)

    Status

    (aa)

    South African

    (bb)

    International

    Financing as at 30 September 2013

    58%

    42%

    Will be financing

    ~60%

    ~40%

    (2) In terms of the Compact signed with DPE, with reference to the PFMA, approval for any acquisition or disposal of a significant asset which has an estimated total cost exceeding the materiality amount agreed in the Compact must be obtained from the Shareholder.

    All acquisitions or disposals below the agreed Compact materiality amount are approved in terms of the Transnet Delegation of Authority with various approval limits up to the Transnet Board of Directors level.

    To date the following investments were approved by the Shareholder Minister:

    • Coal Line expansion to 81mt

    • Ore Line acquisition of 32 Class 15E locomotives

    • Ore Line Expansion to 60mt

    • Acquisition of 1 064 locomotives for Freight Rail's General Freight

    Business

    • New Multi-Product Pipeline

    It should also be noted, that all projects and programmes making up the R312 billion portfolio are approved by the Transnet Board of Directors during the Annual Corporate Plan and budgeting process and contained in the Corporate Plan, which is submitted to the Shareholder Minister by 28 February of each year.

    (3)(a) Transnet's funding strategy aims to ensure that the Company has sufficient liquidity to meet all its operational and capital investment funding requirements by raising its required funding cost-effectively from diverse funding sources, through the Domestic Medium-Term Note Programme (DMTN), Global Medium-Term Note Programme (GMTN), Export Credit Agencies, Development Finance Institutions, financial institutions as well as new sources whilst maintaining its investment credit rating. As at September 2013, funding has been obtained from the following investors, see tables:

    (3)(a)(i)(aa) Table 3 domestic banking institutions

    South African Banks

    Standard Bank Corporate Investment Bank

    Nedbank Ltd

    ABSA Bank Ltd

    RMB/ Division of FirstRand Ltd

    (3)(a)(i)(bb) Table 4 international banking institutions

    International Banks

    Standard Bank London

    The Bank of Tokyo Mitsubishi Ltd

    French Development Bank

    Sumitomo Mitsui Banking Corporation

    African Development Bank

    (3)(a)(ii)(aa) Table 5 domestic funding institutions

    Main South African Institutions

    Sanlam Capital Market Ltd

    Sanlam Investment Management (Pty) Ltd

    Blue Titanium Conduit Limited

    Bonds, Repo's & Commercial Papers issued in SA

    Issued under DMTN

    (3)(a)(ii)(bb) Table 6 international funding institutions

    International Institutions

    American Family Life Assurance Co.

    Export Development Canada

    Bonds issued internationally

    Issued under GMTN

    (3)(b) The Bonds, Commercial Paper and Repurchase Agreements (Repo's) are part of the DMTN/GMTN program and are raised via auctions. Other loans are subject to commercial negotiations.

    Funding is obtained following the approval of the Board of Transnet and the Shareholder, the DPE, in terms of the Transnet Delegation of Authority and the Public Finance Management Act.

    Reply received: July 2014

    QUESTION NO.: 309

    DATE OF PUBLICATION: 27 June 2014

    Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of office furniture ordered and or purchased for the use of her and/or her staff since 1 May 2014;

    (2) in respect of each piece of furniture, (a) what is the description, (b) what is the breakdown of the costs, (c) where will each piece of furniture be used and (d) who will use each piece of furniture;

    (3) what are the details of furniture disposed of;

    (4) in respect of each piece of furniture disposed of, (a) what is the description, (b) original purchase costs and (c) on what date was it purchased;

    (5) (a) how was this furniture disposed of, (b) what disposal method was used, (c) what is the name and contact details of person/s to whom it was disposed and (d) at what price was it disposed of? NW390E

    Reply

    (1) No Furniture has been ordered or purchased for myself or for my staff.

    (2) Not applicable.

    (3) No Furniture has been disposed of.

    (4) Not applicable.

    (5) Not applicable.

    Reply received: July 2014

    QUESTION NO: 275

    DATE OF PUBLICATION: 27 June 2014

    Ms N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of motor vehicles ordered and/or purchased for her use since May 2014;

    (2) (a) what is the (i) make, (ii) model, (iii) total cost and (iv) breakdown of the cost of each motor vehicle and (b) where will each motor vehicle normally be stationed? NW355E

    Reply:

    1) No Motor Vehicles have been ordered or purchased for my use.

    2) Not applicable.

    Reply received: March 2014

    DATE OF PUBLICATION: 07 MARCH 2014

    261. Mrs N W A Michael (DA) to ask the Minister of Public Enterprises:

    Following the review on systemic failures of Transnet's Multiproduct Pipeline completed in 2011, (a) what are the reasons for the (i) cost overruns and (ii) delay in three years of the project and (b) will this review be tabled before Parliament? NW314E

    Reply:

    According to Transnet:

    (a)(i) It should be noted that the so-called systematic failures referred to in the review, relate to the cost and schedule overruns on the New Multiproduct pipeline (NMPP) Project and not to the performance of the completed assets.

    It is important to highlight the fact that Transnet's NMPP is a strategic investment to secure the supply of petroleum products from the Coastal terminals in Durban to the inland (predominantly Gauteng) market over the long-term. The pipeline component of the NMPP system of assets is buried underground over a distance of 717 kilometres. The 24 trunk-line (555km), three 16 inland pipelines (162km), three trunk-line pump stations and two trunk-line metering stations are operational.

    The trunk-line was successfully commissioned in December 2011 and put into operation in January 2012. Since being brought into operation, the NMPP has functioned without incident and in accordance with its design, successfully transported 5.2 billion litres of diesel up to the end of February 2014.

    The completion of the construction work of the Coastal terminal (TM1) in Durban and the Inland terminal (TM2) in Jameson Park is currently in progress.

    The following factors contributed to the cost and schedule overruns: The increase in costs of the company's new pipeline between Durban and Gauteng is attributed 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.

    Further factors 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 all impacted significantly on the schedule and delivery.

    The revised schedule and cost are attributed to the reasons mentioned above as well as 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 Transnet Board approved the revised cost estimates for the NMPP to R23.4 billion in November 2010. This approved amount has not changed since.

    Transnet also acknowledged the shortcoming of the management setup within Transnet Capital Projects. The lack of sufficient capacity and depth of experience for the client overview of a megaproject of this complexity resulted in an over-reliance on the EPCM contractor.

    On the 29th November 2012, I announced that I had concluded the special review of the cost and schedule variations, which had dogged the project during its early stages. These were shared with Transnet's Board and management. The findings included the following factors which had a detrimental impact on completion:

    • The decision to terminate the main EPCM (Engineering Procurement and Construction Management) contractor at the end of Front End Engineering Design (FEED) stage.

    • The re-assignment of the scope of work to a new EPCM contractor.

    • The length of time it took to capture and validate the FEED introduced significant delays to the execution schedule.

    • The interface between the Owner's Team and the new EPCM contractor introduced new risks, which were not appropriately mitigated.

    • Failure to implement a design freeze after the FEED was approved and signed off.

    The main pipeline contractor performance, in terms of its ability to execute, fell short on the following critical issues:

    ü Unsatisfactory safety performance

    ü Poor environmental compliance

    ü Insufficient quality controls

    ü Inadequate control and supervision

    (a)(ii) See (a)(i) above.

    (b) The delays in the project have already been discussed at various Parliamentary committee meetings.

    Reply received: March 2014

    QUESTION NO.: 246

    DATE OF PUBLICATION: 28 February 2014

    246. Ms B D Ferguson (Cope) to ask the Minister of Public Enterprises:

    Whether he is aware that skills shortages, especially experienced A-class welders, delays the completion of the construction of the Medupi and Kusile coal-fired power stations; if not, what is the position in this regard; if so, what are the relevant details? NW297E

    Reply:

    According to Eskom:

    The completion of Medupi and Kusile has experienced delays and there are various factors that have contributed to this including the shortage of A-Class welders. Eskom has communicated extensively the specific reasons for the delays at Medupi, and these are largely technical quality issues. The issues that have resulted in delays at Medupi included geotechnical, labour, design and construction issues. Various interventions have since been implemented and significant progress has been achieved.

    Eskom is implementing a three-fold strategy to address the shortage of A-Class welder skills. The strategy refers to expatriating qualified local welder recruitment and aimed at skills transfer to local workers. The strategy further deals with the training of welders by contractors and the Eskom Welding School. To date 427 qualified welders have been recruited for the build programme, with further recruitment of qualified welders in progress. In addition, the training intervention consists of 396 trainees in the system, as well as 209 A-class welders that have completed training.

    Those who have completed training bring the total number of qualified A-class welders in the build programme to 636.

    Reply received: March 2014

    QUESTION NO.: 235

    DATE OF PUBLICATION: 28 February 2014

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

    (1) Whether a tender to claim back value-added tax (VAT) from (a) Transnet, (b) the SA Airways and (c) Eskom has been awarded to a certain company (name furnished); if so, (i) when was the tender awarded, (ii) what is the term of the contract and (iii) what is the total value of the contract; if not,

    (2) Whether the tender to claim back VAT from these specified entities has been awarded to another company; if so, to which company? NW284E

    Reply:

    According to Transnet, SA Airways and Eskom, the company referred to above is not doing business with them.

    QUESTION NO.: 234

    DATE OF PUBLICATION: 27 June 2014

    Mr D J Maynier (DA) to ask the Minister of Public Enterprises:

    What was the (a) total amount spent and (b) breakdown of such expenditure for the (i) preparation and (ii) execution of the SA Airways Airbus A330-200 fly past at President Jacob Zuma's inauguration on 24 May 2014? NW312E

    Reply

    (a) The total amount spent was calculated to be $20,102 (USD).

    (b) The breakdown of such expenditure can be delineated as follow:

    (i) Preparation for the SAA fly past utilizing an Airbus A330-200 on Friday, 23 May 2014:

    Cost Element

    Cost (USD)

    Maintenance Operating Cost

    3,282

    Crew Cost (Flight Deck X3) *

    Nil

    Navigation Charges **

    Nil

    Parking & landing (90%

    discount)

    230

    Fuel Cost (1 Hour)

    5,000

    Total Cost

    8,512

    (ii) Execution of the SAA fly past utilizing an Airbus A340-600 on Saturday, 24 May 2014:

    Cost Element

    Cost (USD)

    Maintenance Operating Cost

    3,360

    Crew Cost (Flight Deck X3) *

    Nil

    Navigation Charges **

    Nil

    Parking & landing (90%

    discount)

    230

    Fuel Cost (1 Hour)

    8,000

    Total Cost

    11,590

    * Flight deck crew operated on duty free days with no meal allowance paid on both days

    ** Air Traffic and Navigation Charges (ATNS) were waived on both days

    *** The calculation was based on the rate of exchange of 10.83068 as at 20 May 2014

    The preparation relating to the fly past was conducted by an Airbus A330-200 whilst on the actual inauguration day an Airbus A340-600 aircraft was used. The Airbus A340-600 aircraft was not available on the preparation day as per the flight schedule. Notwithstanding this, the flight profile operated on both the preparation and actual inauguration fly past days were the same.

    Reply received: July 2014

    QUESTION NO: 185

    DATE OF PUBLICATION: 17 June 2014

    Ms J Steenkamp (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of all the costs of the maintenance of the pot plants in her (a) departmental offices and (b) official residence (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12, (dd) 2012-13 and (ee) 2013-14 financial year and (ii) since 1 April 2014 up to the latest specified date for which information is available;

    (2) In respect of the pot plant maintenance, (a) what is the (i) address and (ii) name of the office where they were/are displayed, (b) for whose benefit are these pot plants, (c) what was/is the value of maintenance for each office and (d) what are the details of any contracts and/or plans for the maintenance of these pot plants in the future? NW234E

    Reply

    Departments procure their own pot plants for use in their offices. The pot plants are used as office décor and do not directly benefit any person. It's procured according to normal procurement procedure.

    In terms the provision of pot plants for Ministerial use, the Department of Public Works provides these at all Minister's official residences under the Prestige Portfolio and DPW carries the cost.

    The Department does not own any pot plants. The current pot plants are rented from a supplier and the maintenance is included in the contract in the Department's Pretoria offices.

    Reply received: July 2014

    QUESTION NO: 151

    DATE OF PUBLICATION: 17 June 2014

    Mr K J Mileham (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of all expenditure that was found to have been (a) irregular and (b) wasteful in her department for each year from 1 April 2009 up to the latest specified date for which information is available;

    (2) in respect of each such finding of (a) irregular and (b) wasteful expenditure, (i) what (aa) is the description thereof, (bb) is the value thereof and (cc) action has been taken against the persons accountable thereof and (ii) how much thereof (aa) has been recovered and (bb) from whom? NW164E

    Reply

    Wasteful expenditure is recognized as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

    Irregular expenditure is accounted for as expenditure in the statement of financial performance and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

    Annual financial statements are published in the Department's and/or entities Annual Reports which have been tabled and discussed in Parliament for the year

    2009/2010; 2010/2011; 2011/2012; 2012/2013; 2013/2014 and are public documents. The 2013/2014 Annual Reports are expected to be tabled in accordance with normal parliamentary processes and is expected later this year.

    Reply received: July 2014

    QUESTION NO: 119

    DATE OF PUBLICATION: 17 June 2014

    Mr D J Stubbe (DA) to ask the Minister of Public Enterprises:

    (1) What are the details of official credit cards issued to (a) her and/or (b) her staff;

    (2) in respect of each credit card, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) maximum permissible value of each purchase and (ii) total credit limit of the card, (c) what are the details of permissible purchases for which the credit cards may be used and (d) may alcoholic beverages be purchased;

    (3) in respect of purchases made with each credit card during the period 8 May 2014 and/or thereafter up to the latest specified date for which information is available, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) value of each purchase made, (ii) what are the details of each item purchased and (iii) for what purpose was each purchase made and (c) were any alcoholic beverages purchased; if so, (i) what are the (aa) details and (bb) value of these purchases and (ii) for what purpose was each purchase made? NW129E

    Reply:

    (1)(a) and (b)

    I do not have any credit cards and neither do any other officials in the Department.

    (2)(a)(i)(ii); (b)(i)(ii) (c) and (d)

    Not applicable

    (3)(a)(i)(ii); (b)(i)(ii)(iii); (c)(i)(aa)(bb)(ii)

    Not applicable

    Reply received: July 2014

    QUESTION NO: 86

    DATE OF PUBLICATION: 17 June

    Dr A Lotriet (DA) to ask the Minister of Public Enterprises:

    (1) How many (a) international and (b) domestic flights were undertaken by (i) her and (ii) her predecessors using (aa) aircraft operated by the military, (bb) aircraft chartered by the military or (cc) commercial aircraft during the period 1 April 2013 up to the latest specified date for which information is available;

    (2) in respect of each specified flight, what was the (a)(i) date and (ii) place of (aaa) departure and (bbb) arrival and (b)(i) total cost and (ii) breakdown of such costs? NW94E

    Reply

    (1)(a)(i)(aa) None

    (1)(a)(i)(bb) None

    (1)(a)(i)(cc) For the period ended 7 June 2014, two domestic flights.

    (1)(a)&(b)(i)&(ii)(aa)(bb) No international or domestic flights were undertaken by myself or my predecessor using aircraft operated by or chartered by the military.

    (2) Please see below spreadsheet link with the details as requested above.

    file://server/pmg%20shared/WORD%20DOCUMENTS/RNW86A-140701.htm

    NB: All other information requested will be made available after the completion of the current standard audit by the Auditor-General.

    Reply received: March 2014

    QUESTION NO.: 43

    DATE OF PUBLICATION: 14 February 2014

    43. Mrs N W A Michael (DA) to ask the Minister of Public Enterprises:

    (1) How much does his department plan to spend on (a) advertising, (b) communication and (c) marketing between 1 January 2014 and 30 April 2014 (i) in total and (ii) as a breakdown of the amount;

    (2) (a) What mediums is his department going to use in each case and (b) who is the service provider to be used;

    (3) What is the main message that his department plans to communicate during this time? NW44E

    Reply:

    (1)(a-c) 2(a-b) and 3 South Africa is celebrating 20 Years of Freedom in 2014, and Government departments are mobilising South Africans around social cohesion for the momentous occasion.

    Costs associated with advertising and communication plans to highlight 20 years of Freedom will be funded from the existing departmental budget but in line with Government's cost-saving initiatives. However, messaging around 20 Years of Freedom is funded in partnership with other sectors, including State Owned Companies, civil society and business; and will be wide-spread across communities through national and regional print media.

    Reply received: July 2014

    QUESTION NO: 20

    DATE OF PUBLICATION: 17 June 2014

    Mr M H Redelinghuys (DA) to ask the Minister of Public Enterprises:

    (1) Whether, with reference to flights on the SA Airways direct route between Johannesburg and Cape Town, she can provide the number of flights on average between (a) Johannesburg and Cape Town and (b) Cape Town and Johannesburg (i) daily, (ii) weekly and (iii) annually;

    (2) what is the average number of passengers on flights between (a) Johannesburg and Cape Town and (b) Cape Town and Johannesburg (i) daily, (ii) weekly and (iii) annually;

    (3) what is the average operating expenditure in Rands per flight between (a) Johannesburg and Cape Town and (b) Cape Town and Johannesburg;

    (4) what is the average revenue in Rands generated by a flight between (a) Johannesburg and Cape Town and (b) Cape Town and Johannesburg? NW25E

    Reply:

    (1) Reporting in the business is done per Route and not per Sector. The results stated below are based on the 2013/14 financial year.

    Number of Flights: Johannesburg-Cape Town-Johannesburg Route:

    i. Daily = 36 (Average)

    ii. Weekly = 274 (Average)

    iii. Annually = 13 144

    (2) Average Passenger Numbers: Johannesburg-Cape Town-Johannesburg Route:

    i. Daily = 5 004 (Average)

    ii. Weekly = 38 054 (Average)

    iii. Annually = 1.8 million

    (3) Kindly note that the average operating expenditure in Rands has not been provided. The information is commercially sensitive.

    (4) Kindly note that the average revenue in Rands has not been provided. The information is commercially sensitive.