Questions & Replies: Public Enterprises A

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2015-03-12

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Reply received: May 2015

QUESTION NO: 1472

DATE OF PUBLICATION: 17 April 2015

1472.    Ms T Gqada (DA) to ask the Minister of Public Enterprises:

(a) How many invoices from private contractors to her department currently remain unpaid for longer than 30 days and (b) in each case, what (i) are the details of the (aa) contractor and (bb) services provided and (ii) what is the (aa) date of the invoice and (bb)  reason why the invoice was not paid within 30 days?

REPLY

  1. There are no invoices which remain unpaid for more than 30 days.
  1. Not applicable.

 

Reply received: May 2015

QUESTION No: 1436

DATE OF PUBLICATION: 17 APRIL 2015

1436.    Mr D J Stubbe  (DA) to ask the Minister of Public Enterprises:

Does her Department have a Regulatory Burden Reduction Strategy in place, if not, why not, if so, what are the relevant details of the Strategy. NW1694E

REPLY:

No, the Department does not have a formal free-standing regulatory burden reduction strategy for itself or for the State-owned Companies (SOCs) within its portfolio. However, the constant monitoring and review of all actions of the SOCs and, on the one hand, the impact of these on those with whom they interact and the environment within which they operate and, on the other hand, the impact of the regulatory environment on the efficiency and effectiveness of the SOCs, is built into every element of the approach to oversight used by the Department and myself

 

Reply received: May 2015

QUESTION No: PQ1401

DATE OF PUBLICATION: 17 APRIL 2015

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

 

(a)      What number of (i) financial, (ii) forensic and/or (iii) other investigations that were commissioned by her department have been completed since 1 April 2013 and

 

(b)      In each case, what are the relevant details on: (i) The investigation/s including a synopsis of the facts and findings of each case, (ii) The persons or third parties responsible for each investigation, (iii) The total cost to date of each investigation and (iv) The appropriate steps taken against officials and third parties implicated of wrongdoing in the findings of the investigations?                                                       NW1614E

 

 

REPLY:

(a) (i), (ii) and (iii)

 

One irregular expenditure case was investigated and completed since 1 April 2013 to date.  There was one Forensic investigation conducted and none under general investigations.

 

(b)

  1. The details of the investigations are as follows:
  • The first financial mismanagement investigation was in relation to the skills audit that was conducted on behalf of the Department by Skills @ Work Ltd (Skills Auditor).
  • The only forensic investigation conducted was in relation to a suspected fraudulent email which was claimed to have been created to assist an employee who had a labour dispute with the Department.
  1. The first irregular expenditure investigation relating to the skills audit was conducted by Mareologe 6 Investments.  The original investigation’s scope was increased to include performance related matters within the Department. The findings and recommendations contained in the investigation’s report prompted the dismissal of a senior manager who was found guilty of having grossly transgressed financial management provisions applicable to the Department. The total cost of the original and expanded scope is R707 000. 
  • forensic investigation into the alleged fraudulent email was conducted by SAB & T Consulting at a cost of R52000 to the Department.  The investigation proved that the email is authentic and the official who was accused of having created it was cleared of all charges. Subsequently the labour dispute which led to this forensic investigation was also resolved and the official in question has since been reinstated into the Department’s employ.
  1. There were no other cases investigated beyond those mentioned above.

  There were no steps taken against any official or third party.

 

Reply received: May 2015

QUESTION No: 1275

DATE OF PUBLICATION: 17 APRIL 2015

1275.  Ms N W A Mazzone (DA) to ask the Minister of Public Enterprises:

(1)       With reference to her reply to question 17 on 3 March 2015, for each of the listed companies supplying coal to Eskom, (a) how many tonnes of coal are sourced from each of the companies and (b) what percentage of Eskom’s total annual coal budget is spent on sourcing coal from each of the suppliers;

(2)       what is Eskom’s total annual coal budget?                                  

NW1484E

REPLY:

Below is the list of companies supplying coal to Eskom:

1

Liketh Investments (Pty) Ltd

2

Umcebo Mining (Pty) Ltd

3

HCI Khusela Coal (Pty) Ltd

4

Sudor Coal (Pty) Ltd

5

Stuart Coal (Pty) Ltd

6

Exxaro Coal (Pty) Ltd

7

Keaton Mining (Pty) Ltd)

8

Kuyasa Mining (Pty) Ltd

9

Shanduka Coal (Pty) Ltd

10

Ntshovelo Mining Resources (Pty) Ltd

11

Just Coal CC

12

African Exploration Mining & Finance Corporation

13

Wescoal Mining (Pty) Ltd

14

Hlagisa Mining (Pty) Ltd

15

Perisat Investments (Pty) Ltd

16

Universal Coal Development (Pty) Ltd

17

Vunene

18

Optimum Coal Holdings

19

Iyanga

20

Lurco Coal

21

Anglo American Thermal Coal SA (Pty) Ltd

22

Anglo American Inyosi Coal

23

BECSA (BHP Billiton Energy Coal South Africa

24

BECSA

25

Optimum Coal Holdings

26

Anglo / Exxaro JV

27

Xstrata / African Rainbow Minerals JV

(1) (a) This information is commercially sensitive as it can be used to calculate the value and Rand per tonne on each contract, and it is subject to standard confidentiality clauses in our agreements with suppliers. Therefore it cannot be disclosed.

(b) This information is commercially sensitive as it can be used to calculate the value and Rand per tonne value on each contract.  Therefore it cannot be disclosed.

(2) For the year ended 31 March 2015, the coal budget was R40.5 billion. 

 

QUESTION No: 1275

DATE OF PUBLICATION: 17 APRIL 2015

1275.  Ms N W A Mazzone (DA) to ask the Minister of Public Enterprises:

(1)       With reference to her reply to question 17 on 3 March 2015, for each of the listed companies supplying coal to Eskom, (a) how many tonnes of coal are sourced from each of the companies and (b) what percentage of Eskom’s total annual coal budget is spent on sourcing coal from each of the suppliers;

(2)       what is Eskom’s total annual coal budget?                                  

NW1484E

REPLY:

Below is the list of companies supplying coal to Eskom:

1

Liketh Investments (Pty) Ltd

2

Umcebo Mining (Pty) Ltd

3

HCI Khusela Coal (Pty) Ltd

4

Sudor Coal (Pty) Ltd

5

Stuart Coal (Pty) Ltd

6

Exxaro Coal (Pty) Ltd

7

Keaton Mining (Pty) Ltd)

8

Kuyasa Mining (Pty) Ltd

9

Shanduka Coal (Pty) Ltd

10

Ntshovelo Mining Resources (Pty) Ltd

11

Just Coal CC

12

African Exploration Mining & Finance Corporation

13

Wescoal Mining (Pty) Ltd

14

Hlagisa Mining (Pty) Ltd

15

Perisat Investments (Pty) Ltd

16

Universal Coal Development (Pty) Ltd

17

Vunene

18

Optimum Coal Holdings

19

Iyanga

20

Lurco Coal

21

Anglo American Thermal Coal SA (Pty) Ltd

22

Anglo American Inyosi Coal

23

BECSA (BHP Billiton Energy Coal South Africa

24

BECSA

25

Optimum Coal Holdings

26

Anglo / Exxaro JV

27

Xstrata / African Rainbow Minerals JV

 

(1) (a) This information is commercially sensitive as it can be used to calculate the value and Rand per tonne on each contract, and it is subject to standard confidentiality clauses in our agreements with suppliers. Therefore it cannot be disclosed.

(b) This information is commercially sensitive as it can be used to calculate the value and Rand per tonne value on each contract.  Therefore it cannot be disclosed.

(2) For the year ended 31 March 2015, the coal budget was R40.5 billion. 

 

Reply received: May 2015

QUESTION No: 1201

DATE OF PUBLICATION: 27 MARCH 2015

1201.    Mr G Mackay (DA) to ask the Minister of Public Enterprises:

(a)  How much diesel did PetroSA supply to Eskom in each month during the period 1 March 2014 to 1 March 2015 and (b) what was the cost per liter of diesel supplied by PetroSA to Eskom in each month during the specified period?                                                             

                                                                                                                                    NW1406E

REPLY:

(a) This is commercially sensitive information that cannot be disclosed.

(b) This is commercially sensitive information that cannot be disclosed.

 

Reply received: May 2015

QUESTION No: 1200    

DATE OF PUBLICATION: 27 March 2015

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 1200

1200.    Mr G Mackay (DA) to ask the Minister of Public Enterprises:

With regard to diesel being supplied to Eskom in the past 12 months, (a) what (i) is the names of each company providing Eskom with diesel in each month, (ii) volume of diesel was supplied to Eskom by each of these companies in each month and (iii) was the price paid per liter diesel to each of the companies in each month and (b) how was this diesel utilised by Eskom?                                                                                                NW1405E

REPLY:

The information requested is commercially sensitive as reference is made to private companies that do business with ESKOM. Most of these companies are listed. It is expected that this information will be declared in the reports to their shareholders.

 

Reply received: April 2015

QUESTION No: 1196

DATE OF PUBLICATION: 27 MARCH 2015

1196.    Mrs Z B N Balindlela (DA) to ask the Minister of Public Enterprises:

(1)        (a)        On what date did each (i) regional and (ii) provincial Eskom office perform

emergency drills in anticipation of a national power grid failure and (b) what was the reason for each of these drills (i) in the

(aa)      2009-10

(bb)      2010-11,

(cc)      2011-12,

(dd)      2012-13 and

(ee)      2013-14 financial years and (ii) since 1 April 2014;

 

(2)        whether she has found that a national power grid failure is an imminent possibility?                                                                                                                                                                                                                                                                      NW1401E

REPLY:

(1)

Eskom regularly undertakes simulation exercises and tests to evaluate and enhance its readiness to respond to major incidents on the national power grid. These exercises and tests are undertaken in terms of the requirements of the Disaster Management Act 57 of 2002 and in terms of the Grid Code which is a licence condition required by NERSA.

In this regard:

  1. Eskom currently undertakes nine provincial simulation exercises and one national simulation exercise per year.

Note: In the past, provincial exercises were referred to as regional exercises before the alignment of Eskom’s operations to provincial boundaries. (Item 1 (a) is therefore responded to in the consolidated list provided)

  1. The System Operator further undertakes specific exercises related to its National Control facility, related to threats that could lead to a power grid failure.
  2. Eskom also undertakes a range of tests and exercises at its two black start facilities aimed at ensuring that these are ready to restart the national grid.

Information related to the above is included in the response below in order to provide parliament with assurance in this regard. 

Table 1Provincial simulation exercises (previously called regional exercises) undertaken to test Eskom’s response to a failure of the transmission grid at specific locations in the national power system.

FY

Date (mm/dd/year)

Province/Region/Grid

Substation

2009-2010

9/7/2009

Southern Region

Neptune

10/5/2009

Central Region

Bernina

2/8/2010

Western Region

Acacia

7/6/2009

Eastern Region

Illovo and Klaarwater

1/13/2010

North West Region

Harvard 

8/24/2009

Northern Region

Spitskop

11/2/2009

North East Region

Foskor, Acornhoek, Prairie, Marathon

2010-2011

 

 

 

 

Apollo

 As part of the extensive preparations undertaken by Eskom and the host cities, multiple joint exercises were conducted in the build up to the 2010 FIFA World Cup.  These contributed to  Eskom’s successful role in the hosting of this event.  As these exercises were not centrally coordinated the dates and locations of these exercises were not immediately available given the time frame for this response.

Southern Region

Central Region

Western Region

Eastern Region

North West Region

Northern Region

North East Region

2011-2012

6/13/2011

Apollo

Apollo

7/11/2011

Southern Region

Poseidon

8/29/2011

Central Region

Olympus

9/19/2011

Western Region

Koeberg

10/17/2011

Eastern Region

Illovo + Klaarwater

1/4/2012

North West Region

Perseus Harvard line

1/30/2012

Northern Region

Matimba

2/20/2012

North East Region

Minerva

2012-2013

8/6/2012

Gauteng Province

Craighall

9/3/2012

Eastern Cape Province

Neptune

9/17/2012

KwaZulu Natal Province

Eros

10/1/2012

Limpopo Province

Witkop

10/15/2012

Free State Province

Harvard

10/18/2012

North West Province *

Midas

10/29/2012

Mpumalanga Province

Minerva

12/18/2012

Apollo

Apollo

2/4/2013

Western Cape Province

Acacia

3/26/2013

Northern Cape Province

Ferrum

2013-2014

3/25/2014

Apollo

Apollo

5/20/2013

Limpopo Province

Spitskop

7/23/2013

Eastern Cape Province

Neptune

8/23/2013

KwaZulu Natal Province

Hector

9/9/2013

Gauteng Province

Craighall

9/23/2013

Western Cape Province

Acacia

10/21/2013

Free State Province

Theseus

11/18/2013

Northern Cape Province

Olien

1/20/2014

North East Province

Prairie

2/17/2014

North West Province

Watershed

2014-2015

5/19/2014

Limpopo Province

Foskor

6/17/2014

Eastern Cape Province

Hydra

7/28/2014

Western Cape Province

Proteus

8/11/2014

KwaZulu Natal Province

Mersey

9/8/2014

North East Province

Rockdale

10/6/2014

Gauteng Province

Etna

11/10/2014

Free State Province

Harvard

1/26/2015

North West Province

Watershed

2/23/2015

Northern Cape Province

Ruigtevallei

* Note: In this case the response to an actual incident was assessed in lieu of an exercise.

Table 2National simulation exercises undertaken to test Eskom’s integrated response to specific scenarios impacting the national power system.

Financial Year

Date (mm/dd/year)

Exercise scenario

2009_2010

3/12/2010

National blackout

2010_2011

5/18/2010

National blackout

2011_2012

11/7/2011

National blackout

2012_2013

5/25/2012

National blackout

2013_2014

11/14/2013

National blackout

2014_2015

3/23/2015

National blackout

Table 3National Control simulation exercises undertaken to test the System Operator’s response to threats potentially impacting the operations centre and thereby the national power system.

Financial Year

Date (mm/dd/year)

Exercise scenario

2009_2010

5/6/2009

 

 

 

Inability to control the national power system from the National Control center

2010_2011

4/22/2010

2011_2012

9/27/2011

9/22/2011

2012_2013

1/24/2012

2/21/2013

2013_2014

6/13/2013

7/2/2013

2014_2015

9/9/2014

Eskom is required in terms of the Grid Code to physically demonstrate the ability of its two black start facilities to execute their role in a black start.  A full test which includes starting a unit and restoring of supply to a section of the national grid is required every six years. Compliance in this regard was last demonstrated on 20-21 July 2012 (Facility 1) and on 28 March 2015 (Facility 2). 

 

Reply received: April 2015

QUESTION No: 1197

DATE OF PUBLICATION: 27 MARCH 2015

1197.    Ms N W A Mazzone (DA) to ask the Minister of Public Enterprises:

With regard to bonuses being paid to Eskom executives in 2014, (a) what is the criterion used to determine the awarding of incentive bonuses as some of those persons who were awarded bonuses are now on suspension, (b) are the bonuses (i) performance-related or (ii) discretionary, (c) what is the total value of remuneration, including short-term bonuses, for all Eskom executive directors in 2014 and (d) did she, as sole shareholder representative of the Government, approve the incentive bonuses?       

                                                                                                                                                                NW1402E

REPLY:

(a) It is important to note that there are two types of bonus schemes for executives. The short term-term (STI) bonus scheme is based on the yearly performance of executives and no such bonuses were paid for the period 1 April 2013 to 31 March 2014. The long-term incentive (LTI) scheme, on the other hand was designed to attract, retain and reward executives in comparison to benchmarked organisations of similar stature in the local and international markets. For this purpose, grants issued against the scheme are valid for periods of three years each and executives qualify for discretionary payouts, provided they are still in service before such grants expire. Thus, LTI bonuses were paid in 2014, based on grants issued on 1 April 2011.

In summary, the incentive bonuses in question are those which were awarded for the period 1 April 2011 to 31 March 2014 and these are detailed in Appendix A attached. For the period 1 April 2012 to 31 March 2015, during which the suspensions took place, LTI bonuses have not been decided nor paid. The criterion determined by Board to vest grants is based on average organisational performance conditions measured over 3 years (i.e. the life span of any particular grant) in line with the Eskom Corporate Plan and Shareholder Compact and such performance conditions comprise both financial and non-financial targets.

(b)(i) Yes

(b)(ii) Yes, qualifying for bonuses is performance related but the payout decision is discretionary as the Board could take a decision to delay payout or not payout depending on various other factors.

(c) No short-term bonuses were paid to executives for the 12-month performance period of 1 April 2013 to 31 March 2014.  The total value of remuneration, all-inclusive, for the 10 executives for the 12-month period ended 31 March 2014 was R53 073 000.00.  This includes termination payments related to Brian Dames of R15 367 000.00.

(d) The decision to approve incentive bonuses rests with the Eskom Board.

 

Reply received: March 2015

QUESTION NO: 1172

DATE OF PUBLICATION: 27 March 2015

1172.  Ms E R Wilson (DA) to ask the Minister of Public Enterprises:

(a)How many sick leave days were taken by employees of her department in the 2013-2014 financial year and (b) what was the total cost thereof in rand?

NW 1373E

REPLY

  1. Number of sick leave days taken by employees:1339 days
  2. Total cost  thereof in rand: R1320 000.00  

 

Reply received: June 2015

QUESTION NO.: 1138

DATE OF PUBLICATION: 27 March 2015

1138. Dr M J Figg (DA) to ask the Minister of Public Enterprises:

(a) What amount did (i) her department and (ii) state entities reporting to her spend on each newspaper subscription in each month (aa) in the (aaa) 2011-12, (bbb) 2012-13 and (ccc) 2013-14 financial years and (bb) during the period 1 April 2014 up to the latest specified date for which information is available and (b) how many copies of each newspaper were ordered on each day of the week (i) in each specified financial year and (ii) during the period 1 April 2014 up to the latest specified date for which information is available?                                        NW1303E

RESPONSE:

(a)The below table indicate amounts that the (i) Department spends on each newspaper subscription in each month (aa) in the (aaa) 2011/ 2012 financial year

NEWSPAPERS

(b)QUANTITY

PRICE

AMOUNT PER MONTH

AMOUNT PER 12 MONTHS

 Business Day

 18

 R11,90

 R4284.00

 R51 408.00

 Pretoria News

 8

 R5.00

 R800.00

 R9600.00

 The Star

 15

 R6.80

 R2040.00

 R2448.00

 Sowetan

 9

 R4.90

 R882.00

 R10 584.00

 Citizen

 6

 R4.50

 R135.00

 R1 628.00

 Beeld

 1

 R6.80

 R136.00

 R1 632.00

 Financial Times

 7

 R28.00

 R3 920.00

 R4 704.00

 Economist

 17

 R50.00

 R3 400.00

 R4 080.00

 Times Magazines

 2

 R34.00

 R272.00

 R3 264.00

 Financial Mail

 18

 R26.00

 R1 872.00

 R22 464.00

 Engineering News

 8

 R15.00

 R480.00

 R5 768.00

 Mail Guardian

 19

 R23.00

 R1 793.60

 R21 523.00

 Sunday Times

 4

 R16.00

 R256.00

 R3072.00

 City Press

 4

 R10.00

 R160.00

 R1 920.00

 Sunday Independent

 3

 R15.00

 R180.00

 R2 160.00

 Sunday Sun

 1

 R7.00

 R28.00

 R336.00

 

 

 

 

 

 TOTAL

 

 

R21 638.00 

 R247 656.00

(bbb) 2012 to 2013 financial year

NEWSPAPERS

(b)QUANTITY

PRICE

AMOUNT PER MONTH

AMOUNT PER 12 MONTHS

 Business Day

 21

 R12.85

 R1 893.29

 R22 716.00

 Pretoria News

 10

 R5.00

 R1 110.56

 R 13 326.72

 The Star

 17

 R6.80

 R1 403.92

 R16 836.00

 Sowetan

 10

 R4.90

 R825.63

 R9 900.00

 Citizen

 6

 R4.50

 R94.50

 R1 134.00

 Beeld

 1

 R6.80

 R136.00

 R1 632.00

 Financial Times

 18

 R28.00

 R588.00

 R7 056.00

 Economist

 18

 R28.56

 R974.54

 R11 688.80

The New Age

 10

R2. 85

 R59.85

R708.00

 Financial Mail

 6

 R26.00

 R624.00

 R7 488.00

 Engineering News

 8

 R15.00

 R120.00

 R1 440.00

 Mail Guardian

 21

 R23.00

 R483.00

 R5 796.00

 Sunday Times

 6

 R16.00

 R96.00

 R1 152.00

 City Press

 6

 R10.00

 R60.0

 R720.00

 Sunday Independent

 4

 R15.00

 R60.00

 R720.00

 Sunday Sun

 3

 R7.00

 R21.00

 R252

 

 

 

 

 

 

 

 

R 9 257.11

 R101 845.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ccc) 2013 to 2014 financial year

NEWSPAPERS

(b)QUANTITY

PRICE

AMOUNT PER MONTH

AMOUNT PER 12 MONTHS

 Business Day

 7

 R12,85

 R1 893.29

 R22 719.48

 Pretoria News

 5

 R7.00

 R603.66

 R7 243.92

 The Star

 6

 R7.80

 R 936.62

 R11 239.44

 Sowetan

 7

 R6.00

 R825.63

 R9 907.56

 Citizen

 3

 R5.50

 R985.60

 R11 827.20

 Cape Argus

 5

 R7.80

 R945.00

 R11 340.00

 Cape Times

 3

 R8.00

 R630.00

 R7 680.00

 Economist

 7

 R50.00

 R216.66

 R2 599.92

 New Age

 

 5

 R5.00

 R303.00

 R3 636.00

 Financial Mail

 18

 R26.00

 R206.28

 R2 475.36

 Engineering News

 5

 R15.00

 R193.00

 R2 316.00

 Mail Guardian

 7

 R25.00

 R525.00

 R6 300.00

 Sunday Times

 4

 R20.00

R766.32

R9 195.84

 City Press

 4

 R15.00

 R636.55

 R7 638.60

 Sunday Independent

 3

 R15.00

 R746.00

R8 952.00 

 Sunday Sun

 1

 R7.00

 R382.00

 R4 584.00

 

 

 

 

 

 

 

 

R9 412.06

 R112 944.72

(bb) (i)-(ii) A total annual amount of R123 353.56 was spent on newspaper subscriptions from 01 April 2014 until 31 March 2015.

ESKOM:

  1. (ii) (aa) (aaa)

Monthly spend is not available as subscriptions are paid on an annual basis.

Newspaper Spend for the Financial Year 2011/12

Newspaper

Total cost

R’000

Mail and Guardian

78.05

Financial Times

44.39

Citizen

25.37

Business Day

349.94

Sowetan

48.34

Beeld

59.86

City Press

6.89

Mercury

5.20

New Age

1 214.41*

Rapport

0.62

Saturday Star

3.16

Star

269.91

Sunday Independent

8.74

Sunday Sun

1.44

Sunday Times

19.03

Sunday World

1.44

Library Press Display

0

TOTAL

2136.78

*Reporting for the full subscription is included as average in the 2011/12 financial year. Therefore the order for NEW AGE Subscriptions were placed during the 2011/12 financial year but receipt of the copies ranged over two financial years ie 2011/2 and 2012/3.

  1. (ii) (aa) (bbb)

 

Monthly spend is not available as subscriptions are paid on an annual basis.

Newspaper Spend for the Financial Year 2012/13

Newspaper

Total cost

R’000

Mail and Guardian

91.81

Financial Times

59.19

Citizen

21.07

Business Day

299.19

Sowetan

48.54

Beeld

58.43

City Press

5.15

Mercury

3.85

New Age

0

Rapport

1.96

Saturday Star

3.63

Star

339.16

Sunday Independent

5.13

Sunday Sun

0.50

Sunday Times

8.44

Sunday World

2.16

Library Press Display

0

TOTAL

948.22

(a)(ii) (aa) (ccc)

Monthly spend is not available as subscriptions are paid on an annual basis.

Newspaper Spend for the Financial Year 2013/14

Newspaper

Total cost R’000

Mail and Guardian

135.72

Financial Times

59.19

Citizen

27.24

Business Day

440.85

Sowetan

60.59

Beeld

74.16

City Press

3.22

Mercury

3.54

Newspaper

Total cost R’000

New Age

0.00

Rapport

1.96

Saturday Star

0

Star

337.30

Sunday Independent

5.86

Sunday Sun

1.88

Sunday Times

9.97

Sunday World

1.56

Library Press Display

299.48

TOTAL

1462.52

  1. (ii) (bb)

Monthly spend is not available as subscriptions are paid on an annual basis.

Library Press Display Spend for the Financial Year 01 April 2014 to Date

Newspaper

Total cost

R’m

Number of concurrent licenses

Library Press Display

0.40

40

TOTAL

0.40

 

Printed newspaper subscriptions were phased out from Feb to October 2014 by not renewing existing subscriptions.  No costs for print newspapers were incurred for the period April 2014 onward as the Library Press Display has replaced all newspaper subscriptions.

      (b) (i)
Number of Copies Per Newspaper Ordered Per Day for the 3 Financial Years

Newspaper

2011/12 FY

2012/13 FY

2013/14 FY

Mail and Guardian

102

92

121

Financial Times

9

12

12

Citizen

34

29

33

Business Day

142

122

146

Sowetan

62

62

73

Beeld

48

59

60

City Press

10

6

4

Mercury

3

2

2

New Age

1561**

2194***

0

Rapport

2

2

2

Newspaper

2011/12 FY

2012/13 FY

2013/14 FY

Saturday Star

7

7

0

Star

217

249

220

Sunday Independent

7

5

6

Sunday Sun

5

1

4

Sunday Times

16

7

9

Sunday World

5

5

4

**Main New Age subscription for 2011/12 started in October 2011.

***New age subscription for 2012/13 was 1830 per day until August 2012 and 2800 per day from September to November 2012.

(b) (ii)
Number of copies per Newspaper Ordered for 01 April 2014 to Date

Newspaper

Number of Copies

Mail and Guardian

0

Financial Times

0

Citizen

0

Business Day

0

Sowetan

0

Beeld

0

City Press

0

Mercury

0

New Age

0

Rapport

0

Saturday Star

0

Star

0

Sunday Independent

0

Sunday Sun

0

Sunday Times

0

Sunday World

0

Printed newspaper subscriptions were phased out from Feb to October 2014 as per the subscription life cycles and were not renewed.  No costs for print newspapers were incurred for the period April 2014 onward as the Library Press Display has replaced all newspaper subscriptions.

DENEL:

(a)     (ii) (aa)   (aaa) 2011-12 R0,

                      (bbb) 2012-13 R0,

                      (ccc) 2013-14 R0, (bb) R0

(b) (i)-(ii) None were ordered

ALEXKOR:
(a)    
(ii) (aa)   (aaa) 2011-12 R5 181.36,

                     (bbb) 2012-13 R4 197.36,

                     (ccc) 2013-14 R8 489.04

(b) (i)-(ii) None were ordered

NB: Alexkor does not have a subscription to any of the newspapers. This decision
       was taken as a cost-containment measure. The company makes use of online
       newspaper publications.

SAFCOL:

(a)      (ii) (aa)   (aaa) 2011-12 R5 181.36,

                       (bbb) 2012-13 R4 197.36,

                       (ccc) 2013-14 R8 489.04

(b)   (i) One copy per day for five days per week

       (ii) X1 Business Day Newspaper in five week days

SOUTH AFRICAN EXPRESS:

(a)      (ii) (aa)   (aaa) 2011-12 R NIL

                       (bbb) 2012-13 R NIL

                        (ccc) 2013-14 R NIL

(b)      (i)-(ii) No subscription or order placed

TRANSNET:

(c)  (ii) (aa)   (aaa) 2011-12 R NIL

                   (bbb) 2012-13 R NIL

                   (ccc) 2013-14 R NIL

(d)   (i)-(ii) No subscription or order

 

 

Reply received: June 2015

QUESTION NO.: 1103

DATE OF PUBLICATION: 27 March 2015

1103: Mr D America (DA) to ask the Minister of Public Enterprises:

What amount did (a) her department and (b) entities reporting to her spend on advertising in The New Age newspaper in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years?                                                 NW1268E

RESPONSE:

Department of Public Enterprises

(a)(i) R0, (ii) R0, (iii) R153 900

DENEL

(b) (i) R0, (ii) R0, (iii) R361,203.61

ALEXKOR

(b)(i)R0, (ii) R15,732.00, (iii) R 12,038.40

SAFCOL

(b)(i) R0, (ii) R0, (iii) R0

ESKOM

(b)(i) R2 042 030.60, (ii) R3 057 025.20, (iii) R0

TRANSNET

(b)(i) R4 065 889.00, (ii) R7 117 697.07, (iii) R8 157 265.85

 

 

 

Reply received: April 2015

QUESTION No: 972      

DATE OF PUBLICATION: 20 March 2015

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 972

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

(1)        With reference to Eskom’s Ingula generation project in the Ladysmith District in KwaZulu-Natal and Harrismith District in the Free State, what are relevant details of the (a) buildings, (b) furniture, (c) equipment and (d) other resources donated by the specified projects to the Hamilberg Primary School in the (i) 2010, (ii) 2011, (iii) 2012, (iv) 2013 and (v) 2014 calender years;

(2)      what are the total costs of the (a) buildings, (b) furniture, (c) equipment and (d) other          resources donated to the Hamilberg Primary School in the (i) 2010, (ii) 2011, (iii)     2012, (iv) 2013 and (v) 2014 calender years;

(3)     what is the value of financial donations to the Hamilberg Primary School in the (a)   2010, (b) 2011, (c) 2012, (d) 2013 and (e) 2014 calender years;

(4)      what (a)(i) are the reasons and (ii) motivations for making donations to the school and       (b) were the views of the local community including commercial farmers canvassed          about the (i) efficacy and (ii) relevance of donations to the school;

REPLY:

 

  1.  
  1. In the 2009/10 financial year (i.e. 1 April 2009 to 31 March 2010) Eskom donated R1 074 556.64 to Hamilberg Farm School. The detailed of the donations are:

FYE 2009/2010

 

  • New modular/mobile structures, including two classrooms, teacher’s cottage, ablution facilities and a kitchen.
  • Equipment, including a refrigerator, gas stoves, gas bottles and gas cages.
  • Water supply, including three JoJo water tanks, additional water pumps to fill the distribution tank and plumbing to the ablution block. 

Total: R1 240 114.75

 

 

 

 

  1.  
  2.  
  3.  
  4.  
  5.  
  6.  
  7.  
  8.  
  9.  
  10.  
  11.  
  12. In the 2010/11 financial year (i.e. 1 April 2010– 31 March 2011) R1 074 556.64 was donated to Hamilberg Farm school and the details of the donations are as follows:

 

FYE 2010/2011

  • Solar system including Panels, Cabling, Lights, Cells, Invertors and a Solar geyser.
  • Retention for a new modular structure.
  • Borehole.
  • Repairs to existing building structures.

 

 

Total: R1 074 556.64

 

 

 

 

 

 

 

 

 

 

  1. - (v) No donations were made to Hamilberg Farm school from 1 April 2011 to 31 March 2014.

 

  1. (i) (a)-(d) A total of R1,240,114.75 was donated between 1 April 2009 to 31 March 2010.

 

(ii) (a)-(d) A total of R1,074,556.64 was donated between 1 April 2010– 31 March 2011.

 

(iii)-(v) (a)-(d) No donations were made to Hamilberg Farm school.

  1. (i) (a)-(d) A total of R1,240,114.75 was donated between 1 April 2009 to 31 March 2010.

(ii) (a)-(d) A total of R1,074,556.64 was donated between 1 April 2010– 31 March 2011.

(iii)-(v) (a)-(d) No donations were made to Hamilberg Farm school.

In addition to the stated donations stated above, the Ingula Project team adopted the school as their employee volunteer project and personally donated bicycles and clothing to the learners.

  1. (a)(i)-(ii) During the 2009 financial year, the principal of Hamilberg farm School requested Eskom’s assistance to improve the school. This request was supported by the Free State Department of Basic Education and the School Governing Body (SGB), which is made up of representatives from the community. At the time, the school had 33 learners and operated from an existing two-classroom structure that was in need of repairs.

(b)(i)-(ii) The Free State Department of Basic Education, the local community (represented by the School Governing Body) and the school expressed their heartfelt appreciation for the contribution that Eskom had made to the school. The local community, the Department of Education and the local municipality did not question or object to the donation to Hamilberg.

The commercial farmers in the area however, made a request to Eskom that the donation intended for Hamilberg Farm School be directed towards Hlomisa School, which is approximately 20km away from Hamilberg. Eskom opted to implement the donation to Hamilberg, and consider the Hlomisa request separately. A needs analysis at Hlomisa was conducted in consultation with the school principal and the district director of education in Thabo Mofutsanyane district municipality. It was recommended that Eskom consider a donation of 55 bicycles to learners who travel long distances to the school.  This request is currently being considered through the Eskom Development Foundation governance process. The local community, the Department of Education and the local municipality did not question or object to the donation to Hamilberg.

 

Reply received: May 2015

QUESTION No: 879      

DATE OF PUBLICATION: 20 March 2015

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 879

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

(1)        Whether her department or the entities reporting to her provides any type of sponsorships; if not, what is her department’s position in this regard; if so, (a) what are the details of each sponsorship, (b) what is the value of each sponsorship, (c) when were each of these sponsorship deals undertaken and (d) when will each of the sponsorship deals end

(2)        whether her department or any of the entities reporting to her intends to enter into any type of sponsorship deal or contract in the (a) 2015-16 and (b) 2016-17 financial years; if not, why not; if so, (i) with whom will each sponsorship deal or contract be made, (ii) what will the terms of each of the sponsorship deals or contracts be, (iii) when will each of the sponsorship deals or contracts (aa) commence and (bb) end and (iv) what is the value of each of the sponsorship deals or contracts?                                                                                                         NW1028E

REPLY:

The accumulation of this particular information will take a considerable amount of time to accumulate. I will provide the Honorable Member with this information once it has all been accumulated and becomes available.

 

Reply received: April 2015

QUESTION No: 815      

DATE OF PUBLICATION: 20 March 2015

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 815

Mr M G P Lekota (Cope) to ask the Minister of Public Enterprises:

Whether Eskom found opportunities to undertake maintenance of all its power plants in the period 1 January 2015 to 31 March 2015 in anticipation of the greater demand for electricity during the approaching winter months; if not, why not; if so, what are the relevant details?                                                                                                                               NW962E

REPLY:

Eskom performs more planned maintenance during the summer months than the winter months as the lower electricity demand in summer allows more space for maintenance, and it ensures that most of the fleet is in good condition to meet the winter demand. It is also important to note that maintenance is scheduled within resource limitations and that it would not be possible or desirable to schedule maintenance on all generating units in any given season.

Eskom has an annual planned maintenance of 10.05%, which includes all maintenance to address safety; statutory; and technical governance requirements. The planned maintenance performance for January and February 2015 was 11.87% and 12.88% respectively. The final figure for March 2015 is not yet available but is estimated to be 13%.

 

Reply received: May 2015

QUESTION No: 812      

DATE OF PUBLICATION: 20 March 2015

RESPONSE TO PARLIAMENTARY QUESTION NUMBER: 812

Mrs C Dudley (ACDP) to ask the Minister of Public Enterprises:

(1)       Whether her department has considered the implications of the new directives from

the Director-General of the Department of Labour (details furnished) that the embattled Eskom should become completely reflective of the national and regional demographics within the key job categories of engineers and artisans by 2020;

 

(2)       whether she is aware of reports that Eskom, in terms of the specified directive, have

to reduce the number of white engineers by 1 081 and white artisans by 2 179 in order to comply with strict new government requirements (details furnished); if not, what is the position in this regard; if so, what are the relevant details?                                               NW958E

REPLY:

(1) My Department has considered the implications of the new directives from the Director-General of the Department of Labour to which you refer. Eskom, as a designated employer, remains committed to achieve equity in the workplace, by promoting equal opportunities and fair treatment in employment through the elimination of unfair discrimination. Eskom is thus required to implement affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce. In this light, Eskom has set itself targets in its succession plan reflective of the Economically Active Profile by 2020 with targets split into regional and national demographics as well as job categories.

This is in response to recommendations made in the Review made by the Director General (DG) of the Department of Labour (DoL) as provided for by the Employment Equity Act and its Regulations. In this regard, Eskom is required to engage with internal stakeholders including unions represented in the SOC to implement the recommendations as stated in the DG Review.

The numerical targets as set are to guide planning by Eskom towards transformation in various categories including critical occupations such as artisans, technicians and engineers. In this context, the Employment Equity succession plan of Eskom needs to take into cognisance the age profile of the number of employees in these critical categories over 5 year period, who may be exiting given that the average age of artisans in the country is estimated to be above 50.

Therefore, the implementation thereof during this period will further identify gaps, if any and what remedial actions are required to further enhance the processes as recommended in the Department of Labour Director General’s Review. It should further be noted that the DoL DG Review is not prescriptive but provides guidance on what to consider in developing the succession plan.

(2) I have am aware of the reports referred to. However, Eskom is not planning to institute a process to reduce white engineers and artisans as specified in the question. Eskom, as a designated employer does have to comply with Employment Equity. Furthermore, Eskom sets its own targets through relevant structures represented by all stakeholders and strives to achieve these over a specified period. We believe that Eskom will be able to comply with Employment Equity without terminating employees’ contracts, especially in critical job categories such as artisans and engineers through a collective process with involvement of all stakeholders. This is an important consideration in ensuring the sustainability of the business, so as to avoid leakage of the skills required to support the build programmes. Amongst others, this could be made possible through natural attrition process and interventions focusing on the under-represented areas when recruitment and promotions takes place without discriminating against any group. 

 

Reply received: May 2015

QUESTION No: 795

DATE OF PUBLICATION: 13 MARCH 2015

795.        Ms T Gqada (DA) to ask the Minister of Public Enterprises:

What amount has Eskom spent on corporate consultants from 1 April 2014 up to the latest specified date for which information is available?               NW945E

REPLY:

Eskom has spent a total amount of R259 142 390 on corporate consultants from 1 April 2014 up to the 31st January 2015.

 

Reply received: May 2015

QUESTION No: 794

DATE OF PUBLICATION: 13 MARCH 2015

794.        Ms T Gqada (DA) to ask the Minister of Public Enterprises:

What amount has Eskom spent on office rental for (a) Eskom corporate operations or (b) customer access points during the period 1 April 2014 up to the latest specified date for which information is available?                       NW944E

REPLY:

(a) Eskom has spent a total of R177.2 million on office rental in its corporate operations for the period 1 April 2014 to 31 March 2015. The corporate operations refer to all regional offices including Megawatt Park (Head Office) and area offices

 

Reply received: April 2015

QUESTION No: 793

DATE OF PUBLICATION: 13 MARCH 2015

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

  1. What amount has Eskom spent on (a) sponsorships for events, (b) conferences, (c) colloquia, (d) awards ceremonies and (e) government meetings during the period 1 April

2014 up to the latest specified date for which information is available;

 

  1. what amount has Eskom spent on (a) marketing and (b) advertising during the period 1

April 2014 up to the latest specified date for which information is available;

 

  1. what amount has Eskom spent on sponsoring any third party’s (a) marketing or (b)

advertising during the period 1 April 2014 up to the latest specified date for which information is available;

 

  1. what amount has Eskom spent on electricity educational programmes during the period 1

April 2014 up to the latest specified date for which information is available?                                                                             NW943E

REPLY:

(1)

(a) Sponsorships for events

R970,000

(b) Conferences

Zero spent

(c) Colloquia

Zero spent

(d) Awards ceremonies

R2,403,406.05

(e) Government meetings

Zero spent

           

(2)        (a) Marketing - R153, 914,998.50

  • (Includes awards ceremonies as in 1d above)
  • (includes 14 agencies’ fees and remunerations)

(b) Advertising - R 80,799,976.35

  • (Spent on media buying)

 

(3)        (a) and (b) Zero spent

          

(4)        Eskom spent R10, 586,885.35 on electricity education programmes during the period 1 April 2014 to 13 March 2015.

                        

Reply received: May 2015

QUESTION NO.: 792

DATE OF PUBLICATION: 13 MARCH 2015

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

(1)        What amount has Eskom spent on (a) internal corporate events, (b) parties, (c) staff meetings, (d) staff conferences, (e) staff congresses or (f) staff vacations during the period 1 April 2014 up to the latest specified date for which information is available;

(2)        what amount has Eskom spent on (a) corporate staff canteens, (b) tuck shops, (c) restaurants, (d) vending machines, (e) bars or (f) complimentary beverages during the period 1 April 2014 up to the latest specified date for which information is available;

(3)        what amount has Eskom spent on (a) corporate gifting, (b) gifts to non-executive directors, (c) external persons or (d) politicians during the period 1 April 2014 up to the latest specified date for which information is available?                                                                                   NW942E

REPLY:

I will provide the Honorable Member with this particular information once it has all been accumulated and becomes available. 

 

Reply received: May 2015

QUESTION NO.: 782

DATE OF PUBLICATION: 13 MARCH 2015

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

(1)        What amount has Eskom spent on (a) car hire, (b) hotels, (c) airplane fares, (d) subsistance and (e) travel allowances for (i) executives and (ii) staff during the period 1 April 2014 up to the latest specified date for which information is available;

 

(2)        what amount has Eskom spent on (a)(i) cellphone and (ii) telecommunications expenditure, (b)(i) housing and (ii) living allowances, (c)(i) home moving and (ii) transfer costs and (d)(i) company cars and (ii) car instalment payments for executives during the period 1 April 2014 up to the latest specified date for which information is available?                                                                           NW932E

REPLY:

ESKOM employs 43 000 staff members hence the accumulation of this particular information regarding all their tools of trade will take a considerable amount of time to accumulate. I will provide the Honorable Member with this particular information once it has all been accumulated and becomes available. 

 

Reply received: April 2015

QUESTION NO.: 648

DATE OF PUBLICATION: 06 MARCH 2015

648.  Dr P W A Mulder (FF Plus) to ask the Minister of Public Enterprises:

 

(1)        Whether she is aware that, as part of its planned extension of the Durban port development, Transnet will be constructing a railway line through the Merebank Concentration camp; if so,

 

(2)        Whether Transnet has held discussions with the Department of Arts and Culture regarding the conservation of the Merebank Concentration camp; if not, why not;

 

(3)        Whether she will hold discussions with the Minister of Arts and Culture regarding this matter; if not, why not; if so, what are the relevant details?          NW729E

 

Reply:

  1. The new railway line referred to is to connect the proposed new Durban Dig-out Port to the existing rail network. The project is still at a phase where a number of route alignment options are being considered in determining the most optimal routing option. Various factors including environmental, physical, social and economic impacts will be considered in determining the preferred route alignment and will be informed by engagements with all interested and affected parties as required by the Environmental Impact Assessment Regulations.
  1. Depending on which route alignment option is chosen, engagements with all relevant authorities and other stakeholders, including the Minister of Arts and Culture if required, will be consulted.

Depending on which route alignment option is subsequently chosen, engagements with all relevant authorities and stakeholders will thereafter be undertaken

 

Reply received: March 2015

QUESTION NO.: 567

DATE OF PUBLICATION: 06 MARCH 2015

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

 

(a) How many land claims pertaining to the SA Forestry Company land have been submitted, (b) what is the value of each of these claims and (c) what is the progress in settling each of these claims?                                      NW647E

                                                                                             

REPLY:

  1. How many land claims pertaining to the SA Forestry Company land have been submitted?

 

The total number of land claims pertaining to the state forest land used by SAFCOL for plantation is 32 and this includes 14 claims in Limpopo, 17 in Mpumalanga and 1 in KwaZulu-Natal. In terms of percentages, approximately 61% percent state forest land used by SAFCOL is affected by land claims.

 

Statistical Information

The current statistical information below is a summary of all the land claims that have been shared by the Department of Rural Development and Land Reform (DRDLR) with SAFCOL and it contains the different stages of these claims in the restitution process:

 

 

Limpopo

Mpumalanga

Kwa Zulu Natal

Total

Total Claims

14

17

1

32

Research

1

13

0

14

Gazetted

13

4

1

18

Settled*

3

0

0

3

Transferred

0

0

0

0

  • At advance stages of settlement negotiations with section 42D of the Restitution of Land Rights Act No. 22 of 1994 -Settlement Agreement imminent.
  1. What is the value of each of these claims?

The value of each claim will be known only after completion of the settlement process or at the negotiation stage after the claim has been gazetted. However, the Department of Agriculture Forestry and Fisheries (DAFF), which is mostly the registered owner of the state forest land used by SAFCOL, is in the process of determining the value of all the land, including the land under claim. This exercise will assist in determining the value of the land under claim.

  1. What is the progress in settling each of these claims?

As demonstrated above, the land claims are at different stages of the restitution process with DRDLR. It is to be noted that 3 of the 32 claims are at an advanced stage of the settlement in the restitution process, 14 are at research stage and 18 have been validated and subsequently gazetted. All claims at the gazette stage are awaiting a model for settlement through which they will be finalised. There is a draft settlement model which is being work-shopped with the 3 land claimants in Limpopo and with all relevant stakeholders such as DPE, SAFCOL, DAFF and DRDLR.

It must be noted that the jurisdiction to settle land claims is within DRDLR and not within either the Department of Public Enterprises or SAFCOL.

 

Reply received: March 2015

QUESTION NO.: 566

DATE OF PUBLICATION: 06 MARCH 2015

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

 

(1)

Whether any assets have been stolen from Denel in the (a) 2004-05, (b) 2005-06, (c) 2006-07, (d) 2007-08, (e) 2008-09, (f) 2009-10, (g) 2010-11, (h) 2011-12, (i) 2012-13 and (j) 2013-14 financial years; if so, in each case, (i) what was the (aa) type and (bb) value of the asset stolen, (ii) whether the specified asset has been recovered and (iii) who stole the asset;

 

(2)  

whether any criminal proceedings have been instituted in each specified case?                                                                                  NW646E

 

                                   

REPLY:

(1)

Financial  Period:

(i)

(aa)

(i)

(bb)

(ii)

 

(iii)

 

 

(2) 

Type of Assets:

Value of Assets:

Was it Re-covered:

Who

stole it:

Disciplinary action taken:

Were criminal charges instituted:

(a)

2004/05

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(b)

2005/06

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(c)

2006/07

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(d)

2007/08

Equipment (computers etc.)

R314,555 

Partly

Em-ployee

Yes

Yes

Material (aluminum & copper)

 R252,084

Partly

Em-ployee

Yes

Yes

(e)

2008/09

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(f)

2009/10

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(g)

2010/11

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(h)

2011/12

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(i)

2012/13

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

(j)

2013/14

NO ASSETS WERE STOLEN DURING THIS FINANCIAL PERIOD

 

Reply received: March 2015

QUESTION NO.: 564

DATE OF PUBLICATION: 06 MARCH 2015

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

Whether plans to sell portions of (a) Denel, (b) SA Forestry Company and/or (c) Alexkor are (i) under discussion or (ii) in progress; if so, (aa) which portions of each specified company are for sale, (bb) why, (cc) when will this take place, (dd) for how much will these be sold off and (ee) have potential buyers been identified?

                                                                            

REPLY:

There are no plans to sell portions of Denel, Alexkor or SAFCOL.

 

Reply received: May 2015

QUESTION NO: 552

DATE OF PUBLICATION: 6 March 2015

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

            Whether any employees in her department have been on suspension with full salary since 1 January 2014; if so,

                       (a) how many employees and

            (b) what is the total cost thereof?                                                                                   NW 632E

REPLY

(a)        Yes, four employees:

             One, between 11 June 2014 and 23 July 2014.                           (30 days)

             Three were suspended on 9 March 2015.          

(b)        In respect of the staff member who is no longer suspended, R25 044.73. In respect of the three employees currently suspended, it is R268 326.59 a month.  

 

Reply received: March 2015

QUESTION No: 498      

DATE OF PUBLICATION: 06 March 2015

Mr T W Mhlongo (DA) to ask the Minister of Public Enterprises:

With reference to her reply to question 28 on 27 February 2015; is Eskom charging the specified countries per megawatt; if not, how are the specified countries charged; if so, what (a) is the charge per megawatt and (b) does Eskom charge South African customers per megawatt? NW577E

REPLY:

 

No. The trading partners outside South Africa are not charged per megawatt. There are different levels of charges for different trading partners, and these are generally at a premium to the average local charges. The specific level of charges is deemed to be confidential.

(a) Not Applicable.

(b)The tariff charges for Eskom’s South African customers are not charged per megawatt, but are based on cents per kilowatt hour (c/kWh). The charges are contained in Eskom’s schedule of standard prices and that are approved by NERSA. The schedule of standard prices is published on the ESKOM website as follows:

http://www.eskom.co.za/CustomerCare/TariffsAndCharges/Pages/Tariffs_And_Charges.aspx

 

Reply received: March 2015

QUESTION No: 495      

DATE OF PUBLICATION: 06 March 2015

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

(1)        Whether her department is aware that a school has been established on Erf 731 in Phomolong, near Tembisa in Gauteng, where Eskom intends to establish a substation;

(2)        has an environmental impact assessment (EIA) been conducted; if not, why not; if so, what were the findings of the EIA with specific reference to the health and safety of the learners and teachers? NW574E

REPLY:

(1)        Yes, the Department of Public Enterprises is aware that a school has been established on the site in question.

 

(2)        No, an EIA has not been undertaken as the land owner, the Ekurhuleni Metropolitan Municipality, has not yet identified the specific proposed location for the sub-station.  

 

Reply received: May 2015

QUESTION NO.: 483

DATE OF PUBLICATION: 06 MARCH 2015

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

(1)        What is the state of affairs regarding the amendment of the statutory limitation of a 2% annual increase on pensions paid to members of the Transnet Second Defined Benefit Fund and the Transport Pension Fund in order to make annual increases above the limitation possible;

 

(2)        When is the process expected to be finalised?   NW562E

Reply:

  1. A rule amendment to provide for increases in addition to the statutory 2% subject to affordability has been approved by the Board of Trustees. The proposed rule amendments have also been approved by the Transnet Board of Directors. The matter is still in progress and consultations between the Department of Public Enterprises and National Treasury relating to the proposed rule amendments are currently underway.

(2)        The process will be finalised once the ongoing consultations have been concluded and there is concurrence between the Minister of Finance and myself.

 

Reply received: March 2015

QUESTION FOR WRITTEN REPLY

QUESTION NO.: 245

 DATE OF PUBLICATION: 20 February 2014

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

With reference to her reply to question 1349 on 12 September 2014, can she provide an update regarding the filling of the positions of non-executive directors of the boards (a) Eskom, (b) Broadband Infraco, (c) SA Airways, (d) SA Forestry Company Ltd and (e) Denel?

Reply:

(a–e) Through proclamation of the President, Broadband Infraco and SA Airways have been transferred to the Department of Telecommunications and Postal Services (DTPS) and the National Treasury with effect from 19 September 2014 and 12 December 2014 respectively. The two State Owned Companies (SOCs) are no longer within the DPE portfolio.

 

On 11 December 2014, the following Non-Executive Directors where appointed and/or reappointed to the Transnet and Eskom Boards, respectively:

Transnet

  • Ms Linda Carol Mabaso (Chairperson);
  • Mr Stanley David Shane;
  • Mr Mogokare Richard Seleke;
  • Dr Gideon Mahlalela;
  • Ms Potso Elizabeth Bridgette Mathekga;
  • Ms Zainul Abedeen Nagdee;
  • Mr Vusi Matthew Nkonyane;
  • Mr Peter George Williams;
  • Mr Brett Gerard Stagman;
  • Ms Yasmin Forbes (Re-appointment); and
  • Ms Nazmeera Moola (Re-appointment).

Eskom

  • Mr Zola Tsotsi (Chairperson) (Re- appointment);
  • Dr Baldwin Ngubane;
  • Ms Venete Klein;
  • Ms Nazia Carrim;
  • Mr Romeo Kumalo;
  • Mr Mark Vivian Pamensky;
  • Mr Zethembe Wilfred Khoza;
  • Mr Norman Tinyiko Baloyi;
  • Dr Pathmanathan Naidoo;
  • Ms Devapushpum Viroshini Naidoo; and
  • Ms Chwayita Mabude (Re-appointment)

With respect to the Boards of SAFCOL, SA Express, Denel and Alexkor, the current Directors have been appointed, pending a review at the 2015 Annual General Meetings (AGM), at which time I anticipate further strengthening each Board with the appropriate skills and expertise.

 

Reply received: March 2015

QUESTION NO.: 237

DATE OF PUBLICATION: 03 March 2015

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

With regard to the summarised group financial results of Eskom Holdings SOC Limited, (a) what was the (i) base salary and (ii) bonuses paid to each of the executive directors of Eskom SOC from 2004 until 2014 for each year respectively and (b) what was Eskom SOC’s gross (i) profit or (ii) loss in each of these years?                        NW145E

ESKOM’S RESPONSE TO PARLIAMENTARY QUESTION NUMBER 237 ADDRESSED TO THE MINISTER OF PUBLIC ENTERPRISES BY MS N W A MICHAEL (DA)

  1. Table 1 below reflects the basic salary and incentives (bonuses) which include both short-and long-term incentives paid to members of the Executive Committee (EXCO) of Eskom over the past 10 years. EXCO includes the 2 ex officio Directors of the Board.

 

Table 1: Executive Members’ remuneration from 2004/5 until 2013/14 financial years.

Executive Member

Designation

Basic Salary

Incentives

Note

2004 & 2005

The 2004 & 2005 report reflects a 15 month reporting period as Eskom moved its financial year from December to March as per the DPE instruction.

TS Gcabashe

(ex officio)

CE

3,794,000.00

2,765,000.00

 

WJ Kok

(ex officio)

FD

1,147,000.00

 

Retired as Executive in August 2004.

B Nqwababa

(ex officio)

FD

911,000.00

645,000.00

Appointed in August 2004.

EN Matya

Exco member

2,177,000.00

1,779,000.00

 

PJ Maroga

Exco member

2,082,000.00

1,628,000.00

 

SJ Lennon

Exco member

1,957,000.00

1,484,000.00

 

ME Letlape

Exco member

1,849,000.00

1,392,000.00

 

PD Mbonyana

Exco member

1,839,000.00

1,384,000.00

 

JA Dladla

Exco member

1,744,000.00

1,380,000.00

 

MM Ntsokolo

Exco member

1,820,000.00

1,552,000.00

 

BA Dames

Exco member

758,000.00

384,000.00

 

TJ Matsau

Exco member

1,526,000.00

1,380,000.00

Retired on 31 December 2004

 

2006

Executive Member

Designation

Basic Salary

Incentives

Note

TS Gcabashe

(ex officio)

CE

4,250,000.00

952,000.00

 

B Nqwababa

(ex officio)

FD

1,822,000.00

446,000.00

 

N Angel

Exco member

1,110,000.00

144,000.00

 

BA Dames

Exco member

1,548,000.00

355,000.00

 

JA Dladla

Exco member

1,604,000.00

384,000.00

 

SJ Lennon

Exco member

1,694,000.00

421,000.00

 

ME Letlape

Exco member

1,609,000.00

400,000.00

 

PJ Maroga

Exco member

1,803,000.00

435,000.00

 

EN Matya

Exco member

1,965,000.00

468,000.00

 

PD Mbonyana

Exco member

1,600,000.00

394,000.00

 

MM Ntsokolo

Exco member

1,783,000.00

474,000.00

 

2007

Executive Member

Designation

Basic Salary

Incentives

Note

TS Gcabashe

(ex officio)

CE

4,621,000.00

1,544,000.00

 

B Nqwababa

(ex officio)

FD

2,031,000.00

856,000.00

 

N Angel

Exco member

370,000.00

 

Resigned in June 2006.

BA Dames

Exco member

1,782,000.00

752,000.00

 

JA Dladla

Exco member

1,772,000.00

675,000.00

 

SJ Lennon

Exco member

1,807,000.00

682,000.00

 

ME Letlape

Exco member

1,720,000.00

654,000.00

 

PJ Maroga

Exco member

2,096,000.00

1,103,000.00

 

EN Matya

Exco member

2,105,000.00

749,000.00

 

PD Mbonyana

Exco member

1,711,000.00

577,000.00

 

MM Ntsokolo

Exco member

1,959,000.00

672,000.00

 

2008

Executive Member

Designation

Basic Salary

Incentives

Note

TS Gcabashe

(ex officio)

CE

3,557,000.00

 

Chief Executive contract expire on 31 December 2007.

PJ Maroga

(ex officio)

CE

3,914,000.00

Choose not to accept Bonus

Appointed as Deputy CE on 8 Feb 2007 and as CE on 1 May 2007

B Nqwababa

(ex officio)

FD

2,781,000.00

487,000.00

 

BA Dames

Exco member

2,438,000.00

509,000.00

Appointed as Chief Officer Generation on 1 Feb 2008.

EL Johnson

Exco member

1,689,000.00

315,000.00

Appointed as Chief Officer Networks and Customer service on 1 Feb 2008.

SJ Lennon

Exco member

1,974,000.00

350,000.00

 

ME Letlape

Exco member

1,892,000.00

279,000.00

 

PD Mbonyana

Exco member

801,000.00

 

Retired from Eskom in August 2007

JA Dladla[1]

Official of Exco

2,065,000.00

364,000.00

Change of structure, exit EXCO

EN Matya

Official of Exco

2,332,000.00

216,000.00

Resigned from Eskom in July 2008

MM Ntsokolo[2]

Official of Exco

2,332,000.00

363,000.00

Change of structure, exit EXCO

A Noah[3]

Official of Exco

1,650,000.00

318,000.00

Appointed in July 2007 as Executive. Change of structure exit EXCO.

2009

Executive Member

Designation

Basic Salary

Incentives

Note

PJ Maroga

(ex officio)

CE

4,960,000.00

681,000.00

(*)

B Nqwababa

(ex officio)

FD

2,168,000.00

679,000.00

Resigned as FD in December 2008

 

BA Dames

Exco member

2,979,000.00

728,000.00

 

EL Johnson

Exco member

2,535,000.00

 

Appointed to Chief Officer in February 2008.

SJ Lennon

Exco member

2,139,000.00

890,000.00

 

ME Letlape

Exco member

1,471,000.00

815,000.00

Resigned from Eskom in December 2008.

(*)The Board deferred the allocation in respect of short-term incentives while long-term incentives were paid out.

2010

Executive Member

Designation

Basic Salary

Incentives

Note

PJ Maroga

(ex officio)

CE

3,447,000.00

2,323,000.00

Did not accept the 2010 short-term incentive.  The bonus reflected is in respect of the 2009 financial year that was paid after confirmation of the targeted savings of R22 billion.
Exit as CE and ex officio member of the Board in November 2009.

PS O'Flaherty

(ex officio)

FD

825,000.00

289,000.00

Short-term incentive for the 2010 financial year only.  
Appointed as FD in January 2010.

BE Bulunga

Exco member

371,000.00

130,000.00

Short-term incentive for the 2010 financial year only.
Appointed to EXCO in February 2010.

BA Dames

 

Exco member

3,295,000.00

2,921,000.00

(**)

EL Johnson

Exco member

2,859,000.00

1,718,000.00

(**)

SJ Lennon

Exco member

2,308,000.00

2,370,000.00

(**)

(**)Short term bonus for the 2010 financial year and bonuses in respect of the 2009 financial year that was paid after confirmation of the targeted savings of R22 billion.

 

2011

Executive Member

Designation

Basic Salary

Incentives

Note

BA Dames

(ex officio)

CE

3,399,000.00

2,130,000.00

Appointed as CE in June 2010

PS O'Flaherty

(ex officio)

FD

3,512,000.00

1,407,000.00

 

BE Bulunga

Exco member

2,228,000.00

748,000.00

 

CAK Choeu

Exco member

1,742,000.00

714,000.00

Appointed as Divisional Executive in June 2010

EL Johnson

Exco member

3,060,000.00

1,751,000.00

 

SJ Lennon

Exco member

2,381,000.00

1,481,000.00

 

DL Marokane

Exco member

2,816,000.00

1,100,000.00

Appointed as Divisional Executive in January 2010

2012

Executive Member

Designation

Basic Salary

Incentives

Note

BA Dames

(ex officio)

CE

5,000,000.00

2,976,000.00

 

PS O'Flaherty

(ex officio)

FD

3,827,000.00

1,458,000.00

 

BE Bulunga

Exco member

2,289,000.00

740,000.00

 

T Govender

Exco member

2,534,000.00

1,619,000.00

 

EL Johnson

Exco member

3,257,000.00

2,114,000.00

 

SJ Lennon

Exco member

2,446,000.00

1,877,000.00

 

TBL Molefe

Exco member

2,122,000.00

762,000.00

 

DL Marokane

Exco member

3,082,000.00

1,163,000.00

 

A Noah[4]

Exco member

2,517,000.00

1,852,000.00

 Re-nominated to EXCO

MM Ntsokolo[5]

Exco member

2,885,000.00

2,252,000.00

 Re-nominated to EXCO

 

2013

Executive Member

Designation

Basic Salary

Incentives

Note

BA Dames

(ex officio)

CE

5,000,000.00

3,262,000.00

 

PS O'Flaherty

(ex officio)

FD

3,930,000.00

2,008,000.00

 

BE Bulunga

Exco member

2,350,000.00

810,000.00

 

T Govender

Exco member

2,602,000.00

1,785,000.00

 

EL Johnson

Exco member

3,345,000.00

2,598,000.00

 

SJ Lennon

Exco member

2,512,000.00

2,040,000.00

 

DL Marokane

Exco member

3,165,000.00

1,230,000.00

 

TBL Molefe

Exco member

2,178,000.00

669,000.00

 

A Noah

Exco member

2,585,000.00

2,004,000.00

 

MM Ntsokolo

Exco member

2,963,000.00

2,455,000.00

 

2014

No Short Term Bonuses awarded for the 2014 financial year. 

Executive Member

Designation

Basic Salary

Incentives

Note

BA Dames

(ex officio)

CE

7,931,000.00

1,928,000.00

Included in salaries is an amount of R1.9million relating to back pay in increases from 2010.

TBL Molefe

(ex officio)

FD

2,622,000.00

508,000.00

Appointed FD in January 2014.

PS O'Flaherty

(ex officio)

FD

1,088,000.00

1,513,000.00

Resigned in July 2013. 

BE Bulunga

Exco member

2,537,000.00

722,000.00

Resigned in April 2013

T Govender

Exco member

2,809,000.00

1,043,000.00

 

EL Johnson

Exco member

3,610,000.00

1,195,000.00

 

SJ Lennon

Exco member

2,711,000.00

772,000.00

 

DL Marokane

Exco member

3,416,000.00

1,245,000.00

 

A Noah

Exco member

2,790,000.00

923,000.00

 

MM Ntsokolo

Exco member

3,198,000.00

910,000.00

 

(b)

Please refer to Table 2 below.

Table 2: Profit / (loss) before tax and for the year, covering period 2004/5 until 2014 financial years.

Year

Profit/(loss) before tax

R’m

Profit/(loss) for the year

R’m

2004 & 2005 (15 Month period)

                                    6,386,000,000.00

                                      4,353,000,000.00 

2006

                                    7,159,000,000.00  

                                      5,064,000,000.00  

2007

                                    8,407,000,000.00  

                                      6,008,000,000.00  

2008

                                       979,000,000.00  

                                      1,333,000,000.00  

2009

 (14 353,000,000.00)

 (10, 177,000,000.00)

2010

                                    4,823,000,000.00  

                                      3,187,000,000.00  

2011

                                 11,067,000,000.00  

                                      7,951,000,000.00

2012

                                 17,766,000,000.00  

                                    12,736,000,000.00

2013

                                    7,890,000,000.00  

                                      5,773,000,000.00  

2014

                                    6,944,000,000.00  

                                      5,424,000,000.00  

 

 

 

Notes:

 

 

All figures are as stated in the published Integrated Reports for the respective years. Profit/loss figures are for the Company and not Group. The 2005 profit is as at 31 March 2005 and is for a 15 month period, due to Eskom changing the financial year end from December to March in that year.

 

 


 

Reply received: February 2015

QUESTION No: 86

DATE OF PUBLICATION: 12 February 2015

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

(1) With reference to the Eskom Ingula Generation Project, (a) have any persons residing in the area been moved or (b) are there any plans to move such persons from their places of residence; if so, (i) what (aa) were the reasons for each of these resettlements and (bb) are the names of each person affected by these resettlements, (ii) how many livestock are owned by each of these affected persons and (iii) what employment opportunities exist in each of these resettlements;

(2) for each of the properties onto which persons (a) have been or (b) are planned to be resettled, (i) what are the (aa) details and (bb) extent of these properties, (ii) potential agricultural use including maximum livestock stocking rates, (iii) availability of water for both human and animal consumption, (iv) purchase price of each property, (v) names of the persons already occupying these properties, (vi) number of livestock already on each of the properties and (vii) state of infrastructure such as fences on each property;

(3)(a) to whom or (b) to which entities have or will ownership of the properties be given;

(4) what (a) schools are within walking distance of the properties onto which persons have been or are planned to be moved and (b) housing has or is planned to be provided to persons affected;

(5) have all persons that are affected by the resettlement of planned resettlement, including persons already living on properties purchased for resettlement been consulted and have all such persons accepted the resettlement or resettlement plans? NW88E

 

REPLY:

The Ingula Generation Project consists of two Catchment areas namely the Free State Upper and the Kwa Zulu Natal Lower Catchment. The reply covers both these areas in Section A and B respectively.

SECTION A: INGULA RESETTLEMENTS FREE STATE UPPER CATCHMENT

(1)(a)  

Yes, some households have been resettled.

(1)(b)  

Yes, in some cases there are plans to resettle persons from their places of residence. The details requested are stated in Table 1 below. Livestock figures are valid as at 2008/09.

(1)(b)(iii)

With regards to employment opportunities, some family members were employed by contractors on site.

(2)(a) –(b)

Potential agricultural use of the land for all properties is arable and grazing.           

For properties all properties in Table 2, water is available for both human and animal consumption. Boreholes will be drilled for properties #1-14 in Table 2.

With regards to the state of the infrastructure for properties #1 till 14 in Table 2 below, the fences are of a fair to good condition. Houses are still to be built. Sanitation and electricity is still to be provided where possible. For #14 in the same Table 2, they currently occupy temporary structures. Properties #15 -20 will not have houses built for them. The fences are of a fair to good condition.

(3)

Where families have opted to be resettled outside the Eskom owned property, title will be given to the family trusts that will be formed by Eskom. For the families that opted to live within the proposed agri-village on Eskom property, no title will be given but families will have rights to crop, grazing and occupation.

(4)

There is a school, Hamilberg School, which is within walking distance of the properties. No new houses were constructed. There was a farm house on Remainder of the farm Kiesbeen no. 426, that house was renovated and the affected parties were resettle to it.

(5)

All consultation and negotiations in respect of a resettlement plan have been done in accordance with related National legislation and International Best Practice such as the IFC’s Performance Standards, namely PS 5: Land Acquisition and Involuntary Resettlement. Not all families have accepted Eskom’s proposals as yet. There are two outstanding. The remainder has accepted the resettlement alternatives presented. Negotiations are still in progress to ensure that a sustainable post resettlement state is achieved.

 

Table 1: Details of Individuals Affected by the Ingula General Project in the Free State Upper Catchment Area

Names of Individuals (only household head name and number provided)

Reasons

Livestock No’s (cattle, sheep, goats)

Mkhwanazi Themseni (22)

The household resides at the foot of the dam wall

135

 

Msimanga Jumaima (7)

Household resides within close proximity of the upper dam area

317 

 

Shabalala Philemon (3)

(*)

  15

 

Shabalala Ephraim (8)

(*)

  82

 

Mdaki Philemon (22)

(*)

  63

 

Shabalala Christinah (4)

 

(*)

  10

Shabalala Bheki (9)

(*)

  46

 

Motlhaping Makhosazane (17)

(*)

  33

 

Dlamini Solomon (9)

(*)

  36

 

Mavimbela Johan (10)

(*)

45

 

Dlamini Beauty (5)

(*)

  27

 

Mkhwanazi Paulos

 

(*)

No information

Mavuso Mayina (8)

(*)

  0

 

Shabalala Bernard (12)

The family resides within the upper dam inundation area

  52

 

Tshabalala Johnson (11)

(**)

  43

 

Shabalala Sipho (3)

(**)

  21

 

Shabalala William (15)

(**)

  53

 

Dlamini Zakhele (7)

(**)

82

 

Mavimbela Jumaima (8)

(**)

  69

 

Dlamini Linah (10)

(**)

91

 

(*) Requirement within the EA that wetland park be established so that to mitigate any negative impact on the downstream wetland. Betterment of household lives and to implement sound land management initiatives

(**) The family resides on the host farm purchased for resettlements. No resettlement will be implemented

    

(2)(a)(b)(i) to (vii)

Table 2: Resettlement Details for the Individuals Affected by the Ingula General Project in the Free State Upper Catchment Area

#

Household

Resettlement Status

Resettlement Property

Extent

Carrying Capacity

Purchase Price

Host Families

No. Of Livestock Currently Occupying

1

Mkhwanazi Themseni (22)

Resettlement agreement signed.

House to be constructed so family can be resettled

Ptn 3 of the Farm Maggiesdeel 1565-Harrismith RD

300 ha

4ha/LSU

R1,986,000

None

None

2

Msimanga Jumaima (7)

Resettlement complete

Rem, Ptn 1 & Ptn 2 of the farm Kiesbeen 426, Harrismith RD

452.8543 ha

5ha/LSU

R3,100,000

None

317

3

Shabalala Philemon (3)

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

15

4

Shabalala Ephraim (8)

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

82

5

Mdaki Philemon (21)

No agreement reached as yet. Still negotiating on final settlement

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been 6subdivided)

None

63

6

Shabalala Christinah (4)

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

10

7

Shabalala Bheki (9)

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

46

8

Motlhaping Makhosazane (17)

Resettlement agreement signed.

House to be constructed so family can be resettled

Ptn 3, 6 & 14 of the farm Bronsbury no. 1888, Harrismith RD

220.9630 ha

4ha/LSU

R708,000

* Yes

33

9

Dlamini Solomon (9)

Resettlement agreement signed.

House to be constructed so family can be resettled

Remainder of the farm Maggiesdeel1565

138 ha

4ha/LSU

R914,000

None

36

10

Mavimbela Johan (10)

Resettlement agreement signed.

House to be constructed so family can be resettled

Ptn 1, 2, 4, 7 & 15 of the farm Bronsbury no. 1888, Harrismith RD

224.0858 ha

4ha/LSU

R718,000

* Yes

45

11

Dlamini Beauty (5)

No agreement reached as yet. Still negotiating on final settlement

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1,240,000 (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

27

12

Mkhwanazi Paulos

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1.24M (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

Unknown

13

Mavuso Mayina (8)

Letter of intent signed. Family to reside in proposed agri village. Resettlement to be effected

Ptn 1 of the Farm Wilge River 319

Unknown as yet. Still in planning phase

4ha/LSU

R1.24M (note that the purchase price is the same for all Ptn 1 Wilge as the farm has not been subdivided)

None

Unknown

14

Shabalala Bernard (12)

Resettlement agreement signed.

House to be constructed so family can be resettled

Ptn 2 of the  farm no. 51, Harrismith RD

318.6397 ha

4ha/LSU

R1.021M

** Yes

52

15

Tshabalala Johnson (11)

No resettlement to take place as the family resides on the hosting farm

Ptn 11 of farm Bronsbury no. 1888, Harrismith RD

195.0366 ha

4ha/LSU

R0.625M

* Host family to the Johan Mavimbela and Motlhaping Makhosazane

43

16

Shabalala Sipho (3)

No resettlement to take place as the family resides on the hosting farm

Ptn 10 & 12 of the farm Bronsbury no. 1888, Harrismith RD

187.1521 ha

4ha/LSU

R0.600M

* Host family to the Johan Mavimbela and Motlhaping Makhosazane

21

17

Shabalala William (15)

No resettlement to take place as the family resides on the hosting farm

Ptn 13 of the farm Bronsbury no. 1888, Harrismith RD

200.1305 ha

4ha/LSU

R0.641M

* Host family to the Johan Mavimbela and Motlhaping Makhosazane

53

18

Dlamini Zakhele (7)

No resettlement to take place as the family resides on the hosting farm

Ptn 9 of the farm Bronsbury no. 1888, Harrismith RD

220.1366 ha

4ha/LSU

R0.706M

* Host family to the Johan Mavimbela and Motlhaping Makhosazane

82

19

Mavimbela Jumaima (8)

No resettlement to take place as the family resides on the hosting farm

Ptn 4 of the farm Hamilberg no 51, Harrismith RD

316.1793 ha

4ha/LSU

R1.013M

** Host family to the Bernard Shabalala

69

20

Dlamini Linah (10)

No resettlement to take place as the family resides on the hosting farm

Ptn 3 of the farm Hamilberg no. 51, Harrismith RD

323.1486 ha

4ha/LSU

R1.036M

** Host family to the Bernard Shabalala

91

 

Notes: * & ** denotes farms that have host families and the corresponding host family that is already residing on the farm.

 SECTION B: INGULA RESETTLEMENTS KWA ZULU NATAL LOWER UPPER CATCHMENT

(1)(a)

Yes, some households have been resettled.

(1)(b)

Yes, in some cases there are plans to resettle persons from their places of residence. The details requested are stated in Table 3 below. Livestock figures are valid as at 2008/09.

(1)(b)(iii)

With regards to employment opportunities, some family members were employed by contractors on site.

(2)(a)-(b)

Potential agricultural use of the land for all properties is arable and grazing.           

For properties all properties in Table 4, water is available for both human and animal consumption. Boreholes will be drilled for all properties.

(3)

Title will be given to the family trusts that will be formed by Eskom.

(4)  

There is a school, Zaaifontein School, which is within walking distance of the properties. Housing on new property was constructed matching like for like with regard to square metres and funded by Eskom.  Families resided on mud houses previously and resettled to brick houses.

(5)

All consultation and negotiations in respect of a resettlement plan have been done in accordance with related National legislation and International Best Practice such as the IFC’s Performance Standards, namely PS 5: Land Acquisition and Involuntary Resettlement. All families have accepted Eskom’s proposals. Negotiations are still in progress to ensure that a sustainable post resettlement state is achieved.

 

Table 3: Details of Individuals Affected by the Ingula General Project in the Kwa Zulu Natal Lower Upper Catchment Area

(ibb) Names of Individuals (only household name and number provided)

(i)(aa) Reasons

(ii) Livestock No’s (cattle, sheep, goats)

Xaba Shoti Ephraim (9)

(^)

186

Xaba Falakhe Allison (13)

(^)

16

Magasela Thomas Bangizwe (13)

(^)

76

Mazibuko Nontete Roselina (7)

(^)

35

Mathebula Nyovana Willie (5)

(^)

129

Mazibuko Phongwana Tryphina (8)

(^)

80

Fuayi Elliot Mathebula (14)

(^^)

58

Vincent Alson Nkosi (10)

(^^)

69

Vusimuzi Iosiah Thabethe (8)

(^^)

15

Katshane Bernard Kubheka (15)

(^^)

127

Nyosana Samuel Mathebula (8)

(^^)

116

Luke Mgaga (14)

(^^)

78

Mathebula Paulus

(^^)

Unknown

 

(^) Betterment of household lives and to implement sound land management initiatives

(^^)The family resides on the host farm purchased for resettlements. No resettlement will be implemented

 

(2)(a)(b)(i) to (vii)

 

Table 4: Resettlement Details for the Individuals Affected by the Ingula General Project in the in the Kwa Zulu Natal Lower Upper Catchment Area

#

 

Household

Resettlement Status

(aa) Resettlement Property

(bb) Extent

(ii) Carrying Capacity

(iv) Purchase Price

(v) Host Families

(vi) No. Of Livestock Currently Occupying

(vii)State of Fences

1

 

Xaba Shoti Ephraim (9)

Resettlement Agreement signed, Houses  constructed, Resettled

(t)  Ptn 11,13,17,26 of the farm Zaaifontein no. 1074 – GS

77.5703 ha

2ha/LSU

R126,000

None

186

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence is in fair to good condition, as at January 2015

 

2

 

Xaba Falakhe Allison (13)

Resettlement Agreement signed, Houses  constructed, Resettled

(t)  Ptn 12,16,22,25 of the farm Zaaifontein

   no. 1074 – GS

76.8675 ha

2ha/LSU

R124,000

None

16

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence in fair to good condition, as at January 2015

 

3

 

Magasela Thomas Bangizwe (13)

Resettlement Agreement signed, Houses  constructed, Resettled

(t)  Ptn 19,28,29,31 of the farm Zaaifontein

   no. 1074 – GS

78.9119 ha

2ha/LSU

R128,000

None

76

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence is in fair to good condition, as at January 2015

 

 

4

 

Mazibuko Nontete Roselina (7)

Resettlement Agreement signed, Houses  constructed, Resettled

(t) Ptn 10,15,20,24 of the farm Zaaifontein

  no. 1074 – GS

76.4569 ha

2ha/LSU

R124,000

None

35

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence is in fair to good condition, as at January 2015

 

 

5

 

Mathebula Nyovana Willie (5)

Resettlement Agreement signed, Houses  constructed, Resettled

(t) Ptn 14,18,27,32 of the farm Zaaifontein

  no. 1074 – GS

80.6423 ha

2ha/LSU

R131,000

None

129

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence is in fair to good condition, as at January 2015

 

6

 

Mazibuko Phongwana Tryphina (8)

Resettlement Agreement signed, Houses constructed, Resettled

(t)Ptn 21,23,30,33 of

    the farm Zaaifontein

    no. 1074 –GS

80.9373 ha

2ha/LSU

R131,000

 

 

 

 

 

 

 

None

80

Newly built houses

Electricity supplied

Portable toilets

Domestic water supplied by project

Fence is in fair to good condition, as at January 2015

 

7

 

Fuayi Elliot Mathebula (14)

No resettlement to take place as the family resides on the hosting farm

Ptn 5 of the farm Zaaifontein no. 1074-GS

Unknown as yet.  Still  in planning phase

2ha/LSU

R5,181,000 (note that the purchase price is the same for all Ptn 5 of Zaaifontein as the farm has not been subdivided)

(tt) Host Family

58

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in  fair to good condition as at January 2015

 

8

 

Vincent Alson Nkosi (10)

No resettlement to take place as the family resides on the hosting farm

Ptn 2 of the farm Zaaifontein no. 1074 - GS

Unknown as yet.  Still in planning phase

2ha/LSU

R1,316,000 (note that the purchase price is the same for all Ptn 2&3 of Zaaifontein as the farm has not been subdivided)

 

(tt) Host Family

69

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in fair to good condition as at January 2015

 

9

 

Vusimuzi Iosiah Thabethe (8)

No resettlement to take place as the family resides on the hosting farm

Ptn 2  of the farm Zaaifontein no. 1074- GS

Unknown as yet.  Still in planning phase

2ha/LSU

R1,316,000 (note that the purchase price is the same for all Ptn 2&3 of Zaaifontein as the farm has not been subdivided)

 

(tt) Host Family

15

No houses to be provided.

1 existing borehole utilized by hosting community

Fences are fair to good as at January 2015

 

10

 

Katshane Bernard Kubheka (15)

No resettlement to take place as the family resides on the hosting farm

Ptn 5 of the farm Zaaifontein no. 1074-GS

Unknown as yet.  Still in planning phase

2ha/LSU

R5,181,000 (note that the purchase price is the same for all Ptn 5 of Zaaifontein as the farm has not been subdivided)

 

(tt) Host Family

127

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in  fair to good condition as at January 2015

 

11

 

Nyosana Samuel Mathebula (8)

No resettlement to take place as the family resides on the hosting farm

Ptn 2 of the farm Zaaifontein no. 1074-GS

Unknown as yet. Still in planning phase

2ha/LSU

R1,316,000 (note that the purchase price is the same for all Ptn 2&3 of Zaaifontein as the farm has not been subdivided)

 

 

(tt) Host Family

116

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in fair to good condition as at January 2015

 

12

 

Luke Mgaga (14)

No resettlement to take place as the family resides on the hosting farm

Ptn 5 of the farm Zaaifontein no. 1074-GS

Unknown as yet. Still in planning phase

2ha/LSU

R5,181,000 (note that the purchase price is the same for all Ptn 5 of Zaaifontein as the farm has not been subdivided)

 

(tt) Host Family

78

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in fair to good as at January 2015

 

13

 

Mathebula Paulus

No resettlement to take place as the family resides on the hosting farm

Ptn 2 of the  farm  Zaaifontein no.1074,-GS

Unknown as yet.  Still in planning phase

2ha/LSU

R1,316,000 (note that the purchase price is the same for all Ptn 2&3 of Zaaifontein as the farm has not been subdivided)

 

(tt) Host Family

Unknown

No houses to be provided.

1 existing borehole utilized by hosting community

Fence in fair to good as at January 2015

 

14

 

Mathebula Paulus

No resettlement to take place as the family resides on the hosting farm

Ptn 5 of the farm Zaaifontein  no. 1074-GS

Unknown as yet.  Still in planning phase

2ha/LSU

R5,181,000 (note that the purchase price is the same for all Ptn 5 of Zaaifontein as the farm has not been subdivided)

(tt) Host family

Unknown

No houses to be provided.

1 existing borehole utilized by hosting community

Fences in fair to good as at January 2015

 

                           

 

Notes:

(t) The process to register the subdivision at the Surveyor General Office has been started but not yet completed and approved.   

(tt) denotes farms that have host families

 

Reply received: March 2015

QUESTION No: 37

DATE OF PUBLICATION: 12 February 2015

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

(1) With regard to the Open-Cycle Gas Turbines (OCGTs) implemented by Eskom to generate electricity, (a) how many litres of diesel have been bought by Eskom in the period 1 December 2014 up to 31 January 2015 to operate the OCGTs, (b) what was the exact cost of the diesel bought during this period, and (c) from which company did Eskom buy the diesel? (2)(a) What are the maximum number of hours that the OCGT was designed to operate for per day, and (b) for each day since 1 December 2014 up to 31 January 2014, how many hours per day were each of the OCGTs operated? (3) What effect will the failure of these OCGTs have on the country’s power supply due to lack of maintenance?

REPLY:

 

(1)(a)    

The total volume of diesel supplied to the OCGTs was ±120 million litres in December 2014 and ±157 million litres in January 2015.

 

(1)(b)

The total cost of diesel for the OCGTs for December was R905 million, and for January it was R1,173 million.

 

(1)(c)

Eskom uses three contracted suppliers for the bulk of the fuel volumes, PetroSA, Masana and Afric Oil. During periods of high burn as experienced during December and January, Eskom uses a number of supplementary suppliers with smaller quantities.

 

 

(2)(a)

Eskom’s intention when procuring the OCGTs was to run them for 2-3 hours a day during peak periods only. However, from a technical design point of view the generators are capable of running as a base-load station as long as the diesel is available.

 

(2)(b)

Please refer to Tables 1&2 below. It should be noted that these are station hours per day. In order to calculate station hours, the number should be divided by 5 at Gourikwa and 9 at Ankerlig.

 

(3)       

The OCGTs are currently being maintained in terms of the prescribed maintenance philosophy. Failure to maintain the units properly would result in a lower level of reliability. Failure of individual generator units would result in a loss to the grid of 0,15 GW each or about 0,4% of operational capacity.

 

Table 1: Gourikwa Operating Hours for 1 December 2014 up to 31 January 2014

Date

Hrs/day

2014/12/01

61

2014/12/02

77

2014/12/03

79

2014/12/04

45

2014/12/05

14

2014/12/06

0

2014/12/07

4

2014/12/08

72

2014/12/09

73

2014/12/10

36

2014/12/11

20

2014/12/12

59

2014/12/13

44

2014/12/14

7

2014/12/15

49

2014/12/16

55

2014/12/17

34

2014/12/18

0

2014/12/19

0

2014/12/20

3

2014/12/21

0

2014/12/22

29

2014/12/23

11

2014/12/24

12

2014/12/25

0

2014/12/26

4

2014/12/27

0

2014/12/28

0

2014/12/29

0

2014/12/30

7

2014/12/31

0

2015/01/01

0

2015/01/02

9

2015/01/03

16

 

 

2015/01/04

52

2015/01/05

45

2015/01/06

66

2015/01/07

66

2015/01/08

58

2015/01/09

61

2015/01/10

16

2015/01/11

20

2015/01/12

25

2015/01/13

48

2015/01/14

26

2015/01/15

18

2015/01/16

34

2015/01/17

19

2015/01/18

4

2015/01/19

61

2015/01/20

58

2015/01/21

48

2015/01/22

33

2015/01/23

31

2015/01/24

11

2015/01/25

37

2015/01/26

59

2015/01/27

55

2015/01/28

30

2015/01/29

0

2015/01/30

6

2015/01/31

35

 

 

Table 2: Ankerlig Operating Hours for 1 December 2014 up to 31 January 2014

Date

Hrs/day

2014/12/01

66

2014/12/02

122

2014/12/03

110

2014/12/04

66

2014/12/05

53

2014/12/06

11

2014/12/07

7

2014/12/08

129

2014/12/09

114

2014/12/10

100

2014/12/11

107

2014/12/12

94

2014/12/13

39

2014/12/14

77

2014/12/15

97

2014/12/16

97

2014/12/17

97

2014/12/18

48

2014/12/19

47

2014/12/20

3

2014/12/21

0

2014/12/22

51

2014/12/23

12

2014/12/24

16

2014/12/25

0

2014/12/26

5

2014/12/27

0

2014/12/28

0

2014/12/29

0

2014/12/30

6

2014/12/31

0

2015/01/01

0

2015/01/02

5

2015/01/03

10

2015/01/04

35

2015/01/05

57

2015/01/06

93

2015/01/07

108

2015/01/08

97

2015/01/09

108

2015/01/10

78

2015/01/11

84

2015/01/12

86

2015/01/13

106

2015/01/14

84

2015/01/15

65

2015/01/16

70

2015/01/17

7

2015/01/18

15

2015/01/19

117

2015/01/20

96

2015/01/21

100

2015/01/22

74

2015/01/23

102

2015/01/24

111

2015/01/25

117

2015/01/26

123

2015/01/27

126

2015/01/28

88

2015/01/29

40

2015/01/30

81

2015/01/31

81

                                                                             

Reply received: February 2015

QUESTION No: 30

DATE OF PUBLICATION: 12 February 2015

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

(1)(a) What challenge is being faced by Eskom that prevents the utility from connecting independent power producers (IPPs) to the national power grid and (b) how is Eskom addressing these challenges; (2) how much of the country’s power supply is generated by IPPs; (3) will more IPPs be allowed to connect to the national power grid; if not, why not; if so, (a) how many IPPs and (b) when will this happen? NW31E

REPLY:

(1)(a)

Eskom has connected 39 Independent Power Producers (IPP) projects since 2013. The integration of these projects to the national grid has required the building of new grid capacity and strengthening of the network to continue supporting IPP projects. For recent conclusion of Bid 3 projects Eskom has put aside R2.3 billion to strengthen the network. The funding for strengthening the grid and building of additional capacity to continue supporting IPPs and customers remains a challenge. The last Multi-Year Price Determination (MYPD3) only made provisions for the acquisition of 3725 MW from IPPs. This threshold has been exceeded and there is limited funding provision to continue purchasing energy from IPPs as well as to develop the grid infrastructure to facilitate their connections to the national grid.

(1)(b)

Eskom has developed a grid plan identifying the optimal strategic investments to unlock grid capacity and ensure that the grid will continue to support future energy procurement from IPPs.  Working in partnership with Department of Energy (DoE), a joint Eskom-DoE task force has been set up to deal with funding for this plan.

(2)  To date, the capacity of projects connected to grid stands at 1685.62 MW

(3)  Yes, more IPPs will be connected. However, the process is driven by the DoE based on

the Integrated Resource Plan (IRP) allocation. Eskom’s role is to sign the PPAs and to  integrate the capacity into the grid.

The DoE is best positioned to respond on the number of additional IPPs, however, IPPs will continue to be allowed to connect to the national power grid. This includes IPPs participating in regulated procurement programmes such as the Renewable Energy IPP, Small Projects, Coal Base load and Cogeneration programmes as well as the non-regulated programmes.

Eskom has already committed to 27 additional IPP projects being grid-connected in the next two years.  In 2015, 6 more projects from second bid window of Renewable Procurement programme are expected to be connected to the grid. 16 more projects from the third bid window of Renewable Procurement programme will come online in 2016 with 5 more projects from the same window scheduled to connect in 2017.

 

Reply received: February 2015

QUESTION No: 28       

DATE OF PUBLICATION: 12 February 2015

How much electricity does Eskom (a) import from and (b) export to each of the countries in the Southern African Power Pool respectively? NW29E

REPLY:

Background Information

Eskom supplies power to five countries and imports from one country, as reflected in Tables 1 and 2 below. The nature of the agreements are of a firm and non-firm nature. The firm agreements are those that cannot be interrupted, and the non-firm agreements are those where energy is supplied as and when it is available, and these are subject to interruption.

 

The principles that apply to supply agreements during emergencies include:-

  • Trading partners are required to utilize all their own generation capacity to the maximum.
  • All non-firm energy supplies are reduced to zero. 
  • All firm energy supplies are reduced by 10% when there is a load curtailment imposed on SA customers. Trading partners are required to enforce the 10% reduction on their customer base.
  • If there is load shedding in South Africa, then all sales to Namibia and Botswana are withdrawn, and Swaziland and Lesotho are required to do proportional load shedding.
  • Energy which may inadvertently be drawn out of the Eskom system is charged at punitive emergency generation rates.
  • The interruptibility of the Mozal and Skorpion Zinc agreements are activated by Eskom’s National Control for system stability.

Table 1: Country Export Agreements and Related Capacity

  •  
  •  

Mozambique

  1.  
  •  
  1.  
  •  
  1.  
  •  
  1.  
  •  
  1.  

 

Table 2: Country Import Agreement and Related Capacity

  •  
  •  

Mozambique:

  1.  

 

Reply received: March 2015

QUESTION No: 27       

DATE OF PUBLICATION: 12 February 2015

Mr T R Majola (DA) to ask the Minister of Public Enterprises:

With reference to each of Eskom’s agreements with each of the countries in the Southern African Power Pool (SAPP) relating to the importation and exportation of electricity, which are (a) firm and (b) non-firm agreements? NW28E

REPLY:

Eskom has Power Purchase Agreements (PPA) and/or Power Sales Agreements (PSA) with various entities in seven different countries in the Southern African Power Pool (SAPP), of a firm and non-firm nature. The firm agreements are those that cannot be interrupted, and the non-firm are those where energy is supplied as and when it is available, and these are subject to interruption.

 

PPA = Power Purchase Agreement   PSP = Power Supply Agreement

 

Country

Account

Type of agreement

Agreement Basis

1

Mozambique

Hidroelectric de Cahora Bassa (HCB)

PPA

Firm

 

 

Mozambique Trans mission Company (MOTRACO)

PSA

Firm

 

 

Electricidade de Mocambique (EDM)

PSA

Non-firm

 

 

Aggreko

PPA

Firm

2

Swaziland

Swaziland Electricity Company (SEC)

PSA

Firm

3.

Lesotho

Lesotho Electricity Company (LEC)

PSA & PPA

Firm

4.

Botswana

Botswana Power Corporation (BPC

PSA

Firm

5.

Namibia

NamPower

PSA

Firm

 

 

Skorpion Zinc Mine

PSA

Firm

 

 

Orange River Crossing (ORC)

PSA

Firm

 

Country

Account

Type of agreement

Agreement Basis

6.

Zambia

Zambia Electricity Supply Commission (ZESCO)

PSA & PPA

Non-firm

7.

Zimbabwe

Zimbabwe Electricity Supply Authority (ZESA)

PSA & PPA

Non-firm

The principles that apply to supply agreements during emergencies include:-

  • Trading partners are required to utilize all their own generation capacity to the maximum.
  • All non-firm energy supplies are reduced to zero before moving into load curtailment. 
  • All firm energy supplies are reduced by 10% when there is a load curtailment imposed on SA customers. Trading partners are required to enforce the 10% reduction on their customer base.
  • If there is load shedding in South Africa, then all sales to Namibia and Botswana are withdrawn, and Swaziland and Lesotho are required to do proportional load shedding.
  • Energy which may inadvertently be drawn out of the Eskom system is charged at punitive emergency generation rates.
  • The interruptibility of the Mozal and Skorpion Zinc agreements are activated by Eskom’s National Control for system stability.

 

Reply received: March 2015

QUESTION No: 23       

DATE OF PUBLICATION: 12 February 2015

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

(1) How many qualified nuclear reactor operators are currently employed by Eskom;  (2) how many qualified nuclear reactor operators have resigned from Eskom (a) in the (i) 2012-13 and (ii) 2013-14 financial years, and (b) from 1 April 2014 up to the latest date for which information is available?  NW24E

REPLY:

  1.  

Eskom employs 69 qualified Nuclear reactor operators.

(2)

There were no resignations for the 2012-13 financial year and for period 1 April 2014 to 31 January 2015; and 1 resignation for the 2013-14 financial year.

 

Reply received: February 2015

QUESTION No: 22       

DATE OF PUBLICATION: 12 February 2015

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

Is the Acacia Power Station in the Western Cape currently being utilised by Eskom to provide electricity to the national power grid; if not, why not; if so, why? NW23E

REPLY:

Acacia Power Station is being utilised to provide electricity to the national power grid.  It is part of Eskom’s Generation Peaking fleet of power stations and consists of three aero derivative gas turbines with a total installed capacity of 171 MW. The gas turbines can run on kerosene, 50 ppm diesel or Jet A1 fuel.

The power station functions primarily as an off-site supply to the Koeberg Nuclear Power Station as required by the National Nuclear Regulator. It, however, also provides support to the national grid during power supply emergencies, mostly during peak demand. 

 

Reply received: March 2015

QUESTION No: 20       

DATE OF PUBLICATION: 12 February 2015

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

With reference to her reply to question 2573 on 9 December 2014, (a) why has there been a delay in releasing the results of the investigation and (b) on what date will the results of this investigation be made public?  NW21E

REPLY:

  1.  

The Duvha Unit 3 boiler investigation report has been completed and is being taken through Eskom’s governance process. Once the governance process is complete, the report will be submitted to me.

  1.  

I stated during the SONA debate that the recovery has of Duvha unit 3 is underway and the procurement is underway. Once the final report is submitted to the Department of Public Enterprises, I will consider the contents and decide on appropriate action.

Reply received: February 2015

QUESTION No: 19

DATE OF PUBLICATION: 12 February 2015

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

Whether, with reference to her reply to question 2623 on 9 December 2014, the homes of (a) the President, (b) the Deputy President, (c) each Minister and (d) members of the executive board of Eskom experience load-shedding? NW20E

REPLY:

Some homes in South Africa are supplied by Eskom, while others are supplied by municipalities.

For homes supplied by Eskom, load shedding is implemented according to the regulatory code of practice referred to as NRS 048-9.  In terms of the standard, exemptions from load shedding are only granted under exceptional circumstances and only for critical loads as defined in the code (for example, Metro Rail and bulk water supplies). In particular, no residential homes supplied by Eskom, including those cited in this question, are exempt from load shedding.

For homes supplied by municipalities, Eskom does not have detailed information on the layout of electrical networks of municipalities and is therefore not able to confirm that all homes in municipal areas are subject to load shedding. However, municipalities are required to implement load shedding in their areas of supply according to the NRS 048/9 standard.

 

Reply received: March 2015

QUESTION No: 18

DATE OF PUBLICATION: 12 February 2015

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

With reference to her replies to questions 2625 and 2641 on 9 December 2014, (a) what is the status of the Majuba Power Station silo investigation and (b) when will the results of this investigation be made public? NW19E

REPLY:

The investigation is still ongoing and the target is to complete it by the end of March 2015. 

 

Reply received: March 2015

QUESTION No: 17

DATE OF PUBLICATION: 12 February 2015

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

With reference to her reply to question 2214 on 9 December 2014, what are the (a) names of each of the companies providing coal to Eskom and (b) prices paid to each of these companies for coal respectively? NW18E

REPLY:

  1.  

Table 1: Names of companies supplying coal to Eskom

1

Liketh Investments (Pty) Ltd

2

Umcebo Mining (Pty) Ltd

3

HCI Khusela Coal (Pty) Ltd

4

Sudor Coal (Pty) Ltd

5

Stuart Coal (Pty) Ltd

6

Exxaro Coal (Pty) Ltd

7

Keaton Mining (Pty) Ltd)

8

Kuyasa Mining (Pty) Ltd

9

Shanduka Coal (Pty) Ltd

10

Ntshovelo Mining Resources (Pty) Ltd

11

Just Coal CC

12

African Exploration Mining & Finance Corporation

13

Wescoal Mining (Pty) Ltd

14

Hlagisa Mining (Pty) Ltd

15

Perisat Investments (Pty) Ltd

16

Universal Coal Development (Pty) Ltd

17

Vunene

18

Optimum Coal Holdings

19

Iyanga

20

Lurco Coal

21

Anglo American Thermal Coal SA (Pty) Ltd

22

Anglo American Inyosi Coal

23

BECSA (BHP Billiton Energy Coal South Africa

24

BECSA

25

Optimum Coal Holdings

26

Anglo / Exxaro JV

27

Xstrata / African Rainbow Minerals JV

This information is commercially sensitive is subject to standard confidentiality clauses in the agreements with suppliers and thus the information cannot be disclosed without risk to Eskom with respect to litigation and leverage to continue negotiating for competitive pricing.  

 

Reply received: March 2015

QUESTION No: 16       

DATE OF PUBLICATION: 12 February 2015

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

With reference to her reply to question 2215 on 9 December 2014, (a) under what conditions will Eskom implement the emergency procurement mandate and (b) is Eskom considering procuring coal under the emergency procurement mandate in the near future? NW17E

REPLY:

Eskom’s Supply Chain Management Policy distinguishes between emergency procurement and urgent procurement. An emergency is a situation that may imminently/immediately (i.e. within 24 hours) give rise to the following threats/risks to Eskom which cannot be readily alleviated through any other means or interim measures, unless the relevant assets, goods, services are procured:

  • Threats to human life or safety;
  • Threats of interruptions in the supply of electricity to customers or load loss;
  • Threats of substantial ecological damage;
  • The threat of major consequential expense to Eskom; or
  • The threat of serious damage to Eskom’s reputation and good name.

On 16 February 2015, Eskom had an average of 52 days of coal in its stockpile and, therefore, the provision of emergency procurement does not apply.

 

Reply received: March 2015

QUESTION No: 14       

DATE OF PUBLICATION: 12 February 2015

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

(1)Whether, with reference to his reply to question 2220 on 9 December 2014, Eskom received the results of the Request for Information (RFI); if not, why not; if so, what are the results of the RFI; (2)(a) what price is Eskom currently paying for procuring coal from Optimum Mine and (b) how does this price compare to the price that Eskom is paying for a similar grade of coal from other mines? NW15E

REPLY:

(1)

Eskom issued a Request for Information (RFI) to the market for a future supply of coal to the Hendrina Power Station. The RFI closed on 3 December 2014. Eskom received 20 responses to the RFI. Preliminary indications are that there is sufficient potential to supply Hendrina Power Station post 2018.

2)(a); (b)

This information is commercially sensitive is subject to standard confidentiality clauses in the agreements with suppliers and thus the information cannot be disclosed without risk to Eskom with respect to litigation and leverage to continue negotiating for competitive pricing.  

 

Reply received: March 2015

QUESTION No: 06       

DATE OF PUBLICATION: 12 February 2015

Mr M G P Lekota (COPE) to ask the Minister of Public Enterprises:

  1. Whether the semi-privatisation of Telkom which led to an overhaul of its board and the management team had in any significant way enabled a certain person (name and details furnished) to attract private investment and improve Telkom’s financial performance;
  2. whether, if any success was achieved in going this route, the Government will replicate this model at enterprises like Eskom, SA Airways and the SA Broadcasting Corporation, in order to put an end to state funding support; if not, why not; if so, what are the details of this commitment and the timetable that goes with;
  3. whether the Government will direct the savings of state resources achieved in this way to infrastructure development and a substantial improvement in service delivery to aggrieved communities and society at large; if not, why not; if so, what are the relevant details?              

REPLY:

  1. The semi-privatisation of Telkom was informed by the White Paper on Telecommunications that was released soon after the dawn of the democratic dispensation in 1994. The White Paper informed the development of the Telecommunications Act in 1996. In the earlier part, post 1994, Telkom was afforded exclusivity to support rapid expansion of telecommunication services to the poor. The overall legislative approach at that time focused on the need to restructure the telecomunication industry through the introduction of competition in the fixed line sector, improving competition and pricing of telecommunications services. The overall policy approach was based on the need to further liberalise the telecommunication sector through introduction of private players e.g. the Second Network Operator (SNO).

The initial public offering (IPO) of Telkom and the subsequent capital raised from the IPO was used to boost the fiscus rather than being invested back to the business. While the State remained the majority shareholder in Telkom, the company practices since its semi-privatisation changed significantly. This included amongst others:

  • Pricing practices that undermined the growth of other industries that were identified as priorities by the South African Government e.g. Business Process Services. This was largely informed by the market dynamics that allowed the company to charge higher tariffs at that time.
  • The investment plan of the company focused on the most profitable part of its business rather than extending telecommunications services and bridging the digital divide. This required the Government to introduce the Broadband Infraco as the State Owned Company (SOC) to drive the broadband connection in underserviced areas and introduce competition in the wholesale market.
  • A focus on profitability rather than financial and operational sustainability saw the company significantly increase its profit prior the introduction of the Electronic Communications Act in 2005 that changed its licensing conditions that allowed other players to participate in the fixed line sectoe and introduced other technologies that eroded the companies market power and competitive advantage.

The semi-privatisation of Telkom allowed the company to explore different funding options. This includes the sourcing of strategic partners, and issuing of bonds. The company’s performance since 2005 has been on the decline and had to implement a turnaround strategy. The strategy focused on streamlining the company’s focus and promoting efficiencies, including the restructuring that will reduce the headcount. This repositioning has allowed the company to increase its profitability and withdraw from partnerships that were not delivering value.

  1. No, currently there is no policy decision on the privatisation of any SOC. Therefore, the semi-privatisation model of Telkom is not being considered for Eskom, SAA and South African Broadcasting Corporation. Instead Government is looking into the Private Sector Participation Framework on how create complementary relation between the private sector companies and SOC.

This is important because government participation in the economy must be informed by the principles of the developmental state i.e. reducing poverty, unemployment and inequality.

Government has had some success with the introduction of private sector within the SOC environment, one such case being how the Denel Turnaround Strategy was implemented without necessarily privatising the company.

  1. Currently, semi-privatisation of Telkom did not generate savings for the State as the state did not have any exposures in the company. At the time of the IPO, Telkom had a consolidated operating revenue of R34.2 billion, net profit of R1.2 billion and cash flow from operating activities of R8.2 billion in the year ended March 31, 2002 and had total assets of R55.2 billion and shareholders equity of R16.8 billion as of March 31, 2002[1].