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DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 1539
DATE OF PUBLICATION: 14 June 2013
1539. Adv A de W Alberts (FF Plus) to ask the Minister of Public
Enterprises:
(1) How will Transnet, the Transnet Second Defined Benefit Fund and the
Transport Pension Fund finance the legal costs in the court case involving
a class action claim that has been instituted against them;
(2) whether any of the parties will make use of legal insurance policies;
if not, why not; if so, what are the relevant details;
(3) how will Transnet, in the light of the magnitude of this claim, be able
to negotiate loans for the R300 billion expansion programme;
(4) (a) when and (b) with which (i) local, (ii) multinational and (iii)
foreign institutions (aa) have loan applications been submitted and (bb)
will loan applications be submitted? NW1886E
Reply:
According to Transnet:
(1) A class action claim has not been instituted against them, the Transnet
Second Defined Benefit Fund (TSDBF) or the Transport Pension Fund (TPF).
Transnet has not been sued for payment of any amount. The current case is
an application to the North Gauteng High Court in Pretoria to permit the
applicants to approach the general body of pensioners of the TSDBF and the
TPF in order to establish and define a class, in order that the class can
launch an action against several defendants (including Transnet).
Transnet is however responding to the application, as are the TSDBF and
TPF. Transnet is funding the current legal costs from operational cash
flows. In addition, the legal costs of the TSDBF and TPF come from the
operating budgets of the TSDBF and the TPF, which in the case of TSDBF is
funded 100% by Transnet, while in the case of the TPF the operating budget
is funded by the respective principal employers, being Transnet, PRASA and
SAA.
(2) No. See response in paragraph (1) above.
(3) Notwithstanding the fact that no class action has been instituted, in
the event that an action is instituted, it will significantly impact
Transnetâs ability to negotiate loans for the R300 billion expansion
programme.
(4) Transnet is not in a position to provide the information requested at
this stage given the ongoing commercial discussions between them and
various financial institutions.