Hon Chairperson, I want to respond to hon Michael's question. The first part is whether there were any measures: The answer is yes. Measures have been put in place to ensure that Sensor technology, Sentech, is able to meet its financial obligations. Sentech's business plan for 2010-11 was revised by its new board of directors during the first quarter of the current financial year. The business plan was approved by the Department of Communications in June 2010 and was presented to Parliament in October 2010.
This plan recognises that unless specific cash management measures were introduced the company would not be in a position to meet its operational financial obligations by November 2010. The business plan was founded on the urgent need to restore the sustainability of the company, in order to avoid any reliance on the shareholder to provide additional funding for the company's operational expenditure.
In order to restore the sustainability of the company and to avoid any reliance on the shareholder to provide funding for the company, a number of stabilisation activities were implemented by both the executive management and the board itself.
These activities particularly focused on achieving financial cash flow stability through increasing the collections against the billings and minimising actual expenditure and additional commitments for spending. In support of this, the company also undertook additional internal mechanisms, including improvements in internal controls and reviewed its business processes and policies.
As a result of the execution of these measures, we now can report that the company's cash flow has improved significantly over the last two quarters. It is clear from the figures available from the company. The company has been able to turn around its cash flow position significantly and as a result, it is now able to meet its operational financial obligations and it is projected to continue to do so for the remainder of the financial year.