Sign In

Question 1539: Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:

Skip Navigation LinksHome > Parliamentary Updates > Question 1539: Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:
Question 1539: Adv A de W Alberts (FF Plus) to ask the Minister of Public Enterprises:
14/06/2013

(1) How will Transnet, the Transnet Second Defined Benefit Fund and the Transport Pension Fund finance the legal costs in the court case involving a class action claim that has been instituted against them;

(2) whether any of the parties will make use of legal insurance policies; if not, why not; if so, what are the relevant details;

(3) how will Transnet, in the light of the magnitude of this claim, be able to negotiate loans for the R300 billion expansion programme;

(4) (a) when and (b) with which (i) local, (ii) multinational and (iii) foreign institutions (aa) have loan applications been submitted and (bb) will loan applications be submitted?    NW1886E

Reply:

According to Transnet:

(1) A class action claim has not been instituted against them, the Transnet Second Defined Benefit Fund (TSDBF) or the Transport Pension Fund (TPF). Transnet has not been sued for payment of any amount. The current case is an application to the North Gauteng High Court in Pretoria to permit the applicants to approach the general body of pensioners of the TSDBF and the TPF in order to establish and define a class, in order that the class can launch an action against several defendants (including Transnet).

Transnet is however responding to the application, as are the TSDBF and TPF. Transnet is funding the current legal costs from operational cash flows. In addition, the legal costs of the TSDBF and TPF come from the operating budgets of the TSDBF and the TPF, which in the case of TSDBF is funded 100% by Transnet, while in the case of the TPF the operating budget is funded by the respective principal employers, being Transnet, PRASA and SAA.

(2) No. See response in paragraph (1) above.  

(3) Notwithstanding the fact that no class action has been instituted, in the event that an action is instituted, it will significantly impact Transnet’s ability to negotiate loans for the R300 billion expansion programme.

(4) Transnet is not in a position to provide the information requested at this stage given the ongoing commercial discussions between them and various financial institutions.

Page last modified:12/03/2014 13:42