The government is saddled with contingent liabilities amounting to more than R21 billion, which excludes the more than R2bn from state-owned enterprises (SOEs).
Planning, Monitoring and Evaluation Minister Maropene Ramokgopa disclosed these figures when responding to written parliamentary questions from EFF MP Vuyani Pambo.
“The consolidated financial statements for the financial year ending 31 March 2023, which was compiled by the National Treasury, show that contingent liabilities which emanated out of Legal Court proceedings stood at R21bn,” Ramokgopa said.
She said state institutions were required to make provision for contingent liabilities in line with accounting standards.
“Details relating to claims against the state are considered confidential as it contains information of claimants. Furthermore, departments cannot disclose the information thereof as it is still subject to court proceedings,” she said.
However, Ramokgopa said the decision on which case was defensible or not lies with each state institution and was determined on a case-by-case basis.
Her response showed that some of the claims date as far back as 2018, before the term of the previous Cabinet.
Ramokgopa said Denel did not have any claims that were due or outstanding.
However, Eskom had a total of 92 claims amounting to R54.5 million related to mechanical or electrical failure, human or operating error, and veld fire, among others.
Transnet has 49 claims that are estimated at R2.3bn involving alleged recklessness, negligence and misconduct of a functionary or an official of the entity.
Regarding SAA and its subsidiaries, Ramokgopa said there were two court proceedings dating from 2018 for alleged recklessness, negligence and misconduct.
“Of the two cases referred above, there is only one case wherein there is contingent liability of R5m,” she said.
At Safcol, there were three cases involving labour relations issues and procurement of goods.
There were four claims from service providers and a review application at the Labour Court in connection with the dismissal of a former CEO who was awarded R3.2m by the CCMA.
Meanwhile, Ramokgopa said engagements were ongoing in identifying and pursuing optimal involvement of the private sector to operate on Transnet rail infrastructure.
“The mechanism for the implementation of the private sector participation framework is still under development, and more clarity is expected in the future from the Department of Transport,” Ramokgopa said.
She was responding to EFF MP Omphile Maotwe, who enquired about the role of the private sector in Transnet.
Cape Times