DEPARTMENT: PUBLIC ENTERPRISES REPUBLIC OF SOUTH AFRICA NATIONAL ASSEMBLY QUESTION FOR ORAL REPLY QUESTION NO.: 269 DATE OF PUBLICATION: 21 OCTOBER 2015 Mr M I Rayi (Eastern Cape: ANC) to ask the Minister of Public Enterprises: (1) How much has (a) Transnet and (b) Eskom lost as a result of cable theft by syndicates from 1 April 2015 up to the latest specified date for which information is available; (2) whether any measures are in place to curb this practice; if not, why not; if so, what are the relevant details; (3) how much has Eskom secured to make up for the shortfall of R225 billion funding package approved by Cabinet late in 2014; (4) whether there are any non-core assets Eskom is planning to dispose of in the 2015-16 financial year; if not; what is the position in this regard; if so, what are the relevant details? CO673E REPLY: (1) and (2) Loss due to cable theft for the period 01 April 2015 to 30 September 2015 and measures introduced to curb theft: SOC Value of cable stolen Eskom R12 million Measures introduced to curb theft Proactive patrols to prevent incidents at sensitive installations, supplemented by intelligence driven operations in “hotspots” where cable thieves are active. The goal is to identify and apprehend syndicates and “bread and butter” thieves operating in these areas; Transnet R10 million Air support in the form of a Robinson 44 helicopter, equipped with specialised observation equipment to support ground teams in “hotspots”; Alarm systems fitted on the lines; Replacing copper cables with aluminium cables where it is feasible; Aggressive policing of the scrap market by law enforcement agencies supported by industry roleplayers to ensure implementation of the new Second Hand Goods Act, Act 6 of 2009; and Continuous research and utilization of technology to assist in the battle against theft. A project is underway to replace overhead catenary cables with “tiger wire” in high-risk areas. The replacement cable comprises elements that will render the cable useless when it is burnt and will even contaminate other copper products when mixed. Proactive patrols and intelligence driven operations at “hotspot” areas are conducted in an on-going process. The primary goal of our operations is to contain the scourge of cable theft as well as identifying, apprehending and successfully prosecuting the perpetrators (syndicates). Internal and external resources are utilized in the analysis of criminal data into intelligence. Active participation in the Non-Ferrous Crime Combating Committee (NFCCC) where Telkom, Eskom, PRASA, Business Against Crime (BAC) are key role players under the leadership of the SAPS. Ongoing engagements with law enforcement agencies in the Criminal Justice Cluster enhances our information sharing efforts in the fight against crime within Transnet. Awareness sessions are conducted on an ongoing basis with the Judiciary as well as the communities in general, on the consequential impact of the incidence of cable theft. (3) Eskom managed to substantially mitigate the R 225 billion shortfall as a result of many initiatives, including - cost cutting, capex rationalisation, government support and increased funding. The funding plan for the period, 1 April 2013 to 31 March 2018 was increased from R 200 billion to R 307 billion including the government support. After taking into account the R 23 billion government support Eskom has to fund R 284 billion. Of the R 284 billion R 229 billion has been secured with R 55 billion unsecured. Possible lenders have been identified to target the unsecured portion. The shortfall excludes any potential risks that will have an impact on the shortfall. (4) Yes, Eskom is planning to dispose of some non-core assets, mainly properties. The option of disposing other non-core assets will be reviewed on a case by case basis depending on the nature of the assets. Proceeds from the sale of non-core assets are not expected to be material.