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THUBELISHA HOMES CLOSURE REPORT

THUBELISHA HOMES CLOSURE REPORT. Presented to the Portfolio Committee on 8 July 2009. Background. Thubelisha’s Closure Plan prepared in Sept 08. Approved by the Minister of Housing on 15 Dec 08 Delay in approval resulted in: Revised closure timeframe Updated closure cost estimates

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THUBELISHA HOMES CLOSURE REPORT

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  1. THUBELISHA HOMES CLOSURE REPORT Presented to the Portfolio Committee on 8 July 2009

  2. Background • Thubelisha’s Closure Plan prepared in Sept 08. • Approved by the Minister of Housing on 15 Dec 08 • Delay in approval resulted in: • Revised closure timeframe • Updated closure cost estimates • Updated Closure Plan submitted to NDoH on 28 Jan 2009 • Steering Committee request for commitment from NDoH to fund closure costs received on 3 March 2009 • Implementation of closure process commenced on 9 March 2009 with a guarantee of closure costs by NDoH

  3. Closure Task Teams • The Closure Steering Committee established the following Task Teams: • Human Resources • Projects • Facilities & Assets • Finance & Accounting

  4. Human Resources Task Team … • The following processes have been completed: • H D A confirmed all staff in WC offered positions • Firm undertaking from North West Province to absorb 5 • staff; 2 still to be redeployed • Northern Cape Province will absorb 2 staff; 1 staff being • offered a position by the H D A • Voluntary severance package taken up by 30 staff • Staff where no commitments have yet been made (40): • (See table attached)

  5. Human Resources Task Team …

  6. Human Resources Task Team … (con’t) • Redeployment of staff to Gauteng & KZN • is dependent on NDoH to funding • these staff placements for the balance of the • financial year • Good progress made i.t.o. staff changes in • provident funds and medical aid. Consultants • made available to all staff • All Stannic garage cards cancelled at the • beginning of June; Nashua 3G contracts have • yet to be cancelled

  7. Human Resources Task Team … (con’t) • Way Forward: • Approval by NDoH regarding the payment of • subventions particularly to Gauteng & KZN • Alternate to above, commitment by NDoH to • take over 40 remaining staff if not employed • Meetings with Limpopo/KZN/Gauteng • Provinces to have follow up meetings • Finalisation of VSP, including application for tax • directives • Finalisation of offers of employment from H D A • & Provinces where redeployments have been • arranged

  8. Facilities Task Team • The following processes are underway / • have been completed: • All rental agreements have been cancelled or agreed to be • paid to lease termination. Negotiations with Nasdhua have been • finalised and settlement agreed • Negotiations with Telkom finalised; letters sent to Telkom • cancelling remaining contracts; transfer of certain contracts for • telephone and data lines to H D A • All furniture for transfer to H D A from HO and Gauteng branch • identified. Balance of furniture to be auctioned to staff or • disposed of per Closure Plan with treasury approval • Western & Eastern Cape assets will be transferred to the H D A with treasury approval • Transfer of assets to N Cape and N West Provinces proposed • along with transfer of staff with treasury approval • Assets in Limpopo/KZN/E London with be dealt with at meetings • with the Provinces

  9. Facilities Task Team ….(Cont) • All loan contracts such as coffee and water machines • cancelled from 31 July 2009 • Way Forward: • Cancellation of Nashua 3 G cards to be formalised by no later • then 31 July 2009; • Timing of collection of unused Nashua printers to be handled • by Thubelisha staff • Thubelisha Management undertakes to facilitate auction of • Head Office and Gauteng Offices assets

  10. Project Task Team …. • Way Forward: • Response from Thubelisha regarding status of projects • in EC/WC/Mpumulanga/Limpopo • Meetings planned as follows: • Eastern Cape - 30 June • Limpopo - 30 June • Western Cape - 8 July • Mpumulanga - still to be • determined • Draft contracts i.r.o. cessions to be approved by Legal • Notification to all creditors to be sent out by 31 July • 2009 notifying them of closure of operations • Key focus of project closure team will be financial • reconciliation of all projects after discontinuation of • operations on 31 July 2009

  11. Finance & Accounting • NHFC loan repaid • MIG debtors of approximately R60 M still not received • VAT verification process is almost complete which will enable further negotiations with SARS regarding recovery • Claim submitted to NDoH for first portion of Closure Cost (VSP & contract terminations). No amount received from NDoH yet • Way Forward • Bring financial records up to date • Analyze and collect all debts • Meet with NHFC regarding settlement of Interest of loan • Negotiate with H D A regarding future of MIG debtors • Progress the VAT refund

  12. Thank you

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