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Update on the delay in release of TCTA's 2018/19 Annual Financial Statements
Trans-Caledon Tunnel Authority (TCTA)
WSP4 (LHWP) ZAG000020009
WSP5 (LHWP) ZAG000020017
As established by Notice No 2631 in Government Gazette No 10545 of 12 December 1986, and revised
by Notice No 277 in Government Gazette No 21017 of 24 March 2000 (the Notice of Establishment).
A Schedule 2 Public Finance Management Act No. 1 of 1999 (PFMA) entity.
UPDATE ON THE DELAY IN RELEASE OF TCTA’S 2018/19 ANNUAL FINANCIAL STATEMENTS
Noteholders are notified of the following with regards to the delay in releasing TCTA’s Annual Financial
Statements (AFS) for the year ended 31 March 2019.
TCTA’s SENS Announcement of 30 August 2019 (titled: Delay In Completion of TCTA’s 2018/19 Audit
and Annual Financial Statements) has reference.
UPDATE
Since the previous communication on the matter there have been numerous engagements between TCTA,
the Department of Water and Sanitation (DWS), the Auditor-General of South Africa (AGSA), Lesotho
Highlands Water Commission (LHWC), and Lesotho Highlands Development Authority (LHDA).
While there are still some outstanding issues to resolve, substantial progress has been made with regards
to the main points of disagreement. As such, TCTA believes that it stands a realistic chance of meeting its
revised targets for the issuing of the AFS:
• 23 October 2019 – consideration of the AFS by the Board’s Audit and Risk Committee,
• 30 October 2019 - adoption of the AFS by the Board, and
• Publication shortly thereafter
CONSEQUENCES OF THE DELAY:
MISSED AFS REPORTING DEADLINES
Requirement Deadline Status Consequences of Non-Compliance
s55(1)(d) PFMA submission 31 Aug 2019 TCTA has Internal
to Minister/DWS and National communicated &
Treasury continues to engage
s65(1)(a) PFMA Minister to 30 Sep 2019 with DWS and Minister must table written explanation to
table AFS to National National Treasury on the National Assembly setting out the
Assembly the matter. reason for failure s65(2)(a) PFMA.
AGSA may issue a special report
s65(2)(b) PFMA.
Various Loan Agreement End Jul to end TCTA has engaged Varies from no consequences to being a
Sept 2019 with the lenders. potential event of default.
To date, TCTA has missed reporting deadlines to the Department of Water and Sanitation and National
Treasury (31 August), by the Minister of Human Settlements, Water and Sanitation, to parliament (30
September) and to various lenders under various borrowing agreements (end of July to end of September).
These stakeholders have all been engaged as to the nature of the problem and there have, as yet, been
no negative consequences for TCTA.
PENDING AFS REPORTING DEADLINES
Consequences of Non-
Requirement Deadline Status
Compliance
s90(b) FMA Regulated Person 31 Aug 2019 Extension granted Administrative penalty levied in terms
must submit AFS to FSCA to 31 Oct of s167 FSRA.
s7.4 DLR: make AFS publicly 31 Oct 2019 - s7.7(b) DLR JSE will publish SENS
available & publish JSE SENS after deadline informing investors of
announcement potential suspension of listing.
S7.7(c) DLR if AFS are still
outstanding after end of Nov 2019,
JSE will suspend listing.
s7.8 DLR grants JSE discretion as to
the application of 7.7(b) and (c)
above.
Pending deadlines for submission are the FSCA (extended from 31 August) deadline and the JSE deadline
for the release of the AFS by 31 October 2019.
The potential consequences for missing these are:
• an administrative fine from the FSCA, and
• potential suspension of TCTA’s listing by the JSE should the AFS continue to be unreleased at the
end of November 2019.
TCTA will engage the FSCA and JSE with regards to the unavoidable nature of the delay as well as its
bona fides in terms of attempting to find a speedy resolution to this matter to convince them to exercise
their discretion in terms of s90 of the Financial Markets Act no. 19 of 2012, s167 of the Financial Sector
Regulation Act no. 9 of 2017 and s7.8 of the JSE Debt Listing Requirements with regards to the penalties
for non-submission.
TCTA will update Noteholders promptly when there are further developments regarding the matter.
For further information please contact
Nyiko Mageza, TCTA Sponsor +27 12 683 1334
02 October 2019
(Chairperson) Mr GT Dumas; (Deputy Chairperson) Ms MJ Ramataboe; Mr S Roopa, Mr SN Khondlo, Mr NT Baloyi, Ms LN Dlamini, Ms MM Maponya, Mr GNJ White
(Chief Executive Officer) Mr DKP Sechemane; (Company Secretary) Adv W De Witt
Page 2 of 2
Date: 02/10/2019 09:10:00
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