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The Closure Steering Committee established the following Task Teams: Human Resources Projects Facilities & Assets Finance & Accounting Closure Task Teams
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THUBELISHA HOMES CLOSURE
REPORT
Presented to the Portfolio Committee on
8 July 2009
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
Background
The Closure Steering Committee established the following Task Teams:
• Human Resources
• Projects
• Facilities & Assets
• Finance & Accounting
Closure Task Teams
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)
Human Resources Task Team …
Human Resources Task Team …
Province Number of Staff
VSPs Boarded/Died/Resig
HDA ProvinceCertain
Balance
Head Office
30 13 1 1 15
Gauteng 20 8 12
EasternCape
1 1
Zanemvula
13 1 12 0
WesternCape
10 2 8 0
N2 Gateway
23 1 22 0
NorthernCape
5 2 1 2 0
North West
10 2 1 5 2
Limpopo 4 4
KwazuluNatal
8 1 1 6
Total 124 30 3 44 7 40
• 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
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
Human Resources Task Team … (con’t)
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
Facilities Task Team
• 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
Facilities Task Team ….(Cont)
Way Forward:
• Response from Thubelisha regarding status of projects in EC/WC/Mpumulanga/Limpopo
• Meetings planned as follows:Eastern Cape - 30 JuneLimpopo - 30 JuneWestern Cape - 8 JulyMpumulanga - 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
Project Task Team ….
• 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 yetWay 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
Finance & Accounting
Thank you