TETA Strategy Update June 06

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Presentation to
Parliamentary Committee Mr June Dube
Chairperson, TETA Board Mr Steve
OBrien Vice Chairperson, TETA Board
Dr Johan de Beer Acting CEO, TETA
Mr Dalpat Naran CFO, TETA

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Transport Education Training Authority (TETA)

• Board Members present
• Mr June Dube (Chairperson TETA)
• Mr Steve O Brien (Vice Chairperson)
• Mrs Gugu Mdlala
• Mr Garry Wilson
• Mr George Strauss

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Overview TETA Mr Steve OBrien Vice Chairman,
TETA

• TETA was established in 2000 in terms of the
  Skills Development Act, Act 97 of 1998. The
  specialised services we provide are as follows
• Skills levy grant disbursements
• Skills development
• Education training quality assurance
• Our stakeholders include over 13 000 registered
  levy-paying companies within the transport
  sector, training service providers, transport
  regulators
• The TETA Board members comprise of some 36
  stakeholders made up of industry and labour
  representatives

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Overview TETA Mr Steve OBrien Vice Chairman,
TETA

• TETAS DELIVERY STRUCTURE EIGHT CHAMBERS
• Aerospace
• Forwarding and Clearing
• Freight Handling
• Maritime
• Rail
• Road Freight
• Road Passenger
• Taxi .
• ETQA
• FINANCE
• SKILSS DEVELOPMENT

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Background to Fidentia InvestmentMr June Dube
(Chairman TETA Board)

• The capital amount invested in Fidentia Asset
  Management amounts to R 177 Million over a period
  
• Fidentia was placed under curator ship by the
  Cape High Court. The curators investigation is
  progressing well, however it is too early to
  determine the amount that TETA will recover.
  Indications are that it might be between 20c
  40c in the Rand. TETA is continuously in contact
  with the Curators. Meeting Scheduled for Friday
  24th of August

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TETA Board ActionsMr June Dube (Chairman TETA
Board)

• KPMG Forensic Audit
• The TETA Board appointed KPMG to conduct a
  forensic audit on the TETA investments.
• In the interest of good corporate governance,
  the Chief Executive Officer was suspended,
  pending the final audit report.
• Disciplinary charges were laid to the CEO.
  The case is still pending

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Overview TETAs Financial position 2007/08

• Opening balance R 137 029 323 (1st Apr. 07)
• Admin Income - R 30 448 837
• Levy Income - R 206 148 051 (70)
• Admin Expenses - R27 658 031
• Mandatory Grants (06/07) - R60 192 943
• Discretionary Grants - R77 263 428
• SMME Grants - R10 663 297
• Projects - R 3
  057 924
• Mandatory Grants (07/08) - R81 394 496
• Surplus (31st March 08) R 120 867 347

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EXISTING OBLIGATIONSDr Johan de Beer

• With the loss of the Fidentia Investment,
  concern was expressed with regard to TETAs
  ability to continue as a going concern and
  achieve the targets agreed to in the Service
  Level Agreement.
• We can confirm that TETA will honour all existing
  contractual obligations in line with targets set
  with the NSDS. This includes targets for 2007/08.
• Effective financial management cash flow
  management planning will ensure achievement of
  both targets and continuation as a going concern.
• Since Febr 07 TETA has honoured all its
  mandatory grant discretionary commitments as
  well as administrative expenses

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