THUBELISHA HOMES CLOSURE REPORT

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

• Thubelishas 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

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Closure Task Teams

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

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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)

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Human Resources Task Team
Province Number of Staff VSPs Boarded/ Died/Resig HDA Province Certain Balance
Head Office 30 13 1 1 15
Gauteng 20 8 12
Eastern Cape 1 1
Zanemvula 13 1 12 0
Western Cape 10 2 8 0
N2 Gateway 23 1 22 0
Northern Cape 5 2 1 2 0
North West 10 2 1 5 2
Limpopo 4 4
Kwazulu Natal 8 1 1 6
Total 124 30 3 44 7 40
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Human Resources Task Team (cont)

• 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

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Human Resources Task Team (cont)

• 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

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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

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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

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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

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• Thank you