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

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

Overview: TETA Mr Steve O’Brien Vice Chairman, TETA TETA was established in 2000 in terms of the Skills Development Act, Act 97 of The specialised services we provide are as follows: –Skills levy grant disbursements –Skills development –Education training quality assurance Our stakeholders include over 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 TETA was established in 2000 in terms of the Skills Development Act, Act 97 of The specialised services we provide are as follows: –Skills levy grant disbursements –Skills development –Education training quality assurance Our stakeholders include over 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 Labour

Overview: TETA Mr Steve O’Brien Vice Chairman, TETA TETA’S DELIVERY STRUCTURE EIGHT CHAMBERS: –Aerospace –Forwarding and Clearing –Freight Handling –Maritime –Rail –Road Freight –Road Passenger –Taxi. –ETQA –FINANCE –SKILSS DEVELOPMENT TETA’S DELIVERY STRUCTURE EIGHT CHAMBERS: –Aerospace –Forwarding and Clearing –Freight Handling –Maritime –Rail –Road Freight –Road Passenger –Taxi. –ETQA –FINANCE –SKILSS DEVELOPMENT Labour

Background to Fidentia Investment Mr 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 24 th of August 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 24 th of August

TETA Board Actions Mr 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 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

Overview: TETA’s Financial position: 2007/08 Opening balance – R (1 st Apr. ’07) Admin Income - R Levy Income - R (70%) –Admin Expenses - R –Mandatory Grants (06/07) - R –Discretionary Grants - R –SMME Grants - R –Projects - R –Mandatory Grants (07/08) - R Surplus (31 st March ‘08) – R Opening balance – R (1 st Apr. ’07) Admin Income - R Levy Income - R (70%) –Admin Expenses - R –Mandatory Grants (06/07) - R –Discretionary Grants - R –SMME Grants - R –Projects - R –Mandatory Grants (07/08) - R Surplus (31 st March ‘08) – R

EXISTING OBLIGATIONS Dr Johan de Beer With the loss of the Fidentia Investment, concern was expressed with regard to TETA’s 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 obligation’s 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 With the loss of the Fidentia Investment, concern was expressed with regard to TETA’s 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 obligation’s 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

Thank You