TRANS-CALEDON TUNNEL AUTHORITY (TCTA) - TCTA Further Clarification - Update on Delay in Submission of TCTA's 2019/20 Annual Report and Release of AFS

TCTA Further Clarification - Update on Delay in Submission of TCTA's 2019/20 Annual Report and Release of AFS

                                                                                                                        | Website: www.tcta.co.za

 Trans-Caledon Tunnel Authority (TCTA)

 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.
         
 FURTHER CLARIFICATION – UPDATE ON DELAY IN SUBMISSION OF TCTA’S 2019/20 ANNUAL REPORT AND THE RELEASE OF THE 
 ANNUAL FINANCIAL STATEMENTS

 Noteholders are notified of the following with regards to TCTA’s SENS announcement of 30 October
 2020 relating to the delay in the submission of TCTA’s 2019/20 Annual Report and Annual Financial
 Statements (AFS) for the year ended 31 March 2020.

  1. CLARIFICATION

  In terms of s6.15 of the revised Debt Listing Requirements, effective from September 2020, a state-owned
  entity must submit its audited annual financial statements to the JSE within seven months after the end of
  the financial year, i.e. 31 October 2020 in the case of a financial year ending on 31 March. Due to the
  nationwide lockdown, the FSCA granted an extension of two months, resulting in TCTA being required to
  submit its AFS by 31 December 2020.

  After the submission of the SENS announcement on 30 October, TCTA was granted a further extension
  by the FSCA to 29 January 2021.

  The revised deadline dates and sections are reflected in the table below:

                                                                             Consequences of Non-
   Requirement                      Deadline            Status
                                                                             Compliance

   s90(b) FMA Regulated            30 October          Extension             Administrative penalty levied in
   Person must submit AFS to       2020                granted to 29         terms of s167 FSRA.
   FSCA                                                January 2021
   s6.15 DLR: make AFS             31 December         31 December           s6.18(b) DLR JSE will publish
   publicly available & publish     2020               2020                  SENS after deadline informing
   JSE SENS announcement                                                     investors of potential suspension
                                                                             of listing.
                                                                             s6.18(c) DLR if AFS are still
                                                                             outstanding after 29 Jan 2021,
                                                                             JSE will suspend listing.
                                                                             S6.18 (d) DLR The suspension of
                                                                             the listing will be lifted after the
                                                                             JSE receives the AFS




2. UPDATE ON DELAY IN SUBMISSION OF TCTA’S 2019/20 ANNUAL REPORT AND THE
   RELEASE OF THE ANNUAL FINANCIAL STATEMENTS

  The closing of the border prevented the auditors of the Lesotho Highlands Development Authority from
  conducting work required by the Auditor General South Africa (“AGSA”) in relation to TCTA’s mandate
  on the Lesotho Highlands Water Project. With the reopening of the international border, the auditors of
  LHDA have fulfilled the AGSA’s requirements.


  In the course of finalising the audit, the AGSA raised a query related to royalty payments made to the
  Government of Lesotho by TCTA on behalf of the Government of South Africa, which matter required
  the Department of Water and Sanitation and the RSA Delegation to the Lesotho Highlands Water
  Commission, under whose responsibility the matter lies, to request the advice of legal and technical
  experts. To accommodate the required work, a request for a two week extension was submitted to the
  AGSA on 7 November 2020, which was granted to TCTA. TCTA expects the AGSA to conclude the
  audit and release the audit report to the TCTA Board on or before Friday, 4 December 2020.


  Section 65(1)(a) of the PFMA requires the executive authority to table in the National Assembly the
  annual report, financial statements and the audit report within one month after they have received it,
  after which it is public documentation. Considering that the National Assembly will go into recess after
  4 December 2020, the tabling of the annual report, financial statements and the audit report will take
  place after the opening of Parliament in February 2021.


  Given TCTA’s obligations in terms of various finance agreements and the JSE Debt Listing
  Requirements, the Board will consider the options available to publish earlier.


  TCTA will update Noteholders promptly as soon as further information becomes available.



  25 November 2020
  For further information please contact
  Darshana Jeeva, TCTA Sponsor +27 12 683 1311




                                           

Date: 25-11-2020 02:18:00
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