Public Finance Management Act, 1999 (Act No. 1 of 1999)

Notices

Borrowing Powers of Public Entities Listed under Schedule 3 Part A of the Act

Notice No. 1593 of 2021
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Notice No. 1593

10 December 2021

GG 45623

 

National Treasury

 

I, ENOCH GODOGWANA, MINISTER OF FINANCE, acting in terms of Section 66(3)(b) of the Public Finance Management Act, 1999 (Act No 1 of 1999), hereby authorise the accounting authority of the Council for Scientific and Industrial Research (the CSIR) to issue guarantee instruments as follows:

 

CSIR: AUTHORISATION TO ISSUE GUARANTEE INSTRUMENTS

FINANCIAL YEAR

BANK GUARANTEE

Ending 31 March 2022

R922 million

Ending 31 March 2023

R1.088 million

Ending 31 March 2024

R1.144 million

 

The proposed annual limits represent the maximum exposure that the CSIR may have in relation to the guarantee instruments on the last day of each financial year. For as long as the CSIR has issued guarantee instruments, it will need to adhere to these requirements i.e. the limits on its issued guarantee instruments. The authorisation to issue guarantee instruments is set to expire on 31 March 2024 and a new authorisation and related limits may be considered prior to or upon expiry

 

The CSIR is required adhere to the following conditions during the abovementioned period:

(a) The CSIR must maintain cash balances and/or liquid assets worth R1.4 billion at any point in time whilst the authorisation is in effect;
(b) The CSIR must submit quarterly reports to its executive authority and the National Treasury on the guarantee instruments issued, the counterparties, the purpose of the guarantee and detailed information on the progress and implementation of the projects for which the guarantee instruments have been issued; and
(c) The CSIR is to report to its executive authority and the National Treasury any disputes or contraventions with any of its contracts with project owners of which an authorised guarantee is attached.

 

Failure to comply with any of the mentioned conditions will result in the revocation of the entity’s authorisation to issue additional guarantee instruments.

 

 

Enoch Godongwana

Minister of Finance

Date: 03/12/2021