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South African Revenue Service (SARS) Commissioner Edward Kieswetter has welcomed an order issued to Tiar Construction for its sole member to cooperate with the liquidators in the administration of the company’s estate.

The application was instituted by the co-liquidators of Tiar Construction as a last resort to secure the cooperation of the sole member, Mr L Marimuthu, of the insolvent entity.

“This was to compel Marimuthu to cooperate with the co-liquidators in the execution of, and to secure compliance with, legal obligations in the winding up of the estate.

“The issues before the court included the failure of Mr Marimuthu, to disclose the existence of all Tiar Construction’s assets, providing the co-liquidators with all documents and assets relating to the entity, and handing over all documents and assets of the entity,” SARS said on Monday.

During last week’s hearing, legal representatives for Mr Marimuthu applied for the postponement of the matter.

This application for the postponement was refused by the court because it was not satisfied that the application was in good faith and that the litigants could not be allowed to evade processes of court.

“The main application was, however, heard and an order handed down by the court ordering the sole member to deliver a statement of affairs of Tiar Construction as well as to hand over all documents and assets in his possession relating to Tiar Construction and/or confirm the whereabouts of those not in his possession,” the revenue service said.

SARS has acknowledged that in trying economic times the frequency of taxpayers’ facing insolvency rises.

In this regard, the liquidators play a pivotal role during the process of winding up the business of companies and in the recovery all assets, as well as protecting the rights of creditors in the estate – including SARS.

“SARS will resist any efforts by any taxpayer to wilfully engage in a strategy to evade compliance with their obligations in liquidation proceedings and frustrate court processes.

“This is done to the detriment of creditors in the insolvent estate. In many instances, the fiscus is the main victim. SARS will continue to act without hesitation against non-compliant taxpayers and calls on those who act obstructively to stymie the pursuit of liquidation and sequestration to desist,” Kieswetter said.

The Commissioner reiterated that SARS would not tolerate it when taxpayers act maliciously through the abuse of court processes and employ dilatory tactics to deprive SARS what is due and payable to the fiscus.

“I urge all insolvency practitioners to continue to execute their duties fearlessly and determinedly.  These efforts are fundamental to creditors’ abilities to recover debts due to them,” he said.

SARS said it will always work in the manner that supports the growth of the economy, creating jobs, while fighting poverty and inequality.

“Where, for whatever reason businesses do not perform optimally and they are not viable, every role player in the process is duty bound to act ethically and professionally, without fear, favour or prejudice,” SARS said. – SAnews.gov.za

 

The Energy Regulator says it agrees with the draft ministerial determination to procure 1 000MW of new generation capacity from the Cross-Border Procurement agreement.

“New generation capacity must be procured or purchased to contribute towards energy security and accordingly, up to 1 000 megawatts (MW) should be procured from the Southern African Development Community (SADC) region from a range of technologies/sources,” the National Energy Regulator of South Africa (NERSA) said on Friday.

The energy regulator explained that this programme is implemented in order to close the widening energy gap, as articulated in the Integrated Resource Plan for Electricity 2019 – 2030 (published by Government Notice No. 1360 of 18 October 2019 in Government Gazette No. 42784) ('the IRP 2019'), and as is currently being experienced in South Africa.

“The energy regulator said the energy capacity shall be procured from a range of energy producers from the region.

“The range of energy producers from the region will either be utilities from the host countries or independent power producers that are legally operating within the host countries,” NERSA said.

The energy capacity shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of electricity through one or more processes that are fair, equitable, transparent, and cost-effective, and  the form of which shall be determined by Eskom; and the conclusion of Power Purchase Agreements (PPAs) in respect of the electricity, for which the duration will be agreed upon between Eskom and the energy producers from the region.

“The electricity procured or bought shall target the South African Grid as soon as reasonably possible, considering all relevant factors, including prevailing energy security risks and the time required for efficient procurement,” Nersa said.

In addition, the Energy Regulator concurred with the draft ministerial determination for the procurement of 2 000MW of new generation capacity from the Load Shedding Reduction Programme.

As part of the programme, up to 2 000MW should be generated from a range of energy technologies/sources in accordance with the short-term risk mitigation capacity allocated under the heading 'Other', for the years 2025 to 2028 of the Integrated Resource Plan for Electricity 2019 – 2030 (published by Government Notice 1360 of 18 October 2019 in Government Gazette No. 42784) ('IRP 2019').

The programme requires that the new generation capacity is established from energy generated from independent power producers.

The electricity produced from the new generation capacity ('the electricity') shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of the electricity through one or more processes that are fair, equitable, transparent, and cost-effective; the form of which shall be determined by Eskom, and the conclusion of power purchase agreements (PPAs) in respect of the electricity, which PPAs shall be aligned with short-term power purchase agreements.

“The electricity procured or bought shall target connection to the Grid as soon as reasonably possible, taking into account all relevant factors, including prevailing energy security risks and the time required for efficient procurement,” the energy regulator said.

The Energy Regulator also concurred with the draft ministerial determination for the procurement of 800MW of New Generation Capacity from the Emergency Procurement Programme as follows:

• New generation capacity must be procured or purchased to contribute towards energy security. Accordingly, up to 800 megawatts (MW) should be procured from a range of energy technologies/sources in accordance with the Emergency Generation Procurement Programme allocated under the heading 'Other', for the years 2029 to 2030, in Table 5 of the Integrated Resource Plan for Electricity 2019 – 2030 (published as Government Notice No. 1360 of 18 October 2019 in Government Gazette No. 42784) ('the IRP 2019').
• The new generation capacity shall be procured from a variety of local generators, including independent power producers (IPPs).

The electricity shall be procured by Eskom Holdings SOC Ltd and shall entail: the procurement of the electricity through one or more processes that are fair, equitable, transparent, and cost-effective, and the form of which shall be determined by Eskom; and the conclusion of power purchase agreements (PPAs) in respect of the electricity, which PPAs shall be aligned to the short-term power purchase agreements; and

The electricity procured or bought shall target connection to the Grid as soon as reasonably possible, considering all relevant factors, including prevailing energy security risks and the time required for efficient procurement

The Energy Regulator noted the approved draft Reasons for Decision on the concurrence with the section 34 ministerial determinations for the procurement of 3 000MW of Combined Cycle Gas Turbine (CCGT) and 1 000MW Standard Offer Programme (SOP) by Eskom.

The detailed Decisions and Reasons for Decision documents regarding the above decisions will be available on the NERSA website at www.nersa.org.za in due course. - SAnews.gov.za