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March 2016
News
T
revor Glaum has been ap-
pointed as the interimbusiness
rescue practitioner in terms of
the Companies Act. He will have full
management control of both com-
panies.
The Housing Impact Fund South
Africa (HIFSA) is aware that in order
for business rescue to succeed, the
operations of the company and RBA
Developments must continue during
business rescue proceedings and that
this will probably require an injection
of working capital.
The fund is willing to make avail-
able (within reason and subject to
appropriate authorisation) such
funding as will be necessary during
the process as post-commencement
finance.
The trustees stated in support of
the application: the trustees are ‘af-
fected persons’ as defined in section
128 of the Act by virtue of the fact that
the HIFSA is both a shareholder and a
creditor of the company;
The company is financially dis-
tressed in that it is experiencing a
cash flow crisis. As a result it is highly
unlikely that the company will be able
to pay all of its debts as they become
due and payable within the immedi-
ately ensuing six months.
In addition, it is likely that the com-
pany will become insolvent within the
next sixmonths as its assets will be se-
verely impaired and will be exceeded
by its liabilities.
There is a reasonable prospect for
rescuing the company if the affairs,
RBA -
business
rescue
Residential developer, RBA
Developments and RBA Holdings
shareholders theHousing Impact
Fund South Africa Trust (the
trustees) applied to the High
Court of South Africa, Gauteng
Local Division for an order
placing the company under
supervision and commencing
business rescue proceedings.
business, property, debt and other
liabilities and equity of the company
are restructured or, alternatively, that
placing the company in business res-
cuewill result in a better return for the
creditors or shareholders than would
result from the immediate liquidation
of the company.
It is just and equitable for financial
reasons that the High Court grant an
order placing the company under su-
pervision and commencing business
rescue proceedings.
Shareholders are advised that the
company’s shares remain suspended
on the JSE and caution is required to
be exercisedwhen dealing in the com-
pany’s securities. The business rescue
practitioner will issue monthly prog-
ress reports as required by the JSE.
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Gauteng's open tender system
T
he Gauteng Provincial Govern-
ment is committed to ensuring
openness and transparency
with regards to tender processes and
will be rolling out the open tender
system to all its departments.
Gauteng Premier David Makhu-
ra said in his State of the Province
Address, “We are now extending this
transparent system of appointing
service providers to all departments,
especially those with big budgets.”
The open tender pilot project
was launched in November 2014 to
promote the transparency of the
procurement process to award bids
through fair competition while ensur-
ing compliance with supply chain
management rules and regulations.
Makhura said that theapproachhas
attracted considerable public atten-
tion andwidespread review, including
by the National Treasury and other
provinces.
“We truly believe we can use pro-
curement policy to achieve genuine
black economic empowerment in all
sectors without bribery and corrup-
tion.” Makhura added that Gauteng
was striving to become a corruption
free province. Approximately 19 of the
province’s departments and agencies,
including the Office of the Premier,
achieved clean audits in the 2014/15
financial year. Only one department,
the Department of Health, and one
agency, G-Fleet, achieved unsatisfac-
tory audit outcomes.
The province has committed to
changing the leadership of G-Fleet
for repeatedly obtaining negative
audit outcomes – from adverse to a
disclaimer in two consecutive years.
“Similar action will be taken where
departments and agencies show se-
rial poor performance. There shall be
consequences for poor performance
and unethical conduct. We mean
business.”
Most of the province’s departments
spent 99% of their infrastructure
budgets, which the Premier said, was
commendable given the history of
underspending on infrastructure.
The province will also deal with
departments who do not pay service
providers on time. According to data,
10 out of 14 departments achieved
90% compliance with the payment
of service providers within 30 days.
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