Former States Posts and Telecommunications Reorganisation Act

1. In this Act, unless the context otherwise indicates- (i) "companies" means the postal company and the telecommunications 5 company; (iii) (li) "department" means the department of posts and telecommunications of a former state; (ii) (iii) "fixed establishment" means the posts created for the normal and regular requirements of a department which are filled on a fixed basis on the date 10 immediately before the transfer date; (xvi) (iv) " former state" means the former Republic of Transkei, Bo.P.huthatswana, Venda or Ciskei; (xvii) r' (v) " interrupted membership" means C\llTent membership of a pension fund where benefits were paid to the member cpncemed before the transfer date; 15 (v) .• • . (vi) "Minister" means the Minister responsible for the administration of posts and telecommunications; (iv) (vii) "operating Joss" means e{<~ess of operating expenditure over operating income and for that purpose capital gain shall be left out of account; (i) (viii) "pension fund" means any pension fund, retirement fund, superannuation 20 fund or provident fund of a department; (vii) (ix) "postal ~ompany:• means the South African Post Office Limited; (viii) (x). "postal enterprise" means all the assets, liabilities, rights and obligations, including any claim to copyright, trade marks and patentable inventions, of a · 2'5 .fomier state which relate to or are used in connection with the 'conduct of the postal service of such former state, as determined by the Minister; (ix) (xi) " Postbank" means the Post Office Savings Bank established by section 52 of · the Post Office Act; (x) · ·•. . (xii) " Post Office Act" means the Post Office Act, 1958 (Act No. 44 of 1958); (xii) 30 (xiii) "post office savings banks" means the post office savings banks of the former states; (xi) 4 No: 17053 Act No. 5; 1996 GOVERNMENT GAZETI.E, 22 MARCH 1996 :FORMER STATES POSTS AND TELECOMMUNICATIONS , R.EORGANlSATrON ACf. 1996 (xiv) "State" means the department of 'State concemed;'(xiiiY.• · · ' . t (~~) •• "t~le~c;>mmU?ications company" means Telko~. SA Limjted; (xiv) (xv1) "telecommunications enterpris~" means all toe assets, liabilities, rights and obligations, including any claim to copyright, trade marks and patentable inventions, of a former state which relate to or are used in connection with the conduct of the telecommunications service of such former state, as deter- mjned by the Minister; (xv) . (xvii) "transfer date" means the date determined by the Minister in terms of section 2. (vi) Transfer date 5 lO

2. The Minister shall by notice in the Gazette determine the date on which the departments shall be integrated with the. companies, as the case may be. Transfer of postal and telecommunications enterprises of former states • • # • • • • 0 ·~ • • 0 0 • • ; •t• •• : 3. (l) On the transfer dat~' .• (ar the po~tal enterprises shall t>e' tra~sferred to the po~tal company, from wruch 15 J 1· 1· ·• ·. •. ·· • •' • • : • (b) date the postal company shall, subject to 'any other A.ct of ParJjament, have the exclusive p6wer to conduct the postal sefvice in the territorieS' of the'foimer states; the telecomrminications enterprises shall be transferred to the telecommuni cations company, from which date the telecommunications company shall, 20 subject to any other Act of Parliament, have the exclusive power to conduct the telecommunications service in the territories of the former states. (2) (a) The values of the postal enterprises and the telecommunications enterprises to be transferred to the companies in terms of subsection (1) shall be determined by the Minister after consultation with the company concerned and with the concurrence of the 25 Minister of Finance. I · · · (b) For the purposes of the lncome Tax Act, 1962 (Act No. 58 of 1962), or any other law io terms of which a tax or levy may be imposed, it shall be deemed that valuable consideration was actually paid by the company concerned in acquiring the enterprises transferred to it in terms of subsection (1) and that, notwithstanding any other law, such 30 considerati,on equals the corre~ponding values determined in t~rms of paragraph (a). (3) (a) State land of which a department had the exclusive use immediately before the transfer date shall, as the companies elect with the concurrence of the Minister, on the transfer date pass to the postal company or the telecommunications company, as the case may be, and shall be deemed to have been sold on that date in terms of the State Land 35 Disposa.l Act, 1961 (Act No. 48 of 1961), to the company concerned at an agreed value. (b) Notwithstanrung·section 5 of the State Land Disposal Act, 1961 ~·and section 18 of the Deeds Registries ACt, 1937 (Act No. 47 of 1937), a registrar as defined in section 102 of the Deeds Registries Act. 1937. shall, on'submjssion to him or her of a certificate by the Miriister of Public Works that State land has paSsed in terms of paragraph (a), make 40 such entries and endorsements as he or she may deem necessary free of charge in or on any relevant register. title deed or other document in his or her office or laid before him or her, in order to register the transfer in the name of the company concerned. (c) If a particular portion of State land was used jointly by' .the postal and the telecominunlcations diyisions of a dei>artment immediately before the transfer date and 45 the companies agree· io divide the piece of land between them after that date without the payment of compensation by one party to the other or without giving anything in exchange therefor, the subdi_vision of the land concerned shall be exempt from the payment of tra'nsfer dutf, stamp duty, taxeS, levies or other fees'if, upon the registration of the subdivision, a certificate signed by the secretafies of both companies is submitted 50 in which it is certified than 'an agreement as·contemplated in .this 'paragraph has been C0flCIUded ~1 • I I ' (4) (a) 'Any servitUde, other real right or lease existing imm~iatety' before the transfer 1( • • r • ,tl • • ! 6 No. 17053 Act No. 5, 1996 GOVERNMENT OAZEITE, 22 MARCH 1996 FORMER STATES POSTS AND TELECOMMUNICATIONS REORGANISATION ACT, 1996 date in favour of the State or a department and which was exercised in favour of a department shall on the transfer date pass to the postal company or the telecommuni cations company, as the case may be. {b) The registrar referred to in subsection (3){bJ shall, on submission to him or her of a certificate by the Minister of Public Works that a servitude, other real right or lease has 5 passed in terms of paragraph (a) or that a servitude exists over State land which has passed in terms of subsection (3)( a), free of charge make such entries and endorsements as he or she may deem necessary in or on any relevant register, title deed or other document in his or her office or laid before him or her, in order to- (i) register the passing of the servitude, other real right or lease to the company 10 concerned in terms of paragraph (a); or (ii) confirm the existence of the servitude in favour of any other person, over the State land which bas so passed. · (5) (a) Subject to paragraph (b), either company shall have the right to use immovable property passing to it in terms of this Act for the purposes for which the department used 15 the property concerned immediately before the transfer date or for which it was intended to be used before that date. (b) If land referred to in paragraph (a) of a company has not been zoned, or bas in terms of an applicable township or development scheme, guide plan or statutory provision been zoned or intended for purposes other than those for which it is to be used 20 on or after the transfer date, the company concerned shall as soon as practicable conclude an agreement with'the local authority responsible for the zoning or re-zoning of land in the area concerned in relation to the zoning or re-zoning of the land concerned for a purpose which is in accordance with the intended use thereof on or after the transfer date: Provided that if such agreement- 25 (i) is concluded, it shall be reduced to writing and the local authority concerned · shall, if necessary, amend its township or development scheme or guide plan accordingly, free of charge; or · (ii) cannot be concluded, the matter shall be referred to the Premier of the province concerned, who may grant permission for or approval of the zoning 30 or re-zoning of the 'land concerned on such conditions as he or she may deem necessary. (c) The local authority- (i) with wltich an agreement ~as been concluded in terms of paragraph (b); or (ii) within whose area of jurisdiction the land concerned is situated, in the case 35 where the Premier of the province concerned has granted permission for or approval of the zoning or re-zoning thereof, shall record, free of charge in respect of the land concerned, the appropriate zoning, after which such zoning shall for all purposes be deemed to be the zoning of such land. (6) In any pendi!Jg litigation, including arbitration, to which a department is a party 40 immediately before me transfer date, the Minister shall be substituted as a party in the place of the department concerned. · . II , (7) Eit11er company may apply for the registration of any registrable right relating to intellectual property or inventions, including the registration as patents of patentable inventions, transferred from a department to it in terms of this section. · · (8) The Registrar of TradeMarks shall make such entries, no.tes aod endorsements as he or she may deem necessary 'in or on any relevant register, certificate or other document in ltis or her office or submitted to him or her so as to effect the transfer of trade marks to the postal company or the telecommunications compll{ly, as the case may be, in terms of this section, and may request the company concerned to submit or 50 produce to him or her such information or document as he or she may deem necessary for such purpose. · 45 (9) lf, for the purposes of this Act, the question arises whether anything penains to or is connected with the postal enterprise or the telecommunications enterprise, it shall be determined by the Minister. (10) No stamp duty, transfer duty or any other tax or levy shall be payable in respect of the transfer ~fa postal enterprise or a telecommunications enterprise in terms of this section. 55 8 No. 17053 Act No. 5,·1996 . · . · .• ' FORMER STATES POSTS AND TELECOMMUNICATIONS • REORGAN1SATJON ACT, 1996 GOVERNMENT GAZETIE. 22 MARCH 1996 Transfer of staff. · I 4. 0') (a) Any person on the fixw establishment of a department shaH, without interruption in service; on !be 1ransfer date become an employee .of the company concerned in a post determined'by the Minister. . , .: (b) The conditions of employment prevailing in either company in relatioQ to the post concerned shall·be applicable to any such employee as from the 1ransfer date: Piovided that such employee shall not receive a less favourable salary than the salary he or she received immediately before the transfer date. (2) If, for the purposes of subsection (1)- 5 (a) the question arises whether any person performs functions pertaining to the 10 postal service or the telecommunications service; or it shall be determined by the· Minister. (b) any question arises in connection withrthe determination of a posl, • ' . (3) For the purposes of the Income Tax· Act.,. 1962 (Act No. 58 of l 962), it shall be deemed that no change of employer took. place in respect of ail employee referred to in 15 subsection (I). ,. . . . 11 . .. · (4) When any person becomes an employee of either company in terms of subsection (1)- •· I, (a) he or she shall ~tain all vacation leave which accrued to his or her credit with · ·· .• the department concerned up to the date immediately before the transfer date, 20 adjusted .in accordance with•the conditions of employment of the company concerned; ..... (b) . any pending enquiry or.any other action instituted or intended to be instituted in·respecl of alleged misconduct committed by such a person before the 1ransfer date, shall be disposed of or instituted by the company concerned, and 25 that company shall take the appropriate steps against the person concerned in accordance with the laws, p(>licy and conditions of service applicable ro him or her immediately before the transfer date; , . (c) be or she shall cease to be a member of any pension fund of which he or she was a member on the dare immedia,tely before the transfer date, and shaiJ have 30 no claim against the fund concerned after payment by that fund of the amount referred to in paragraph (f); · (d) and if he or she was a member of a pension fund immediately before the transfer date, the approprjate dispensation referred to in paragraph (e) shall apply to him or her, as the case may be, as from the transfer date; 35 (e) and if he or she- (i) bas interrupted membership, it shall be deemed that pensionable service has begun accruing to .him or her as from the date of resumed contribution to a pension fund; 1 1. · ~ · .~ , ····: • ·(ii) has been a member of a pension fund without interrupted membership 40 since before 1 October 199 I, he or she shal! be a member of the pension or retirement .fund of. the company t of.. which he or she becomes· an employee in a category of memberShip for•which he or she wou1d have qualified on lhat date·according to lbe .. rules of the furid concerned; (iii) becomes an employee of the telecommunications company, he or she 45 may .elect to become a member of the Telkom Retirement Fund; (iv) became a member of a pension fund on or after I· October 1991, but before 1 July 1995, and he or 'she becomes an employee of the telecommunications .company. he or · she may elect to become a C-member of the Telkom Pension Fund, as defined in the rules of that 50 fund, or a member of the Telkom Retirement Fund; (v) became a member of a pension fund on or after 1 July 1995·and he or she- (aa) becomes an employee of the telecommunications company; or (bb) being a person referred to in subparagraph (iii) or (iv) fails to 55 exercise the option referred to therein before the ttansfer date, he or she shall be a member of the Telkom Retirement Fund; (vi) has been a member .of a pension fund without interrupted membership sinee I October 1991 or after that date and he or she becomes an employee of the postal company, he or she shall be a C-member of the 60 Post Office Pension Fund as defined in t11e rules of that fund; the pension fund referred to in paragraph (c) shaH pay to the fund (i) (f) 10 No. 17053 Act No.5, 1996 GOVERNMENT GAZETTE, 22 MARCH 1996 FORMER STATES POSTS AND TELECOMMUNICATIONS REORGANISATION ACT, 1996 (iii) (ii) concerned referred to in paragraph (e) an amount equal to the.actuarial liability of the fonner fund in respect of the member as determined by the actuary of that fund, multiplied by the funding level; the actuarial basis on which the liability of the pension fund referred to in paragraph (c) is calculated, shall be agreed upon by the fund's actuary 5 and the actuary of the fund referred to in pa.ra'graph (e), as the case may be; the funding level of the pension fund referred to in paragraph (c) shall be the market value of the assets of the fund expressed as a percentage of the total actuarial liability of the fund as determined by the most recenr 10 actuarial valuation of the fund and ~gre~d to by the funds referred to in paragraph (e); the total amount involved referred to in subparagraph (i) shall be · guaranteed by the State; the State shall pay to the funds referred to in paragraph (e) an amount equal to 15 the actuarial liability of the pension fu.nd referred to in paragraph (c), calculated as set out in paragraph lj), less any amounts paid by the pension fund in terms of paragraph (f); the amounts' referred to in paragraphs (f) and (g) shall be payable as at the transfer date, and interest thereon calculated at the bank rate as determined 20 from time to time in terms of section 1 0(2) of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), shall be added to those amounts for the period from the transfer date to the date of actual payment thereof. (iv) (g) (h) Regulation of finances before transfer date . . 5. (1) All income generated from the 'p;ovisi~n of postal and teldommunications 25 ser\tices and all expenditure inci.ured for the provision of such services in the fonner states before the transfer date shall accrue to the State or be borne by the State, as the case may be. , · · . (2) All current assets ana liabilities, deposits in savings and current accounts, as well as debit cash or bank balances generated by the departments before the tr~nsfer date 30 shall accrue to the State or be borne' by the State, as the case may be. (3) (a) All investments and all credits, including accrueo interest reflected in tbe accounts of the post office savings banks shall be transferred to Postbank. (b) Ttie State guarantees that upon such transfer the value of the assets so transferred will be equal to or more than the value of any liabilities in respect of those investments 35 or accounts, and any shortfall shall fonn a debit against the Nation!ll Revenue Fund. (c) All savings _and other acCounts transferred to Postbank in ~~rfhs of paragraph (a) shall be subject to the rules and regulations that apply to the existing accounts in . Postbank. · ( 4) (a) The departments shall rend~t final statements of telecommunications accounts 40 using the current billing systems to its customers before the transfer date. (b) All income derived from those accounts shall accrue to tlie State. (c) Any loss incurred as a result of non-payment of those accounts, shall be borne by the State. ' (d) The telecommul:lications company shall, for a period of 12 months. continue to 45 render such final statements of accounts on behalf of the State, using the billing systems referred to in parag'raph (a) after wbicti 'period the unpaid a.ccounts shaH be handed over to the State Attorney. (5) (a) On the transfer date all identifiable deposits shall be paid over by the departments to the respective companies. 50 (b) The companies shall administer those deposits in accordance with their own procedures. (6) (a) All financing liabilities, including long and short term loans, incurred by the departments shall be borne by the State. (b) Goods bought and services requested in tenns of agreements identified to and 55 ratified by the companies before the transfer date, but delivered or rendered after the transfer date, shall be for the accounts of the companies. 12 No. 17053 Act No. 5, 1996 GOVERNMENT GAZETIE, 22 MARCH 1996 FORMER STATES POSTS AND TELECOMMUNICATIONS · REORGANISATION ACT, 1996 Regulation of finances after .transfer date 6. (1) Any operating loss incurred by either company ·due to the integration of the departments contemplated in this Act shall be reimbursed by the State for a period of 48 months as from the transfer date. (2) (a) The books of account of the companies shall on the transfer date be balanced, 5 audited and balances left 'open for adjustments that may occur. (b) Any extraordinary costs so incurred shall be borne by the Stilte: (3) All irregularities that occurred in a department before the transfer date in respect of parity!adjustments, level placings, promotions, over statements, corruption and theft shall be corrected. by the company concerned· at the expense of the State. (4) The State shall reimburse the postal company for all transactions in respect of which money was received by a department before the transfer date and which bas to be paid out by the postal company or in terms of which the postal company must render a service after the transfer date and in respect of which no or insufficient money was paid over to the postal company by the department. (5) (a) For a period of 12 months after the transfer date the companies•shall render financial services in respect of all unreconciled balances as on the transfer date. (b) At the ·termination of the 12 months' period aU UJ?paid accounts shall be referred to the_ State Attorne)'. · Repeal. and amendment of laws •' . . ~ . . ' :,. .. ., ·· ... ' ' ,• .. . l'· ,.,. ~ ' .. • 7. (l)'The laws referred to in Part I of the Schedule are,bereb5' repealed to the extent 1 0 15 20 indicated in column 3 of that Part. (2) The laws referred to in Part TI of the Schedule are hereby amended to the extent ' ' indicated in column 3 of that Part. Act binding on State . ·

8. This Act shall bind the State. , : :: Transitional provision ., '· ' I 25

9. All current Jjcences issued in terms of a law on radio or postal matters by any department shall; as from the transfer date; for the remainder of tl"\e,Jicence period be deemed to have been issued in terms· of the Radio Act, 1952 (Act No. 3 .of 1952); or the 30 Post Office Act, as the case may be. ·I • J • •• Short"title . 10. This Act shall be called the Former· Sta~es Posts· and Telecommunications Reorganisation Act, 1996. 1• " ·, 14 No. 17053 Act No. S, 1996 GOVERNMENT GAZETTE.'22 MARCH 1996 FORMER STATES POSTS AND TELECOMMUNICATIONS REORGANISATION ACT. 1996 SCHEDULE (Section 7) Part I No. and yea r of law Short titlt Extt nl of repeal Act No. 3 of 1952 Radio Act, 1952 (Transkei) Act No. 3 of 1952 RadioAct, 1952 (Bophuthatswana) Act No. 3 of 1952 Radio Act, 1952 (Ciskei) Act No. 44 of 1958 Post Office Act, 1958 (Bophuthatswann) - Act No. 44 of 1958 Post Office Act. 1958 (Ciskei) Act No. 6 of 1980 Act No. 15 of 1984 Act No 19 of 1986 Post Office Act. 1980 (Transkea) Radio Act. 1984 (Venda) Post Office Act. 1986 (Venda) Part II The whole. m so far as 11 applies in tbe fonner Republic of Transkei The whole. m so far as it applies in the fonner Republic of Bophuthatswana · The whole, in so far as it applies in the former Republic of Ciskei The whole, in so far as it applies in the fonner Republic of Bophuthatswana The whole. m so far as it applies in the fonner Republtc of Ciskei The whole The whole The whole No. and year of law Short title Extent of amtndmen t Act No. 3 of 1952 Radio Act, 1952 Act No. 44 o_f 1958 Post Office Act, 1958 The following section is hereby subsututcd for secuon 19A of the Radio Act, 1952: " AppllcatJon of Act l9A. Thas Act shall B[![!l~ throushout the Re[!ublic.". The following section Is hereby insencd in the Post Office Act after section II Sbis.: "Application of Act

116. This Act shall 3[![!1~ throuRhout the ReJ>Ublic." • ..