(a)The Annual Financial Statements of SFF Association do not only reflect R2.1 Billion for the sale of strategic fuel stocks, but they reflect the total proceeds of $280 million. The funds were accounted as follows:
Income Statement:
Balance Sheet
Included in the Cash and cash equivalents and Other Financial Assets of R6.4 Billion, is R3.9 Billion ($280 million) pertaining to the sale of strategic fuel stocks. The rand value will be determined when the dollars are converted into rands. Currently the rand amount will fluctuates depending on the exchange rate that is used on the day that financial statements are prepared. Further to reflecting the cash in the balance sheet, SFF has also raised a liability to Equalisation fund. The liability is triggered by section 3A (c) of the Central Energy Fund Act.
(b) As clarified above the money is accounted for and it is part of the $280 million that is banked in a Customer Foreign Account (CFC) with one of South Africa’s major banks to preserve its dollar denomination.
(c) If and when the proceeds are paid into the Equalisation Fund, the CEF Act requires that Minister of Energy with the concurrence of the Minister of Finance to determine those amounts that are not required to execute the CEF Group mandate as defined in the CEF Act should be transferred into the National Revenue Fund.