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HSRC Annual Report 2016/17
Case 2
A case brought forward by Gobble Trading against the HSRC where in October 2015 Gobble Trading issued summons in
the amount of R105,400.00 in respect of unpaid handyman services rendered to the HSRC at the Durban office. Currently
the attorneys are exchanging pleadings and the matter will be enrolled for trial.
Case 3
The former Executive Director of Management Support launched a new application in the North Gauteng High Court
against the HSRC breach of contract committed by HSRC. Relief is sought for payment in the sum of R4,994,769.99,
being the contract balance calculated from date of dismissal (27 February 2015) to date of termination of contract,
(31 December 2018). Interest on the aforesaid amount at 15.5% per annum calculated from 27 February 2015 to date
of payment. Currently the attorneys are exchanging pleadings and the matter will be enrolled for trial.
Estimated legal costs to defend these cases amount to R683,000.00
24. Events after the reporting date
No reportable events after reporting date.
25. Related parties
The HSRC is a schedule 3A National Public Entity in terms of the Public Finance Management Act (Act No.1 of 1999 as
amended) and therefore falls within the national sphere of government. As a consequence the HSRC has a significant
number of related parties being entities that fall within the national sphere of government. Such transactions are for
the research that the HSRC performs from time to time. All transactions are concluded on an arm’s length basis, and the
HSRC is normally appointed having responded to requests for tenders. There are no restrictions in the HSRC’s capacity
to transact with any entity. The HSRC reports to the Department of Science and Technology (DST). Amounts disclosed,
below, as related parties, relate to the parent department, DST and entities within the DST.