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Public Investment Corporation Act, 2004 (Act No. 23 of 2004)

12. Transitional provisions

 

 

(1)
(a) With effect from a date to be determined by the Minister by notice in the Gazette, the commissioners cease to exist as such and the term of office of each commissioner terminates.
(b) With effect from the date contemplated in paragraph (a), all of the assets, liabilities, rights and obligations of the commissioners are transferred to the corporation.
(c) The board must ensure that the necessary formalities to give effect to paragraph (b) are complied with.

 

(2) The value of the assets and liabilities referred to in subsection (1) must be determined by the Minister after consultation with the commissioners.

 

(3) If any doubt arises as to whether any assets, liabilities, rights or obligations for purposes of this Act pertain to or are connected with the commissioners, the department or anyone else, the Minister must make a determination in this regard.

 

(4) The corporation must be substituted for the commissioners as contracting party in respect of all contracts transferred to the corporation in terms of subsection (1), without such substitution bringing about novation of such contract.

 

(5) The corporation must, as consideration for the transfer of assets, liabilities, rights or obligations in terms of subsection (1), issue to the State fully paid up shares in the corporation to a value determined by the Minister, after consultation with the corporation, and such value must be regarded as being reasonable consideration for such transfer.

 

(6) No duty, charge, levy or any other tax is payable in respect of the transfer contemplated in subsection (1) and the issue of shares to the State in terms of this Act.

 

(7) All persons who were in the employ of the department immediately before the date contemplated in subsection (1) and who rendered their services exclusively for and on behalf of the commissioners are regarded as having been transferred to the corporation with effect from such date, without any interruption of their service, on terms and benefits not less favourable than those enjoyed by them immediately prior to their transfer.

 

(8) Despite the Government Employees Pension Law, 1996 (Proclamation No. 21 of 1996), or any other law, all persons referred to in subsection (7) remain members of the Government Employees Pension Fund referred to in section 2 of the Government Employees Pension Law, 1996.

 

(9) For purposes of the Income Tax Act, 1962 (Act No. 58 of 1962), or any other law in terms of which a tax or levy may be imposed—
(a) it is regarded that expenses incurred by the corporation in acquiring the assets transferred to it in terms of subsection (1), including the costs of the assets, are equal to the value determined in terms of subsection (2);
(b) the assets contemplated in subsection (1) are, for purposes of sections 11(e) and 12C of the Income Tax Act, regarded as having been brought into use for the first time at a cost equal to the value determined in terms of subsection (2); and
(c) it is regarded that no change of employer took place in respect of an employee referred to in subsection (7).

 

(10) Any legal proceedings that were pending or could have been instituted by or against the commissioners prior to the establishment of the corporation may be continued or instituted by or against the corporation, subject to any law governing prescription of debt.

 

(11) Despite the repeal of the Public Investment Commissioners Act by section 18, anything done in terms of that Act which may be done under or in terms of this Act continues to be valid and of full force and effect.