Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 48
In addition, the quantum of any ultimate
financial liability for Sasol Oil resulting from a possible
adverse finding against Sasol Oil in this matter cannot
be established at this time, this matter currently
represents a general contingent liability for the
company.
participation in an unprotected sit-in, threatening and
forcing others to participate in an unprotected strike and
for assaulting or attempting to assault others during an
unprotected strike. They were subsequently dismissed.
These employees are disputing their dismissal. On 19
September 2019, the Labour Court passed a judgement
directing inter alia Sasol Mining to re-instate the
employees and pay certain past benefits. Sasol Mining
filed an application for leave to appeal the judgement.
The appeal was heard on 24 March 2021. In view of the
above circumstances a provision in the amount of R88
million was accounted for at 30 June 2021. On 9
September 2021, the Labour Appeal Court ruled on the
matter upholding the appeal and setting aside the court
a quo’s ruling and replacing it with an order confirming
that the dismissal of the respondent employees were
substantively and procedurally fair.
We are currently engaged in a number of legal
and regulatory proceedings and arbitrations in various
jurisdictions, including the litigation relating to the
securities class action law suit described under “Item
3.D—Risk factors—We are subject to risks associated
with litigation and regulatory proceedings”.
Further, from time to time, communities and
non-governmental organisations challenge our
environmental licences and related applications because
of concerns regarding potential health and
environmental impacts associated with Sasol’s
activities.
Following certain complaints submitted to the
B-BBEE Commission by direct and indirect
shareholders in Tshwarisano LFB Investment (Pty) Ltd
relating to Tshwarisano’s 25% shareholding in Sasol
Oil, the B-BBEE Commission is investigating the
compliance by Sasol Oil and other affected
stakeholders with the B-BBEE Act. While certain of
these investigations are still ongoing, Sasol Oil has
received findings and recommendations from the BBBEE Commission in relation to a complaint by a
particular shareholder who complained about
unfavourable terms and conditions of a funding
arrangement concluded between the shareholder and its
funders in order to fund its acquisition of shares in
Tshwarisano. Sasol Oil was not a party to the funding
agreement. The shareholders in question alleged that
they did not derive any economic benefit from the said
funding arrangement. Sasol Oil has fully co-operated
with the B-BBEE Commission during all of the
ongoing investigations and will continue to do so.
On 5 February 2020, a securities class action
complaint was filed on behalf of US ADR owner Chad
Lindsey Moshell and other US ADR holders who
purchased Sasol securities. Sasol is defending the
matter which is fully described under “Item 3.D—Risk
factors”. The lead plaintiff has not specified the
quantum of any alleged damages. No provision has
been raised at 30 June 2021.
Competition law compliance
Sasol continuously evaluates its compliance
programmes and controls in general, including its
competition law compliance programme and controls.
As a consequence of these compliance programmes and
controls, including monitoring and review activities,
Sasol has adopted appropriate remedial and/or
mitigating steps, where necessary or advisable, lodged
leniency applications, and made, and will continue to
make, disclosures on material findings as and when
appropriate. These ongoing compliance activities have
already revealed, and may still reveal, competition law
contraventions or potential contraventions in respect of
which we have taken, or will take, appropriate remedial
and/or mitigating steps including lodging leniency
applications.
In terms of the provisions of the B-BBEE Act,
Sasol Oil has notified the B-BBEE Commission that it
does not agree with the findings and that Sasol Oil will
institute a legal review application in order for the High
Court to overturn the findings made by the B-BBEE
Commission. Sasol Oil instituted a legal review
application in the High Court for the B-BBEE
Commission’s findings to be reviewed and set aside.
The parties have exchanged the required pleadings in
the application and the matter will now be prepared for
hearing. Due to the nature of litigation matters, the
outcome of the matter cannot be predicted with
certainty.
Environmental orders
Sasol’s environmental obligation accrued at
30 June 2021 was R16 196 million compared to
R21 790 million at 30 June 2020. Due to uncertainties
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