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    Group
  (R’million) 2020 2019
30 Guarantees and contingent liabilities    
  Guarantees (unutilised) 20,1 21,0
 

Company

Guarantees exist against the company for the obligations of certain subsidiaries amounting to R3,5 million at 30 September 2020 (2019: R4,1 million).

Contingent liabilities

1.

The class action against the company arising from the outbreak of listeriosis was certified by the High Court on 3 December 2018. Summons was issued on 16 April 2019. A plea was filed by the company on 8 August 2019.

In June 2020, the Gauteng Division of the High Court ruled in favour of Tiger Brands, compelling third parties to provide epidemiological information required for the Class Action lawsuit. All the third parties who applied for leave to appeal against the High Court order were granted leave to appeal to the Supreme Court of Appeal (SCA) on 15 September 2020. It is expected that the SCA will hear the appeal during 2021. Only one third party did not apply for leave to appeal.

The company has been dealing with ongoing demands from the plaintiffs’ legal representative to provide documentation around the food safety systems at the Polokwane factory. This remains the subject of ongoing pre-trial proceedings in respect of which the company’s legal defence team has engaged and continues to engage with the plaintiffs’ attorney as part of the discovery process.

As previously confirmed, the company has product liability insurance cover appropriate for a group of its scale. Coverage is subject to the terms and limits of the policy. The company’s insurers have advised that the product liability policy does not include cover for exemplary or punitive damages should such an award be made by the court and in addition, should an award be made for constitutional damages, the product liability policy will not cover that portion of the award which relates to exemplary or punitive damages not compensatory in nature. The company reserves its rights in this regard.

2. Tiger Brands Limited’s Cameroon-based subsidiary, Chococam, is involved in a tax dispute with the Cameroon Revenue Authorities with regards to an income tax assessment issued to the amount of R28 million. The company objected to the assessment and the matter had been referred to the Administration Court in Cameroon for a hearing. No provision was made for this amount as management is of the view that there is no basis for the Revenue Authorities issuing this assessment.