| 32 | Guarantees and contingent liabilities | |||||||||||||
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COMPANY Guarantees exist against the company for the obligations of certain subsidiaries amounting to R15,3 million at 30 September 2024 (2023: R15,3 million). A contingent asset is a possible asset that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Contingent assets are not recognised as assets, but disclosed. There were no contingent assets identified during the current year (2023: none). A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Alternatively, it may be a present obligation that arises from past events but is not recognised because an outflow of economic benefits to settle the obligation is not probable, or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognised as liabilities unless they are acquired as part of a business combination, but disclosed. |
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Contingent liabilities The class action against the company arising from the outbreak of listeriosis was certified by the High Court (Gauteng Local Division, Johannesburg) on 3 December 2018. Summons was issued against Tiger Brands on 16 April 2019. The company filed its plea on 8 August 2019, which was subsequently amended in May 2024 following amendments to the plaintiffs' particulars of claim effected in January 2024. Since the decision of the Supreme Court of Appeal (SCA) handed down on 4 February 2022, overturned the June 2020 decision of the High Court compelling various third parties, including the National Institute for Communicable Diseases (NICD), the South African Bureau of Standards, two accredited national laboratories and select meat producers, to provide epidemiological information required for the class action lawsuit, the parties have continued to attend to pre-trial preparations. These include discovery of documents and records relevant to the class action in terms of the Rules of Court, in order to get the matter ready for trial for the court to determine liability. A trial date will be allocated by the court once all these pre-trial preparations have been completed. As part of an overall endeavour to expedite resolution of the class action, in January 2023 the attorneys representing the company and its insurers (the "company's attorneys") and the plaintiffs' attorneys jointly approached the NICD for access to their records relevant to the listeriosis outbreak. These records are vital to a determination of liability. In January 2024, the NICD released the so-called FASTQ files to the plaintiffs' attorneys with some data but not all the data in the NICD's possession relating to their investigation of the listeriosis outbreak. The files were shared with the company's attorneys in February 2024 for review by their appointed experts. The experts' review of the data is at an advanced stage. The company's attorneys have engaged with the plaintiffs' attorneys with a view to agreeing on relief to qualifying individuals who have urgent medical needs, regardless of the fact that liability has not yet been determined. In addition, the legal representatives are engaging on measures to arrive at a speedier resolution of the class action overall. The company is committed to working diligently to bring the listeriosis class action to a close as quickly as possible. The company has product liability insurance cover appropriate for a group of its size. 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. Should such an award be made (or for constitutional damages), the product liability policy will not cover that portion of the award which relates to damages that are not compensatory in nature. The company has reserved its rights in this regard. |
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