w Note 29
Notes to the consolidated annual financial statements | Note 29

29. Related parties
 

The Group’s related parties are its parent, joint venture, associate, pension schemes (Note 26) and key management including directors (Note 29.3). Further details regarding the related party relationship with a non-executive director of the Group may be found in Note 17.1.4.8.
  Rm   2018   2017  
29.1 Balances with related parties          
  Accounts receivable          
     Vodafone Group Plc and subsidiaries    110    78   
      Other    9    42   
  Accounts payable           
      Vodafone Group Plc and subsidiaries    (1 039)   (1 031)  
     Other    (1)   (15)  
  The outstanding balances listed above are unsecured and will be settled in cash in the ordinary course of business. No guarantees or provision for doubtful debts have been recognised.           
  Borrowings           
     Vodafone Investments Luxembourg s.a.r.l (Note 18)   27 862    26 856   
29.2  Transactions with related parties           
  Vodafone Group Plc and subsidiaries 1    (12 272)   (11 222)  
     Revenue    180   

142 

  
     Direct expenses    (80)   (99)  
     Secondment fees    (7)   (20)  
     Other operating expenses    (1 501)   (1 222)  
     Finance costs    (2 325)   (2 334)  
     Dividends declared    (8 539)   (7 689)  
  Other    (43)   (38)  
     Revenue    5    13   
     Direct expenses    –    (1)  
     Other operating expenses    (48)   (50)  
  Transactions with entities in which related parties have an interest    (3)   (24)  
  Note:
1. An amount of R190 million (2017: R195 million) relating to procurement costs was capitalised during the current year.
29.3 Key management personnel and directors’ remuneration          
  Rm   2018   2017  
  Key management 1          
  Short-term employee benefits    –    (21)  
  Post-employment benefits    –    (1)  
  Other long-term employee benefits    –    (1)  
  Share-based payments    –    (2)  
  Key management’s remuneration payable by the Group 2    –    (25)  
  Short-term incentives over provided by the Group    –    (1)  
  Key management’s remuneration incurred by Vodafone Group Plc 3    –    (3)  
      –    (29)  
  Directors           
  Executive directors    (56)   (48)  
  Short-term employee benefits    (37)   (33)  
  Post-employment benefits 4    (1)   (1)  
  Share-based payments    (18)   (14)  
  Non-executive directors    (9)   (8)  
  Directors’ fees    (9)   (8)  
  Directors’ remuneration payable by the Group    (64)   (56)  
  Short-term incentives under provided by the Group    (2)   (3)  
  Directors’ remuneration incurred by Vodafone Group Plc 3    (10)   (9)  
      (76)   (68)  
  Notes:
1. Recent role and operational changes resulted in changes in the key management personnel of the Group.
2. Includes key management personnel paid by subsidiaries.
3. Includes long-term employee benefits for MS Aziz Joosub: R5 million (2017: R6 million); T Streichert: R5 million (2017: R3 million); V Mathur: RNil million (2017: R2 million).
4. Included in post-employment benefits is an amount of R0.6 million (2017: R0.7 million) relating to contributions to provident funds made annually from bonus allocations.
 

Included in the aggregate remuneration above are the following individual remuneration payable by the Group (further details can be found in the remuneration report):
  Rm   Directors’
fees		 Salary Retirement
contributions		 Other 1 Expense  
allowances 2		 Short-term  
incentives  
(STI) 3		 Remuneration
report		 Expensed
over term		 Long-term
incentives
and other		 Total  
  2018                        
  Executive directors                        
  MS Aziz Joosub   – 9 623 300 826 700 # 1 664 319 4 800 12 391 400 24 510 519 – 17 762 137 42 272 656  
  T Streichert 6   – 5 595 571 173 935  3 754 262 – 3 820 024 13 343 792 – – 13 343 792  
  Non-executive directors                        
  PJ Moleketi 5   2 069 960 – –  – – – 2 069 960 – – 2 069 960  
  DH Brown   939 666 – –  – – – 939 666 – – 939 666  
  V Badrinath *   713 333 – –  – – – 713 333 – – 713 333  
  M Joseph *   455 000 – –  – – – 455 000 – – 455 000  
  BP Mabelane   636 000 – –  – – – 636 000 – – 636 000  
  SJ Macozoma 5   614 078 – –  – – – 614 078 – – 614 078  
  TM Mokgosi-Mwantembe   818 333 – –  – – – 818 333 – – 818 333  
  MP Moyo 4   686 290 – –  – – – 686 290 – – 686 290  
  JWL Otty *   455 000 – –  – – – 455 000 – – 455 000  
  M Pieters *   430 000 – –  – – – 430 000 – – 430 000  
  RAW Schellekens *   808 333 – –  – – – 808 333 – – 808 333  
      8 625 993 15 218 871 1 000 635  5 418 581 4 800 16 211 424 46 480 304 – 17 762 137 64 242 441  
  Notes:
* Fees due to these directors were paid to Vodafone Group Plc, the company by which the director is employed. No other payments were made to third parties in lieu of directors’ fees.
# MS Aziz Joosub contributed an additional R556 500 to retirement funds from his short-term incentives.
1. Includes mainly assignment allowance, leave encashment and other benefits.
2. Includes mobile phone benefit and subsistence allowance.
3. STI payable in June 2018, for the year ended 31 March 2018.
4. Resignations: MP Moyo: 18 July 2017.
5. Appointments: PJ Moleketi: Appointed as chairman: 19 July 2017; SJ Macozoma: 19 July 2017.
6. Remuneration paid/payable to Vodafone Group Plc.
 

Included in the aggregate remuneration above are the following individual remuneration payable by the Group (further details can be found in the remuneration report):
  Rm Directors’
fees		 Salary Retirement
contributions		 Other1 Expense  
allowances2		 Short-term  
incentives  
(STI)3		 Remuneration
report		 Expensed
over term		 Long-term
incentives
and other		 Total  
  2017                      
  Executive directors                      
   MS Aziz Joosub  –  9 200 500  799 500# 493 867  4 800  10 860 000  21 358 667  –  14 290 569  35 649 236    
   T Streichert 6  –  5 506 821  186 044  3 262 685  4 800  3 672 756  12 633 106  –  –  12 633 106    
   Non-executive directors                                  
   MP Moyo  2 233 334  –  –  –  –  –  2 233 334  –  –  2 233 334    
   DH Brown  929 668  –  –  –  –  –  929 668  –  –  929 668    
   V Badrinath * 5  161 250  –  –  –  –  –  161 250  –  –  161 250    
   M Joseph *  405 000  –  –  –  –  –  405 000  –  –  405 000    
   BP Mabelane  625 000  –  –  –  –  –  625 000  –  –  625 000    
   TM Mokgosi-Mwantembe  811 667  –  –  –  –  –  811 667  –  –  811 667    
   PJ Moleketi  833 334  –  –  –  –  –  833 334  –  –  833 334    
   JWL Otty *  405 000  –  –  –  –  –  405 000  –  –  405 000    
   M Pieters *  380 000  –  –  –  –  –  380 000  –  –  380 000    
   RAW Schellekens *  751 668  –  –  –  –  –  751 668  –  –  751 668    
   S Timuray* 4  497 084  –  –  –  –  –  497 084  –  –  497 084    
      8 033 005  14 707 321  985 544  3 756 552  9 600  14 532 756  42 024 778  –  14 290 569  56 315 347    
   2017                                  
   Key management personnel (Prescribed officers)                                 
   V Jarana  –  4 126 785  373 215  –  4 800  3 592 485  8 097 285  –  2 616 817  10 714 102    
   NC Mabunda 5  –  1 998 268  218 399  2 190 000  2 400  1 538 810  5 947 877  (1 416 667) –  4 531 210    
   V Mathur 6  –  4 359 778  254 066  3 655 247  –  1 875 795  10 144 886  –  –  10 144 886    
      –  10 484 831  845 680  5 845 247  7 200  7 007 090  24 190 048  (1 416 667) 2 616 817  25 390 198    
  Notes:
* Fees due to these directors were paid to Vodafone Group Plc, the company by which the director is employed. No other payments were made to third parties in lieu of directors’ fees.
# MS Aziz Joosub contributed an additional R721 875 to retirement funds from his short-term incentives.
1. Includes relocation allowance, assignment allowance, acting allowance, employee gifts and exit benefits.
2. Includes mobile phone benefit and subsistence allowance.
3. STI payable in June 2017, for the year ended 31 March 2017.
4. Resignations: S Timuray: 8 December 2016.
5. Appointments: NC Mabunda: 1 September 2016; V Badrinath: 8 December 2016.
6. Remuneration paid/payable to Vodafone Group Plc.

Notes to the consolidated annual financial statements | Note 29