4. NON-FINANCIAL INSTRUMENTS
4.5 Provisions
 

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are not recognised for future operating expenses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

The increase in the provision due to the passage of time is recognised as an interest expense.

Provision 
relating 
to the 
closure of 
WiConnect 
R’000
 
  Other 
provisions 
R’000 
  Total 
R’000 
 
Opening balance —  24 947  24 947 
Additions 28 291    —    28 291   
Used during the year —    —    —   
Reversed —    (200)   (200)  
Reclassified to discontinued operations —    (4 737)   (4 737)  
Reclassified to trade and other payables —    (18 767)   (18 767)  
Closing carrying amount 28 291    1 243    29 534   
Provision relating to the closure of WiConnect

The restructuring provision is as a result of the ceasing of operations in WiConnect. The provision mainly comprises retrenchment costs, onerous contracts and other sundry costs resulting from closure. Refer to note 11 for further information.

The Group is not involved in any significant litigation at year-end.