29. COMMITMENTS AND CONTINGENCIES
  2020
R'm		 2019
R'm
Capital commitments
Capital expenditure approved for property, plant and equipment 2 608   2 532  
Funds to meet capital expenditure will be provided from Group resources.
Operating lease commitments
In the prior year, the Group was a lessee to various hospital and administration office properties as well as medical and office equipment under non-cancellable lease agreements. The leases had varying terms, escalation clauses and renewal rights.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
  Not later than 1 year –   218  
  Later than 1 year and not later than 5 years –   651  
  Later than 5 years –   424  
–   1 293  
 

From 1 October 2019, the Group has recognised right-of-use assets for these leases, except for short-term and low-value leases, see note 6 and Annexure A note 1.15 for further information.
 

The Group entered into a new lease agreement for its head office building which commences during November 2020 and is for an initial term of 10 years. The monthly rental is R1.5 million. The Group will recognise a right-of-use asset and related lease liability of approximately R232 million.
 

Contingencies

The Group stands as guarantor in respect of certain operating leases, instalment sale agreements and mortgage bonds concluded by subsidiaries and also pro rata in relation to the Group's interest in joint ventures.
 

The Group has issued various guarantees as security for leases and construction projects to the value of R25 million (2019: R123 million).
 

Certain subsidiary companies have issued letters of support to other fellow subsidiary companies, when required.
 

Disposal of Max Healthcare

As part of the conditions in the share purchase agreement (SPA) signed during the 2019 financial year, Life Healthcare indemnified the purchaser (Radiant Life Care Private Limited) from and against, any and all losses incurred or suffered by the purchaser in relation to claims set out in the SPA. The value of the contingent liability is limited to a maximum exposure of R206 million to Life Healthcare (excluding tax payable in respect of any indemnification payments). In the event, where tax is payable on the indemnification payment, the tax liability will be payable equally by Life Healthcare and the purchaser. The liability for Life Healthcare with respect to the payment of the specific indemnity tax shall be in addition to the liability of R206 million. The contingent liability is valid for a period of three years from the closing date (ie until 21 June 2022). No changes arose during the year ended 30 September 2020.