Scopa chair calls for urgent action to address fiscal leakage in South Africa
Scopa chairperson Songezo Zibi says the work of releasing funds that are stuck in inefficiencies, incompetence, and poor planning should begin so that those funds can go towards investing in things that will fix the economy.
Image: Timothy Bernard / Independent Newspapers
The Standing Committee on Public Accounts chairperson, Songezo Zibi, said on Thursday there was a need to fix a whole lot of problems to get to a point where fiscal leakage was stopped and public finances began flowing to the right things.
'We have to do the work of releasing funds that are stuck in inefficiencies, incompetence, and poor planning so that those funds can go towards investing in things that will fix the economy,' Zibi said.
He made the statement during the post-Budget briefing by chairpersons of finance cluster committees when they were asked about pressure they could make on the relevant portfolio committee and those involved regarding the review of fuel price structure.
This is after the Finance Minister Enoch Godongwana proposed the increase of fuel levy, which is believed will hit the poor and inevitably lead to an increase in transport costs.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
In his response, Zibi noted that there were serious reductions made in the Budget that ranged from education, health, and infrastructure, among others, compared to allocations made in the March Budget.
'The question about VAT, fundamentally, was about how much money we should allocate for those problems. Do you want to give the government more or less money? The view was that the government should get less money – that is the impact. The question, really, is not about the fuel levy, but how much less you want to give the government and which of the things we must continue to cut,' Zibi said.
He also said there must be short-term pain as part of resourcing the things the government must do.
'There must also be work on spending reviews,' said Zibi before noting that there was no accountability for those who waste public funds and that the government continued to overpay for goods and services.
Mmusi Maimane, chairperson of the Standing Committee on Appropriations, said the process of reviewing the fuel price must be paramount.
He also said his take on the Budget was that Godongwana was operating within a very constrained wiggle room, and the one cushion that could be relied on was that inflation was relatively low.
'I think we need to really review how we look at the fuel price, and therefore I will certainly raise the question with the Minister of Finance tomorrow,' Maimane said.
He emphasised the importance of strengthening the currency and benefiting from the weakening dollar.
'We have to ensure the trade balance is stronger, and therefore, I can't stress enough the importance of attracting foreign direct investment. Part of that is to have a stronger currency to ensure, actually, your currency is not weak, so that purchasing power on oil is lower and will help with fuel price,' Maimane said.
Joe Maswanganyi, Finance Committee chairperson, said citizens and the corporate sector have the responsibility to pay tax to fund public services.
Maswanganyi said there should be no promotion of a situation where the public and corporate do not want to pay taxes.
'There is no state that can function without revenue; otherwise, if you run a state on populace, at some stage, that state will collapse. Taxation enables the government to fund essential public goods,' he said.
However, Maswanganyi said they understood the implication of the fuel levy increase, but stated that it has been mitigated.
'The minister spoke about putting more money into transport, and in this regard, on the commuter rail system. It is highly subsided and is quite cheaper compared to other modes of transport in South Africa. The more you have commuter trains back on the railway lines, the more the poor, working class, and workers will use that mode of transport.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 hours ago
- IOL News
Civil society at G20 gathering: 'No democratic society with huge unemployed population'
C20 South Africa chairperson Thulani Tshefuta highlighted the group's role, not as adversaries of the government but as crucial partners who advocate for those most vulnerable in society. Image: Itumeleng English/Independent Newspapers With just over 23 weeks left before South Africa gets to host the G20 Summit in November this year, more than 14 working groups from diverse civil society organisations gathered at The Capital on the Park in Sandton as part of the C20 South Africa Launch on Sunday. Chairperson Thulani Tshefuta highlighted the group's role not as adversaries of the government but as crucial partners who advocate for those most vulnerable in society and emphasised the need for advocacy work to align with South Africa's medium term development plan and the United Nations' agenda for 2030. His call for a mass-based, people-centred approach resonated throughout the launch, pointing to the urgent need for comprehensive consultations that address the issues faced by communities across the country. "We are not anti-government as we have been labeled as friends of government. When we have to respond to the plight of the poor, we are told this is expensive we can't afford that, but ours is to press on. "'m not about to pretend when we do our advocacy at community level. our work must align with the medium development plan and the agenda 2030. Our strategic approach should be truly mass-based, people centred and imbued with awareness of our advocacy issues. The challenge is that we must rise above our immediate challenge and look at strategic development instruments, we must be big and wide in our consultation," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The 14 working groups include Women and Gender Equity, People to people interaction and Solidarity, Poverty Alleviation and Food Sustainability, Democratic governance, Civic Space, Anti-Corruption and Access to Justice, Cultural Diversity Recognition and Embracement, Trade and Sustainable Development, Digital and Inclusive Economies, Sustainable and Resilient Communities and Disaster Risk Reduction. These working groups also include four themes that include youth empowerment, addressing issues affecting women, meaningful inclusion of persons with disabilities and ensuring that LGBTQI+ people are not left behind. Tshefuta said intentional actions are needed to reverse the tide of poverty and unemployment, adding that this cannot be done without active market policies. "There will be no democratic society with such a huge population which is unemployed and idle. Poverty is real. Poverty is alive. There are people we refer to as being vulnerable, but we say nothing anything about those who are fully marginalised. It is a struggle to keep them surviving in the marginst," he said.
IOL News
4 hours ago
- IOL News
EThekwini politics: Zandile Gumede sidelined as new task team emerges
Former eThekwini Mayor Zandile Gumede's political role in the ANC is uncertain after she was not included in the eThekwini task team list. Image: Doctor Ngcobo / Independent Newspapers The role of of Zandile Gumede, once a powerful ANC chairperson of eThekwini region and its former Mayor, appears to have hit a dead end in the region's politics following her exclusion from the soon-to-be announced new regional task team. In the leaked list, Gumede who is currently on trial for corruption involving the R320 million Durban Solid Waste tender scandal, has been left out of the regional task team and the additional members list, apparently ending her political role in the region's politics. Also excluded from the list is Gumede's once deputy chairperson Thembo Ntuli, who assumed the acting role in her absence. After she was arrested and charged for corruption, Gumede was subsequently removed from her mayoral position in 2018 and was also placed on the party's step aside policy, which effectively stripped her of her political powers. However, in 2022 she made a strong comeback when her faction elected her as regional chairperson, although she was absent from the conference because of the step aside rule. Topping the regional task team list as convener is Nigel Gumede who is making a strong political comeback in eThekwini politics. He was in charge of the Human Settlement Committee when James Nxumalo was the mayor of eThekwini and was in the faction that lost to Zandile Gumede in the 2022 elective conference. Nigel Gumede was in the faction that was viewed as being aligned to President Cyril Ramaphosa during the eThekwini elective conference and sources said his appointment will give the president direct control to one of the biggest and most influential regions in the country. Both Gumedes did not respond to requests for comment. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The ANC held a service delivery summit in Durban on Sunday and the provincial task team coordinator Mike Mabuyakhulu said the process to appoint a new regional task team had been completed but the party will publicly announce the names next week after formally informing branches. 'In line with the ANC protocols, we are not going to announce the names of the people that will lead our regions as task teams before informing our branches first. Next week we will begin that process and announce the names,' said Mabuyakhulu. Although all the regions' terms had already expired, the party had an option to retain the regional committees until the next elective conference, however, sources within the party said the decision to remove them was prompted by branch audit outcomes. Sources said the audit outcomes revealed that many branch executive committee members were sympathetic to the uMkhonto weSizwe Party (MKP), and the ANC felt it should disband regional committees as they appeared to have lost control of the branches. EThekwini, which is the only metro in the province and one of the largest regions in the country, with a voting population of close to two million, is the party's main strategic point. The region, which has been the party's stronghold for decades, fell to former president Jacob Zuma's MKP in last year's national general elections, relegating the ANC to third place in terms of electoral support. The region is expected to be a battleground between the ANC and the MKP ahead of next year's local government election. Despite the ANC's insistence that regional task teams are an opportunity for renewal, others view them as a strategic decision by Luthuli House to have direct control over branches in the province ahead of the party's elective conference in 2027. Sources said the changes will give party Secretary-General Fikile Mbalula an edge over other potential presidential candidates since he will have direct control of branches. Mbalula, Senzo Mchunu, and Kgosientsho Ramokgopa have been touted to replace Ramaphosa, who is serving his last term as ANC president.
IOL News
6 hours ago
- IOL News
US joins Iran-Israel conflict: Essential travel advisories for South Africans to note
Travellers queue at Cape Town International Airport. Image: David Ritchie/Independent Newspapers (File) The escalating conflict between Iran and Israel, which now includes the United States (US), which carried out attacks on three nuclear sites in Iran on Sunday, has resulted in a number of travel advisories and alerts that SA travellers should note. On Sunday, the US joined Israel's bombing campaign after days of speculation over whether they would be involvedin the conflict. In a televised address from the White House, after the strikes, US President Donald Trump said: "Iran's key nuclear enrichment facilities have been completely and totally obliterated. Iran, the bully of the Middle East, must now make peace." Previously, on 15 June, the Department of International Relations (Dirco) urged all South Africans in Iran to contact the Embassy in Tehran to ensure that they are registered with and that their whereabouts are known to the Embassy. 'It is important to note that South Africa's support in the country is limited and that it could be assumed that no face-to-face consular assistance will be possible in an emergency, and the South African Government may not be able to help you if you get into difficulty, depending on your location. 'Therefore, citizens are further encouraged to assess their own safety and security and act accordingly.' Following Israeli strikes on Iran in the early hours of 13 June, airspace in Iran, Iraq, Jordan, Syria, and Israel has been closed. According to Flightradar24, the closures affect approximately 3,000 flights per day through cancelled flights or re-routes. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ According to Flightradar24, the closures affect approximately 3,000 flights per day through cancelled flights or re-routes. Image: Flightradar24 Emirates and Qatar Airways are among the few airlines that have issued travel advisories for travellers and have had to suspend their flights. Emirates said on Saturday that due to the regional situation, they have temporarily suspended all flights to Iran (Tehran) and Iraq (Baghdad and Basra), until and including Monday, 30 June 2025. 'Customers connecting through Dubai with final destinations in Iraq and Iran will not be accepted for travel at their point of origin until further notice. Customers impacted by flight cancellations must contact their travel agency for rebooking. If booked directly with Emirates, please contact us.' They also urged travellers departing or arriving at Dubai International Airport to check their flight status on for the latest information. 'We apologise for any inconvenience caused to our customers. We continue to closely monitor developments. The safety of our passengers, employees and operations will always be our top priority.' The Iranian flag is pictured in front of Iran's Foreign Ministry building in Tehran November 23, 2009. Image: Morteza Nikoubazl/Reuters Qatar Airways said they have temporarily cancelled flights to Iran, Iraq and Syria. The affected airports in Iran include Imam Khomeini Airport (IKA), Mashhad Airport (MHD), and Shiraz Airport (SYZ). In Iraq, the affected airports are Baghdad Airport (BGW), Erbil Airport (EBL), Basra Airport (BSR), Sulaymaniyah Airport (ISU) and Najaf Airport (NJF). In Syria, the affected airport is Damascus International Airport (DAM). The United Kingdom's Foreign, Commonwealth & Development Office (FCDO) has advised against all travel to Iran. 'If you are a British national already in Iran, either resident or visitor, carefully consider your presence there and the risks you take by staying. British and British-Iranian dual nationals are at significant risk of arrest, questioning or detention. Having a British passport or connections to the UK can be reason enough for the Iranian authorities to detain you,' they said.
