Gauteng govt to inject additional R138m to complete construction of Sebokeng DLTC
JOHANNESBURG - The Gauteng government is set to inject an additional R138 million to complete construction of the long-delayed Sebokeng Driver's License Testing Centre (DLTC) in the Vaal.
To date, more than R80 million has been spent on the project, yet the facility has remained non-operational a decade since construction began.
Despite having a contracted security company in place, the centre has been vandalised.
The first thing that catches the eye when glancing at the Sebokeng DLTC is the overgrown grass surrounding the vandalised double-storey building.
Inside, piles of rubble have remained untouched for years, and the air is thick with the smell of dust.
Although the initial projected cost was R63 million, more than R80 million has already been spent on the construction of the facility.
Gauteng Roads and Transport MEC Kedibone Diale-Tlabela said more money would still be needed to complete the construction.
"For the financial year 2025/2026, the budget allocation is R54.5 million and R84 million for the financial year 2026/2027."
The Development Bank of Southern Africa has now been appointed as the implementing agent.
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IOL News
20 hours ago
- IOL News
Mpumalanga man awarded R110,000 after wrongful arrest and police assault
After suffering police assault, unlawful arrest, and detention, the court has ordered the Police Ministry to pay R110,000 to the plaintiff. The matter was heard in the High Court of South Africa at the Mpumalanga Division in Mbombela. Image: File For his ordeal of being assaulted by police officers, wrongfully arrested, and then detained, a Mpumalanga man will be paid over R110,000 after a court issued the order this week at the High Court of South Africa at the Mpumalanga Division in Mbombela. The Police Ministry has been ordered to pay R80,000 in respect of the plaintiff's unlawful arrest and detention from January 28 to 30, 2023. The court further ordered that the Ministry pay R30,000 in respect of the plaintiff's unlawful assault by police officers. The court heard that the man was travelling in his car with his wife and daughter when he was stopped by a police vehicle and told to alight from the vehicle. Whereafter, he was forced to touch a gun that was in police possession and did not belong to the plaintiff. 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 judgment read: 'On 28 January 2023 at approximately 2pm at or near Newscom Trust, Mpumalanga, while he was travelling in his motor vehicle with his wife and daughter, the plaintiff was stopped by members of the SAPS from Kabokweni police station, on allegations that he had committed robbery and attempted murder. 'Only the plaintiff testified during the hearing of the matter. He testified that the police officers blocked his motor vehicle. He was forced to alight from his motor vehicle, pushed to the ground, and was assaulted several times on the face with open hands by four police officers. While on the ground, he was trampled upon with booted feet. The plaintiff was taken to the motor vehicle where a firearm had been placed by one of the police officers. He was instructed to touch the firearm with his hands, but he refused. The police officers continued to assault him with open hands for refusing to touch the firearm.' The police officers placed the plaintiff in a police vehicle and left the man's wife and 15-year-old daughter behind. Police drove with the plaintiff to his house, where he was instructed to produce a firearm. 'He informed the police officers that there was no firearm at his home. The police officers assaulted him once again. He was pushed to the ground and his hands were cuffed to the back together with his feet. His face was covered with a plastic bag. When the plastic bag was ultimately removed, water was poured into one of his ears, and he was slapped several times with an open hand on the ear. 'Thereafter, he was taken to the police cells at Pienaar police station. The following day, other police officers assaulted him while he was in the cells, alleging that he had broken into the house of one of the police officers and stolen a firearm. One of them kicked him on the back and stomach. His fingerprints were taken,' the judgment read.
The Citizen
2 days ago
- The Citizen
Sharemax rescue vehicle on the brink as creditors circle
The moment Nova enters liquidation, its entire debenture debt becomes due and payable. Nova's previous head office in Pretoria, also the former head office of Sharemax. Picture: Moneyweb One of Nova Property Group's service providers has filed liquidation applications against the holding companies of six of its shopping centres – a move that could have serious consequences for former Sharemax investors. If Nova, the entity responsible for repaying these investors (who became debenture holders in terms of the Sharemax rescue scheme), is placed under provisional or final liquidation, all outstanding debentures would become immediately due and payable. Liquidation would also allow for a comprehensive investigation into the events that led to the group's financial collapse and the conduct of its directors and other key stakeholders. Bright Light Solar (BLS), a company that installed solar systems at several Nova shopping centres, filed the liquidation applications last week. BLS claims Nova owes it more than R4 million in unpaid electricity bills and R80 million in penalties for contractual breaches. It further alleges that Nova acted in bad faith and has abused legal processes to delay payment. 'Given the respondent's clear inability to pay its debts and its repeated attempts to delay enforcement, liquidation is the only appropriate remedy,' BLS CEO Kevin Shames claims in court papers. 'The respondent has repeatedly employed procedural tactics to evade its obligations, and the court should not permit further obstruction.' ALSO READ: Nova breaches the Companies Act for the eighth straight year Solar disputes and unpaid claims According to court papers, BLS installed solar solutions at Nova's Waterglen, Carletonville, Tarentaal, Witbank, Village and Florida shopping centres. In terms of the agreements, Nova would buy electricity from BLS at favourable tariffs for 25 years. However, Shames claims that soon after the commencement of the agreements, Nova started to default on payments despite collecting payment from the shopping centres' tenants. By May 2024 Nova was more than R4 million in arrears for all centres. Shames claims that Nova and BLS later concluded a repayment agreement stipulating that Nova would settle its arrears by October last year. Kevin Shames, CEO of Bright Light Solar. Image: Bright Light Solar website However, Nova failed to make the payments and subsequently issued summonses against BLS for R4.3 million, claiming that BLS did not comply with an oral agreement concluded in October 2021 requiring BLS to install batteries at the centres. Nova also amended the summonses on several occasions. Shames vehemently denies that such oral agreement was ever concluded and claims the summonses were only aimed at delaying repayment. 'This was a coordinated and premeditated litigation strategy aimed at manufacturing a fictitious dispute where none existed in an attempt to obstruct the liquidation applications which had by that stage become inevitable,' he states. BLS subsequently cancelled the electricity supply agreements and warned Nova that it may initiate liquidation proceedings. However, Nova rushed to the court and obtained an urgent ex parte order interdicting BLS from initiating winding up proceedings. The court later set aside the interdict with a punitive cost order, and the judge criticised Nova for failing to provide full disclosure. Shames labels these actions as abusive and in bad faith. 'The abusive ex parte application [and] the mala fide proposed amendments to summonses demonstrate a pattern of conduct that was not initiated to pursue any genuine disputes but were instead a deliberate and bad faith attempt to obstruct legitimate winding-up proceedings.' ALSO READ: Irba surprisingly withdraws SCA application to appeal former Sharemax auditors' judgment Nova to defend Nova chair Connie Myburgh claimed in response to Moneyweb questions that BLS's applications are 'vexatious, opportunistic and without merit'. 'The applications are an abuse of legal process, launched merely for the sake of embarrassing and extorting the Nova Group, under circumstances where Bright Lite Solar [sic] is owed nothing by the said subsidiaries, and there are serious factual disputes between the subsidiaries and Bright Light Solar, as set out in summonses issued by the subsidiaries against Bright Light Solar, late last year.' Myburgh also stated that the Nova companies claim more than R80 million in damages from BLS. 'Notwithstanding the above disputes and damages claims, Bright Lite Solar [sic] deemed it appropriate to issue liquidation proceedings in a totally inappropriate manner, and merely as an extortive defence mechanism.' He also stated that the liquidation applications do not render debentures payable. (Read Myburgh's complete response here). ALSO READ: Irba expert witness questioned at Sharemax disciplinary hearing Debenture repayment obligations If the Nova companies are indeed placed into provisional or final liquidation, the debentures will become immediately payable. This is specified in the Nova Debenture Trust deed, which forms part of the Schemes of Arrangements (SoA) that tasked Nova with repaying former Sharemax investors. The original SoA required Nova to repay investors by 20 January 2022, but the group was not in a financial position to do so. The board claimed it had complete discretion to delay repayments – a position disputed by the Companies and Intellectual Property Commission (CIPC) and the group's auditors at the time. According to Nova's most recent set of annual financial statements (AFS) for the year to the end of February 2024, outstanding debentures amounted to R2.2 billion. ALSO READ: SA's most spectacular case of corporate capture Not the first liquidation application BLS is not the first company to initiate winding-up proceedings against Nova subsidiaries. In 2023, the Quatro Group – which provided security, cleaning, and related services to Nova shopping centres – applied to liquidate 12 Nova entities after the group failed to settle outstanding payments. Quatro later withdrew the applications following a settlement agreement with Nova. However, Nova has yet to honour the agreed repayment. The City of Mbombela cut the electricity supply to two shopping centres for non-payment of their municipal bills in 2023. The City of Mbombela cut the electricity supply to two of Nova's shopping centres in Nelspruit due to the non-payment of its municipal account. This photo shows a notice on the door of the Bazaruto restaurant in Courtside, which had to close its doors. Image: Lowvelder The most notable failure by Nova to pay its debts involves the bridging finance group Beneficio. This case also saw numerous legal challenges from Nova. The case dates back to the late 2010s when Nova borrowed money from Beneficio at an astronomical interest rate of 1% per week as commercial banks refused to lend money to Nova. Nova defaulted on repayments in 2020, prompting Beneficio to sue for about R60 million. However, as in the current BLS case, Nova counter-sued, claiming the interest rate was usurious. However, the High Court and the Supreme Court of Appeal have dismissed all of Nova's applications. Nova has now approached the Constitutional Court, which means the legal process has been dragged out for more than five years. ALSO READ: Liduidators sue Highveld Syndication BRP and Nova chair for R110m Nova's financial position It is perhaps not surprising that Nova is facing liquidation applications. Its most recent AFS revealed a factually insolvent company. The liabilities exceeded its assets by R90 million, while the short-term liabilities amounted to R323 million, which included R188 million due to creditors, R74 million to repay loans, and outstanding tax of R62 million. The company ended the year with accessible cash of R600 000 in its bank account. Nova chair Connie Myburgh (left) and Nova CEO Dominique Haese. Image: Moneyweb Nova's financial position has deteriorated significantly since 2022, when the CIPC forbade the company from selling more fixed assets. That came after Nova sold 19 of the 28 investment properties it was entrusted with (mostly shopping centres). According to Moneyweb's calculations, the total proceeds from these sales amounted to R636 million, of which only R176 million was returned to debenture holders. Since 2018 alone, Nova has generated R350 million from asset disposals – but has paid only R96 million to settle debentures. Nova ostensibly used the balance of around R460 million to fund operational expenses. ALSO READ: The dark underbelly of the business rescue industry Millions more for directors if Nova continues to trade The only winners in the Nova saga seem to be the executive directors. Myburgh and CEO Dominique Haese have collectively earned R100 million from the scheme's inception in 2012 to February last year, roughly R50 million each. Nova has always contended that its remuneration is market-related. Trustee response Jean-Pierre Tromp, the trustee of the Nova Debenture Trust who acts on behalf of debenture holders, said: 'As this is the second set of liquidation applications in two years, it echoes the concerns I raised with the CIPC as to whether the Nova Group is still a going concern.' He is also concerned that Nova may offer some of the property assets in the group as security as part of a settlement agreement, which would be to the detriment of debenture holders. Tromp added that the application wasn't surprising as Nova's latest AFS shows that debt levels have increased to a 'very worrisome level'. 'I have serious doubts as to whether the executive directors are managing the group of companies to the benefit of the debenture holders. I also question the role the independent directors are supposed to fulfil in an oversight function as per King IV [corporate governance code].' ALSO READ: NPA asks Hawks to reopen Sharemax investigation CIPC investigation into Nova's solvency has ground to a halt Nova's financial distress and failure to repay debenture holders led the CIPC to intervene in 2021, issuing directives for the company to prove it wasn't trading insolvently and later barring further asset sales. Nova appealed to the Companies Tribunal, where the matter remains unresolved. The CIPC broadened the scope of its investigation into Nova to include the role regulators, such as the South African Reserve Bank, played in the collapse of Sharemax and other failed property syndication schemes. This 'inter-regulatory' process has since stalled, and has consequently delayed action against Nova as its financial position worsens. Moneyweb queried the CIPC about Nova's 2024 financials before learning of Bright Light Solar's liquidation application. In response, Ndileka Cola of the CIPC stated that the 'Commission continues to monitor the financial performance and conduct of Nova PropGrow Group Holdings Ltd'. 'Enforcement action against the board is being actively considered based on the company's financial position, cash flows, and governance conduct.' Moneyweb asked the CIPC last week whether it was aware of the liquidation application, at which point Cola terminated communication. 'Subsequent to the response sent to you last week, please be informed that the CIPC will not be communicating on this matter until it has been concluded,' she wrote in a statement. ALSO READ: Jacques Pauw calls AfriForum 'outright stupid' on Modise, calls for Sharemax prosecution Harrison and White Concerns about Myburgh's involvement in the timing of liquidation proceedings have previously surfaced in other cases. During the 2010s, Myburgh served as a legal advisor to Harrison and White (H&W), a company placed in liquidation in 2017. A Section 417 inquiry into the events preceding the liquidation found that Myburgh had 'colluded with the company's directors and management' to delay an inevitable liquidation application by more than three-and-a-half years, giving time for the company's assets to be stripped. The Master of the High Court subsequently referred the Section 417 report to the National Prosecuting Authority to investigate possible fraudulent conduct by several individuals, including Myburgh. At the time, Myburgh denied wrongdoing and accused Moneyweb of unlawfully publishing the Section 417 report. This article was republished from Moneyweb. Read the original here.
Daily Maverick
2 days ago
- Daily Maverick
Promises, potholes and a R71bn budget — can Mayor Xaba Fix Durban?
eThekwini Mayor Cyril Xaba is trying to lead a turnaround, but the city faces spiralling debt and a billing crisis. eThekwini Mayor Cyril Xaba is talking it up, and who can blame him? The man at the helm of a city hobbled by corruption is putting his best foot forward, trying to build trust with citizens fed up with crooks. Last week, Xaba passed a R70.9-billion budget, and his recent speeches to council and business have been measured and optimistic. Xaba, constantly drilled by ratepayers, is basking in a bit of glory after Durban successfully pulled off a host of big sporting events, which saw the city spruce up and the metro police out in full force. But while the mayor's reassuring language is laden with mollifying words about National Treasury prescripts and the virtues of consequence management, he is in the spotlight. The city's public relations machine aims to signal competency and accountability, distancing Xaba from the ineptitude and looting that have come to characterise the municipality. The jury's out on how much difference Xaba has made since he was parachuted into the top job a year ago. His installation coincided with a provincial intervention in the city headed by former city manager Mike Sutcliffe and former presidential director-general Cassius Lubisi. A month before their arrival, President Cyril Ramaphosa established a working group in response to business concerns about city failures. And, a year before that, the city launched a turnaround strategy. So, while First Citizen Cyril is trying hard, ratepayers, business and opposition parties are concerned that the city is sliding deeper into debt. Not everyone likes Xaba's numbers, especially tariff increases. The average property rate increase is 5.9%; Electricity is up by 12.72%; Water is up by 13% for residents and 14% for businesses; Sanitation is up by 11%; and Solid waste is up by 9%. Daily Maverick sent the city a detailed list of questions relating to the budget, which it says the treasury department wants to answer fully. We will share this when it becomes available. In broad strokes, the budget allows R63-billion for operational expenses and R7.3-billion for capital projects. The big-ticket items include bulk purchases from uMngeni-uThukela Water (R5.7-billion) and Eskom (R18.7-billion). The city spends R15.2-billion on salaries for about 24,000 staff, R7.6 billion on contractors and R1-billion on interest for loans. Debt crisis The city's big issue is growing debt. Residents owe R35.5-billion, which the city puts down to the economic crunch, but critics say rates and services are too costly. Of the total debt, 40% is for unpaid water. Outstanding property rates and unpaid electricity account for 25% and 15%. Most of the debt (75%) is owed by households. Businesses owe 20% and state departments the balance. In December 2023, the debtor's book was at R28-billion. A year later, it was at R35.5-billion, which had risen to R38.6-billion by April. This means the city will need to borrow more or bill more for services. In a bid to staunch the losses, it is offering businesses and residents a chance to write off 50% of their debt if they settle before the end of June. The valuation roll has only 554,280 rated properties (481,000 residences, 17,000 businesses and 7,000 industrial). About 330,000 properties are valued at less than R350,000 and rates-exempt. Another 150,000 are worth more than R350,000, but are not rateable. Durban, with a population of about four million, has more informal settlements than any other city in the country (about 600 with 314,000 households). And, other metros in South Africa have more rate-paying households. Figures from the Centre for Affordable Housing Finance in Africa show about 824,000 residential properties on the deeds registry in Johannesburg and about 767,000 in Cape Town. In eThekwini, the Ingonyama Trust (land administered by the Zulu king) controls huge swathes of land where properties are not rated. Alan Beesley is an accountant, a former eThekwini councillor and ActionSA's finance spokesman. 'The only way for the city to fix its books is to spend less and offer a better service that will attract more ratepayers. At the moment, Durban has a shrinking ratepayer base subsidising a growing number of people not paying for services.' Business backlash Xaba has promised the city will bring in more money from rates and services, and that officials will waste less and work harder. 'Dashboards linked to service delivery targets' are among a host of measures to improve and cut annual water losses of R2-billion. 'We will bury potholes, sweep the streets, cut the verges and keep the lights on,' Xaba promised. Reaction to the budget has been testy. The Durban Chamber of Commerce and Industry is concerned with low confidence in the municipality's ability to spend on priorities. There was a 'continuous disconnect' between what happened on the ground in Durban and the 'grand plans' emerging from the Presidential Working Group. 'We need to see meaningful action with key timelines and tangible reforms that will accelerate service delivery and reverse the economic decline,' the chamber said. Water losses might be higher because many meters were 'dysfunctional or not working at all'. Tariff tensions The Ethekwini Ratepayers Protest Movement (ERPM) is tired of city hall promises. ERPM's Rose Cortes roasted the 'habit of reckless lending and spending', saying some parts of the municipality were 'delinquent'. The ERPM says city billing is a mess. 'For example, they didn't read the water meters for extended periods and some residents had underground leaks which they didn't know about. Then, when they actually read the meter, you are hit with a massive bill you can't pay. They won't give us stats on how many meter readers they have. The contractors are paid, but they don't read the meters, some for as long as 500 days.' Cortes says some houses valued at less than R350,000, which qualify for rates exemption, free water and discounted electricity, don't receive this benefit, but others that don't qualify do. The only way to stop blatant theft and crooked deals was line-by-line scrutiny of spending. Cortes said the city recently ran out of money to pay contracted plumbers and even the mayor expressed concerns about the poor workmanship by contractors. Also, city schemes to provide poor relief were dubious, Cortes said. 'Reports on indigent households are inaccurate and the process to register for indigent care is ineffective and stupid.' ERPM's chair Asad Gafar said 500,000 ratepayers effectively cross-subsidised eThekwini's four million-plus residents. 'Ratepayers wouldn't object to the cross-subsidy if the city improved the lives of the poor, but it doesn't. Instead, losses increased, like the water that bleeds into the ground through leaking pipes, or just flows 24/7 at standpipes, unmonitored. Or, the water is pumped into tankers by the mafias and then dumped so they can turn the truck around and fill it up and get paid for another trip.' Broken billing Democratic Alliance councillor Alicia Kissoon sits on the city's finance committee. She said the budget was 'polished on paper', but operationally detached. The real picture emerged in the adjustments budget, where money was 'constantly reallocated in a cycle of crisis management which is like robbing Peter to pay Paul'. R345-million for 100 new water tankers was a prime example of short-term thinking. 'Tankers do not fix leaking infrastructure. It masks a systemic failure to repair broken pipes.' Kissoon said it was unsustainable for so many residents not to pay for rates and services. The city was dealing with a 'dangerous culture of administrative neglect, contractor abuse and non-payment.' Inkatha Freedom Party councillor Jonathan Annipen voted for the budget because the city provided free services to poor residents. He praised the city's recent 'determined effort at transparency'. To 'avoid collapse', the city had to improve revenue collection, debt recovery and credit control. But, Annipen said, billing was bedevilled. 'Daily, we hear heart-wrenching stories where frail, elderly and disabled citizens have their services disconnected, and the city has no credible dispute mechanism. I intervened in the case of a pensioner who was suicidal because he was lumped with a R1.3-million monthly bill for water and electricity, but investigations revealed he was actually owed a credit. 'People wait three months for a water leak to be repaired. Water is flowing down the street by gallons and you call the contact centre, they tell you the fault has been closed.' DM
