Latest news with #R1bn
IOL News
5 days ago
- Business
- IOL News
We need serious action and leadership from government to push Transnet in the right direction
Stellenbosch University professor Jan Havenga has estimated that Transnet costs the economy R1bn every day thanks to its poor performance in moving goods around the country and out through our ports. Image: Supplied By Busisiwe Mavuso I was astounded to see news last week of Transnet's capitulation to union strike threats, agreeing to give workers 6% pay rises in each of the next three years. This agreement represents a failure of leadership on both sides – militant unions holding the country hostage with strike threats, and management caving to their demands without a fight. While South African businesses slash costs and workers face retrenchments, Transnet workers will get pay rises that are double the inflation rate, funded by taxpayers already struggling to make ends meet. Inflation is running at 2.7% and the economy is expected to only grow 1.4% this year. The news came days after National Treasury had agreed to give Transnet additional guarantees to enable it to manage its huge debt pile. In the private sector, the bleak economic outlook is leading to severe belt-tightening. Managers everywhere are having to find ways to save and try to hoard cash to be able to trade through tough conditions. Inevitably, some firms are going to fail, and workers will find themselves out of a job. Yet the unions threatened to bring the entire logistics network to a standstill unless their excessive demands were met, showing complete disregard for the economic factors that affect us all. It is even more shocking when you consider the role Transnet plays in perpetuating our economic predicament. Transnet's poor performance has been a major contributor to our dismal growth outlook. Stellenbosch University professor Jan Havenga has estimated that Transnet costs the economy R1bn every day thanks to its poor performance in moving goods around the country and out through our ports. That is equivalent to wiping out the entire annual budget of a midsize municipality every day. It equates to about 5% of GDP. The unions are acting as if we live in a world we haven't seen for 15 years, when growth was running at over 5% and government boasted a budget surplus. Instead, we live in a world where Goodyear Tyres has just let go of over 900 workers after having to shut its 78-year-old plant in the Eastern Cape, affecting thousands more jobs down the value chain. Where SAB is engaging with unions about retrenching workers across its operations. Where mines across the country are retrenching thousands because they cannot get their output to the markets. In many of these cases, union action at Transnet is a direct contributor to this job carnage. The failure here is twofold: unions' refusal to accept performance-linked pay, and management's refusal to insist on it. If workers were to get increases indexed to Transnet's performance, we could support these. Bonuses could be tied to improvements in volumes shipped through ports and on rails, or specific metrics like international port efficiency rankings, which currently put SA's ports among the worst in the world. Instead, the unions demanded guaranteed increases regardless of whether Transnet improves its service delivery. This represents a toxic dynamic where unions treat the state as an endless ATM. Private sector unions understand that companies must remain viable to protect jobs, but Transnet's unions can make unreasonable demands knowing that management cannot afford to have their suboptimal operations interrupted as this will put a further strain on the economy Worse still, they've secured additional job security guarantees in this wage agreement, further limiting Transnet's flexibility to restructure and improve performance. The unions know exactly what they're doing. They understand that by threatening strikes at Transnet, they can hold the entire economy hostage. They know that government will always cave rather than face the economic disruption of a logistics shutdown. This is economic blackmail, pure and simple, and taxpayers are footing the bill while the economy suffers. I've written many times about the solutions we need for Transnet, including private sector investment and competition. But as long as militant unions can veto any meaningful reform through strike threats, we'll remain trapped in this cycle of poor performance and endless bailouts. The unions have made it clear they prefer protecting their members' privileges over the economic well-being of the country. The wage settlement shows just how unhelpful these unions can become to South Africa's economic prospects. We need government to finally take a firmer stance. National Treasury must demand that any future bailouts come with strict conditions that break the unions' stranglehold over Transnet's operations. Treasury must insist on performance metrics as strict as those facing any private company seeking bailout funds, and the power to override union objections when restructuring is needed. Business wants to partner with Transnet, but the unions' actions are not helpful, and they do not support the economic recovery we're all trying to achieve. Until government finds a way of confronting union militancy at state-owned enterprises, taxpayers will continue subsidising this destructive cycle while our economy stagnates. The unions need to be called upon to contribute to solutions of rebuilding our economy rather than exacerbating its challenges. Busi Mavuso, the CEO of Business Leadership South Africa. Image: Supplied * Busisiwe Mavuso is the CEO of the Business Leadership South Africa. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
IOL News
5 days ago
- Business
- IOL News
Vukile Property Fund reports strong annual results and forecasts higher growth for 2026
Laurance Rapp is the CEO of Vukile Property Fund. Image: Supplied Vukile Property Fund, the specialist retail estate investment trust, has upgraded its guidance by 8% for 2026 as it produced a robust set of results for the financial year ended March 31 2025. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations per share and increased its dividend per share by 6%. Laurence Rapp, the CEO of Vukile Property Fund, said, 'We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile's strategy, expands its earnings base and positions the business for compounding future growth.' Vukile's, with total property assets now exceeding R50 billion, is evolving into a more international business with growing exposure to hard currency earnings emanating from blue-chip tenants and well diversifed across macro-economic drivers. Rapp explained the year had been transformative after Vukile exited its listed share exposure in Fairvest and sold remaining stake for R141 million and redeployed into accretive solar projects and exited Spain's Lar España thus generating a capital gain of €82 million (R1.7 billion),. Lar España sale proceeds together with proceeds from R1bn equity raise in February 2024 and a R1.5bn capital raise in September 2024, allowed Vukile to acquire three assets in Portugal for €176.5m. It acquired 50% of Alegro Sintra in Lisbon for €83.4m and also acquired the Bonaire shopping centre in Valencia, Spain for €305m. 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 ✕ This meant that Vukile has expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe's most resilient consumer economies. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal. In Spain and Portugal, portfolio occupancy stood at 98.4% with 95% of retail space let to international and national tenants. It saw like-for-like gross rental income growth of 5% and net operating income growth of 6.4%. Rapp said in South Africa, Vukile's robust operating platform "yet again delivered outstanding results". Valued at R16.7 billion, Vukile's defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remained exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. The total portfolio recorded trading density growth of 5.2% - with its township and rural portfolio outperforming at 6.7% - driven by Vukile's shopper-first approach, which continues to boost footfall and sales. The portfolio's cost-to-income ratio was 15.3% - its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains. In South Africa in April 2024 Vukile acquired 50% of Mall of Mthatha, previously known as BT Ngebs, for R400 million and invested a further R113 million to upgrade and refurbish the centre. Vukile said the Mall of Mthatha has delivered a "strong early performance", with the vacancy rate dropping from 16% when acquired to just 2%, adding that the highly accretive project is set for completion in September 2025. The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security. Meanwhile, looking at Vukile's solar PV rollout in South Africa, over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio's energy needs. Vukile said it has identified a further 10.6MWp of solar projects for 2026 and is finalising the agreements for two wheeling projects totalling 2MWp. The balance sheet remained sound with significant available cash balancesof R2.1 billion and undrawn debt facilities of R2.5 billion. BUSINESS REPORT Visit:
IOL News
10-06-2025
- Business
- IOL News
PPC sees earnings surge amid strategic shifts and market challenges
PPC Cement bags on conveyor at PPC De Hoek Western Cape. PPC CEO Matia Cardarelli said PPC has had to focus on internal corrections to grow its earnings and unlock under utilised value for the company. Image: Supplied Tawanda Karombo PPC CEO, Matias Cardarelli, said on Monday that the cement manufacturer has worked hard to control underperformance within the group, unlock internal revenue and putting in place measures to enhance efficiencies, helping the company to a full-year earnings surge. This comes as headline earnings per share in PPC for the year to end March 2025 grew from 19 cents a year ago to 40 cents. This was despite a decrease of 1.9% in revenues to R9.88 billion for the same period. Earnings before interest, tax, depreciation and amortisation surged 28% to R1.59bn with operational free cash flow increasing to R1bn, helping the company to grow ordinary dividends for the period to 17.6 cents compared to 13.7 cents per share in the previous comparative period. Cardarelli said PPC has had to focus on internal corrections to grow its earnings and unlock under utilised value for the company. He explained that the company had performed 'ahead' of what it was expecting for the period under review. 'When we came here at PPC, there was an a narrative that the only problems that PPC was having were the problems connected to the economy, and the cement sector in South Africa was not growing for more than 10 years. Whereas that was not completely the case, that was a negative impact for the company,' Cardarelli told Business Report in an interview on Monday. 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 PPC is building a new plant in the North West provice and will have a new solar power plant set up in Zimbabwe as it invests further into the company at a time the costs of electricity and other inputs are spiking. The company though said that imports of cement into its regional markets were not a major worry as it was bumping up its competitiveness against rival local and imported products. 'On South Africa, we remain cautiously optimistic for the announcement of the new GNU government of a big infrastructure plans,' Cardarelli added. Although for PPC the South African market was still facing challenges from a demand side perspective, the company was focusing on changing its business fundamentals and approaches to doing business. PPC's "Awakening the Giant" strategic turnaround plan had started to yield results, helping to ensure that the company 'recovers competitiveness, rebuilds profitability and becomes a sustainable' leader. During the period under review, PPC offset inflationary costs with early operational improvements, from logistics optimisation to better product mixes, lower clinker factor and improved sales sourcing. The company was continuing to evaluate projects and strategic options that will support medium- to long-term value creation, including the signing of an engineer, procure and construct (EPC) contract in March 2025 with Sinoma Overseas Development Company for the construction of a new 1.5 million tons a year, R3bn, state-of-the-art integrated cement plant in the Western Cape. The new plant will replace and increase existing capacity. 'The real benefits of this project are expected to start materialising in FY28, and will secure PPC's competitive position in the market as a result of innovative energy efficiency, reduced coal consumption and lower emissions per ton of cement,' explained Cardarelli. He said though that this was coming against the backdrop of international cement groups entering the market with a strong investment in new technology, bringing cost efficiency. While PPC is 'cautiously optimistic about the planned infrastructure spend recovery,' it believes that 'long-term sustainability does not rely on an improved overall economic' environment. 'The focus continues to be on unlocking internal value, as demonstrated in the FY25 results, without requiring any significant market shift,' Cardarelli said. BUSINESS REPORT
IOL News
26-05-2025
- Business
- IOL News
Pick n Pay's turnaround strategy: aiming for profitability by 2028
Pick n Pay Retail giant Pick n Pay, which is in the throes of an operational turnaround, hopes to achieve trading profit break-even in its 2028 financial year. Image: Supplied. Pick n Pay's turnaround is taking shape, but initial estimates predicting the retailer would reach breakeven in the 2027 financial year have proven over-optimistic. The group now forecasts this milestone will only be achieved in 2028. The group's pre-tax and capital items loss improved to R237 million for the 52 weeks ending March 2, compared to a R1.4 billion loss in 2024. This improvement was driven by a R1bn reduction in the Pick n Pay segment trading loss, supported by a 27.3% decrease in interest paid as the recapitalisation began to impact debt service costs. CEO Sean Summers, who announced on Monday that he has extended his contract until May 2028, said in an interview the initial target date of 2027 was an uninformed estimate. The group now has a clearer understanding of what is required to return to profitability. Summers said that he extended his contract to ensure continuity. If he were to leave in October next year as initially planned, he would have needed to start searching for a new CEO in six to nine months, which he felt was too soon during the turnaround process. 'There are no surprises in this result; we are meeting the guidance we have provided every six months, making calm and steady progress. You cannot rely on quick wins in our situation, and it will continue to be a journey as we rebuild our institutional memory,' said Summers. He emphasised their strategy is to build 'muscle memory for long-term success,' saying that there would be no 'quick fixes.' The group now anticipates reaching trading profit breakeven in the 2028 financial year, compared to the previous forecast of 2027. 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 Analysts Anchor Capital investment analyst Robbie Proctor said the improvement in like-for-like sales in the second half of the previous year had continued into the first two months of the current year, which is encouraging. While Pick n Pay's market share is expected to decline as it closes stores, the core store estate is still showing signs of life. 'Pick n Pay remains a well-known brand, providing credibility to any turnaround effort. However, we believe Pick n Pay has a market segmentation issue under a single banner, relative to Shoprite with its Checkers, Shoprite, and Usave brands, which effectively segment the market offering,' Proctor said. Umthombo Wealth chief investment officer Alex Duys remarked that Pick n Pay delivered commendable results, 'exceeding many of our expectations.' He added: "Considering that management had to navigate the complexities of raising equity, preparing for the Boxer IPO, and executing an operational turnaround - all with limited resources - this performance is a testament to the remarkable efforts of the entire team.' Duys said Pick n Pay management have maintained a long-term strategic focus. 'Rather than opting for superficial fixes to boost short-term results, they are committed to implementing the necessary structural changes to ensure sustainable success,' he said. 'This was an important year as we executed the first leg of our operational and financial recovery. We are exactly where we said we would be when presenting the strategy last May, and in some aspects, we are tracking slightly ahead. Particularly pleasing is the reduction in our Pick n Pay trading loss by 64% after predicting a 50% reduction,' Summers said. He said they have addressed around 40 Pick n Pay stores through conversion, closure, or repositioning, with approximately 30 more loss-making stores still to tackle. Six turnaround priorities The first of six turnaround priorities announced in May last year was to recapitalise. A two-step recapitalisation plan—raising R12.5 billion through the Pick n Pay rights offer (R4bn) and the Boxer JSE listing (R8.5bn)—was achieved, restoring the group to a net cash position of R4.2bn. 'We have started to give much-needed attention to our core Pick n Pay supermarkets, and we are pleased to see early results reporting positive like-for-like sales growth, notwithstanding the sustained pace of new store openings by our competitors in a restrained and competitive market,' Summers added. The second priority was to accelerate like-for-like sales growth, with the group turnover for the 53-week period rising by 5.6%. Over the past 18 months, Pick n Pay's company-owned supermarkets delivered gains in like-for-like sales growth, improving from -0.5% in the second half of 2024 to +3.6% in the second half of 2025. Inflation in Pick n Pay recorded at just 2.1% for the 2025 financial year, sharply down from 8.2% in 2024 and well below Statistics SA Food CPI of 3.9%. The third priority was the store estate reset, which involved converting to Boxer, franchising, or closing stores with no prospect of returning to profitability. The retailer has also begun opening and committing to new stores and will increasingly refurbish its supermarkets. The fourth pillar of the strategy is leadership and people, focusing on driving operational execution and restoring institutional memory. Key steps had been taken, including reinstating regional leadership structures and launching a campaign to reignite employee purpose. The fifth pillar, strengthening partnerships, was demonstrated in the tie-up with FNB e-Bucks. There was a 48.7% growth in online sales for the 53 weeks, led by asap! and PnP groceries on Mr D. Pick n Pay asap! has grown to 600 locations, and franchisee adoption of asap! has doubled in two years, unlocking new growth potential. Pick n Pay Clothing delivered 11.6% growth from standalone stores and reported market share gains. Thirty additional company-owned stores during 2025 brought the total estate to 415 stores. "Pick n Pay has over R4.3 billion in cash at its disposal to invest in pricing to attract shoppers. Given the subdued consumer backdrop, people are actively seeking deals when planning their weekly or monthly shop. There is a risk that Shoprite will need to follow a portion of the promotional activity, putting pressure on margins.," said Proctor. Duys said Pick n Pay's current focus did not appear to be on aggressively competing for market share but rather on driving efficiencies and enhancing the overall quality of its portfolio. 'We expect Pick n Pay to shift its focus back to regaining market share only once its operational turnaround is complete. At that point, the business will be far better positioned to compete effectively across all areas, supported by a more robust and efficient foundation,' Duys said. Visit: BUSINESS REPORT
Daily Maverick
25-05-2025
- Politics
- Daily Maverick
‘New evidence' — stalled R1bn Malusi Booi and Ralph Stanfield tender fraud case still on track
The DA's former Cape Town mayoral committee member Malusi Booi is not necessarily in the clear. This comes after the provisional dropping of charges linked to allegations of unlawfully awarded R1bn in contracts, against him and suspected 28s gang boss Ralph Stanfield. Former City of Cape Town DA human settlements mayoral committee member Malusi Booi took to social media a few days ago and thanked several people for believing in his 'innocence' after commercial crime charges against him were provisionally withdrawn. But Booi and his co-accused, including suspected 28s gang boss Ralph Stanfield, have not been acquitted or officially cleared of the charges. The National Prosecuting Authority (NPA) and the South African Police Service (SAPS) have made it clear that new evidence, which is being investigated, necessitated the provisional withdrawal. This means that the charges can still be reinstated and that the new evidence may produce more criminal accusations or a bolstered case. Politics and policing Investigations into issues linked to Booi and Stanfield have become highly controversial – and political – and have led to accusations about what has been motivating police to act. The City of Cape Town is DA-run while the SAPS is viewed as an ANC remit, so the overall situation creates the impression that tensions between the two parties are at play. This weekend, Booi took to social media and effectively said he was the target of a smear campaign, much like Mayoral Committee Member for Safety and Security JP Smith's insistence after a raid on his office earlier this year that has been linked to issues involving Stanfield. While there have been smear campaign insinuations and while no one in the matter has been found guilty in a court, City of Cape Town officials have acknowledged dodgy dealings relating to its human settlements arena. Carl Pophaim, who replaced Booi as Cape Town Mayco member for human settlements, previously told journalists that various investigations were focused on 'part of this one singular thing, an attempt to capture human settlements and construction in Cape Town'. Merged, then provisionally dropped Booi and nine others were accused of being involved in a tenders-for-cash enterprise, which the State has alleged was headed by Stanfield and his wife, Nicole Johnson. The tenders flagged in the case were allegedly worth more than R1-billion. Booi faced allegations that he accepted gratification from Stanfield and, in exchange, used his influence over tenders. Aside from those commercial crime charges, Stanfield, Johnson and several others also face other criminal accusations. Stanfield, for example, faces accusations that he was involved in the 2019 assassination of then Hard Livings gang boss Rashied Staggie. Other charges against Stanfield and Johnson's co-accused in this case relate to the 2023 murder of City of Cape Town staff member Wendy Kloppers, who was shot at a housing development site in Delft. She was killed, apparently because she had refused to give in to gangsters demanding contractors' work. The commercial crime case, in which Booi was the main accused, had been merged with the criminal case in which Stanfield and Johnson were the key accused. But on Friday, 23 May 2025, the tender-related commercial crime charges were provisionally withdrawn against Booi, Stanfield, Johnson and nine others. While Stanfield, Johnson and several others remain in custody because of the criminal charges they face in the case set to resume in July, Booi, who was previously released on bail, no longer faces formal accusations. 'Purpose was to destroy me' After the charges were provisionally dropped on Friday, Booi left the Cape Town Magistrates' Court and told journalists he was 'relieved' and was headed home 'to start a new life'. Booi also took to the social media platform X that day to further express himself. NEWS JUST IN [WATCH] Fraud related charges against former City of Cape Town Human Settlements MMC Malusi Booi and nine others have been withdrawn. They relate to a billion rand housing tender fraud within the city's human settlements directorate @NtuthuzeloNene — EWN Reporter (@ewnreporter) May 23, 2025 He posted: 'I would like to take this opportunity to thank my 84-year-old mother, my ancestors, my partner, my entire family, friends, Nitta & crew, Manxasana & crew for their unwavering support & belief in my innocence! 'Thanks to the Nkomo Foundation. I maintain my innocence.' Days later, on Sunday, 25 May, Booi took to X again, implying that he was the victim of a smear campaign. 'Just for the record! There was never a R1bn tender fraud City of Cape Town never lost a cent,' Booi's post said. 'There is no site or awarded tenders Why AG never picked it up or internal audit The purpose was to destroy me and tarnish my reputation! I pray a living God.' Just for the record! There was never a R1bn tender fraud City of Cape Town never lost a cent There is no site or awarded tenders Why AG never picked it up or internal audit The purpose was to destroy me and tarnish my reputation! I pray a living God🙏 — Malusi Booi (@MalusiBooi) May 25, 2025 While Booi is 'relieved' at the withdrawal of charges, the NPA and SAPS have reiterated that it does not mean the case has ended or been derailed. According to them, key information has been uncovered. Fresh evidence The Western Cape's NPA spokesperson Eric Ntabazalila explained that the commercial crime charges had been provisionally withdrawn against Booi, Stanfield, Johnson and nine co-accused 'pending the finalisation of an investigation on newfound evidence against them'. 'Police discovered new evidence during their investigation, and it is apposite at this stage to provisionally withdraw the 16 commercial charges against the accused pending the finalisation of the investigation stemming from the newfound evidence. 'The State will reinstate the charges once the investigation has been finalised.' Police in the Western Cape released a statement on the saga. Brigadier Novela Potelwa said the case 'is still on course despite the provisional withdrawal of commercial charges'. Charges can be reinstated She said it was not uncommon for the direction of a complex investigation to change, based on new information.'It is envisaged that the commercial charges provisionally withdrawn will be reinstated in due course,' Potelwa said. 'The Western Cape SAPS feels compelled to give assurance that the decision [to provisionally withdraw the commercial charges] is by no means an indication of failure on the part of investigators.' There is no indication of what the new evidence is. Booi was arrested in September last year, several months after his City of Cape Town office was raided in March 2023. He has also been fired. Earlier this year, another raid, which according to police was also linked to the whole Stanfield saga, kicked up even more controversy for the City of Cape Town. SAPS and the City On 24 January, police raided JP Smith's office and that of mayoral committee member Xanthea Limberg, who heads the city's energy portfolio. Unlike what happened to Booi, Smith and Limberg were not suspended. Cape Town Mayor Geordin Hill-Lewis said there was insufficient evidence to warrant suspensions. Smith has insisted that he is the target of a smear campaign and that the raid had been conducted to tarnish his name. Earlier this month, Smith announced that he was taking legal action against the SAPS. He said he had lodged an application in the Western Cape High Court because 'immediately after the searches I was advised that the warrants which contain numerous falsehoods, errors and critical omissions are unlawful and should be legally challenged'. Smith said: 'The media frenzy and reputational harm resulting from the search on my office should never have been permitted. 'The allegations against me are false and there is abundant evidence in the public domain of my continued actions to do the exact opposite of which I am accused by SAPS, including the continuous taking action to remove compromised and corrupt individuals from the city'. As if underscoring what Smith said about action against staffers, the SAPS announced last week that two City of Cape Town law enforcement officers had been arrested on charges of kidnapping and extortion. Smith had issued a statement saying the city's Safety and Security Investigations Unit had launched an internal investigation, which led to the arrests. Beyond smear claims – murder and red flags In the Stanfield-linked saga, both Booi and Smith's official offices were raided, and both have since separately said they are the targets of smear campaigns. On Sunday, a part of Booi's post on X said: 'The purpose was to destroy me and tarnish my reputation!' As for Smith, earlier this month, in the statement on the legal action he launched against the SAPS, he said that he had been told the purpose of the campaign against him was to 'destroy my reputation'. There are highly concerning aspects of the now provisionally withdrawn commercial crime charges and to the city's human settlement remit. City manager Lungelo Mbandazayo previously told IOL that an investigation 'saw some of the officials from the human settlements department being suspended and others are attending disciplinary hearings. 'They were even tailor-making tenders before they went out, so those same companies could easily apply and be granted those tenders. They (the gangsters) don't operate in isolation. 'They exist because internally, there are people helping them. When you look at any criminal activity that is thriving, it's because people are conniving.' Serious dangers are associated with this arena. One of Booi's co-accused, who previously faced charges alongside him, was Abdul Kader Davids. On 20 September 2024, two days after being released from custody on R250,000 bail in that case, Davids was fatally shot in the Cape Town suburb of Mitchells Plain. DM
