Latest news with #R200-million
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Retail giants step in with millions of rands to help entrepreneurs on their way up
South Africa's small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don't make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths' corporate social justice director, Zinzi Mgolodela, said: 'Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. 'Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety, giving children the opportunity to thrive in safe, supportive environments.' The Land Bank's CEO, Themba Rikhotso, said: 'This initiative aligns directly with Land Bank's mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country's long-term food security.' Fishing for hustlers under 35 Meanwhile, Mr Price's Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer's efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. 'The country has no shortage of young minds with bright ideas and business know-how,' said the foundation. 'So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.' The closing date to apply to the Mr Price Foundation is 30 June. Credit desert According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa's SMME ecosystem. DM
Daily Maverick
09-06-2025
- Business
- Daily Maverick
‘Real people drawing fraudulent salaries' — crackdown looms on public sector ghost employees
It's time to end this 'orchestrated form of systemic corruption' draining state resources, says the chairperson of Parliament's Portfolio Committee on Public Service and Administration. Parliament's Portfolio Committee on Public Service and Administration says public sector workers should report in person to prove they're not ghost employees. 'A data audit alone is not enough. We are calling on this process to begin with physical in-person human verification audits for all government employees underpinned by biometric identification. Every person drawing a public salary must appear in person and be verified,' said committee chairperson Jan de Villiers (Democratic Alliance) in a governance cluster press conference in Parliament on Monday. 'The public has the right to know the names on the payroll correspond to individuals who really exist and who serve the public.' Read more: Ghost employees who haunt payrolls are a major occupational fraud hazard Finance Minister Enoch Godongwana, in his Budget tabled last month, announced sweeping expenditure reviews of more than R300-billion in government spending since 2013, 'with the aim of identifying duplications, waste and inefficiencies'. Godongwana said the data-driven initiative would cross-reference administrative datasets to 'identify ghost workers and other anomalies across government departments'. De Villiers said the portfolio committee, following Godongwana's announcement in his Budget, had convened on 28 May to interrogate the 'persistent and deeply corrosive problem' of ghost workers in the public sector. He said the National Treasury could not tackle this challenge alone — it required a joint, coordinated strategy, which was now under way between the Treasury and the Department of Public Service and Administration (DPSA). 'We will reconvene with the Department of Public Service and Administration and the National Treasury in the third quarter of 2025 to receive a full progress report on the implementation of the joint ghost worker audit strategy. This should include details on the scope of these audits, preliminary findings and proposed enforcement measures,' said De Villiers. 'Orchestrated form of systemic corruption' Ghost employee fraud is among South Africa's most persistent public sector challenges. However, the total number of ghost workers — individuals who are fraudulently added to an organisation's payroll but do not actually work there — is unclear. In 2021, the government launched Project Ziveze to investigate and verify all Passenger Rail Agency of South Africa (Prasa) employees after material irregularities were uncovered within Prasa's ICT and payroll systems, indicating that there could be about 3,000 phantom workers. A preliminary report in November 2022 revealed that 1,480 employees could not be verified, while 1,000 others had resigned, Daily Maverick's Suné Payne reported. The agency is estimated to have saved about R200-million through the verification project. Last year, the Auditor-General of South Africa uncovered R6.4-million being paid to 'deceased and terminated' employees. The Public Servants Association (PSA) described this as a 'shocking misuse of public funds' and a 'gross violation of financial accountability'. And in May 2025, the Sunday Times reported that the Gauteng Department of Health had frozen the salaries of 230 employees who could not be verified. These are a handful of the reported cases of ghost employees. 'These are not invisible names on paper. Real people are drawing fraudulent salaries, and fraudulent money is being siphoned into the pockets of corrupt criminals,' said De Villiers. He said the department had disclosed that inserting a ghost employee into the payroll system 'requires collusion because at least three officials need to work together to create a ghost worker. This means that we are dealing not with random lapses in judgment, but with embedded criminal syndicates operating in our public institutions.' He added that the issue of ghost workers was 'not merely a payroll anomaly. It is a deliberate and orchestrated form of systemic corruption. It is organised crime within the state. And as a portfolio committee, tasked with oversight in the public service, the time for half-measures and talk shops is over. 'Let us be clear, the phenomenon of ghost workers is not an issue of administrative error. There are real people creating these ghost workers, reaping the benefits of siphoning taxpayer money into their coffers. 'Every ghost worker represents a post that could've been filled by a qualified graduate, a dedicated nurse, a teacher at a rural school or a social worker supporting the vulnerable. Every fraudulent salary paid is a step backwards in the fight for a professional, ethical and responsive state.' Widespread phenomenon De Villiers did not know how many ghost workers there were in the public service, but suggested, when looking at the known instances of ghost employees, 'that there are thousands'. He said the DPSA had confirmed before Parliament that ghost workers were present across all three spheres of government, including national, provincial and local governments, as well as government agencies and state-owned enterprises. 'The reality is every single department, state agency, level of government and state-owned enterprise that we have, probably has ghost workers on their payroll.' PSA spokesperson Reuben Maleka told Daily Maverick on Monday that the organisation supported a physical audit of ghost workers who 'rob' the public sector of its capacity to provide services to the public. 'The problem is widespread throughout the public sector — government departments, municipalities [and] government entities. The cleaning must happen across the sector,' said Maleka. In addition to calling for a physical audit, De Villiers said the committee would 'push for disciplinary and criminal action to follow every detection of ghost workers. 'We don't know how many ghost workers there are, we don't know who's involved, and not enough people have been arrested so far, to be quite frank. 'I am not aware, as committee chairperson, of a single person who has been arrested thus far in terms of the creation of ghost workers,' he said. De Villiers added that South Africa's ghost worker phenomenon was not only made possible by fraud, but by 'outdated and fragmented administrative processes and systems'. Daily Maverick contacted the National Treasury and the DPSA with queries. Comment will be added once received. DM
eNCA
07-06-2025
- Business
- eNCA
Atlantis solar plant edges closer to completion
CAPE TOWN - Cape Town leaders have underscored that a solar plant being built outside Atlantis is aimed at driving down the price of electricity. The R200-million project is set to be the first City-owned solar plant supplying renewable energy to the grid. Officials have visited the site to inspect progress made since construction began in October last year. Construction on the seven-to-ten megawatt Atlantis solar photovoltaic plant is taking shape. A total of 2,400 solar panels are already in place. The first power from this plant is expected to be delivered near the end of this year.
Daily Maverick
20-05-2025
- Health
- Daily Maverick
Eastern Cape cancer patients face more delays in getting critical chemotherapy
Patients, doctors and medical personnel face more chemotherapy disruptions after the Eastern Cape Department of Health said it would settle outstanding accounts with pharmaceutical companies only on Friday. The struggle for chemotherapy medication in Nelson Mandela Bay's state hospitals and at Frere Hospital in East London is likely to continue until at least the weekend, after the Eastern Cape Department of Health confirmed it would pay pharmaceutical companies that are owed millions of rands, only on Friday. With stock running dangerously low, oncologists, pharmacists and nurses have had to make excruciating decisions about who receives treatment and who does not, with some oncology units left with just one vial of the potentially lifesaving treatment. Medical staff have spent hours phoning across the province in a bid to source the drugs, particularly for children, to avoid cancer patients' treatment being interrupted. Patients' caregivers, who asked to remain anonymous, said they had been turned away when bringing children for chemotherapy. They said they had been told they would have to make a second trip when the chemotherapy drugs became available. On Monday, the Eastern Cape MEC for health, Ntandokazi Capa, promised that outstanding bills would be paid immediately; however, patients have been turned away and treatments halted. The South African Human Rights Commission (SAHRC) has launched an investigation into the repeated interruptions of cancer treatment for public healthcare patients in the Eastern Cape due to unpaid accounts. Dr Eileen Carter from the SAHRC said the Democratic Alliance (DA) had laid a complaint with them about the matter. On Monday, Capa's spokesperson, Sizwe Kupelo, said R200-million had been set aside for the procurement of essential specialist medicines, including for cancer treatment. He said R43-million of this would be used to settle debts with pharmaceutical companies. However, on Tuesday he said this payment would probably only be made on Friday. Salomé Meyer from the Cancer Alliance said they were deeply concerned about cancer services in the Eastern Cape. 'Livingstone Hospital (this includes the two cancer units at Port Elizabeth Provincial Hospital), now for the third time this year, does not have oncology medicines, and this is barely two months after the start of the new financial year. Should this trend of non-payment of invoices to suppliers continue, the lives of cancer patients will be impacted severely,' she said. Meyer said the head of the Eastern Cape Department of Health, Dr Rolene Wagner, had committed to meeting with them to find workable solutions for cancer care services in the province. The oncology units in Gqeberha previously ran out of chemotherapy medication in January after the Eastern Cape Department of Health's account with a supplier was suspended due to a delayed payment.. At the time, the medicines that were in short supply were Docetexal injection vials and anastrozole tablets. There was a similar shortage in 2023, which was blamed on a stock-out at suppliers. DM
Daily Maverick
19-05-2025
- Health
- Daily Maverick
Cancer treatment interrupted for hundreds after Eastern Cape health department fails to pay medication bills
Desperate doctors have been forced to make decisions about who receives chemotherapy and who does not, with some oncology units left with only a single vial of the potentially life-saving treatment. The cancer treatment of hundreds of patients, including children, has been interrupted after the Eastern Cape Department of Health failed to pay suppliers for chemotherapy drugs. The province's MEC for Health, Ntandokazi Capa, has promised that outstanding bills will be paid immediately, but patients have already been turned away and treatments halted. Desperate doctors have been forced to make decisions about who receives chemotherapy and who does not, with some oncology units left with only a single vial of the potentially life-saving treatment. Medical staff said that as their urgent emails went unanswered, they spent the whole of Sunday frantically trying to borrow, exchange or buy chemotherapy medication from private pharmacists to avoid interrupting treatment for hundreds of patients. The South African Human Rights Commission (SAHRC) has launched an investigation into the repeated interruptions of cancer treatment for public healthcare patients in the Eastern Cape due to unpaid accounts. Dr Eileen Carter from the SAHRC said the Democratic Alliance (DA) had laid a complaint with them about the matter. 'We have opened an investigation into the allegations received. It will now be undertaken as per our complaints handling processes,' she said. 'This is no longer a cash flow problem. It is a gross violation of human rights,' said the DA's spokesperson for health in the province, Jane Cowley. 'This ongoing crisis is not only jeopardising the physical health of cancer patients but is also taking a severe toll on their emotional and mental wellbeing. 'How does one explain to the mother of a 14-year-old boy that his treatment cannot continue because the department's non-payment has led the supplier to close their account? How does a doctor respond to a heartfelt letter from a 33-year-old woman, diagnosed with a curable form of Hodgkin lymphoma, who is begging for treatment so she can raise her three-year-old child? Impossible choices 'These are the impossible choices our healthcare workers are forced to face daily. Meanwhile, senior officials sit comfortably in air-conditioned offices, use state-owned vehicles for private errands and continue to protect a bloated payroll of politically connected individuals in non-essential posts,' said Cowley. The Eastern Cape health department spokesperson, Sizwe Kupelo, acknowledged systemic problems in the public health sector, including the lack of permanent CEOs at Livingstone and Port Elizabeth Provincial hospitals in Gqeberha. 'But we are busy conducting interviews now,' he said. The hospitals last had permanent CEOs in 2018, when unions ran the management teams out of the facilities. Kupelo said MEC Capa had stepped in to ensure that R200-million was set aside for specialist medicines, including cancer treatment. 'The department wishes to confirm allocation of R200-million for the procurement of essential specialist medicines, including for cancer treatment. R43-million of this allocation will be utilised in paying pharmaceutical companies for cancer medicines that were owed from the last financial year. This payment is expected to be effected this week. 'Availability of all categories of essential medicines in all our health facilities is a priority, and every year, the department budgets over R2-billion for this purpose. We have strengthened our distribution plan, and our main medicine depots are strategically positioned to supply the entire province. These are the PE medical depot in Gqeberha and Mthatha medical depot in the OR Tambo district,' said Kupelo. He said cancer patients were receiving their treatment even though alternative medication had to be administered in some cases. 'This week, the department is expecting additional stock from Adcock Health, Fresenius (Kabi), Kiara and Macleods,' he added. He said two chief directors had been assigned to Gqeberha to accelerate service delivery at Livingstone and Dora Nginza hospitals. 'The MEC gave a clear message to her management. She was there. She received the problems. She has given them until the end of the month to implement the decisions they have taken. 'You don't want to run away from a big elephant,' he said. 'Hospital management knows that the lack of a district hospital makes things difficult in the metro, as specialist hospitals must act as a district hospital.'
