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The Citizen
13-06-2025
- Business
- The Citizen
Tariff shock: 11.3% power increase announced
Mogale City Local Municipality's (MCLM) Mayor Lucky Sele announced the approval of the medium-term revenue and expenditure framework (MTREF) budget, which was adopted at the recent council sitting on June 10. • Also read: Mogale City's draft budget Part 12: Mogale vows to curb wasteful spending Mayoral spokesperson Palesa Molefe stated that this R5.6b budget is to translate their priorities of the integrated development plan (IDP) into practical and community-driven plans. 'This budget aligns firmly with our strategic objective of positioning MCLM as a competitive urban city centre within the Gauteng City Region. It reinforces the continuity of our long-term spatial vision, while introducing pragmatic steps to strengthen financial governance, reduce service delivery risks, and channel investment towards areas of greatest developmental particularly in our townships and peri-urban communities,' said Sele. Molefe added that the 2025/ 26 MTREF reflects a balanced and Batho-Pele (people first) governance approach to resource allocation and notable investments, which include: • A capital expenditure budget of R501m, comprising R289m from national and provincial grants and R212m from municipal own revenue • An allocation of R98m towards road resurfacing, sewer spillage repairs, and electricity streetlight maintenance • An initial R24m investment (R48m over MTREF) to phase out the use of chemical toilets, in favour of environmentally sustainable and dignified Enviro Loo facilities. Another R16.5m has been allocated to the Brickvale Housing Initiative, while R15m has been set aside for the development of the Swaneville Industrial Park 'Provision has also been made to strengthen youth development initiatives, local procurement programmes, and digital transformation within municipal service departments aimed at building institutional agility and enhancing citizen access to services,' she said. She revealed there will be a 0% increase in property rates for the next three financial years. 'In addition, extended rebates for pensioners and residential property owners have been approved,' she continued. She added, other tariff adjustments for the 2025/26 financial year include: • A 4.3% increase in refuse removal and sundry tariffs • A 15.3% increase in water and sanitation tariffs, as determined by the Rand Water Board • An 11.3% increase in electricity tariffs, under the National Energy Regulator of South Africa directive Molefe stated the budget is fully funded, with a projected operating surplus of R37m. The municipality has set a targeted collection rate of 90% to be achieved through strengthened credit control measures, implementation of smart metering to reduce technical losses, and the continued rollout of the Mogale Ya Tima disconnection campaign for non-payment. 'Cost containment remains a priority. The municipality will be reducing reliance on contracted services and optimising internal capacity to ensure value for money. The mayor will continue to champion engagements with various stakeholders, particularly on tariffs, thus mayoral imbizos will be rolled out. Council's resounding support for the 2025/ 26 Budget demonstrates a collective commitment to accelerated service delivery, fiscal discipline, and improved accountability. The municipality remains unwavering in its pursuit to build a capable, responsive, and developmental local government, one that puts people first and ensures that no resident is left behind,' she concluded. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
IOL News
06-06-2025
- Business
- IOL News
Fairvest reports robust interim distributable income growth and acquires five properties
Fairvest's Southview Centre in Soshanguwe. The group is steadily transforming its diversified commercial property portfolio to one that focuses on retail centres for lower income communities. Image: Supplied Fairvest, which Friday announced the acquisition of five properties for R477.7 million, increased its interim distribution for its B share by 8.8%, a performance well above inflation and which ranks it among the leaders in South Africa's REIT sector at present. Fairvest owns and manages a portfolio of 127 retail, office, and industrial properties, valued at R12.5 billion. During the six months to March 31, the group increased its stake in Dipula Properties to 26.3% from 5%, which was accretive to earnings and loan-to-value. 'Fairvest is making progress in transforming its diverse portfolio by improving the quality, while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa. The portfolio transformation is taking place at a slow and measured pace,' CEO Darren Wilder said in an interview. The strategy involves disposing of non-core assets and reinvesting in retail-focused properties - about 70% of revenue is currently generated from retail properties, he said. Consistent with this plan, Fairvest acquired five retail properties in KwaZulu-Natal and the Western Cape: Nquthu Shopping Centre, Ulundi Shopping Centre, Eyethu Junction, and Shoprite Manguzi in KwaZulu-Natal. These shopping centres have key food retailers, including Shoprite, Boxer, and SuperSpar, as anchor tenants. Also, an agreement was reached to acquire Thembalethu Square, outside George in the Western Cape, which is anchored by Shoprite and Boxer. Fairvest owns 51% of the issued shares in the new acquiring company. Wilder said they were 'always on the lookout' for assets that fitted their strategic focus. Fairvest disposed of one industrial property valued at R24m during the period and at a 14.3% premium to book value. Capital expenditure of R139m included R19.8m for further investments in solar initiatives. The group also invested R76.6m in fibre network infrastructure, which earns rental income. 'The portfolio continues to benefit from the disciplined execution of our strategy - vacancies remain consistently low, tenant quality has improved and the portfolio remains operationally robust. These solid fundamentals, combined with conservative balance sheet management, position the group for sustained growth,' said Wilder. There was positive letting activity in the six months, with 236 new deals and 216 renewals. Vacancies edged up to 5.5% from 4.3%. The entire 8% increase in property expenses was linked to higher municipal costs. Excluding this, operating expenses decreased by 1.9%. Property expenses were expected to increase around 7% for the year, said Wilder. Net loans of R4.4bn represented a loan-to-value of 31.8%, a reduction from 33.3% at the September 2023 year end. Cash on hand and undrawn debt facilities stood at R547.4m by the end of the interim period. Progress was made on the business continuity strategy - around 48.3% of the portfolio's gross lettable area has access to either partial or complete backup power. The number of solar plants stood at 46, with total installed capacity of 21.9 MWp. These plants provided 16.7% of the combined portfolio's electricity needs in the six months. Clean, renewable energy generated during this time amounted to R33.1m. A further eight plants were expected to add some 2.1 MWp of capacity.
The Citizen
20-05-2025
- Politics
- The Citizen
Committee uncovers irregularities in stadium project in Leandra
The Select Committee on Public Participation, Petitions and Members' Legislative Proposals did a follow-up oversight visit to the Lebohang Stadium in Leandra on May 13. The visit followed a 2019 petition by the local sports council citing poor workmanship on the stadium, initially envisioned as a state-of-the-art multipurpose facility. Committee chairperson Siphosezwe Mahlangu opened the meeting by outlining the committee's constitutional mandate. All the stakeholders were invited to account for their roles in the project. The Govan Mbeki Municipality, represented by municipal manager Elliot Maseko, explained that R11m in funding was received through the Municipal Infrastructure Grant (MIG) for phase one of the project in 2018/19. However, serious discrepancies in execution were identified, leading the municipality to allocate an additional R3m for remedial work and request R10m from the provincial Department of Culture, Sport and Recreation (DCSR) for phase two. The DCSR withheld the funds due to unresolved concerns regarding misallocated spending in phase one. MEC Leah Mabuza praised the sports council's responsible actions and the legislature's oversight, committing to ensuring accountability. She emphasised the importance of quality service delivery in projects uplifting poor communities. The provincial and national Departments of Sports, Arts and Culture said several errors had plagued phase one. The provincial department denied early involvement in the project, a claim disputed by the national department and viewed as unsatisfactory by the committee. Songezo Phethelo, the director for infrastructure development at the national department, criticised the lack of ownership from provincial counterparts. This committee echoed this concern, demanding higher standards of accountability. Sports council chairperson Abednego Lukhele recounted the council's exclusion from the project's implementation, blaming it for the substandard outcome. He commended the legislature for its intervention and the community of Leandra for responding peacefully despite frustrations. The committee condemned the overall handling of the project and raised several unresolved questions, including: • Why was the provincial department not involved from the beginning? • What remedial actions have been taken? • Is the project's current state worth the R11m already spent? • Why was the sports council excluded from the project steering committee? • Why were payments approved for uncompleted work? The committee expressed concern over escalating costs now estimated at R24m and called for serious consequence management, which might include employee dismissals, arrests, repayment of public funds and blacklisting the implicated service providers. The matter was referred to the Select Committee on Public Accounts for further investigation, with a directive for all stakeholders to submit detailed reports and attend future hearings. ALSO READ: A day in the life of a Standerton midwife ALSO READ: Tshwane is making strides in tackling Bronkhorstspruit's water issues At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
