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IOL News
12-06-2025
- Business
- IOL News
SIU investigates R3. 1 billion in Housing Development Agency deals
The Special Investigating Unit is going after transactions worth hundreds of millions of rand approved by the state-owned Housing Development Agency and eight provincial Human Settlements departments. Image: Sandi Kwon Hoo / Independent Newspapers The Special Investigating Unit (SIU) is probing dodgy transactions valued at about R3.1 billion approved by the state-owned Housing Development Agency (HDA) and eight provincial Human Settlements departments since 2016. Several of the HDA's deals now under scrutiny were for the identification, acquisition, holding, development, and release of state, communal, and privately owned land for residential and community purposes by the agency, in its name, or for and on behalf of the provincial departments or by the departments. The provincial Human Settlements departments involved are from the Eastern and Western Cape, Free State, Gauteng, KwaZulu-Natal, Mpumalanga, North West, and the Northern Cape. According to details of the property sales being probed, the highest amount paid was the R389.1 million spent in Chris Hani in Ekurhuleni for 2,560 serviced residential stands in 2021/22, R279m for land in the City of Tshwane in the 2020/21 financial year, while R213m was paid in the Eagles Nest township transaction also in Ekurhuleni in 2019/20. 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 ✕ Another R195m was for land in Palm Ridge, also in Ekurhuleni, in 2020/21, while the lowest transaction was R120,000 in Theunissen, Masilonyana, in the Free State in 2021/22. Strangely, the three valuations of the land eventually bought for R120,000 ranged between R285,000 and R13.2m. The SIU is investigating any alleged serious maladministration in connection with the agency's affairs and the departments' improper or unlawful conduct by their employees, unlawful expenditure of public money, as well as offences committed in violation of the Prevention and Combating of Corrupt Activities Act. The offences include unlawful or improper conduct by any person, which has caused or may cause serious harm to the interests of the public between April 2016 and this year. The corruption-busting unit will also determine whether there was any irregular, improper, or unlawful conduct by applicable service providers of the agency and departments, or any other person or entity. In addition, the SIU will investigate whether the manner these contracts were entered into was not fair, competitive, transparent, equitable, or cost-effective and contrary to applicable legislation, manuals, guidelines, practice notes, circulars, or instructions issued by the National Treasury or the relevant provincial Treasury. It will also check if manuals, policies, procedures, prescripts, instructions or practices of, or applicable to the agency and departments and the related unauthorised, irregular or fruitless and wasteful expenditure incurred or losses suffered by the agency, departments or the State.
The Citizen
11-05-2025
- Business
- The Citizen
Ekurhuleni shows signs of financial recovery
City of Ekurhuleni MMC of Finance Jongizizwe Dlabathi said the city is on the path to financial recovery, with encouraging signs of progress in revenue collection, expenditure control, and cash flow management. However, while significant strides have been made, he acknowledges that the road to full financial health is far from complete. A recently released report reflecting the city's financial performance for the third quarter of the 2024/25 financial year signals a shift from past fiscal instability toward improved governance and accountability. 'When I assumed responsibility for leadership and oversight of the finance portfolio, the city was facing a concerning financial trajectory, exemplified by a staggering R3.1 billion under-collection in electricity sales during the 2023/24 financial year. 'This was due to a lack of strategic focus. Our primary objective has since been to drive financial recovery by rebuilding effective revenue systems and enhancing operational efficiency,' said Dlabathi. Encouraging revenue gains One of the most notable developments is the improved revenue collection in the electricity sector, which had previously suffered major shortfalls. The city reduced its electricity revenue under-collection from R2 billion in the first quarter to R417 million by the third quarter. This improvement is closely linked to increased meter reading accuracy, which rose from 76.2% to 85.9%. Efforts to curtail interim billing—especially among large power users—have also yielded results. The number of interim electricity readings dropped from 1904 to just over 1000, demonstrating a commitment to accurate, accountable billing practices. Financial discipline paying off On the expenditure front, the city has reinforced financial discipline. Operational spending dropped by 19% in the third quarter, with no overspending on bulk electricity purchases or consumables. While overtime spending remains an area of concern, a council resolution is in place to reduce these costs by half going forward. The city has also managed to stabilise its cash flow. Cash on hand increased to 22 days—double what it was in the first quarter—reducing the city's reliance on overdraft facilities. All bulk service invoices, totalling R3.1 billion, have been settled, and repayment plans with Eskom and Rand Water are progressing without default. Addressing long-term debt Dlabathi said that despite the improvements, the city faces a daunting debt landscape. Outstanding consumer debt has reached R30.9 billion, with households responsible for over 76% of the amount owed. In response, the city has intensified its credit control campaigns and launched the Debt Relief and Rehabilitation Incentive Programme, which offers up to 70% write-offs for qualifying historic debt. 'To date, more than 6,300 residents have applied for the programme—an encouraging sign that the city's message is resonating,' expressed Dlabathi. Restoring trust and accountability The city's leadership has attributed much of the past fiscal decline to strategic missteps, such as the misallocation of the meter reading function, which was previously moved from the Energy Department to ICT. This decision has since been reversed to restore accountability and operational integrity. Independent forensic investigations are ongoing into allegations of account manipulation and meter tampering—issues that had previously eroded public trust and undermined revenue. Additionally, capital spending, currently at just over 50% of the total capital budget, will be bolstered by increasing the maintenance allocation in the 2025/26 draft budget. Call to action 'While financial indicators are stabilising, the city is calling on all residents, businesses, and government departments to meet their payment obligations. 'Non-payment undermines our ability to deliver services. Sustainable service delivery relies on consistent revenue collection,' said Dlabathi. He said the city is not out of the woods yet, but the tide is changing course. 'The city's financial picture is improving, with key metrics showing positive movement. 'Yet, the task ahead remains substantial. Continued fiscal discipline, enhanced service delivery, and community co-operation will be critical in ensuring the city's long-term financial resilience,' he added. Executive endorsement Executive Mayor Nkosindiphile Xhakaza praised Dlabathi for the work he has been doing. 'These are not just numbers; they are evidence that the city's recovery is real, governance is being restored, and trust is being earned through action—not demanded by title. 'We are under no illusions about the scale of the work ahead, but the direction is right and the momentum is building,' said the mayor. He said his executive is committed to taking the city back to its former glory. 'We remain resolute, energised, and focused, because the people of Ekurhuleni deserve nothing less—and because the renewal of our public service must be more than a promise; it must be a lived reality in every department, every ward, every day,' said Xhakaza. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
08-05-2025
- Business
- The Citizen
City of Ekurhuleni makes financial recovery
City of Ekurhuleni MMC of Finance Jongizizwe Dlabathi said the city is on the path to financial recovery, with encouraging signs of progress in revenue collection, expenditure control, and cash flow management. However, while significant strides have been made, he acknowledges that the road to full financial health is far from complete. A recently released report reflecting the city's financial performance for the third quarter of the 2024/25 financial year signals a shift from past fiscal instability toward improved governance and accountability. ALSO READ: City of Ekurhuleni calls for water conservation at car washes 'When I assumed responsibility for leadership and oversight of the finance portfolio, the city was facing a concerning financial trajectory, exemplified by a staggering R3.1 billion under-collection in electricity sales during the 2023/24 financial year. 'This was due to a lack of strategic focus. Our primary objective has since been to drive financial recovery by rebuilding effective revenue systems and enhancing operational efficiency,' said Dlabathi. Encouraging revenue gains One of the most notable developments is the improved revenue collection in the electricity sector, which had previously suffered major shortfalls. The city reduced its electricity revenue under-collection from R2 billion in the first quarter to R417 million by the third quarter. ALSO READ: City of Ekurhuleni responds to alleged R65m worth of unused inventory This improvement is closely linked to increased meter reading accuracy, which rose from 76.2% to 85.9%. Efforts to curtail interim billing—especially among large power users—have also yielded results. The number of interim electricity readings dropped from 1904 to just over 1000, demonstrating a commitment to accurate, accountable billing practices. Financial discipline paying off On the expenditure front, the city has reinforced financial discipline. ALSO READ: City of Ekurhuleni says medication was not stolen in Klopperpark Clinic robbery Operational spending dropped by 19% in the third quarter, with no overspending on bulk electricity purchases or consumables. While overtime spending remains an area of concern, a council resolution is in place to reduce these costs by half going forward. The city has also managed to stabilise its cash flow. Cash on hand increased to 22 days—double what it was in the first quarter—reducing the city's reliance on overdraft facilities. All bulk service invoices, totalling R3.1 billion, have been settled, and repayment plans with Eskom and Rand Water are progressing without default. Addressing long-term debt ALSO READ: City of Ekurhuleni urges for water conservation this National Water Week Dlabathi said that despite the improvements, the city faces a daunting debt landscape. Outstanding consumer debt has reached R30.9 billion, with households responsible for over 76% of the amount owed. In response, the city has intensified its credit control campaigns and launched the Debt Relief and Rehabilitation Incentive Programme, which offers up to 70% write-offs for qualifying historic debt. 'To date, more than 6,300 residents have applied for the programme—an encouraging sign that the city's message is resonating,' expressed Dlabathi. Restoring trust and accountability The city's leadership has attributed much of the past fiscal decline to strategic missteps, such as the misallocation of the meter reading function, which was previously moved from the Energy Department to ICT. This decision has since been reversed to restore accountability and operational integrity. Independent forensic investigations are ongoing into allegations of account manipulation and meter tampering—issues that had previously eroded public trust and undermined revenue. Additionally, capital spending, currently at just over 50% of the total capital budget, will be bolstered by increasing the maintenance allocation in the 2025/26 draft budget. ALSO READ: City of Ekurhuleni says R21 bus was roadworthy Call to action 'While financial indicators are stabilising, the city is calling on all residents, businesses, and government departments to meet their payment obligations. 'Non-payment undermines our ability to deliver services. Sustainable service delivery relies on consistent revenue collection,' said Dlabathi. He said the city is not out of the woods yet, but the tide is changing course. 'The city's financial picture is improving, with key metrics showing positive movement. 'Yet, the task ahead remains substantial. Continued fiscal discipline, enhanced service delivery, and community co-operation will be critical in ensuring the city's long-term financial resilience,' he added. ALSO READ: Demands made for City of Ekurhuleni manager to step down Executive endorsement Executive Mayor Nkosindiphile Xhakaza praised Dlabathi for the work he has been doing. 'These are not just numbers; they are evidence that the city's recovery is real, governance is being restored, and trust is being earned through action—not demanded by title. 'We are under no illusions about the scale of the work ahead, but the direction is right and the momentum is building,' said the mayor. He said his executive is committed to taking the city back to its former glory. 'We remain resolute, energised, and focused, because the people of Ekurhuleni deserve nothing less—and because the renewal of our public service must be more than a promise; it must be a lived reality in every department, every ward, every day,' said Xhakaza. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
07-05-2025
- Business
- The Citizen
City of Ekurhuleni coffers indicate improvement
City of Ekurhuleni MMC of Finance Jongizizwe Dlabathi said the city is on the path to financial recovery, with encouraging signs of progress in revenue collection, expenditure control, and cash flow management. However, while significant strides have been made, he acknowledges that the road to full financial health is far from complete. A recently released report reflecting the city's financial performance for the third quarter of the 2024/25 financial year signals a shift from past fiscal instability toward improved governance and accountability. ALSO READ: City of Ekurhuleni calls for water conservation at car washes 'When I assumed responsibility for leadership and oversight of the finance portfolio, the city was facing a concerning financial trajectory, exemplified by a staggering R3.1 billion under-collection in electricity sales during the 2023/24 financial year. 'This was due to a lack of strategic focus. Our primary objective has since been to drive financial recovery by rebuilding effective revenue systems and enhancing operational efficiency,' said Dlabathi. Encouraging revenue gains One of the most notable developments is the improved revenue collection in the electricity sector, which had previously suffered major shortfalls. The city reduced its electricity revenue under-collection from R2 billion in the first quarter to R417 million by the third quarter. ALSO READ: City of Ekurhuleni responds to alleged R65m worth of unused inventory This improvement is closely linked to increased meter reading accuracy, which rose from 76.2% to 85.9%. Efforts to curtail interim billing—especially among large power users—have also yielded results. The number of interim electricity readings dropped from 1904 to just over 1000, demonstrating a commitment to accurate, accountable billing practices. Financial discipline paying off On the expenditure front, the city has reinforced financial discipline. ALSO READ: City of Ekurhuleni says medication was not stolen in Klopperpark Clinic robbery Operational spending dropped by 19% in the third quarter, with no overspending on bulk electricity purchases or consumables. While overtime spending remains an area of concern, a council resolution is in place to reduce these costs by half going forward. The city has also managed to stabilise its cash flow. Cash on hand increased to 22 days—double what it was in the first quarter—reducing the city's reliance on overdraft facilities. All bulk service invoices, totalling R3.1 billion, have been settled, and repayment plans with Eskom and Rand Water are progressing without default. Addressing long-term debt ALSO READ: City of Ekurhuleni urges for water conservation this National Water Week Dlabathi said that despite the improvements, the city faces a daunting debt landscape. Outstanding consumer debt has reached R30.9 billion, with households responsible for over 76% of the amount owed. In response, the city has intensified its credit control campaigns and launched the Debt Relief and Rehabilitation Incentive Programme, which offers up to 70% write-offs for qualifying historic debt. 'To date, more than 6,300 residents have applied for the programme—an encouraging sign that the city's message is resonating,' expressed Dlabathi. Restoring trust and accountability The city's leadership has attributed much of the past fiscal decline to strategic missteps, such as the misallocation of the meter reading function, which was previously moved from the Energy Department to ICT. This decision has since been reversed to restore accountability and operational integrity. Independent forensic investigations are ongoing into allegations of account manipulation and meter tampering—issues that had previously eroded public trust and undermined revenue. Additionally, capital spending, currently at just over 50% of the total capital budget, will be bolstered by increasing the maintenance allocation in the 2025/26 draft budget. ALSO READ: City of Ekurhuleni says R21 bus was roadworthy Call to action 'While financial indicators are stabilising, the city is calling on all residents, businesses, and government departments to meet their payment obligations. 'Non-payment undermines our ability to deliver services. Sustainable service delivery relies on consistent revenue collection,' said Dlabathi. He said the city is not out of the woods yet, but the tide is changing course. 'The city's financial picture is improving, with key metrics showing positive movement. 'Yet, the task ahead remains substantial. Continued fiscal discipline, enhanced service delivery, and community co-operation will be critical in ensuring the city's long-term financial resilience,' he added. ALSO READ: Demands made for City of Ekurhuleni manager to step down Executive endorsement Executive Mayor Nkosindiphile Xhakaza praised Dlabathi for the work he has been doing. 'These are not just numbers; they are evidence that the city's recovery is real, governance is being restored, and trust is being earned through action—not demanded by title. 'We are under no illusions about the scale of the work ahead, but the direction is right and the momentum is building,' said the mayor. He said his executive is committed to taking the city back to its former glory. 'We remain resolute, energised, and focused, because the people of Ekurhuleni deserve nothing less—and because the renewal of our public service must be more than a promise; it must be a lived reality in every department, every ward, every day,' said Xhakaza. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
