Latest news with #R800
IOL News
a day ago
- Business
- IOL News
KZN government to establish a beef production enterprise for King Misuzulu's financial needs
King Misuzulu kaZwelithini will get his own beef production company to fund his cultural events. Image: Independent Newspapers Archives KwaZulu-Natal Finance MEC Francois Rodgers is in the process of establishing a beef production enterprise which will help the Zulu royal family to be financially independent and save the province more than R60 million which is annually allocated to King Misizulu kaZwelithini and the family. This was revealed by the Democratic Alliance chief whip in the provincial legislature Dr Imran Keeka on Thursday. The party was reflecting on its first anniversary of the Government of Provincial Unity, particularly its role and achievements. The party said one of its achievements is that it has strengthened relations with the AmaZulu Royal Household and its Finance MEC is working on a beef production enterprise to ensure the monarchy's fiscal independence. 'The Treasury under Rodgers is working on establishing a beef production enterprise to ensure the monarchy's fiscal independence,' said Keeka. If Rogers succeeds, he will achieve what has been elusive since 1994. There had been talk of creating a Royal Household Trust which previous provincial government administrations had described as the vehicle that was going to sustain the Zulu royal family financially and end its financial dependence on taxpayers who fund the king and the royal family's financial needs. 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 ✕ Reacting to the announcement, the Zulu royal family's spokesperson Prince Thulani Zulu said the family will comment after the MEC has officially informed his Majesty, King Misuzulu kaZwelithini about the details of the enterprise. Another major achievement listed was Rogers' ability to devise a cost-cutting strategy which has reduced the provincial government's projected over-expenditure from R10 billion to R800 million. The plan is now being implemented. The party described its participation in the GPU as a year of positive change for the people of the province, 'who now have a government focused on placing their needs first and realising the province's true potential'. It said the move from a single majority party government to a partnership consisting of KZN's four leading political parties has not been without its challenges, however, there have been notable successes. The party said its participation in the GPU has allowed it to play a key part in critical decision-making that affects the people of the province. These roles include heading KZN Finance Rodgers, Public Works and Infrastructure which is under MEC Martin Meyer, deputy Speaker through Mmabatho Tembe as well as chairing important portfolio committees such as Health, Cooperative Governance and Traditional Affairs and provincial SCOPA( Standing Committee on Public Accounts).
The South African
a day ago
- Business
- The South African
South African economy failing behinds its counterparts
The South Africa economy would be R5-trillion better off if we'd simply kept pace with other emerging countries over the last 15 years. In the last decade and a half, the South African economy has grown at an average of 1% annually. However, other emerging counterparts have grown at 1.4% or higher. This damning data was revealed by Investec's Osagyefo Mazwai. 15 years of lost growth coincides with the South African economy plowing money in State-Owned Entities (SOEs) like Eskom, Transnet and the Post Office. 'It is our proposition that the South African economy is falling behind. Had it followed a more pragmatic approach, focusing on the structural enablers of the economy, the outcomes could be much better for society,' Mazwai said in a Daily Investor report. Likewise, the South African economy displays a stark dislocation in GDP per capita. Proving that, essentially, residents are worse off than they were in 2010. The government has been ineffectual in addressing poverty, unemployment and inequality. And, per capita, the rest of the world is 50% richer than the average South African. With more money to play with, many of the country's crippling debt issues could've been avoided. Image: File As such, Investec compared the South African economy to other emerging markets over the same period. Many emerging nations have been growing at upwards of 4.5% per year. 'Had we grown at 4.5%, our nominal GDP would have been just below R12 trillion. Compared this with the actual number, R7.5 trillion, which is 35% less,' explained Mazwai. This lack of economic growth cost government revenue R800 billion in 2024 alone. And remember that the 2025 Budget impasse squabbled over a mere R75 billion from proposed VAT increases. This is an insignificant amount when one considers how much more growth our emerging-market peers have to play with. In practical terms, Mazwai explains that the missing R5 trillion would have been enough to clear nearly all of the country's national debt. Should SASSA grants be given a re-think in light of this damning data? Image: File As such, finance experts point out that Eskom and Transnet's lacklustre performance is arguably the most significant factor impeding the South African economy. Eskom is R400 billion in debt. Transnet is R140 billion in debt. Likewise, South African Social Security Agency (SASSA) grants cost the fiscus around R265 billion annually. SASSA grants, while well-intentioned, breed an unhealthy dependency on the social welfare system, reducing employment. SASSA grant beneficiaries now number 45% of all residents, and five out of nine provinces have more SASSA recipients than salaried employees. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
10-06-2025
- Business
- The Citizen
Zikalala slams ‘spurious' allegations about R45m IDT lease deal, heads to Public Protector
The Public Works deputy minister says there's a deliberate attempt to launch a 'political smear campaign' aimed at damaging his reputation. Public Works and Infrastructure Deputy Minister Sihle Zikalala has denied any involvement in the appointment of Independent Development Trust (IDT) CEO Tebogo Malaka. The IDT, an entity under the Department of Public Works and Infrastructure (DPWI), has recently been embroiled in controversy over procurement irregularities and questionable contracts worth hundreds of millions of rands. It has now come to light that Zikalala and former IDT board chairperson Kwazi Mshengu allegedly intervened to prevent the National Treasury from conducting a forensic investigation into a R45 million lease agreement to shield Malaka. Malaka was appointed as the permanent CEO of the IDT despite facing allegations of procurement irregularities. Zikalala dismisses IDT interference claims During a media briefing on Tuesday, Zikalala addressed the controversy and dismissed the 'spurious' allegations against him, accusing investigative journalism organisation AmaBhungane of spreading 'falsehoods'. 'I have noted with deep concern and extreme outrage, slanderous stories which appear to have been deliberately planted and arranged to defame and tarnish my image, disguised as concerns about issues of governance in the IDT,' he said. ALSO READ: Dean Macpherson denies procurement interference and claims of media payments Zikalala said AmaBhungane had sent him questions regarding the CEO saga, but accused the organisation of twisting facts and misrepresenting information to fulfill its agenda in what he called a 'passionate crusade' against him. 'I will not allow the persistent onslaught and smear which masquerades as a journalistic endeavour, sophisticated as it may appear to blackmail us.' Watch the media briefing below: Allegations already in public domain Seeking to set the record straight, Zikalala highlighted that the allegations about the lease had already been public knowledge before his appointment as Public Works Minister in March 2023, and denied any involvement in Malaka's appointment. The recommendation to appoint Malaka, he said, had already been forwarded to Cabinet for final approval at the time. 'I put the process of the appointment of the CEO on hold due to, among other reasons, the need to give the board time to conduct investigations on allegations that were in the public domain.' The deputy minister rejected suggestions that he interfered with investigations, asserting that he had, in fact, directed the IDT board to look into the matter within six months. ALSO READ: EFF targets minister Macpherson over R800 million tender However, according to Zikalala, the board became mired in internal conflicts. 'They fight over the approach to investigate [while] others contacted the Treasury to conduct an investigation and others deemed the process flawed.' He said the dysfunction prompted him to write to the IDT board members in early October 2023, requesting explanations as to why they should not be fired for failing to fulfill their duties. This led to the resignation of three members. Following the appointment of a new board in November 2023, the Department of Public Works was requested to conduct a formal investigation, which was completed in March 2024. Zikalala wants Public Protector to probe IDT allegations Zikalala said that an internal audit report later recommended more in-depth investigations, which he then passed on to current Public Works and Infrastructure Minister Dean Macpherson. 'Once the minister was appointed, I gave a handover which amongst others outlined that there was a pending investigation in the IDT.' He also clarified that there is no conclusive report against Malaka. 'There is no report or any concluded investigation by the board or any other body of the state against the appointment of the CEO that was before me as the minister then.' WATCH: Macpherson not deterred by 'political pressure or death threats' over R800m oxygen tender 'Even the much talked about Treasury investigation, I have never seen its sight nor was informed of its conclusion. It remained a board matter and the board as I understand it kept fighting and turning against its own decisions,' Zikalala continued. 'The only available report was the one done by the department's internal audit unit which recommended deeper investigations by the Auditor-General and the DPWI's anti-corruption unit. All these processes arises from the actions I took.' Zikalala said he intends to refer the matter to the Office of the Public Protector for a thorough investigation. 'This will assist so that the truth is exposed and we avoid narratives that are laced with innuendos and speculation.' AmaBhungane details IDT investigation AmaBhungane investigative journalist Azarrah Karrim told Newzroom Afrika on Tuesday that Tebogo Malaka allegedly approved the R45 million lease agreement without informing the IDT board. She reportedly signed the lease with Moepathutse Property Investments, a company said to have political connections. Karrim explained that internal documents indicated efforts by Zikalala and Mshengu to undermine the National Treasury's investigation. ALSO READ: Government sitting on thousands of vacant properties, while taxpayers pay R65m in rates and taxes 'At that point, Treasury told AmaBhungane that they had a draft report ready and had started consultations with the Hawks, but what Zikalala has to answer for is his efforts after Mshengu passed on that investigation onto his department,' she said. She emphasised that while Zikalala had provided AmaBhungane with the internal report, it did not constitute a forensic investigation. 'It was in fact, an assurance audit that only probed the procurement process followed for the lease 'It never proved allegations against Malaka or any other IDT official and that was a mandate that was approved by the board and Zikalala at the time,' she said. IDT board appointments In April, Macpherson reappointed two former board members alongside three new ones, all of whom had previously exited the IDT board during Zikalala's tenure. These appointments are currently being contested in court. Macpherson is opposing the legal challenge, arguing that the appointments are temporary and set to expire on 4 July, after which a new IDT board will be established. NOW READ: Macpherson's IDT appointments face urgent court bid
The Citizen
05-06-2025
- Politics
- The Citizen
Ghost workers drain billions from public funds
Ghost employees are being paid with taxpayer money, costing South Africa billions. This corruption must be rooted out with national audits and criminal prosecutions. The biggest problem facing public administration in South Africa – and the biggest opportunity for looters – is the lack of financial controls and even basic information on the government workforce. That is why it appears to have been a lucrative scam to create 'ghost workers' and then divert their salaries into the thieves' wallets. With a government salary bill of nearly R800 billion in this financial year – and a further R85 billion which is earmarked for employees in state-owned enterprises – the civil service is one fat cow waiting to be milked by the unscrupulous. Estimates are that there are probably tens of thousands of these bogus workers being paid like clockwork with taxpayer money… and that money, which probably runs into the billions, is what should be used for good works, development or even just to keep people from starving. The scale of the actual and possible looting is eyewatering. ALSO READ: How many ghost workers are there in government? The elimination of ghost workers at the Passenger Rail Agency of SA (Prasa) alone saved it R200 million. The Association of Certified Fraud Examiners estimates that ghost employees account for 8% of occupational fraud cases worldwide and experts believe this percentage could be even higher in South Africa, especially in government ranks, because of the lack of control and accountability. Other than Prasa, multiple cases of ghost workers have been revealed in sectors ranging from municipalities to government departments at provincial and national level. It is to be welcomed that President Cyril Ramaphosa has ordered the Special Investigating Unit to probe the ghost worker problem at Prasa… but it must go much further than that. Government directors-general must be told to audit their areas and if discrepancies are found, they must be dealt with. ALSO READ: More than R140 million in salaries paid to suspended government employees Anyone involved in these scams must be prosecuted and locked up because this is economic terrorism, plain and simple.
The Citizen
02-06-2025
- Business
- The Citizen
This is where we would be if SA sustained an economic growth rate of 4.5%
It is enough to make you weep when you read how much better off South Africa could have been with economic growth of 4.5%. If South Africa had sustained an economic growth rate of 4.5% per year, in line with its emerging market peers, its GDP would have been just under R12 trillion in 2024 instead of the actual R7.5 trillion. Government revenue could also have been around R800 billion higher than it is. Investment strategist at Investec Wealth and Investment International, Osagyefo Mazwai, notes that although South Africa has grown over the last 15 years, averaging economic growth around 1% a year, the population has grown at a higher rate of around 1.3%. He points out that there has been a structural break in South Africa's economic performance compared to the rest of the world, with a stark dislocation in gross domestic product (GDP) per capita. 'In essence, people are worse off than they were in 2010, suggesting that economic policy has been ineffectual in addressing poverty, unemployment and inequality. 'On a per capita basis, the rest of the world is 50% richer than the average South African. Growth of 1% will not lead to the envisaged goals of lifting people out of poverty and meaningfully addressing the problems of unemployment and inequality.' This chart compares nominal GDP over the period with what it would have been if the South African economy grew at 4.5% a year to illustrate the point on the opportunity cost of foregone growth in policy formation and execution: ALSO READ: Experts say no way SA can achieve economic growth of 3% this year How does economic growth of R12 trillion sound? Mazwai says if the economy grew at 4.5%, South Africa's nominal GDP would have been just below R12 trillion in 2024, a significant number, especially considering the benefits that could have been derived from a vastly larger GDP. He points out that South Africa's economic growth rates similarly had an effect on government revenue. 'Government revenue in 2024 alone could have been around R800 billion higher, while just a few weeks ago, South Africa faced a budget impasse due to a shortfall in funding, needing to raise R75 billion in the medium term to cover the shortfall. 'That shortfall is insignificant considering how much more could have been raised had the economy grown more in line with emerging market peers. 'The cumulative figure of revenue foregone is scary, at around R5 trillion over the last 15 years. 'That is material, considering the fiscal constraints facing South Africa and demonstrates the need to ensure economic growth to boost the fiscal war chest and further enable the capacity of the state to deliver services.' ALSO READ: IMF's bad news about economic growth for SA, thanks to Trump tariffs What economic growth of 4.5% could have meant Mazwai says these statistics put this into perspective: The R5 trillion lost would be enough to clear almost 90% of South Africa's gross national debt and bring the debt-to-GDP ratio down to just below 10%, compared to the currently expected 77% ratio this year. Eskom needs R390 billion over the next decade for transmission lines, a fundamental pillar of creating greater capacity in the energy sector. Electricity is the backbone of any structural improvement, especially considering the government's goals to build domestic manufacturing capacity and create meaningful employment opportunities. The R390 billion would be a drop in the ocean had growth been 4.5% over the last 15 years. Transnet needs R160 billion to upgrade rail and port infrastructure. Our logistics networks are key in connecting the economy across its internal nodes, but also key in building additional capacity to meet the demands of external markets. Again, R160 billion would have been a drop in the ocean had growth been in line with our peers. Eskom has debt of R400 billion. With economic growth at 4.5%, the government could have bailed Eskom out 12 times. Transnet has a debt of R140 billion, and the government could have bailed out Transnet many times, too. Social grants will cost the fiscus around R266 billion this year. With economic growth of 4.5%, these would have been more than affordable and potentially materially higher than what marginalised citizens receive now, also considering that many more people would have been absorbed into the labour market. ALSO READ: Fourth quarter GDP improved but economists say its still not great – here's why With higher economic growth, South Africa would have functioned better Mazwai says these statistics are significant because they show how South Africa could have been in a better position to address the prevailing needs of the state. 'Granted, if the economy was growing at 4.5% the assumption is that Transnet and Eskom and some of the other structural enablers of the economy would have been functioning properly. 'The numbers indicate the potential for vastly greater capacity to invest in the productive elements of the South African economy, such as in infrastructure, education, healthcare and the salaries of teachers, nurses and doctors.' He also notes that business confidence has been unusually correlated with the performance of state-owned enterprises (SOEs) in the post-pandemic environment, and therefore, SOE reform momentum must be sustained or increased. 'Business confidence is the key leading indicator of economic growth and employment creation. The unemployment rate would be closer to around 20% compared to the current 32.9% had the economy been growing at 4.5%. 'In other words, a third of those presently unemployed, according to the narrow definition of unemployment, would have jobs.' ALSO READ: Absa foresees economic growth of 2.1%, but Trump and budget can disrupt it But there have been some victories so far for the economy However, Mazwai says none of this should detract from some of the victories seen of late, such as: The formation of the government of national unity (GNU) and subsequent political stability and increased policy certainty, although the recent budget impasse showed that these are nonetheless fragile. The increased momentum of Operation Vulindlela in addressing the various structural impediments in the economy. The next steps are critical for addressing water infrastructure and local government inefficiencies. Improvements in the electricity supply and logistics network. Mazwai says there has been some stagnation in the recovery of SOEs, which may be cause for concern, although the worst of SOE performance appears to be behind us. However, he says a reacceleration in trend improvement is important for business confidence to grow. ALSO READ: Economic activity still moving sideways but optimism increases Recovery in PMI could mean higher economic growth 'We recently saw a modest recovery in the S&P Global Purchasing Managers Index (PMI), to a neutral level of 50. There must be a trend improvement in PMIs, which are typically linked to economic outcomes. 'Should PMIs continue to improve, the economy should continue on its path of recovery. This will likely be driven by the continued success of Operation Vulindlela.' Looking at GDP projections, Mazwai says data released so far suggest that while growth was likely weak in the first quarter, a persistent upward trend in PMIs can result in a marked acceleration in growth outcomes. 'PMI improvement will largely be a function of continued improvement in SOE performance. At present, the economy, by our estimates, is tracking at 1.3% for the year, which is well above the 0.6% seen in 2024 and 0.8% in 2023. 'This can then lead to more meaningful employment creation and a trend reversal in GDP per capita from the pattern of decline since 2011.' ALSO READ: World Bank has simple answer to improve South Africa's economic growth What SA can do to keep momentum going to grow He suggests that South Africa follow these steps to keep the momentum going and put South Africa on a firmer growth trajectory:
