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  • Solly Malatsi refers KPMG’s Postbank report to the Hawks
    The Minister of Communications and Digital Technologies Solly Malatsi has instructed the Postbank board to ensure that the recommendations contained in the KPMG report are implemented, and he has referred the report to the Directorate of Priority Crime Investigation, also known as the Hawks, to ensure prosecutions.
    The KPMG investigation was instituted following confirmation by the Auditor General of South Africa in the 2021 report detailing fraudulent activities at Postbank.
    The forensic report on governance and financial breaches at Postbank shows that the institution was compromised, which resulted in financial losses to the value of about R89.5-million, between 2021 and 2022.
    The report was presented to the Parliamentary Portfolio Committee on Communications and Digital Technologies by a delegation led by Deputy Minister Mondli Gungubele on Wednesday.
    Malatsi said his department would use the full might of the law to fight anyone who "dares rob citizens".
    He highlighted that what made the cash theft "even more repugnant" was that some of the stolen money came from vulnerable social grant beneficiaries.
    "I expect decisive action to ensure that public entities are run ethically and with integrity, for the benefit of our citizens, and not criminals," he stated.
    2 min
  • South African business confidence gets boost from coalition government, survey shows
    South African business confidence rose in the third quarter, helped by improving optimism about the business climate after the formation of a coalition government and stable electricity supply, a survey showed on Wednesday.
    The business confidence index rose to 38 points in the third quarter from 35 points in the prior quarter, according to the survey by the Rand Merchant Bank (RMB) and compiled by the Bureau for Economic Research.
    "Fortunately, the widely anticipated interest rate cut in South Africa later this month, on the back of lower consumer inflation and a boost from the introduction of the two-pot retirement system should spur domestic demand through the remainder of the year," Isaah Mhlanga, chief economist at RMB said in a statement.
    The South African Reserve Bank is expected to start cutting interest rates from this month for the first time in four years.
    The African National Congress lost its parliamentary majority for the first time in 30 years in May, and later formed a broad coalition with several parties including the market-friendly Democratic Alliance.
    Additionally, State-owned power utility Eskom managed to keep the lights on for over five months without scheduled blackouts in the country where power cuts have hampered economic growth for over a decade.
    However, businesses activity was still constrained especially from weak demand, but the survey indicated conditions are expected to improve in the next quarter.
    Retail confidence improved to 45 points from 39 in the previous quarter helped by improvement in durable and semi-durable traders' sales volumes.
    Manufacturing sector confidence remained stable 28 points as a drop in production due to declining exports and domestic demand was offset by optimism at new vehicle dealers surging to a one-year high.
    Wholesale trade was the most optimistic sector surveyed, with over half of respondents satisfied with prevailing business conditions.
    3 min
  • Solidarity criticises Motsoaledi’s use of race to gain support for NHI
    Trade Union Solidarity on Tuesday condemned what it termed "dangerous statements" made by Health Minister Aaron Motsoaledi, saying he uses race to try to gain support for government's "unworkable" National Health Insurance (NHI).
    Speaking at the eighty-second International Pharmaceutical Federation Congress in Cape Town, Motsoaledi compared criticism of the NHI to the apartheid era's scaremongering about the "swart gevaar" (black peril).
    Solidarity said the right steps were not followed in the drafting of the NHI legislation and accused Motsoaledi of not answering the "simplest questions" relating to the NHI. It urged him to provide evidence that showed that the NHI was workable and affordable.
    Solidarity Research Institute economic researcher Theuns du Buisson said the Minister's comments were "irresponsible" and formed part of "dishonest attempts" to appease an international audience about the NHI.
    "Without realising it, the Minister is the one taking us straight back to the 1980s. That was when PW Botha used the expression 'swart gevaar' to implement policies that no one agreed with. Now Minister Motsoaledi is using it precisely to threaten people about legislation that South Africans simply do not want, and which will cause great harm to all of us," he said.
    He accused Motsoaledi of not showing respect for the Government of National Unity (GNU), and warned that "reckless" NHI advertising could jeopardise the GNU.
    "Now is the time for the country to unite on progress. To classify based on race, again, or to accept that rich and poor are equal to white and black, only sows division. Many of the groups that spoke out against the NHI are in no way representative of white communities," Du Buisson stated.
    Solidarity stated that there was not black peril, and warned that everybody in the country could become impoverished and that doctors could leave the country in droves.
    "…and in saying this we are talking about people and doctors of all racial groups in South Africa. It is in everyone's interest that Solidarity stops the NHI with its litigation," Du Buisson said.
    3 min
  • CDE wants ‘quality’ appointments to JSC
    Policy think tank the Centre for Development and Enterprise (CDE) said on Tuesday that the Government of National Unity (GNU) needs to act speedily to preserve and strengthen the country's judicial system, noting specifically that the quality of the commissioners serving on the Judicial Service Commission (JSC) needs to be improved.
    In a webinar on 'How to appoint a strong judiciary', CDE CEO Ann Bernstein pointed out that the JSC "cannot be allowed to descend again into a mechanism for calculations of political advantage, and mechanistic applications".
    The 23-member JSC was established in terms of Section 178 of the Constitution and advises national government on any matters relating to the judiciary or the administration of justice. It interviews candidates for judicial posts and makes recommendations for appointments to the bench, as well as handles complaints against judges.
    Bernstein said the quality of the appointments to the JSC mattered and could be hugely influential.
    "By addressing issues threatening the selection, effectiveness and independence of the country's judges we will be strengthening the rule of law, which in turn underpins the country's ability to deal with crime and corruption, as well as efforts to fix the State," she said.
    She explained that bolstering the rule of law would create the underlying conditions required to raise investment, growth and employment levels, all of which were critical elements of inclusive growth.
    "An effective judiciary is not a 'nice to have'. It is critically important for the country's future. It underpins the hope of getting the growth and inclusion we desperately need. There can be no rule of law without an effective and independent judiciary to enforce the law. Rules without proper and impartial enforcement do not endure," Bernstein stated.
    While the judiciary had demonstrated independence, she noted several risks, including what she said was the declining quality of judicial appointments.
    "The institutional importance of this cannot be overemphasised. Law is often complex. Cases are fought by way of public contestation. The rules of engagement call for judges who are fair, firm, efficient, cogent in their reasoning, and able to deliver written judgments without undue delay. Judges who do not meet these criteria (and who lack the required competence and application) should not be appointed to the bench. However, all too often, the JSC - the Constitutional body tasked with selecting fit and proper persons for appointment - has not chosen wisely," she alleged.
    She said the judiciary should attract to its ranks lawyers who had excelled in their practice, but said, unfortunately, the JSC had engaged in judicial selection that had weakened the judiciary over the years.
    Bernstein highlighted that the JSC's procedures required reform, noting procedural shortcomings at the JSC.
    She explained that firmer leadership of the JSC was also needed to prevent "wayward decision making", saying this highlighted a further aspect that required correction.
    The CDE wants the JSC to have better support and researchers who can help prepare its commissioners for interviews and deliberations and also suggested revisiting the composition of the JSC.
    The judiciary also needs to be properly resourced, as the CDE believes there are "important warning signs of trouble brewing now" and into the future in terms of the quality of appointments.
    Meanwhile, the CDE noted that members of the National Assembly and the National Council of Provinces must be "required to apply their minds independently, in the national interest and not party interest", to the suitability of nominees for appointment to the JSC and must be held to account in doing so.
    Bernstein said candidates for judicial office must be evaluated objectively and only with reference to the Constitutional requirement that they be "appropriately qualified" and "fit and proper" persons for appointment, though with consideration of the need for a jud...
    5 min
  • ActionSA questions EFF, MK Party funding disclosed to IEC and launches legal action against commission
    ActionSA wants the Independent Electoral Commission of South Africa (IEC) to investigate the Economic Freedom Fighters (EFF) and the uMkhonto weSizwe Party (MKP), claiming that the parties' recent political party funding disclosures do not corroborate their election campaigns.
    In its first report since the May elections, detailing political party funding, the IEC revealed that between April and June, parties declared almost R200-million in donations, the highest recorded since the Political Party Funding Act came into effect in 2021.
    In the first set of disclosures for the 2024/25 financial year, the EFF declared R515 313 of in-kind donations, made by MTN in the form of sim cards, mobile data, minutes and routers, for electioneering.
    The MKP declared R380 555 from the South African Policy Education Initiative, a not-for-profit organisation registered with the Department of Social Development in March.
    In its complaint to the IEC against both parties, ActionSA argued that the EFF and MKP seemed to have exceeded their respective disclosed funding, when looking at the scale of their respective election campaigns. It said the IEC must investigate.
    "In the case of the EFF, R3.5-million was disclosed since the start of the 2022/2023 financial year in the context of an election in which the EFF is estimated to have spent over R100-million on stadium events alone. Perhaps even more absurd is (sic) the disclosures by the MK Party which, since its registration, managed disclosures of less than R400 000 in the context of an election in which it emerged as one of the most well-funded political parties and speculation of foreign funding," ActionSA national chairperson Michael Beaumont said.
    He said South Africans should be able to vote with full transparency from parties relating to their respective funding.
    "ActionSA contends that the IEC is not only the only institution in government empowered to investigate these matters, but that the IEC cannot wait for a party to self-incriminate before its legal obligations in terms of the Act kick in. If a political party demonstrably runs an election campaign that patently and so substantially exceeds its disclosed means of funding the campaign, then the IEC must investigate," he stated.
    Meanwhile, ActionSA has taken legal action against the IEC's handling of the R150-million Ezulweni Investments debt settlement, as it relates to the African National Congress (ANC).
    Last year, Ezulweni wanted to liquidate the ANC to recover money owed to it for work done during the 2019 elections.
    However, ANC veterans and party President Cyril Ramaphosa intervened and the company and party settled out of court.
    ActionSA had asked the IEC to investigate matter, claiming that the settlement could not be lawful under the Party Funding Act, which it further claimed was "being rendered meaningless" by non-adherence, self-declaration by parties and by a lack of investigating powers in the IEC.
    ActionSA argued that in terms of the Ezulweni matter, interest from 2019 would mean that the debt was higher than R150-million.
    Further, it stated that the settlement could "not legally be discounted by more than R15-million".
    "The ANC only had R10-million in disclosures in the quarter under question in which the settlement was concluded and had been in financial distress unable to pay salaries for striking workers. Any donor paying an account more than R100k would have to be declared as donation in kind - no such declaration was forthcoming. The settlement would require a minimum of 10 donors to settle account with disclosures and no such disclosures were made," Beaumont laid out.
    Additionally, ActionSA believes that South Africans could have footed the settlement bill, as it claimed, since January, that Ezulweni Investments is a registered vendor to at least one KwaZulu-Natal municipality where it has been awarded tenders.
    "ActionSA's efforts to engage the IEC to investigate this matter eventually led to correspondence from t...
    6 min
  • Thembi Simelane to meet with Parly committee over VBS allegations
    The Portfolio Committee on Justice and Constitutional Development and Minister Thembi Simelane will meet on Friday, following allegations levelled against Simelane, relating to a VBS Mutual Bank loan.
    Early this week, media reports revealed that while serving as the mayor of Polokwane in 2016, Simelane took a "commercial loan" of R575 600 from Gundo Wealth Solutions, a company that brokered "unlawful" investments of R349-million into VBS Bank on behalf of the Polokwane municipality, amongst others.
    Committee chairperson Xola Nqola said on Monday that it "noted with grave concern" the allegations made against Simelane.
    President Cyril Ramaphosa has also requested a detailed report and briefing from her on the matter.
    "These types of allegations are damaging to the image that South Africa is trying to portray as a country ridding itself of any form of corruption. We therefore thought it prudent to call the Minister speedily to a committee meeting where she can take Parliament and South Africans into confidence regarding these allegations," he said.
    Political parties are also urging Simelane to account for the allegations made against her, with some calling for her to step down as Justice and Constitutional Development Minister.
    2 min
  • Sustained low CPI may spur South Africa rate cuts, Kganyago says
    South Africa needs to sustain a low inflation rate to justify a change in the central bank's monetary policy stance, Governor Lesetja Kganyago said.
    Consumer-price growth was 4.6% in July, the lowest level in three years. That took the spread between the South African Reserve Bank's policy benchmark and the annual inflation rate to an 18-year high and fuelled bets that the central bank's monetary policy committee will start its interest-rate cutting cycle when it meets on Sept. 19. Forward-rate agreements - used to speculate on borrowing costs - are fully pricing in a 25 basis-point reduction in the key rate this month.
    While the latest inflation data is welcome, it reflects historic price changes, Kganyago said in an interview with State-owned SAfm radio on Monday. "What South Africa needs is not just lower inflation, but sustained low inflation," he said.
    The central bank seeks to stabilise inflation and anchor price-growth expectations at the midpoint of its 3%-6% target range. Its held the key interest at 8.25% since May 2003.
    While a decline in the inflation rate in July 2023 generated similar optimism to the latest data about a potential easing in monetary policy, Kganyago advised caution.
    "It was this time last year that we had an inflation reading that was at 4.7% and there was excitement around it," he said. "Lower inflation is always welcome, but what was needed to be seen was sustained low inflation, and indeed, the South African Reserve Bank was proved to have been correct, because a few months later, inflation creeped up."
    Kganyago has repeatedly said the MPC will only be comfortable lowering borrowing costs when inflation eases sustainably toward 4.5%. The central bank's monetary policy is "prudent" rather than conservative, he said.
    3 min
  • Ramaphosa recommits to political, economic ties with Jinping ahead of China-Africa Summit
    Ahead of the ninth Forum on China-Africa Cooperation (Focac) Summit, on Thursday, President Cyril Ramaphosa met with Chinese President Xi Jinping, in Beijing, on Monday, where Ramaphosa reaffirmed South Africa and China's "mutually beneficial political and economic ties".
    Speaking at a welcome ceremony held for him, Ramaphosa expressed delight in Jinping's proposal to upgrade China's Comprehensive Strategic Partnership to an All-Round Strategic Cooperative Partnership with South Africa.
    China has multiple such strategic partnerships with African and Asian countries.
    "This will elevate our mutually beneficial political and economic ties for the benefit of both our countries and our people. As our history demands, South Africa will continue to pursue progressive internationalism. We remain firmly committed to the One China Policy. Our two countries share many common objectives," Ramaphosa told Jinping.
    He described China and South Africa's political relationship as a foundation of an "unwavering and valuable friendship".
    Ramaphosa committed to promote African interests, as well as those of the Global South.
    "I am confident that we will have the opportunity to openly exchange views on many issues regarding our political, economic and technical cooperation as outlined in the 10-Year Strategic Programme of Cooperation. I am also confident that we will find common ground on key regional issues and other global challenges," he said.
    While there has been an increase in bilateral trade between South Africa and China, Ramaphosa stressed the need to narrow the deficit and focus on South Africa's trade structure.
    He further called for more investments that would result in sustainable manufacturing and job-creation.
    "Development cooperation between our two countries continues to grow, covering many areas. We welcome the progress made in several Focac-related projects. Last year, South Africa hosted the tenth Brics Summit, and we appreciate China's support for the positive outcomes achieved," Ramaphosa said.
    Speaking of the global conflicts affecting Africa and the Global South, Ramaphosa recommitted to cooperation with China on multilateral issues.
    As it prepared to host the G20 Summit next year, South Africa's focus would be on developmental challenges affecting Africa and the Global South, Ramaphosa promised.
    "I look forward to engaging with you on many issues. I believe that our elevated levels of mutual trust will accommodate each other's interests, views and concerns - and deepen our cooperation as we build a shared future," Ramaphosa said to Jinping.
    3 min
  • Murder decreases nationally but Minister notes increase in four provinces
    Police Minister Senzo Mchunu revealed on Friday that four of South Africa's nine provinces recorded increases in murder cases, with the highest increase noted in the Western Cape. North West, Eastern Cape and Limpopo also experienced an increase.
    The police ministry released the crime statistics for the fourth quarter of the 2023/24 financial year and the first quarter of the 2024/25 financial year, where Mchunu pointed out that the ministry had a busy start to the year, with the national and provincial elections in May, which he said resulted in the delay of the release for the last quarter of the previous financial year.
    Mchunu highlighted that for the ratio of murders committed per 100 000 of the population, per province, the Eastern Cape stood at 17.6%, the Western Cape at 15.3%, KwaZulu-Natal (KZN) at 12.3% and Gauteng at 8.3%.
    He said Limpopo recorded 3.3% per capita, making it the safest province as far as murder is concerned.
    Mchunu pointed out that the top 30 police stations for murder were in the Western Cape with 11 of these stations, KZN with eight, Eastern Cape with six stations and Gauteng with five.
    He highlighted that the leading stations were Nyanga, Inanda, Umlazi, Khayelitsha and Harare.
    Between April and June of this year, a total of 6 198 murders took place, down 30 from the previous quarter.
    Eight-hundred and ninety-seven murders took place during arguments or misunderstandings; 382 took place during robberies, 331 during vigilantism; 270 in gang-related circumstances; 50 occurred in hijacking and attempts and 44 took place in taxi-related incidents.
    Mchunu noted 966 murders of women from April to June 2024, and 314 murders of children from April to June 2024.
    The analysis of place of occurrence for murders in the first quarter crime statistics showed that the majority of the murders occurred in public places, except for the Northern Cape, where most of the murders occurred at the residential premises of either the perpetrator or victim.
    He also noted a total of nine farm murders reported, where he said four victims were farmers, and three were farm dwellers.
    These, he said, were crucial stakeholders and the South African Police Serve would ensure they worked with the farming community to address the challenge.
    Ninety-one incidents of rape were reported.
    "The data is a stark reminder of the urgent need for action. We are confronted with a crisis that threatens the safety of our communities and undermines the stability of our nation. Contact crimes are wreaking havoc and instilling fear. This is unacceptable, and we must confront this challenge with unwavering resolve and strategic precision," said Mchunu.
    4 min
  • Parties declare almost R200m in funding with DA, IFP, Rise Mzansi receiving lion’s share
    In its first report, since the May elections, detailing political party funding, the Independent Electoral Commission of South Africa (IEC) revealed that between April and June, parties declared almost R200-million in donations, the highest recorded since the Political Party Funding Act came into effect in 2021.
    The Democratic Alliance (DA) declared the highest amount of monetary and in-kind donations valued at R56 601 039.
    The party's monetary donations totalled R48-million and were made up of R15-million each from Fynbos Ekwiteit, Fynbos Kapitaal and Jonathan Oppenheimer; R2.5-million from SAFDEV SSDC (Pty) Ltd; and R500 000 from Discovery Central Services.
    In-kind donations for the DA totalled R8 601 039 and came from Voices of South Africa Foundation NPC.
    The Inkatha Freedom Party (IFP) received the second highest in donations with R38 340 000. It received individual donations from Jonathan Oppenheimer and Nicholas Frank Oppenheimer, each of whom donated R15-million, as well as R7.5-million from Martin Paul Moshal; and R420 000 each from African Rainbow Minerals and Harmony Gold Mining Company.
    Rise Mzansi declared the third highest donations, totalling R33 895 000, with R15-million each from We Are The People and Rebecca Oppenheimer, as well as R3.3-million from The Tempyr Trust, R320 000 from the Zungu Family Trust and R275 000 from Craig Butters.
    The African National Congress declared R26 015 313 in donations, with the Batho Batho Trust donating R15-million, the United Manganese of Kalahari donating R5-million, Chancellor House Trust donating R5-million, and Discovery Central Services donating R500 000.
    The party also received R515 313 of in-kind donations from MTN for electioneering and included sim cards, mobile data, minutes and routers.
    ActionSA declared R13 186 000 in donations, with R7.5-million from Martin Moshal, R5-million from Victoria Freudenheim and R186 000 from party leader Herman Mashaba. Leap Serve Holdings (Pty) Ltd and Moxitone Investments (Pty) Ltd each donated R250 000.
    Build One South Africa (Bosa) declared R12 877 709 in donations. Martin Paul Moshal donated a total of R11.5-million to the party in the reporting period, while R1-million was donated by Mary Slack. The Douw Steyn Family Trust donated R250 000 to Bosam while R127 709 was donated by German foundation Konrad Adenauer Stiftung NPC.
    The Patriotic Alliance declared R6 649 900 in donations with R5.1-million from ZAR Empire Holdings (Pty) Ltd, owned by party leader Gayton McKenzie. He also made a personal donation of R299 900 to the party. Valumax Projects (Pty) Ltd donated R1-million and Delicate Slate Mining (Pty) Ltd donated R250 000.
    GOOD Party received R600 000, which comprised R500 000 from We Are the People and R100 000 from Winston Brittow.
    The Economic Freedom Fighters received R515 313 of in-kind donations, made by MTN in the form of sim cards, mobile data, minutes and routers, for electioneering.
    The South African Rainbow Alliance made its first ever declaration of R400 000 from TMBH (Pty) Ltd.
    uMkhonto weSizwe Party declared R380 555 from the South African Policy Education Initiative, a not-for-profit organisation registered with the Department of Social Development in March.
    The African Christian Democratic Party declared R240 000 - R120 000 each from African Rainbow Minerals and Harmony Gold Mining Company.
    Change Starts Now declared R150 000 from the party founder and leader William Rodger Jardine.
    "The donation was received on 25 May 2024 despite the party having already announced in March of the same year that it would not be contesting the 2024 national and provincial elections," the IEC said.
    The Independent South African National Civic Organisation (Isanco) declared R100 000 from an entity named Main Street 1564, owned by Anthony Charles Ball. The IEC noted that the donation was reported not by Isanco, but by Ball, and said it would follow up with the party to ensure compliance.
    Meanwhile, the Multi-Party Democracy Fun...
    7 min

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