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  • Senior health dept official Popo Maja charged with fraud over R140m Digital Vibes contract
    Popo Maja, the director of communications at the national Department of Health, has appeared in court on corruption charges related to a tender awarded to Digital Vibes.
    Maja appeared in the Pretoria Specialised Commercial Crimes Court on Wednesday morning after handing himself over to the police.
    He has been charged with two counts of corruption for his alleged role in awarding a contract worth more than R140-million to Digital Vibes to provide communication services to the department for the National Health Insurance (NHI) programme.
    According to the charge sheet, Maja was part of the bid evaluation committee, which assessed the different bids for the tender.
    It's alleged that he was paid two bribes amounting to R15 000 during this process.
    According to the charge sheet, the money for the alleged bribes flowed from a Digital Vibes bank account into another account owed by Tahera Mather.
    From there, the money was allegedly deposited into Maja's bank account.
    The State has accused Mather of being the true owner of Digital Vibes.
    Maja was sanctioned by the department last July for his involvement in awarding the tender to Digital Vibes.
    One of the charges he faced in an internal disciplinary hearing was gross misconduct as a member of the bid evaluation committee, City Press reported.
    Maja was found guilty of two charges against him, including initiating the request to extend the service-level agreement with Digital Vibes.
    He was subsequently demoted as the department's spokesperson.
    He was issued a final written warning and demoted one salary level. Both sanctions were made valid for 12 months.
    Former health minister Zweli Mkhize resigned over the Digital Vibes scandal after it was claimed that he was linked to the company's alleged owners, Mather and Naadhira Mitha.
    The Special Investigating Unit is probing the matter.
    Maja's case is the second investigation linked to Digital Vibes that has come before the court.
    Lizeka Tonjeni, an employee of the Municipal Infrastructure Support Agent (MISA), is on trial for allegedly accepting a bribe from Digital Vibes to help the company bag a R3.9-million contract from the state organisation.
    MISA falls under the Department of Cooperative Governance and Traditional Affairs..
    Mkhize was the department's minister at the time the contract was awarded.
    No allegations have been levelled against Mather, Mitha or Mkhize in the Tonjeni case.
    3 min
  • Dutch court ends Steinhoff as we know it
    A Dutch court has confirmed Steinhoff's plan to switch from a publicly listed company owned by shareholders to a delisted group under the control of its creditors.
    The decision was handed down shortly after news broke that a German court had issued an arrest warrant for Steinhoff's former CEO, Markus Jooste.
    Once one of South Africa's largest and most successful companies, the furniture retailer never truly recovered from the financial shock of a fraud scandal, which has dogged its every step since Jooste resigned in late 2017.
    While it sought to keep afloat by selling shares in its subsidiaries and selling off some of its prize assets, its debt burden kept growing larger. After finally facing the reality that it would never be able to pay off its €10.2-billion (R200-billion) debt burden by the due date of 30 June this year, it changed tack to seek out a deal with financial creditors to forestall a messy liquidation.
    The deal, which has the group's financial creditors taking over 80% of its equity in exchange for a three-year debt repayment holiday, has now been upheld by a Dutch court. The matter was heard in Amsterdam where Steinhoff is registered.
    "[Steinhoff] and its subsidiaries will now proceed to implement the ... restructuring plan, which is expected to close on or before 30 June 2023," Steinhoff said in an update to shareholders on Wednesday.
    The court rejected a petition by a shareholder body that had asked for the deal to be blocked on the basis that it discriminated against shareholders, who would not get paid out for their shares.
    2 min
  • Inflation slows to 13-month low as food prices cool down
    May's annual consumer price inflation slowed to 6.3% from 6.8% in April, with food prices finally cooling.
    May's inflation rate, which was also slowed by an easing in fuel prices, is the lowest since April 2022, Statistics SA said. It was also cooler than economists expected. The median expectation among economists in a Bloomberg survey was 6.5%.
    The consumer price index (CPI) increased by 0.2% between April and May.
    Food inflation – the prices of food and non-alcoholic beverages - eased to 11.8% from 13.9% in April, which was close to the hottest level in fourteen years.
    Food inflation only increased by 0.3% between April and May – the smallest increase since November 2021.
    Meat prices fell by 0.4% from April to May and were 7.1% higher than a year before – from 9.5% in April. Bread and cereals inflation slowed to 18.1% in May from 20.8% in April.
    Prices for oils and fats are now 2.4% cheaper than a year before.
    But sugar, sweets and desserts grew more expensive - increasing by 11.9% in the year to May – from 10.7% in April.
    From April to May, the price of white sugar increased sharply by 2.7% and slabs of chocolate by 2.9%.
    In the 12 months to May, the average price of a 2.5 kg bag of white sugar increased from R49.68 to R53.00. The average price of a slab of chocolate (80 grams) rose from R17.11 to R20.26 over the same period.
    Prices of cold beverages were 10.5% higher in May from a year before – the highest rate since 2019.
    Statistics SA also reported that restaurant prices increased by a sizeable 1.2% between April and May – taking the annual rate for restaurants to 7.4%.
    Fish and seafood dishes were 11.3% more expensive, followed by pizza (up 9.3%) and red meat-based products (up 9.0%).
    Between April and May, the prices of pies were hiked by 2.3%, followed by hikes of around 2% for hot beverages, poultry-based products, hamburgers and red meat-based products.
    While diesel and petrol prices were hiked in May, fuel prices were only 3.5% higher than a year before - from 5.0% in April. However, vehicle prices increased to 7.5% - the highest increase since 2017.
    Statistics SA also noted sharp monthly price increases for pain killers (+3.0%) and vitamin and mineral supplements (+6.6%).
    Impact on rate hikes?
    The latest CPI number will reassure the Reserve Bank's monetary policy committee, which has already hiked interest rates by 475 basis points in an effort to cool inflation.
    Last month, interest rates were increased by 50 basis points. This came in the wake of a rand crash triggered by US allegations that Russia received arms in South Africa has raised inflation risks. A weaker rand fuels inflation.
    South Africa imports almost all its fuel (in dollars). Other imports will also be more expensive, but also locally produced maize and wheat. Their prices are determined by international prices, usually in dollars.
    In addition, loadshedding is pushing costs and prices higher.
    Reserve Bank Governor Lesetja Kganyago took a less hawkish stance about rate hikes at the last meeting.
    He said monetary policy had now reached "restrictive territory" (hurting the economy).
    "We have got to see the effects of this policy stance and what it means."
    Some economists expect the first interest rate cut only at the start of next year.
    5 min
  • Ramaphosa welcomes Dutch, Danish counterparts in joint working visit
    President Cyril Ramaphosa outlined the country’s challenges and stressed the importance of partnerships in his opening remarks during official joint working visit of the Netherlands and Denmark, in Pretoria, on Tuesday.
    The dignitaries included the Netherlands Prime Minister Mark Rutte and Danish Prime Minister Mette Frederiksen.
    Ramaphosa opened his address by highlighting the country’s energy challenges and the impact on the local economy.
    “Renewable energy forms an increasingly important part of our energy mix and it is vital to both the achievement of a just transition and greater energy security. We hope to benefit from closer cooperation with your countries in this regard, ”Ramaphosa told Rutte and Frederiksen.
    He commended South Africa’s longstanding relationship with the Netherlands and Denmark, and has called for increased co-operation towards shared objectives.
    The President stressed the importance of building mutually beneficial partnerships between regions of the Global North and South to bridge growing divides and addressing common challenges.
    “Given the current challenges in Africa and Europe, it is important that we broaden our dialogue to include regional issues,” Ramaphosa added.
    This sentiment follows on from Ramaphosa’s recent visit to Kyiv and St Petersburg for meetings with Ukrainian President Vladimir Zelenkskyy and Russian President Vladimir Putin, alongside a delegation from seven African countries.
    The delegation called for a de-escalation of the conflict and the release of children and prisoners of war. Further, it highlighted the devastating effects the war is having on African economies, such as food shortages and a rise in the cost of living.
    “We believe that our mission was successful in registering the willingness of African leaders to contribute to a negotiated peace and to highlight the broader effects of the conflict. We hope that it will contribute in some way towards international peace efforts,” Ramaphosa opined.
    3 min
  • July fuel price outlook mixed for petrol, diesel
    Petrol prices currently still look set for a small cut at the start of July. Diesel, however, may be hiked.
    Based on the current oil and rand prices, the latest data from the Central Energy Fund shows that diesel prices may be increased by 10c to 15c a litre, depending on the grade. Petrol 95 and 93 unleaded may be lowered by 6c a litre and 15c, respectively.
    However, there is still some time to go before the final prices are set. Fuel prices will only be adjusted on 5 July.
    South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.
    Brent crude oil has strengthened slightly since the beginning of the month, from $74 to $77 a barrel. But oil remains under pressure owing to a strong supply flow from Russia – as well as concerns about the Chinese economy, which is not rebounding as fast as expected.
    After crashing to close to R20/$ last month amid continuing worries about South Africa's close relationship with Russia, the rand has since recovered and is currently trading around R18.17/$.
    At the beginning of June, the petrol price was cut by 71c a litre, while diesel was lowered by around 80c.
    This brought the price of a litre of 95 unleaded petrol to R22.63 in Gauteng, compared to R24.17 a year before – and a record price of R26.74 in July last year.
    The wholesale diesel price is currently R19.31 per litre in Gauteng. As recently as in November last year, diesel cost close to R25.50. Diesel is back to levels before the invasion of Ukraine caused a big spike in oil prices.
    2 min
  • Oscar Mabuyane wins urgent interdict to stop SIU probe into qualifications scandal
    Eastern Cape Premier Oscar Mabuyane successfully interdicted a Special Investigating Unit (SIU) probe into a qualifications scandal at the University of Fort Hare.
    Mabuyane launched a two-pronged application in the Eastern Cape High Court in Bhisho related to his enrolment at the university.
    The first part of the application was an urgent interdict against the SIU probe, until the court had heard the second part of the application.
    He approached the court to have the entire SIU probe with regard to his enrolment declared unlawful and set aside.
    The premier argued the investigation was unconstitutional because it went beyond the scope of a proclamation signed by President Cyril Ramaphosa.
    The proclamation, he argued, was limited to the admission of individuals who enrolled for Honours degrees.
    Mabuyane also argued that the SIU was not empowered to investigate educational matters. He said only Higher Education Minister Blade Nzimande had the authority to investigate academic matters.
    During the hearing before Judge Thandi Norman last week, Mabuyane's legal counsel, Tembeka Ngcukaitobi, argued that the SIU had expanded its scope to include Mabuyane, who was not covered in the original proclamation.
    Mabuyane's team said the SIU could not change the scope of a presidential proclamation without notifying Ramaphosa.
    Ngcukaitobi said Mabuyane did not enrol for an Honours degree, but was enrolling for a Master's degree via the Recognition of Prior Learning programme.
    He said the SIU's behaviour was unlawful, irrational and abusive, considering that Mabuyane was the one who had approached the university and offered to help its investigation.
    In response, the SIU's legal counsel, Gilbert Marcus, said that, if Mabuyane was innocent, he had nothing to fear.
    Marcus argued that the SIU was empowered to probe corruption, adding that often the scope of the investigation changed based on the evidence that emerged.
    Delivering judgment, Norman declared the SIU was interdicted, pending the hearing of the second part of Mabuyane's application.
    Norman ruled the SIU had misinterpreted its authority - and, although it mentioned Master's degrees and doctorates in its motivation to Ramaphosa, it never motivated for an inclusion in the proclamation.
    She said the terms, "such as or including", which the SIU and the university had used to grant itself extended investigative powers, were not in the original proclamation.
    Norman cited responding papers from Ramaphosa, which urged the SIU to write a motivation if it sought to expand the scope of the probe to Master's degrees.
    The SIU spokesperson, Kaizer Kganyago, said they were studying the judgment and would respond at a later stage.
    The university, in turn, said its attorneys were studying the judgment.
    "The University of Fort Hare is committed to see all issues of maladministration and fraud in the institution being dealt with in order to root out corruption," said the university's spokesperson, JP Roodt.
    Mabuyane was approached for comment, which will be added once received.
    4 min
  • 'Silence the guns, let's talk': Mbeki says SA's neutral stance on Ukraine-Russia war is correct
    Former president Thabo Mbeki says the non-aligned stance taken by South Africa in the Ukraine-Russia war is correct, especially if the country is to play a role in mediation between the two countries.
    Speaking to journalists on the sidelines of his 81st birthday celebrations on Sunday, the former statesman said South Africa's position on the war was no different from the stance that African countries have previously taken to conflicts on the continent.
    "This is a traditional African position. If you look at the way we approach conflict on the continent, it does not matter which country is involved; we always say: 'Let's stop the guns firing and sit down,' and we can then decide the causes of the war and so on to find the solution," said Mbeki.
    South Africa has faced criticism for its non-aligned stance on Russia's invasion of Ukraine.
    The decision has seen tension arising between the country and others in the West, particularly the US.The US had expressed concern over African countries taking a non-aligned stance in the conflict, as the powerhouse pushes for countries to condemn Russia for its invasion.
    Last week, speaking at a digital press briefing, US President Joe Biden's special assistant and senior director for African Affairs at the National Security Council, Judd Devermont, said: "We share Congress' concern about South Africa's potential security partnership with Russia. As you know, Russia is waging a brutal war against the people of Ukraine, and we are constantly working on cutting off support and funding for Putin's war machine and undercutting Russia's ability to carry out this conflict. As part of these efforts, we are strongly encouraging countries not to support Russia's war."
    :"If you want to be a mediator, you cannot start by condemning one side or the other. You have got to say: 'First of all, let us sit down. Silence the guns, let's talk.' It is during the negotiations that you can say: 'You were wrong; you were right.' This neutral position in that sense is correct," Mbeki said.
    Speaking on the African Peace Initiative led by President Cyril Ramaphosa, Mbeki said African presidents had taken the right approach by first listening to Ukraine President Volodymyr Zelensky and Russian President Vladimir Putin to establish the facts on both sides.
    Last week, Ramaphosa led a delegation including Zambian President Hakainde Hichilema and Comorian President Azali Assoumani, as well as leaders from Uganda, Egypt and the Republic of Congo, to Ukraine and Russia to meet with Zelensky and Putin as part of peace initiative talks.
    "I think that is an important decision to take because you must try and understand what each side is saying, what the nature of the problems is, and what the nature of the solutions is. I think it is only on that basis that it becomes possible for us as Africans to have our own proposals, having listened to both sides..." said Mbeki, who is no stranger to mediation.
    Addressing the audience that had gathered to celebrate his birthday with him at the Joburg Theatre in Braamfontein, Johannesburg, he encouraged South Africans not to lose hope even as the country weathers various problems.
    "It is winter, but I think we are suffering from a different kind of cold as a country. It will not snow tonight in Johannesburg, but it will be cold for other reasons because the electricity supply system is unreliable, there is too much criminality, too many people are unemployed... Lots of problems. And I think that is what makes South Africa cold," he said.
    "But I am very glad indeed, and [his wife] Zanele is very glad that we were able to convene here today to keep one another warm. To keep one another warm in this sense that the performers we see here today. communicate a message of hope. It is a message of hope that even as we sit here, we communicate joy."
    The performers he was referring to included Ringo Madlingozi, Linda Skhakhane, Simphiwe Dana and the Drakensberg Boys Choir.
    "Yes, there is a lot of mi...
    5 min
  • EFF demands that South Africa downgrade Poland embassy after being 'undermined'
    Although precise details remain unknown, claims of racism have arisen following the Polish authorities' refusal to grant South African media and the president's security personnel access to Poland and Ukraine.
    This comes after the Polish government restricted the media tasked with covering the peace mission of President Cyril Ramaphosa and a delegation of African leaders and representatives last week from disembarking for over 24 hours due to administerial issues.
    The Economic Freedom Fighters (EFF) has since demanded decisive action.
    Touching on the matter on Sunday, the EFF described Poland's treatment of the South African journalists and presidential security as "racist and a constraint on human rights and the media's freedom".
    In a statement, the party said, "Poland outwardly restricted media freedom and human rights of passengers and the crew by detaining them on a flight and then refusing them their journey forward to Ukraine and thereafter Russia."
    While the party lambasted Polish authorities for compromising Ramphosa's safety, it also threw jabs at the president for his "non-aligned" stance in the Russia-Ukraine conflict, saying it contributed to the country being "undermined".
    The EFF said: "The South African head of state had to travel to Kyiv in a compromised state, in a war zone, without his security detail. This is an unacceptable and deliberate form of humiliation. While Cyril Ramaphosa is an incompetent and corrupt buffoon of imperialism who is incapable of taking a firm stance on the conflict between Russia and Ukraine, the South African state and our sovereignty was undermined through him."
    It urged the South African government to defend its dignity by downgrading Poland's embassy in the country and recalling its ambassador to Poland.
    Meanwhile, Priyal Singh, a senior researcher with the Institute for Security Studies, has advised against the country making severe decisions as the facts relating to the matter have yet to be disclosed.
    He said: "We still need to wait for the facts. I don't think any of us has a clear picture or understanding of exactly what transpired in Poland. Making a call to reorient or review our relations with Poland, I think, is a premature and unwise move. We first need to clearly establish what the facts are before we can make a very serious decision such as that."
    Although Singh would not interpret the incident without the relevant information, he said the incident did not mean there are strained relations between Poland and South Africa.
    "I don't think it is a proper reflection of South Africa and Polish bilateral relations in any way. This was a peculiar, isolated incident and, again, we need to establish what the facts were."
    Depending on who we listen to, there are different sides to the story. Some point towards serious logistical and planning blunders made by the South African government [while], on the other hand, we can point towards the Polish authority for how they handled the situation.
    The Democratic Alliance (DA) has announced it plans to submit questions to the Presidency to clarify whether the allegations of racism made by the head of the Presidential Protection Unit, Major General Wally Rhoode, were true and accurate.
    In a statement, DA leader John Steenhuisen slammed the Presidency's administration for its "sheer incompetence" which contributed to the detainment of journalists and security.
    Steenhuisen said the party would also be enquiring into the total cost of the trip and seeking a breakdown of the security detail accompanying Ramaphosa on the trip.
    4 min
  • Delegation to Russia, Ukraine focused on food security, says Ramaphosa
    De-escalation of fighting, increased negotiations, and renewed trade in grain are among some of the points listed in a proposal by African states to end the war in Ukraine, President Cyril Ramaphosa has said in his weekly newsletter.
    The president has just returned from Ukraine and Russia as part of a delegation from seven African countries to promote a peaceful resolution to the conflict.
    The delegation met with Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin separately to present a 10-point proposal that could "contribute to various efforts that have been made by various parties to bring the conflict to an end".
    "Included in the proposal being put forward as part of the African Peace Initiative are calls for a de-escalation of fighting and for negotiations to commence with urgency; for the release of prisoners of war and return of children; for greater humanitarian support; and for reconstruction efforts to be prioritised," said Ramaphosa.
    He added that it "is having a very real effect on African countries and economies" and that the continent had a "material interest in seeing a resolution to the conflict".
    "Both Russia and Ukraine are major suppliers of grains and producers of fertiliser destined for African markets. According to the African Development Bank, the conflict has 'triggered a shortage of about 30-million tonnes of grains on the African continent, along with a sharp increase in cost'. As a result of this conflict, African countries are negatively affected by the rising costs of food and energy," Ramaphosa said.
    "Another point of the peace proposal being put forward by African leaders is for the opening up of the movement of grains across the Black Sea for grains from Russia or Ukraine to reach world markets."
    The president said South Africa would continue to maintain a neutral position and advocate for the conflict to be settled through negotiations and diplomacy.
    Ramaphosa added that both Zelensky and Putin had agreed to further engagements.
    3 min
  • Heavy rains cause havoc in Cape Winelands and surrounds
    Heavy rainfall led to flooding across many parts of Cape Town on Wednesday evening, with authorities attending to several affected areas on Thursday morning.
    The City of Cape Town's disaster risk management spokesperson Charlotte Powell said teams were working hard to implement flood alleviation measures, especially where stormwater systems were blocked.
    "There have been mudslides in the Oudeskip area in Hangberg, Hout Bay. The Eerste River/Kuilsriver has burst its banks, causing flooding of some properties in Zandvlei, Macassar.
    "Informal settlements have been affected in Sir Lowry's Pass Village, Old Crossroads and Schaapkraal areas. The Mosselbank River burst its banks, affecting residents in Philadelphia and Klipheuwel," she said.
    Powell added that Keyser River was also a concern, as it had burst its banks again.
    "The City's Roads Infrastructure and Management Services are assisting to divert water from surrounding properties. Numerous uprooted trees have been reported. Recreation and Parks is attending to these incidents, and numerous roadways have been flooded across the city," she said.
    Meanwhile, Cape Winelands District Municipality Mayor Elna von Schlicht has appealed to the public not to travel this long weekend and to keep roads clear to ensure that emergency and clean-up crews can move freely.
    She said:
    The severity of the weather over the past few days has had a significant impact on our daily lives. Citizens across the district have been affected. The stormy weather is expected to persist through the weekend and into next week.
    Von Schlicht also appealed to residents to stay home over the long weekend and to travel only if absolutely necessary.
    "It is crucial that we keep our roads clear for emergency personnel and other essential services as they navigate to areas that pose a threat to our safety. If there is no alternative and you must travel, please adhere to traffic and road instructions," she stressed.
    3 min

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