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The National Assembly on Wednesday evening adopted the controversial Expropriation Bill, which would allow nil compensation to be paid to landowners under certain circumstances.

However, the Democratic Alliance (DA), Economic Freedom Fighters (EFF), Inkatha Freedom Party (IFP), Freedom Front Plus (FF+) and African Christian Democratic Party (ACDP) objected to the bill. The DA proposed amendments to the bill, but couldn't muster the votes required to effect the changes to the bill.

Introducing the bill, Public Works and Infrastructure Minister Patricia de Lille said expropriation wasn't unique to South Africa.

"The ability of governments to acquire or expropriate land for the public good is something that is found worldwide," she said.

If enacted, the bill would replace an apartheid-era law that does not allow for nil compensation to be paid or expropriation in the public interest.

"The 1975 act is inconsistent with the Constitution in many respects, and the current bill proposes to bring the law in line with the Constitution," De Lille said.

'Not a silver bullet'

"The expropriation bill makes explicit what is implicit in the Constitution.

"Expropriation of property with nil compensation is not a silver bullet.

"Expropriation is only one acquisition mechanism that in appropriate cases, for public interest, will enable land reform and redress.

"The bill does not prescribe nil compensation will be paid in these cases," she added.

De Lille said compensation would be determined by an agreement between the State and the owners, and if no agreement was reached, it would be "decided or approved by a court of law".

"This bill brings certainty to South Africans and investors because it clearly outlines how expropriation can be done and on what basis. So, it is extremely dangerous to suggest that government will arbitrarily take people's property, such as their homes," De Lille said.

She said land was an emotive issue, and people of colour who were dispossessed and prohibited from owning land during apartheid still felt great pain.

"What is wrong is to instil fearmongering; [it] distorts the facts in a debate about land, and this is done all too often. Many times, those that object to the bill are people who have never been subjected to laws that have stripped people of their property, their dignity and their rights to own property," she said.

African National Congress (ANC) MP Nolitha Ntobongwana, the chairperson of the Portfolio Committee on Public Works and Infrastructure, said they received legal opinions on the bill.

"The committee is of the view that the bill passes constitutional muster. There is no need for panic among members of the opposition on the constitutionality of the bill."

DA MP Samantha Graham-Maré pointed out that Parliament last year failed to pass an amendment to Section 25 of the Constitution to allow expropriation without compensation.

"In spite of this, the ANC have insisted that the exact clause that they failed to pass be retained in the Expropriation Bill. It is our contention that this [is] a brazen attempt by the governing party to amend the Constitution through the back door using ordinary legislation," said Graham-Maré.

"It cannot be countenanced that a clause that was deemed so pivotal as to require a constitutional amendment should now just be adopted in the House by a simple majority."

She said Section 12(3) of the Expropriation Bill "clearly contravenes" the Constitution by providing specific instances where nil compensation was already deemed to be just and equitable.

"Our proposed amendment to Section 12(3) of the Expropriation Bill stipulates that nil compensation should only be the starting point in two instances – where land is owned by the State and is no longer needed by the department or organ of State, and where State property that was previously expropriated and paid for, is needed for another purpose.

"Expropriation without compensation should never be the basis for the commencement of ne...

Former president Jacob Zuma has failed to convince the Constitutional Court that Mandisa Maya, the former head of the Supreme Court of Appeal, grossly misdirected herself by refusing to reconsider his bid to force the removal of prosecutor Billy Downer from his corruption trial.

The apex court unanimously dismissed Zuma's argument that Maya - who President Cyril Ramaphosa has since appointed as the deputy chief justice - grossly misdirected herself when she found there were no exceptional circumstances justifying the reconsideration of her court's dismissal of Zuma's challenge to a ruling that Downer had the title (legal standing) to prosecute him.

Zuma had also asked that the Constitutional Court to grant him leave to appeal Judge Piet Koen's dismissal, in the KwaZulu-Natal High Court in Pietermaritzburg, of his special plea to the Supreme Court of Appeal.

While stating that it had not decided whether Maya's decision was, in fact, appealable, the country's highest court said it had "concluded that it would not be in the interests of justice to grant leave to appeal" Maya's decision, given that Zuma would be entitled to seek leave to appeal Koen's decision "to this court".

Zuma's foundation tweeted on Thursday that the ruling confirmed the former president "can exercise his right to appeal the adverse decision of the High Court to the Constitutional Court", but did not confirm that he would, in fact, do so.

Zuma is due back in court on 17 October.

He is pursuing a private prosecution against Downer and News24 journalist Karyn Maughan, who are both are challenging it as an abuse of court process.

Eskom will not finalise its annual financial statements by the statutory deadline of 30 September due to "significant key matters" that will take some time to close out with auditors, Public Enterprises Minister Pravin Gordhan has told the Speaker of Parliament.

Two other entities reporting to Gordhan – Denel and Alexkor – will also miss the deadline to finalise and submit their annual financial statements.

In a letter to the Speaker published in Parliament's Announcements, Tablings and Committee Reports (ATC) on Wednesday, Gordhan says he cannot comply with the Public Finance Management Act's requirement that annual financial statements and reports are tabled within six months of the end of the financial year.

In the case of Eskom, Gordhan says he expects the annual report to be finalised by the end of October or the beginning of November. Gordhan writes that as the previous year's audit ended late and Eskom had to change auditors, the audit for 2022 started late.

There are also "outstanding material issues" that are delaying the audit. These include the confirmation of litigation that Eskom is involved in, PFMA compliance and "generation outstanding matters."

Eskom has been unable to service its debt for several years and is dependent on bailouts from the Treasury to remain a going concern. The company is hoping that a solution to transfer some of its debt to the national government will be announced at the October medium-term budget policy statement.

In the case of State-owned arms manufacturer Denel, Gordhan says that a funding application has been made to the Treasury, "which is yet to be deliberated by Cabinet with a definitive outcome". Denel has struggled to pay employees in full for more than two years and finally settled outstanding salaries in August. However, it does not have sufficient working capital to pursue orders or projected revenue to remain a going concern.

The board of state-owned diamond miner Alexkor has completed the annual financial statements, but due to a delay in the appointment of external auditors, the audit has not been completed, he says.

The request for more time for the three companies will not be the first. All state-owned companies must comply with the 30 September deadline or request an extension, but few have done so with the deadline only two days away.

Former minister Mosebenzi Zwane, who has been charged with fraud, theft, and money laundering in connection with the Vrede dairy farm project, made his first appearance in the Bloemfontein Magistrate's Court on Wednesday morning.

He appeared alongside former Sahara employee Ugeshni Govender and Gupta lieutenant Ronica Ragavan.

Zwane, an MP, was detained after he handed himself over to police.

News24 previously reported that the project was meant to empower 65 community members, including emerging black farmers who had been named as beneficiaries.

Estina, which was handed the project, is accused of siphoning millions, effectively collapsing the project and leaving the intended beneficiaries high and dry.

At the time, Zwane was the Free State agriculture MEC.

In its last report, the State Capture Inquiry recommended that Zwane and former Free State premier Ace Magashule face a criminal investigation for their alleged roles in the scandal.

Magashule has not been charged in connection with the project.

Inquiry chairperson, Chief Justice Raymond Zondo, suggested that the provincial government get legal advice about suing Zwane and Magashule to recover money that was lost as a result of their failure to fulfil their obligations as MEC and premier.

If government is to harness the momentum of economic recovery that new investments signal, local government must be strong, efficient, capable and well-run.

This was according to President Cyril Ramaphosa, who, on Wednesday, addressed day two of the Local Government Summit, hosted the Department of Cooperative Governance and Traditional Affairs.

He said as the country grappled with poverty, unemployment and inequality, it was vital that government attended to local economic development in a more focused and practical manner.

“When there is a growing, dynamic economy we have the fiscal space to expand the provision of services that improve our people’s lives. When there is more investment and business expansion, jobs are created, livelihoods are supported, and the benefits circulate in local areas,” he said.

Accelerating economic growth, attracting investment and creating jobs must be at the centre of the efforts of all spheres government, he stated.

Two weeks ago Ramaphosa was part of an investment oversight visit to KwaZulu-Natal, where he attended the launches of expansion projects by automotive component manufacturer Hesto Harnesses and paper products company Sappi.

Both of these were the fulfilment of commitments made at one of South Africa’s Investment Conferences and these investments were supporting job creation, enterprise development and localisation, he said, while making sure that products were sourced in local areas to promote local entrepreneurs.

He said this would inject millions of rands into local economies.

“In one case they [investors] were able to quantify it - so many small and medium enterprises are going to be part of our economic or financial ecosystem and so many other companies are going to provide us with components, locally produced, that are going into a final product that we make,” he explained.

Over the past two months, Ramaphosa also attended similar such launches by Ford Motor Company, Isuzu, Anglo American, Corobrik, Sandvik, Netflix, Consol Glass and others.

He pointed out that these business expansion projects were taking place in towns and metros, where the country’s citizens live and where the projects were needed most.

“When these domestic investors and multinationals are making decisions on where to bring or expand their investments, one of the first factors they consider is whether there is an enabling environment in that locality. They look at whether they can receive the necessary approvals and permits on time. They look at the quality of the provision of water, electricity, sewage and refuse removal. If they are not satisfied that their needs will be met, they choose to invest somewhere else,” said Ramaphosa.

INSTABILITIES IN GOVERNANCE STRUCTURES

As government works to promote local economic development, the role of the District Development Model must be considered, the President stressed.

He said this integrated, multidisciplinary approach to government planning and implementation must, in the end, translate into local economic development that changed lives at a household level.

He wanted mayors and councillors to be deeply involved with the promotion of local economic development, and stressed that this should not be a singular task for mayors, but rather an integrated one.

“We should not leave it to consultants to devise our economic development plans and expect that they will be implemented on their own. Mayors and councillors need to drive the process from start to finish,” he said.

Ramaphosa noted that South Africa must embark on a course correction to advance the principle of people-centered local government, by focusing and committing leadership across all municipalities with stronger strategic relations with the private sector and other social partners.

He said government must prioritise fiscal sustainability, sound municipal financial governance and eliminate corruption.

“Municipalities need to focus on the imperative of revenue collection to ensure that there are suffi...

While most opposition parties have backed the Democratic Alliance's (DA's) call for an ad hoc committee to probe allegations relating to President Cyril Ramaphosa's Phala Phala farm, the African National Congress (ANC) sees no need for one.

DA chief whip Siviwe Gwarube's motion for the establishment of such a committee was debated during a mini-plenary of the National Assembly on Tuesday morning after the ANC prevented it from being heard last week.

"It cannot be, under a constitutional democracy, that we have a sitting president accused of breaking the law with the aid of state institutions, left without answering the key questions we should be asking," Gwarube said while introducing the motion.

She said the House had a choice: to either turn a blind eye because of party allegiance, or do to do what is right.

"All that is asked of you today is to allow Parliament to do its work of determining the facts and investigate the serious allegations before us," Gwarube said.

ANC MP Mina Lesoma said the DA and its "coalition partners" would like the National Assembly to take over the work of law enforcement agencies.

"None of us know the legal entity that resulted in the theft. In the event it attracts liability, it should be addressed as any other matter."

She accused the DA of being fixated on drama and sensation.

The Economic Freedom Fighters (EFF), however, backed the DA's motion.

"We are going to deal with Rama-dollars. We need an ad-hoc committee," EFF MP Omphile Maotwe said.

The IFP, ACDP, FF Plus and ATM also supported the motion, but GOOD MP Brett Herron sided with the ANC, arguing that the matter should only come before Parliament once law enforcement agencies did their work.

The ANC argued that the Section 89 committee - which could be established if the National Assembly adopts such a motion after an independent panel makes recommendations on whether Ramaphosa has a prima facie case to answer to - will cover the Phala Phala matter.

However, the DA and other opposition parties contend that the Section 89 committee will only deal with Ramaphosa's impeachment and that an ad hoc committee will have a much wider scope and also look into other state entities' roles in the events.

A full sitting of the National Assembly will vote on the motion on Wednesday.

Ramaphosa's Limpopo game farm became part of the national debate on 1 June when Arthur Fraser, former director-general of the State Security Agency and former correctional services commissioner, opened a kidnapping and money laundering case against him for allegedly concealing a break-in at the farm.

Fraser also laid similar charges against Presidential Protection Unit head Major General Wally Rhoode and Crime Intelligence members.

Public Enterprises Minister Pravin Gordhan on Tuesday informed the directors of Eskom that changes will be made to the board in the next few days, News24 Business has learnt.

Eskom, which can have a maximum of 13 non-executive directors, has only six. Seven have resigned with the first resignation in 2018 and have not been replaced. The remaining directors, whose term began in 2018, have appealed to Gordhan for several years to fill the vacancies on the board. It is critically short of the skills it needs, particularly in engineering and the electricity supply industry.

With the crisis around Eskom deepening, the Cabinet resolved last week that the Eskom board should be strengthened. It is unclear whether the entire board will be replaced or some directors will be retained to allow for continuity.

The board, which has been chaired by Professor Malegupuru Makgoba, since the resignation of Jabu Mabuza in 2020 has strongly supported the leadership of Eskom CEO Andre de Ruyter.

While there was a strong sentiment expressed in last week's Cabinet meeting that De Ruyter should be fired, there has been no indication yet of what Gordhan intends to do.

The Provincial Executive Committee (PEC) of the African National Congress (ANC) in KwaZulu-Natal (KZN) on Tuesday endorsed Zweli Mkhize as its preferred presidential candidate as the party prepares for the party's fifty-fifth National Elective Conference in December.

Mkhize, who was the Minister of Health, carries with him allegations of corruption related to Covid-19 funds.

Announcing the outcomes of a special meeting convened by the ANC PEC, provincial secretary Bheki Mtolo said the party in the province was encouraged by the manner in which branches of the ANC and regions had managed discussions on leadership preferences.

He said the robust and democratic discussions were anchored under the theme ‘Festival of Ideas’.

“We reiterate our position that this is a year where all of us are involved in deep reflection about the journey we have travelled since the last elective conference held in Nasrec in 2017, in our collective quest to build a democratic and prosperous society which occupies pride of place in the table of other nations,” said Mtolo.

The province is also backing Paul Mashatile as Mkhize’s deputy, Phumulo Masualle as secretary-general and Nomvula Mokonyane as deputy secretary-general.

Mtolo outlined that the position for treasurer general is to be discussed and added that the province preferred a vibrant and energetic woman leader.

ESKOM CRISIS

On the rampant load-shedding, the PEC wants the suspension of Eskom CEO Andre De Ruyter.

The PEC suggested that Eskom needs a chairperson, a CEO and senior management with operational electricity and engineering experience.

Mtolo said that they believed and supported coal-powered energy.

“Critically, over the years, we had mining operations – including coal mining for energy in various parts of the province. To date we export coal that sustains energy provisions in many countries all over the world – that we prefer not to mention,” Mtolo added.

Four South African National Defence Force (SANDF) members appeared in the military court on allegations of personal protective equipment (PPE) fraud and corruption to the tune of R273-million.

According to the Special Investigating Unit (SIU), the four - Lieutenant Dimakatso Modise, Lieutenant-Colonel Vivian Seadimo Peu, Captain Mbomolelo Avroline Tshikosi and Leading Seaman Suzen Jiane - appeared on charges of fraud and corruption related to the procurement of PPE items, such as masks and gloves, during the height of the Covid-19 pandemic.

SIU spokesperson Kaizer Kganyago said investigations found the SANDF irregularly awarded PPE contracts - worth R273-million - to five companies between May and August 2020.

"Evidence from the SIU probe shows that the list of service providers was predetermined, and some of the PPE items were delivered before approval, thus deviating from normal supply chain management processes.

"The SIU investigation revealed that the procurement process followed by the SANDF to procure PPE related items was not fair, transparent, equitable, competitive or cost-effective and thus contravened the provisions of Section 217(1) of the Constitution."

Kganyago said the four would be appearing in court on Friday, and it was "a continuation of the implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by state institutions and to prevent further losses, and to hold them accountable".

He said the SIU would institute civil action in the Special Tribunal to review and set aside the contracts, and recover the money paid.

A technical glitch is behind the non-payment of some City of Tshwane employees on Monday, according to mayoral spokesperson Sipho Stuurman, who said all employees should be paid by the end of the day.

Stuurman, spokesperson for Democratic Alliance (DA) mayor Randall Williams, was responding to a statement made by Tshwane African National Congress (ANC) chair Kgosi Maepa, who claimed the non-payment was due to the municipality being bankrupt.

In a post on his social media page, Maepa wrote: “Hundreds and thousands of Tshwane employees didn't receive their salaries today, on pay-day (26 September). City is bankrupt. DA coalition has officially collapsed the city.”

But Stuurman refuted the claim saying the glitch was on the part of Absa bank and not because of the financial crunch the city was facing and dealing with.

"Absa has since acknowledged the error [and is] working at resolving the technical error on their side. All salaries will be paid today as soon as Absa sorts out its technical problems,” said Stuurman.

He added that Maepa was trying to paint a picture of a failed coalition government.

“Kgosi Meapa is unfortunately misinformed of the situation and, as he often does, he rushed to social media without verifying or fact checking.

“His main interest is to paint a picture of a failing coalition government, which of course is not the case. This coalition government is working hard cleaning up the mess that was left by successive ANC administrations.”

Responding to Stuurman, Meapa said he was one of the unpaid employees and felt he had every right to complain about it on social media.

“Today is the 26 September 2022, the DA took office six years ago [in August 2016]. So how does the ANC take responsibility [for the ‘mess’] when the DA has been leading Tshwane for six years?

“Must we say it’s a glitch? Since the metro was formed in 2000 the city has never missed a payment.

“They must leave me alone and sort it out.”

In response to the non-payment, the ANC Tshwane caucus in a statement on Monday said it was “shocked” that the “minority coalition government led by the DA/Action SA/FF+/Cope/ACDP [was] faking the claim of running a responsive administration”.

It claimed that the municipality was in dire financial straits, giving the example that the municipal fleet had been parked due to the unavailability of diesel “as it had no monies to pay service providers for the supply of diesel".

“The city, since 2016 to date, has been plunged into a deep financial crisis by the administration of minority political parties who have no clue about running the affairs of the city.

“The municipality has also not paid its hardworking councillors, who are always on the ground trying to calm tensions in communities as a result of the incompetencies of this administration.”

It said the city workers were also demoralised because they did not have tools to complete the jobs they were meant to carry out.

“The caucus leadership condemns the actions of this administration in being insensitive towards those who are at the coalface of service delivery, both councillors and the employees who work under extreme pressure with no morale support,” the ANC added.

Meanwhile, the South African Municipal Workers Union in Gauteng said it would be monitoring the situation.