Category: Government Opinion Pieces

Government continues to demonstrate its commitment towards delivering a transport system that is safe, affordable, efficient, reliable and responsive to the needs of the citizenry, says Minister of Transport Fikile Mbalula.

The Minister said this as he undertook an oversight inspection to some of the critical projects undertaken by the South African National Roads Agency Limited (SANRAL) in the Eastern Cape on Thursday.

“Significant investments in road infrastructure not only sustain economic activity but also enables access to social infrastructure and amenities. The upgrading of the national route R336 between Kirkwood and Addo, a project that we are inspecting today, bears testimony to the hard work that SANRAL plays in ensuring that our road infrastructure fulfils its economic and social functions.

“The first phase of this project entails the upgrading of 13.75km of the National Route R336 between Kirkwood and Addo, and the reseal of 1.75km of the existing road east of the town of Kirkwood,” Mbalula said.

Construction started in September this year and the anticipated completion date is June in 2024.

“The rehabilitation measures vary along the length of the route depending on the condition and width of the existing road. It is important to note that safety issues such as speed limits, pedestrian sidewalks, and traffic calming forms part of the upgrade.

“Furthermore, the existing pavement structure has reached the end of its design life and has deteriorated to a level of service which is inadequate to withstand the traffic loading,” the Minister said.

The Sundays River Bridge will be widened on the left-hand side to accommodate a new pedestrian walkway.

SANRAL has other projects under construction in the Sundays River Valley Local Municipality. These entail the special maintenance of a section of the National Route R335 and a section of R342 from Zuurberg Intersection to Nguni River Lodge.

“The special maintenance of another section of the National Route R342 from Nguni River Lodge to Paterson and the special maintenance of a section of the National Route R75 from Kirkwood Intersection to Wolwefontein,” the Minister said.

The project will create jobs for about 125 to 175 people with about 20 Small, Medium and Micro Enterprises (SMMEs) appointed. Fourteen of the projects are already on site.

“Through its Horizon 2030 Strategy, SANRAL continues to play an important role in improving the socio-economic conditions of those communities that live alongside its national roads network.

“The SANRAL Horizon 2030 Strategy is a pro-active response to deliver on SANRAL’s vision of a national transport system that makes a meaningful contribution to the realisation of a better life for all,” he said.

The Minister said the national road network plays a pivotal role in stimulating economic activity and ensuring tourism continues to play an important role in growing the economy.

“Both Kirkwood and Addo are great tourism hubs. The main roads to both towns also link with the national roads and ports in the Nelson Mandela Metro.

“Kirkwood is situated in the heart of the Sundays River Valley, considered the citrus capital of the Eastern Cape. It is the centre of one of the largest citrus regions in South Africa,” Mbalula said.

It is known for its citrus fruit, roses, game farms and its annual Wildlife Festival.

Addo is a small town but is synonymous with the Addo Elephant National Park. The town is about an hour’s drive away from Gqeberha. The town also offers great features to it that is independent to the famed and magnificent elephants.

The Minister said the role of infrastructure is critical in giving traction to government’s efforts to tackle the triple challenges of poverty, unemployment and inequality.

President Cyril Ramaphosa says South Africa is greatly encouraged by the number of Spanish companies investing in the country’s economy across a range of sectors.

Speaking at the SA-Spain Business Forum in Pretoria, following bilateral talks with his Spanish counterpart President Pedro Sánchez Pérez-Castejón at the Union Buildings, the President said he greatly appreciated the opportunity to meet with business leaders from the two countries.

He told the Spanish delegates that South Africa is open for business.

“We want to see higher levels of foreign direct investment by Spanish companies into South Africa. We also want to see more South African companies investing in Spain,” President Ramaphosa said.

He the engagement between South and Spain was a valuable platform to improve the balance of trade between the two countries.

“South Africa and the Kingdom of Spain have a well-established bilateral economic relationship, which provides a firm platform for growth and expansion.

“South Africa’s focus is to increase the export of value-added goods and services to Spain. Our focus, in this regard, is on mining equipment and technologies, advanced manufacturing, alternative energy equipment, pharmaceuticals, agricultural products and food processing equipment.

“Spain’s investment into South Africa is concentrated in the renewable energy, tourism, steel, automotive, water and agro-processing sectors. Companies such as Acciona and GRI have made significant investments in the renewable energy sector,” President Ramaphosa said.

President Ramaphosa said the COVID-19 pandemic caused severe disruptions to both developed and developing economies.

“In response, South Africa adopted an Economic Reconstruction and Recovery Plan that prioritises spending in infrastructure, an employment stimulus to create and sustain jobs and measures to deepen local industrialisation.

“To support a rapid economic rebound, South Africa has prioritised interventions to drive industrial growth and the expansion of energy generation capacity. These initiatives are providing great opportunities for investors. We are expanding local production to make South African exports more competitive,” the President said.

President Ramaphosa said sectoral master plans have been developed for key industries like agriculture and agro-processing, renewable energy, automotive and steel.

He said in 2018, South Africa set an ambitious target of attracting R1.2 trillion or around $100 billion in new investments over a five-year period.

“Through four South Africa Investment conferences, the latest being in March this year, we have nearly reached our target. We hope to see a strong showing by Spanish companies at the 5th South Africa Investment Conference next year.

“We are implementing a range of interventions to rapidly expand our energy generation capacity. We are increasing the procurement of renewable energy, upscaling the use of gas and battery storage, and removing regulatory restrictions on self-generation.

“We are greatly encouraged by the overwhelming response from the private sector, particularly the mining sector, to generate their own electricity,” President Ramaphosa said.

Earlier on Thursday, President Ramaphosa hosted the Spanish President at the Union Buildings where they held discussions followed by the signing of agreements.

South Africa is currently the 12th highest destination for Spanish exports, and Spain is the 20th highest destination for South African exports.

The South African Revenue Service (SARS) has welcomed Finance Minister Enoch Godongwa’s emphasis on ensuring that government finances are spent in an equitable, efficient and flexible manner to support South Africa’s development objectives.

This comes after the Minister on Wednesday tabled the Medium Term Budget Policy Statement (MTBPS) in Cape Town.

The Minister’s policy message focused on strengthening South Africa’s fiscal integrity over the medium term through managing the country’s finances with prudence.

In a statement, SARS said its work is central in that efficient tax revenue collections contribute to the fiscal space required to attend to important social and investment spending priorities, whilst keeping an eye on debt service costs.

The Minister increased the revenue collection estimate that SARS must collect to R1 682 billion from R1 598 billion.

SARS provides about 90% of all government revenue, which makes this increase in the revenue to be collected by SARS very significant.

“As SARS, we accept the challenge of the revised higher revenue estimate. While the revised revenue estimate is steep, we are committed to act according to what is permissible in law to meet this challenge.

“The rebuilding of SARS is evident in improved revenue collection. We are laying a firm foundation for this new environment, which is the synthesis of data driven insights, enabling information and technology infrastructure and employing skilled staff, which are all indispensable for the success of this modernisation journey. We are equally committed to counter criminal and illicit activity.

“SARS has largely implemented the Nugent Commission recommendations, while outstanding recommendations are currently being aligned with those of the Zondo Commission on state capture,” SARS Commissioner Edward Kieswetter said.

Gross tax revenues are expected to exceed the estimates presented at the time of the 2022 Budget by R83.5 billion in 2022/23, of which corporate income tax is expected to account for R62.8 billion.

SARS said stronger personal income tax collections are expected to bring in an additional R8.2 billion relative to the 2022 Budget Review projections.

South Africa’s gross domestic product (GDP) is expected to grow by 1.9% in 2022 from 4.9% in 2021. Revenue collections, as at 30 September 2022, amounted to R784.8 billion, yielding growth of R64.7 billion (9.0%) against prior year collections of R751.0 billion.

“All collections against the previous year showed an upward trend except for the fuel levy, which recorded a contraction of R9.1 billion (-20.9%). The year-to-date growth was partially offset by the total refunds paid out, which were R32.5 billion (20.9%) higher than the previous year, with VAT refunds R26.2 billion (21.0%) higher in the first half of the year.

“At budget in February 2022, tax revenues were expected to grow by 3.3% (R1547 billion to R1598 billion). SARS is continuing to improve the efficiency in tax revenue administration through targeted strategic compliance and enforcement interventions to achieve higher taxpayer compliance ratios.”

Kieswetter said while the performance of the economy is important for revenue collection, “SARS initiatives have counterbalanced the negative impact of the local and global economy”.

“SARS compliance efforts have contributed 12% to the net revenues collected. This is in line with our revenue management philosophy, which has seen our efforts result in an additional R92.5 billion that has been added to the total revenue of R784 billion collected to date.

“Included in the compliance efforts are areas that relate to debt cash collections, curbing impermissible and fraudulent refunds claims, voluntary disclosure management, countering syndicated tax and customs crimes as well as valuation fraud and Customs seizures.”

To illustrate the point, the Commissioner said that SARS’ administrative efforts undertaken in the current financial year to drive compliance revenue, include:

• 831 797 debt cases and 186 691 final demands being issued and successfully pursued, resulting in R 35.2 billion being collected.
• SARS prevented R28 billion of impermissible and fraudulent refund claims from being processed.
• The setting up specialised teams that assessed the accuracy of provisional tax payments, resulting in R8.4 billion being collected.
• Over 2,675 Customs interventions resulting in R1.2 billion being collected.
• SARS’ work in the areas of syndicated tax and Customs crimes is gaining traction, resulting in R1.9 billion being collected.
• One preservation order was obtained for the value of R150 million.
• The estimated value of assets under preservation orders is about R2.9 billion.
• The liquidation and sequestration of assets to the value of about R2.3 billion has been carried out.
• SARS also conducted 478 Illicit trade interventions, resulting in 403 detentions and 252 seizures.

Improving services

Kieswetter said SARS will continue to improve its service to taxpayers and traders by providing clarity and certainty to enable them to meet their legal obligations, and by making it hard and costly for taxpayers and traders who wilfully remain non-complaint.

Customs valuation fraud, excise under-declaration, syndicated tax crimes, including illicit activities and interventions linked to cases relating to state capture, will remain major areas of focus.

SARS encouraged taxpayers to use the voluntary disclosure programme to regularise their tax affairs. However, taxpayers must voluntarily disclose any irregularities to SARS, as the programme will not be available once SARS discovers on its own such non-compliance.

In this regard, SARS will be communicating more details on how to access this programme. SARS is on course to further improve its revenue performance in alignment with its Vision 2020-2025 and Strategic Intent of Voluntary Compliance.

“In view of the above opportunities, and the increased trust that taxpayers and traders have in SARS, we believe that our work and increased focus on our mandate objectives will ensure the attainment of the revenue projections as communicated by the Minister,” said Kieswetter.

President Cyril Ramaphosa will tomorrow host Prime Minister Pedro Sánchez Pérez-Castejón of Spain on an Official Visit at the Union Buildings in Pretoria.

Prime Minister Sánchez, who is the President of the Government of Spain, will be accompanied by the Spanish Minister for Industry, Trade and Tourism, Ms Reyes Maroto, and a business delegation.

According to the Presidency, the visit to South Africa will solidify the already strong relations between South Africa and Spain.

The visit will highlight the existing cooperation between the two countries and will focus on the implementation of agreements intended to benefit the citizens of both countries.

The visit also seeks to create opportunities for various South African sectors to meet with their Spanish counterparts and to deepen cooperation in trade and investment, science and innovation, arts and culture, sports and education.

“The visit, which is Prime Minister Sánchez’s first to South Africa since he assumed office in 2018, is expected to translate the long-standing bilateral relations between the two countries into tangible projects that would stimulate greater interest from Spain in South Africa, especially regarding trade, investment, tourism and cooperation in other identified sectors.

“For South Africa, the engagement between the two leaders is directed towards addressing the triple challenge of poverty, unemployment and inequality and to boost South Africa’s economic recovery and reconstruction efforts following the impact of the COVID-19 pandemic,” the Presidency said.

Over the past 10 years, there has been steady investment in South Africa by Spanish companies. The bulk of the investment is in the renewable energy sector.

South African companies have also looked to Spain as an investment destination in the real estate sector.

More than 150 Spanish companies have invested in South Africa creating over 20 000 jobs, largely in the following sectors: Infrastructure Development, Renewable Energy, Financial Services, Tourism, Textiles, IT & Software, Metals and Mining.

Bilateral trade between South Africa and Spain almost quadrupled in the past 10 years. In 2021, Spain was South Africa’s 4th largest export destination in the EU and 5th largest source of imports from the EU. Trade between South Africa and Spain increased over the 2-year period 2020 and 2021.

Exports from South Africa to Spain increased consistently for the 10-year period.

For the last two years, exports increased from R14.9 billion in 2020 to R28.5 billion in 2021.

In 2019, the Spanish government launched its Third Africa Plan, a long-term strategic document that guides Spain’s relations with the African continent. The plan identifies South Africa as one of the three “anchor” countries (together with Nigeria and Ethiopia) for Spain’s foreign policy in Africa.

Following a welcome ceremony at the Union Buildings, the President and Prime Minister will attend and address the SA-Spanish Business Forum, which seeks to foster further and closer collaboration between South African and Spanish companies in a number of key sectors.

Acting Public Service and Administration Minister, Thulas Nxesi, says Cabinet has resolved that the tenure of Heads of Department be increased to 10 years.

This, according to Nxesi, will be subject to rigorous processes for recruitment, selection, training and development, performance management and reviews, and consequence management for non-compliance.

Addressing media in Cape Town on Monday during the release of Cabinet approved National Framework Towards the Implementation of the Professionalisation of the Public Sector, Nxesi said this is aimed at ensuring administrative stability in public sector institutions, which is critical to service delivery.

The framework provides that only qualified and competent individuals be appointed into positions of authority.

Cabinet approved the framework at its meeting of the 19 October 2022. The document has been in development for two years and on 18 November 2020 Cabinet approved the publication of the draft Framework for public consultation.

“This is part of overall efforts to improve the retention of HODs and create stability at the HOD level, with the objective of improving capacity of government to deliver on public services,” Nxesi said.

He said a revised performance management framework for HODs will be presented by the Minister of Public Service and Administration (MPSA) to Cabinet by end of November 2022. The MPSA will issue guidelines on the implementation of this decision.

Nxesi said with regard to the performance assessments of Directors-General and Heads of Department, Cabinet resolved that the Public Service Commission (PSC) should play a role in performance evaluation of all HODs to strengthen objectivity and introduce a comprehensive approach that should link the performance of the individual to that of the institution they lead.

Nxesi said to stabilise the political-administrative interface challenges experienced, Cabinet has resolved that the Director-General in the Presidency will be designated as Head of Public Administration (HOPA).

“In the provinces, this function will be designated to the Directors-General in the Office of the Premier.

“The HOPA will assist the President and Premiers in the management of career incidents of Heads of Departments and serve as a mediation mechanism in order to stabilise the political-administration interface,” Nxesi said.

Building state capacity towards a capable, ethical and developmental state remains the foremost priority of the current administration. Professionalising the public sector, as advocated in the National Development Plan, is a strategic intervention towards building state capacity.

Minister for Small Business Development, Stella Ndabeni-Abrahams, has handed over cheques worth R19 million to 45 small businesses in KwaZulu-Natal that were affected by floods earlier this year.

This is according to the Department of Small Business Development (DSBD) Twitter account. The handover is part of a series of provincial roadshows in uMgungundlovu, eThekwini and Ugu districts by the Minister and Deputy Minister Sidumo Dlamini.

The roadshows, which started on Tuesday and are expected to end on Friday, are aimed at assisting business in the province that were hit hard by rampant looting during the riots in July 2021 and those that were affected by floods early this year.

This happened just as the small business sector was trying to recover from the devastating effects of COVID-19.

“Trying to uplift businesses and assist them to recover from the above challenges will be some of the issues that will be discussed when Ndabeni-Abrahams and Dlamini lead a series of provincial roadshows in the uMgungundlovu, eThekwini and Ugu districts from 25-28 October 2022.

“They will be joined by the department’s entities, the Small Enterprise Finance Agency (sefa) and the Small Enterprise Development Agency (Seda), as well as other key stakeholders,” the department said.

In addition, the Minister and Deputy Minister will be handing over equipment to identified beneficiaries from the Msunduzi, eThekwini and Ray Nkonyeni Local Municipalities alongside with the Mayors, Members of the Mayoral Committees (MMCs) responsible for Local Economic Development and Infrastructure and other SMME key stakeholders.

Acting Public Service and Administration Minister, Thulas Nxesi, says the final offer of an average of 7.5% by government remains available and has not been withdrawn, as it has been purported in the media.

“All parties to the Public Service Coordinating Bargaining Council (PSCBC) have been advised of the need to engage and settle the matter of wages,” Nxesi said.

Addressing media in Cape Town earlier this week, Nxesi said is important to ensure that any risk to the integrity of the fiscus is managed and agreements are incorporated into the public finance budgeting framework.

Nxesi said to ensure that public servants are not disadvantaged and to safeguard the fiscal health of the country, the draft agreement has to be implemented before the tabling of the 2022 Medium Term Budget Policy Statement (MTBPS) by the Minister of Finance.

“As government, we remain committed to respecting organised labour, safeguarding the collective bargaining processes and promoting labour peace,” Nxesi said.

The Minister said all action will be taken to ensure that the bargaining process is protected.

“As a last resort, DPSA has requested facilitation by the CCMA in order to break the deadlock and safeguard the collective bargaining process.

“Any announcement of industrial action remains premature. The PSCBC General Secretary and CCMA Director have confirmed interest in facilitating this request by government and we will work with them,” Nxesi said.

Nxesi said the current round of negotiations commenced with pre-negotiations session at the PSCBC where the timetable for negotiations was adopted in an attempt to fast track the 2022/23 round of negotiations to conclude earlier and commence immediately with the 2023/24 negotiations so as to align the negotiations with the planning cycle of government.

“This is important to ensure that any risk to the integrity of the fiscus is managed and agreements are incorporated into the public finance budgeting framework,” the Minister said.

Earlier this month, the Public Service and Administration Director-General said government has been negotiating in good faith and the door of government is still open for labour to consider accepting the offer.

During the negotiations, there have been numerous rounds of discussions, with offers and counteroffers between the employer and the unions, including areas of significant disagreement.

As part of negotiating in good faith, government proposed a facilitation process as part of deadlock-breaking mechanisms. Facilitation took place on 26 – 30 August 2022.

Government had earlier proposed that employees continue to be paid a non-pensionable cash gratuity, which amounts to an average of R1 000.00 after tax to all employees across salary levels 1 – 12.

This amounts to an average of 4.5% of the R20.5 billon allocated for salaries in the 2022/23 compensation budget.

Organised labour rejected this offer.

President Cyril Ramaphosa says government is making great strides in the fight against corruption and has called on all parts of society to help government ensure that State capture never happens again.

The President was addressing the nation through his weekly newsletter a day after he revealed government’s plans to implement recommendations made in the State Capture Commission report.

“We have made great progress in the fight against State capture, all due to the efforts of the people of South Africa. The path ahead will be challenging, but if we work together in implementing the recommendations of the State Capture Commission, we will succeed in building the society and State we want.

“This moment of renewal is upon us and urges us to restate the vision of our National Development Plan of “a South Africa that has zero tolerance for corruption, in which an empowered citizenry has the confidence and knowledge to hold public and private officials to account and in which leaders hold themselves to high ethical standards, and act with integrity’,” the President said on Monday.

He said although the State Capture Commission showed how corruption had taken root in the State, the reaction of South Africans shows the “nation’s disdain for corruption.

“During four years of public hearings, our nation was saddened, outraged and left in disbelief by testimony of how a criminal network in government, public institutions and private companies had raided State coffers and vandalised institutions of our democracy.

“Amid the depressing testimony, people’s anger at the events that had unfolded and citizens’ demands for consequences, retribution and restoration was a clear signal that South Africans are prepared to fight to preserve their values.

“Upon closer consideration, the process of uncovering crimes against our democracy gave us more reason for hope than despair,” he said.

Added to that, President Ramaphosa assured the public that the law is catching up with those who corruptly benefitted from State coffers.

“Almost daily now, we read reports of people being arrested and appearing in court on charges related to State capture. We read about misappropriated assets being frozen and property being seized. The scenes that are unfolding in our courts today are because investigators and prosecutors are living up their professional obligations and the expectations of the nation they serve.

“While we prosecute state capture suspects and recover stolen funds, what is required on the part of all South Africans is our conscious, daily examination of our own values, beliefs and behaviours and the motives and actions of others,” he said.

The President is calling on all parts of society to come together and ensure that the corruption that milked the state of its resources never happens again.

“The recently established National Anti-Corruption Advisory Council will play an important part in mobilising all sectors of our society towards the attainment of a country defined by integrity, honesty and accountability.

“Following the submission of our response to the State Capture Commission, government is poised to work with social partners and communities on this great undertaking, which will be passed on from generation to generation into our future,” he said.

The Joint Standing Committee on Defence has emphasised the significance of investing more in innovative technological interventions as force multipliers to enhance the work of the South African National Defence Force (SANDF) to safeguard South Africa’s borders.

The committee made the remarks after receiving an update on the implementation of Operation Corona, which has the mandate of defending South Africa’s territorial integrity.

Co-Chairperson of the committee, Cyril Xaba said the committee is acutely aware of the serious capacity challenges affecting the operation negatively, but supports fully the intention to incrementally bring into play sensors and radars as a force multiplier in the medium term.

Xaba said the challenge of lengthy procurement has been highlighted as a general impediment to the SANDF’s work.

“The committee urged SANDF senior leadership to work with the National Treasury to find solutions to ensure that this ongoing problem is resolved and that capabilities are made available to deploy soldiers on the ground,” Xaba said.

The committee also highlighted the need for SANDF to work with related government departments at all levels to find solutions to the infrastructure challenges on the border, which include poor fencing, patrol roads and access routes.

“A collaborative effort is necessary to remove the impediments that make it difficult to safeguard our borders. Deployed soldiers’ morale should also receive proper attention, as these impacts negatively on operations.

“In line with this and in full awareness of funding shortcomings, the committee called for improved facilities within the deployment area to enhance morale,” Xaba said.

Signing and implementation of operational protocols welcomed

The committee has also commended the signing and implementation of operational protocols between the Department of Defence and the Border Management Authority to regulate effective cooperation at borderlines.

The committee further welcomed an assurance that the cooperation has been effective thus far and urged further cooperation.

“The porous nature of our borders requires cooperation by all stakeholders to ensure success. The committee has called for enhanced cooperation within the security cluster to find solutions and ensure efficiencies at the borderline,” said Committee Chairperson, Elleck Nchabeleng.

The committee acknowledged the work done by the security cluster at the borderline despite varied challenges, and emphasised the need for continuous improvements to ensure South Africa’s territorial integrity on land, air and maritime borderlines.

President Cyril Ramaphosa has welcomed the decision by the Kingdom of Saudi Arabia and other OPEC countries to focus on price stabilisation in their management of oil production.

In a statement on Sunday, The Presidency said rising oil prices contribute to higher fuel costs in South Africa, which exerts further pressure on small businesses, consumers and households. The burden is heavier for the working class and unbearable for the poor, the high office said.

“During the recent wide raging bilateral talks held in Jeddah, HRH Crown Prince Salman bin Abdulaziz Al-Saud briefed President Ramaphosa about a number of economic initiatives the Kingdom of Saudi Arabia is embarking on, including the intentions of the Kingdom to ensure oil price stability.

“President Ramaphosa appreciated the development as a measure that could provide relief to South Africa’s pressured economy,” the Presidency said.