Category: News

President Cyril Ramaphosa is expected to attend the inauguration of newly elected Prime Minister of the Kingdom of Lesotho, Samuel Ntsokoane Matekane, in Maseru this morning.

Matekane was elected following elections that took place in the land locked country in early October where he won 56 of 79 constituencies.

“President Ramaphosa is attending at the invitation of His Majesty King Letsie III.

“President Ramaphosa’s attendance is an expression of South Africa’s continued support for the Basotho and of the firm bonds and friendship between the two countries,” the Presidency said in a statement.

The Presidency lauded the formal diplomatic relations between the two countries which span back some 30 years.

“Relations between the two countries are based on shared language, history, and culture. Full diplomatic relations between the two countries were established in 1992.

“The Kingdom of Lesotho provided shelter and support to South African liberation cadres in their fight against apartheid,” the statement said.

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.

Eskom says it will be implementing various stages of load shedding throughout the weekend following the near depletion of its emergency generation reserves.

By Thursday morning, Eskom said it had at least 16 585MW of capacity offline due to breakdowns with a further 5 683MW offline due to maintenance.

“Stage 3 load shedding is currently underway until 4pm on Thursday. Thereafter, it will increase to Stage 4 until 5am on Friday morning. Load shedding will be lowered to Stage 2 at 5am to 4pm on Friday. It is anticipated Stages 2 and 1 load shedding will be implemented during the weekend.

“Load shedding is implemented only as a last resort in view of the shortage of generation capacity and the need to attend to breakdowns,” an Eskom statement read.

The power utility said despite bringing some generation units back online, it is still facing generation capacity challenges necessitating the continuation of the power cuts.

“The emergency generation reserves are almost depleted, both the diesel and pumped storage dam levels. These, together with persistent high levels of breakdowns of generating units, are among the major contributors to the continuing generation capacity shortages.

“Since Tuesday evening Eskom teams have returned a generating unit each at Duvha, Kendal and Medupi power stations to service,” Eskom said.

The Department of Mineral Resources and Energy (DMRE) says the supply chain of petroleum products to South Africa is “resilient as ever”.

This follows comments made by the Liquid Fuel Wholesale Association that the country is facing possible liquid fuel supply shortages.

“The DMRE would like to assure South Africans that there is no imminent shortage of liquid fuels in the country, and predictions made by the Liquid Fuel Wholesalers Association (LFWA) are very unfortunate.

“The supply chain of the petroleum sector in South Africa is resilient even as the disruptive geopolitical war in Eastern Europe rages on. The department engages the industry on a weekly basis on supply issues and will seek clarity from the LFWA on its comments,” the department said.

The DMRE explained that government has invested in fuel import for years which contributes to fuel supply security.

“Over a number of years, the government deliberately enabled investment in fuel import terminals when the reliability of existing petroleum refineries was in question. These import terminals provided the backup to existing refineries and this has proven to have been a correct strategy as refineries close. The import terminals throughout the country’s ports are able to ensure security of fuel supply.

“In addition, major investments have been made by both Mozambique and Namibia which further strengthen the region’s fuel supply position,” the department said.

The EThekwini Municipality will from Thursday, 27 October, embark on the much-anticipated stage of recommissioning the oThongathi Water Treatment Plant that will see residents of oThongathi and surrounding areas receiving water from their taps.

The oThongathi Water Treatment Plant was destroyed during the floods that wreaked havoc in KwaZulu-Natal in April, leading to disruptions to the water supply and much frustration for residents and businesses in the area.

EThekwini Municipality Mayor, Mxolisi Kaunda has informed the residents of oThongathi and surrounding areas that as per his promise, the work of reconstructing the plant, has now been completed.

“Between 27 October and 1 November 2022, the municipality will fill the onsite reservoirs with treated water. This will include testing the quality of water to ensure that it meets all safety requirements.

“Residents are urged to ensure that all taps are kept closed at all times to avoid flooding when the testing of the water mains are being carried out,” Kaunda said on Wednesday.

The Mayor noted that the Hambanathi reservoir will be supplied with potable water first, and thereafter, the Emona reservoir, Metcalf reservoir, Belvedere reservoir, Tongaat South and Mamba Ridge-Jan Ross-Burbreeze system, will be filled.

Kaunda also appealed to all residents to first boil the drinking water in the first few day when they are able to receive water from their taps.

“People must not panic as this is just a precautionary measure since the pipelines were not in use for an extended period,” Kaunda said.

The pension benefits of former Limpopo Health Department head of department, Dr Thokozani Mhlongo, have been frozen pending the finalisation of civil proceedings in a matter related to the unlawful procurement of Personal Protective Equipment (PPE) by the department.

Spokesperson for the Special Investigating Unit Kaizer Kganyago said the corruption busting unit obtained a Special Tribunal order to freeze the benefits following Mhlongo’s resignation from the department in June “in the face of a disciplinary hearing which emanated from SIU investigations in the affairs of the department”.

“The SIU will continue to pursue officials who resign in the face of an investigation or in the face of a disciplinary action by freezing their pension benefits and institute civil litigation to recover financial losses suffered by state institutions.

“The SIU investigations have uncovered irregularities in the appointment of service providers Clinipro Pty Ltd, Pro Secure Pty Ltd, and Ndia Business Trading (Pty) Ltd for the supply and delivery of PPE items which resulted in the department incurring irregular expenditure and/or a fruitless and wasteful expenditure of approximately R182 million,” he said.

Kganyago added that beyond the PPE scandal, Mhlongo alllegedly “exposed the department to wasteful expenditure” when authorising the procurement of 10 000 cellphones; for household COVID-19 screening; at a cost of R10 million.

“The department could only manage to distribute 388 of the 10 000 cellphones between September 2020 and March 2021 and the cellphones were distributed without the required screening application.

“After the physical counting of cellphones in storage by SIU investigators in March 2021, the department distributed 9 588 cellphones to community health workers for COVID-19 vaccination without the required application installed,” Kganyago said.

Nkangala District Municipal Manager, Maggie Skosana, and her driver Gugu Mtsweni, who went missing last week after they were accosted as they entered the council’s premises, were on Thursday found alive in Diepsloot, Gauteng.

Mpumalanga police spokesperson, Colonel Donald Mdhluli, said the two were found after they were allegedly dumped by their assailants.

“It is said that both were reportedly dumped by their assailants in the bushes near the N14 road in Diepsloot. It is said that the driver was tied up with rope but she somehow managed to maneuver to the road, where a taxi driver saw her as she was looking for help. She then related the story to the taxi driver, who then immediately informed the police.

“The police then went with them to the bushes where the Municipal Manager was found. After going to Diepsloot police station, the two victims were taken to hospital and then later reunited with their families in the early hours of this morning, Thursday, 27 October 2022,” Mdhluli said.

The suspects are still at large.

This development comes as a breakthrough to the kidnapping, incident which started a week ago on Thursday, 20 October 2022 in Middleburg.

Mdhluli said according to information received, it is said that the victims were attacked at the municipality premises gate before they could enter.

Reports indicate that the victims were stopped by suspects in a white sedan.

He said both vehicles – that of the victims and the suspects – were seen driving to the same direction following each other.

Soon after the incident was reported, the Provincial Commissioner of the SAPS in Mpumalanga, Lieutenant General Semakaleng Daphney Manamela, immediately assembled resources then established an investigation team consisting of experts in the field of investigation to ensure that the two victims are brought back safe and alive.

She said the victims’ vehicle was recovered on the same day, abandoned in one of the surrounding mines in Middelburg.

“A wheelchair, as well as other properties of the victims, was also recovered, together with the abandoned vehicle. However, there was no sign of the victims… The team worked around the clock, spending sleepless nights since the news of the kidnapping broke. The collaboration between members of the police in Mpumalanga and members of the Directorate for Priority Crime Investigation (DPCI) in Gauteng assisted in the probe.”

Manamela has expressed her gratitude to all members from both the Gauteng DPCI and Mpumalanga, as well as the taxi driver who acted as a good Samaritan upon seeing the Municipal Manager’s driver calling for help on the road.

The General also thanked everyone who contributed in the investigation, as well as the support received from the entire Police Management and the Office of the Premier in Mpumalanga. The General further appreciated members of the public for their contribution.

Transnet says operations at its Cape Town terminals are back at full tilt with backlogs caused by the recent industrial action cleared.

The ports and rail company said as part of plans ahead of the upcoming deciduous fruit season, the Cape Town Container Terminal will be working at full capacity to “ensure vessels are turned around timeously”.

“Transnet is encouraged by the swift manner in which backlogs were cleared and is set to continue in this positive vein to ensure the deciduous fruit season is successfully executed.

“In preparation for the upcoming season, an additional Ship-to-Shore (STS) crane was delivered and successfully handed over to operations. This will equip the terminal with maximum crane deployment to improve ship working hours, which will boost productivity and enhance service provisioning to customers,” the company said.

Meanwhile, Transnet said the Ports of Mossel Bay and Saldhana have received Port of Entry status – allowing the two ports to extend its services rendered.

“The Port of Entry status will contribute positively to the Cruise Tourism industry, particularly expedition luxury cruises that would want to call only on smaller ports and passenger vessels. The ports are finalising the provision of facilities to enable and manage the full Port of Entry Status,” Transnet said.

The ports and rail company said its capital investment programme for infrastructure development allows it to continue its repositioning of the Cape Town, Mossel Bay and Saldhana ports to trade more efficiently.

“Transnet National Ports Authority…is intentional about prioritising capital projects that will create future capacity whilst not neglecting the immediate needs required to enhance port efficiencies.

“For the 2022/23 financial year, the Western Region’s capital investment programme has an allocation of R260,4 million to the Port of Cape Town, R10,2 million to the Port of Mossel Bay and R182 million to the Port of Saldanha,” Transnet said.

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.