Category: News

The Special Investigating Unit (SIU) says it is committed to investigating credible allegations of corruption “without fear or favour”.

This after media reports that the unit is allegedly being used for nefarious political acts following proclamations authorising the SIU to investigate at least 14 state departments and entities.

SIU spokesperson, Kaizer Kganyago, said reports that the SIU is being used for political gain is “misleading…and not based on facts”.

“[The] SIU refutes, with the contempt that it deserves, the inference that that it is being used as a political tool by anyone. The SIU work independently without any fear, favour or prejudice. All our investigations are allegation based as we get the allegation from whistle blowers,” he said.

Kganyago explained that proclamations signed by President Cyril Ramaphosa go through a rigorous process before even reaching the President’s desk.

“When the SIU receives the allegations from the whistleblowers, it goes through a vigorous process of assessment done in accordance with the legislation. Once the SIU is convinced that there is merit in the allegation, we then draft a proclamation that is taken through the process leading to the signing of the Proclamation by the President as required by law.

“It is incorrect to link the need and duty to investigate allegations of corruption and administration to politics. As the SIU, we have committed to the public that we will assess and investigate every allegation that is reported to the SIU without fear, favour or prejudice,” Kganyago said.

The Unemployment Insurance Fund (UIF) has urged employers to pay contributions and declare their workers every month, as required by law, to avoid delays with benefit applications and payments.

Speaking at an employer advocacy session held in Durban, UIF Provincial Support Director, Allan Ragavaloo, said the majority of normal benefit payments, including the special COVID-19 Temporary Employer-Employee Relief Scheme (COVID-19 TERS), were delayed due to the lack of up-to-date declarations by employers.

“If employers are 100% compliant with the fund’s legislation, as well as paying contributions and declaring their workers monthly, we would not experience significant delays with paying claims.

“The majority of the COVID-19 TERS payments were delayed due to the abundant lack of declarations by employers. If all employers had declared their workers to the UIF prior to the COVID-19 lockdowns, we would not have experienced delays with COVID-19 TERS payments,” Ragavaloo said.

Ragavaloo highlighted the error codes that impede COVID-19 TERS payments, which include incorrect identity and passport numbers, failed bank verifications, no declarations and salary discrepancies.

“I am encouraging employers to log into the COVID-19 TERS portal on uifecc.labour.gov.za/covid19, and if you have any errors, please look at the solutions on the system and rectify the errors so we can process and pay the claim,” Ragavaloo said.

He also stressed that employers who are aggrieved about their claims being rejected are entitled to follow the fund’s appeal process.

UIF’s Acting ICT Director, Viwe Gqoli, said the fund had a responsibility to pay all valid COVID-19 TERS claims that are currently on the system.

However, Gqoli said the onus is on the employers to correct the errors because the fund is not permitted to implement corrections on their behalf.

Employers urged to finalise claims

Gqoli said the UIF is trying to close the COVID-19 TERS system and advised employers to finalise their claims.

“Currently, we do not have a backlog on new COVID-19 TERS applications in the system. Instead, we regularly re-run claims that are already in the system hoping that errors have been corrected, but we receive the same outcome of errors. Therefore, we suggest that you correct them before we close the system,” Gqoli said.

He also revealed that the UIF had disbursed R9.2 billion through COVID-19 TERS and R15 million for Workers Affected By Unrest (WABU) in KwaZulu-Natal respectively, bringing relief to thousands of workers affected by COVID– 19 lockdowns and the July 2021 unrest.

Protect uFiling login details

Meanwhile, Deputy Director: Fraud, Sibongiseni Mpanza stressed that employers must always safeguard their uFiling login details.

“Giving your uFiling credentials to third parties or other people is similar to people having your bank card and pin because they may commit fraud which could lead to your company being blacklisted by National Treasury,” Mpanza warned.

The next employer session will be held on 28 July 2022 at the Ascot Wedding and Conference Venue in Scottsville, Pietermaritzburg, from 9am.

Government continues to solicit input from many organisations and professionals to assist in identifying individuals who can come back to Eskom and help to get the old power stations back in order and mentor younger managers.

This as the Department of Public Enterprises (DPE) on Thursday moved to clarify its call for skilled engineers to aid Eskom.

Delivering the department’s Budget Vote in May this year, DPE Minister, Pravin Gordhan, referred to the lack of engineering and technical skills at state-owned enterprises, including Eskom.

“The experienced engineers and technical skills were mainly hollowed out as a result of State Capture and corruption over the years,” the department explained.

“Solidary wrote to the Minister to offer its assistance in identifying skilled personnel.”

According to the department, before and after the Budget Vote speech, there have been similar offers of assistance, one example being the establishment of the Ministerial Review Task Team.

“To repeat, the Minister did not approach Solidarity. He simply made a call to all organisations, including the social partners, for skilled personnel, regardless of race to avail themselves to be placed at Eskom.”

According to News24, the union has a list of more than 1 000 skilled people who are willing to assist, which will be narrowed to 100 of the best. The department said that various professional and business organisations have responded and offered to assist.

“It is a pity that Solidarity and some in the media are politicising this issue amid a crisis that government is working very hard to address.”

Now is the time to work together, without any partisan interests, and assist and support an earnest group of power station managers to improve the performance of the power stations, said the department.

Meanwhile, the department said Eskom would follow its internal human resources policies and processes to ensure that the appropriate engineers with the best skills and experience are hired.

Minister of Transport, Fikile Mbalula, has directed the Passenger Rail Agency of South Africa (PRASA) board to deal decisively with corruption and malfeasance through effective consequence management.

“This includes contracts previously identified as irregular, which include Swifambo and Siyangena contracts. Where corruption has been identified such as the insurance scam reported by management, these must be investigated and decisive action taken without delay,” Mbalula said on Thursday in a statement.

The Special Investigating Unit (SIU) investigation into irregular contracts at PRASA identified 44 employees in wrong-doing and consequences management was recommended in this regard.

PRASA has since taken the following actions against implicated employees, considering that 11 have since resigned and are no longer in the employ of PRASA.

Thirteen cases are in various stages of the disciplinary process; one employee was dismissed; one resigned; four were given 12 months final written warning; one was given a six month written warning; one employee is on suspension; eleven employees were found not guilty; and one employee was not disciplined, because there was no basis for discipline.

“In relation to the irregular Siyangena contract, three senior executives were implicated by the Zondo Commission. One such employee has since left the employ of PRASA and another resigned before disciplinary process could be initiated, while one has since been dismissed,” the Minister said.

With regards to the Swifambo contract, six senior executives are going through a disciplinary process. The Werkmans investigation, premised on the Public Protector’s “Derailed” report further identified irregularities, which were referred to the SIU for further investigation.

Consequent to the SIU report, five employees were implicated. Four of these employees were dismissed and there was insufficient evidence against one of these. One of the dismissed employees was reinstated by the Commission for Conciliation, Mediation and Arbitration (CCMA), but PRASA is taking the matter on review at the labour court.

From the Public Protector’s “Derailed” report, four employees were dismissed, but two were reinstated by the CCMA.

Ghost workers

The Minister said Operation Ziveze head count must be completed and identified ghost workers terminated from the payroll and culpable officials disciplined.

Project Ziveze was initiated by PRASA to physically verify all PRASA employees.

“With the identification of 3 000 employees who could not be verified their salaries were frozen. Since the freezing of salaries, more employees from those previously not verified came forward.

“A forensic investigation is currently underway on the possible ghost employees and how these found their way into the payroll system. Once the forensic investigation is concluded, action will be taken against those implicated,” the Minister said.

He said Requisite Supply Chain Management capacity must be built as a matter of urgency to ensure that procurement processes are not hindered by capacity challenges and adjudication of tenders is in line with the prescripts.

The Minister encouraged the board to expedite the filling of vacancies including the vacancy of the Group CEO.

“The approved security plan must be fully implemented with reinforcements of technological interventions such as drones and armoured vehicles deployed in the identified corridors,” Mbalula said.

Reconstruction and recovery underway in various corridors

On Wednesday, the Minister undertook an oversight inspection on the PRASA reconstruction and recovery work in various corridors in Gauteng.

The Minister noted the significant progress made by PRASA in relation to a number of areas identified as priority for the recovery of commuter rail corridors.

“The corridor recovery programme is making steady progress. This work must move at a brisker pace to alleviate the plight of those who rely on commuter rail for their livelihood.

Five of the 10 priority corridors have since been recovered and services are running.

“In Gauteng, the Mabopane and Saulsville lines to Pretoria as well as the Vereeniging to Union lines are now operational. In the Western Cape, the Northern Corridor between Cape Town and Bellville, the Southern Line to Simonstown as well as the Cape Flats line are operational.

“Plans to reopen sections of Central Line illegally occupied are at advanced stages and this we plan to do next week. In KwaZulu-Natal services have resumed on the Merebank to Durban and KwaMashu to Durban lines.

“In the Eastern Cape services have resumed in Gqeberha and East London using the diesel locomotives. In expediting the infrastructure rehabilitation work in some of the priority corridors, three lines have been temporarily closed for major repairs on the Naledi -Johannesburg, Johannesburg – Leralla and Pretoria – Pienaarspoort lines,” the Minister said.

Progress on these lines remain on course to meeting the planned deadlines for service resumption. PRASA has committed to returning the 10 priority corridors to service by the end of the calendar year.

The Special Investigating Unit (SIU) has welcomed the arrests of a businessman and his daughter in the Eastern Cape on charges of fraud, forgery and uttering to the value of R4.3 million related to a personal protective equipment (PPE) tender.

Makhonzandile Lukhope and his daughter Naledi Lukhope were on Wednesday arrested by the Hawks on the charges for the tender awarded by the Eastern Cape Department of Education (ECDoE).

The tender was awarded to Amabongwe Building and Civil Contractors CC (“Amabongwe”) and Tsunami Civils.

SIU spokesperson, Kaizer Kganyago, said: “The pair appeared before the Zwelitsha Magistrates Court (on Wednesday). They were both subsequently released on bail of R 4000 and R 2000 each. The matter has been postponed to 19 August 2022, Regional Court 5 in East London.”

The arrests followed an SIU investigation authorized by the Proclamation R23 of 2020 by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by State institutions relating to PPE procurement, together with the conduct of State employees.

Kganyago said the SIU investigation revealed that Lukhope snr, through his company Amabongwe, allegedly committed fraud through a misrepresentation and with an intention to defraud the ECDoE.

“He unlawfully submitted a Contract of Lease, which had the effect of misrepresenting to the ECDoE that Amabongwe was operational in the Eastern Cape Province and had a business in the Province. This led to the ECDoE into awarding a contract to Amabongwe in the amount of R1.9 million.

“Mr Lukhope also failed to disclose interest in Tsunami Civils, which belongs to his daughter, Miss Lukhope.

“Furthermore, the SIU investigation revealed that Ms Lukhope, through her company Tsunami Civils, allegedly misrepresented and defrauded the ECDoE by unlawfully submitting a Contract of Lease, which had the effect of misrepresenting to the ECDoE that Tsunami Civils was operational in the Eastern Cape Province and had a business in the Province.”

Through the “deceit”, the daughter’s company received a total payment in the amount of R2.4 million, causing actual prejudice to the ECDoE.

“All tenders awarded to the Lukhopes were restricted for businesses operating in the Eastern Cape,” he said.

Forestry, Fisheries and the Environment Minister, Barbara Creecy, has announced initiatives for further streamlining the environmental assessment process for renewable energy projects in South Africa.

The initiatives, announced during a virtual stakeholder engagement held on Thursday, will improve the efficiency of the environmental assessment processes to facilitate the development of Solar PV (photovoltaic) and associated infrastructure in areas of low to medium environmental sensitivity.

Creecy said the initiatives to be implemented will exempt developers from obtaining environmental authorisation for certain listed or specified activities for the development of solar facilities.

“These initiatives are in addition to the interventions introduced since 2014 to streamline EAs related to renewable energy projects like gazetting of 11 Renewable Development Zones (REDZ), five electricity transmission corridors and gas corridors, as well as the implementation of a Generic Environmental Management Programmes for grid and substation development and expansion,” Creecy said.

In addition, she said, gazetted Strategic Infrastructure Projects (SIPs) are processed in terms of the legislated 57 days as per the Infrastructure Development Act.

Creecy said the Standard for the Development and Expansion of Power lines and Substations in identified geographical areas will be gazetted for implementation by the end of July 2022.

“Based on compliance with this Standard the development and expansion of power lines and substations will be excluded from the need to obtain an EA prior to commencement when developed in areas of “low” and “medium” environmental sensitivity as identified by the national environmental screening tool, and within the five strategic electricity corridors,” Creecy said.

She noted that the exclusions will be subject to a registration process, which will allow for compliance monitoring.

The Minister will in August 2022, gazette two notices calling for public comment that are aimed at simplifying the deployment of Solar PV facilities.

“The registration process will reduce timeframes from 300 days and 147 days respectively to approximately 60 days from inception of the project,” Creecy said.

The exclusion of Solar PV facilities from an EA based on compliance with an adopted environmental instrument will be subject to:

• The appointment of an independent environmental assessment practitioner and of specialists (agricultural, terrestrial and aquatic biodiversity; cultural heritage and paleontology);
• Confirmation of the environmental sensitivity rating through inspection by the various specialists and the preparation of a site sensitivity verification report by the environmental assessment practitioner which confirms the sensitivity rating and compliance with the allowable development limits; and
• The preparation of an environmental management programme by the specialists and the environmental assessment practitioner.

It will also include the signing of a declaration that the site sensitivity verification report is a true representation of the findings and is of medium or low environmental sensitivity for all themes; and that there is an environmental management programme in place and that the developer will implement the mitigation measures identified in the environmental management programme.

Creecy said additional planned interventions to simplify the environmental authorisation process for renewable energy application will ensure that environmental sensitivities on a potential site are identified alongside the introduction of a rating of site sensitivities in line with the screening tool requirements.

“These areas will be mapped and located on the environmental screening tool and a generic environmental management programme (EMPr) will be developed for each site,” Creecy said.

The South African Revenue Service (SARS) has welcomed a North Gauteng High Court judgment dismissing the Chinese Railway Rolling Stock Corporation’s (CRRC) application to have SARS return money taken from its bank accounts.

This, SARS said in a statement, was in terms of third party appointments under section 179(6) of the Tax Administration Act No. 28 of 2011 as part of SARS efforts to collect outstanding taxes.

“Section 179 of the Tax Administration Act empowers SARS to collect a taxpayer’s outstanding tax debt from a third party who holds or owes, or will hold or owe, money for or to the taxpayer.

“Section 179(6) empowers SARS to do so without first issuing a letter of demand for the tax debt to the taxpayer if issuing the demand would prejudice the collection of the debt,” said the revenue service.

It said the positive judgment protects SARS’ legal authority to use section 179(6) to collect outstanding taxes and represents a significant victory for SARS in its ongoing tax collection and compliance efforts, especially considering the country’s current constrained economic circumstances.

The conduct of non-compliant taxpayers deprives government of legitimate resources to the detriment of both the State and the South African public who rely on basic services from government. SARS will continue to pursue its mandate of collecting all revenue due, without fear, favour or prejudice.

SARS Commissioner Edward Kieswetter commended SARS for acting swiftly to recover taxes that were due to the fiscus.

He said, “any delay in acting with such speed would have seen the funds repatriated abroad, with little prospects of recovering the debt owed to SARS”.

“Furthermore, this proves that SARS is on the right path to enhancing its ability and capability to deter non-compliant behaviour and the accompanying sense of impunity on the part of certain taxpayers. This is a major victory for the organisation and citizens of the country.”

The Commissioner added that SARS is determined to work with other law enforcement agencies to follow up on the Zondo Commission’s recommendations in areas that fall within the legal framework that governs tax administration in the country.

“This determination to work co-operatively with all relevant agencies reflects SARS’ commitment to spare no effort to hold those accountable for State Capture where tax crimes were committed,” he said.

Police have mobilised the 72-hour activation plan following the killing of Moses Maluleke, the Mayor of the Collins Chabane Local Municipality, in Limpopo.

National Police Commissioner, General Fannie Masemola, on Friday directed Provincial Commissioner, Lieutenant General Thembi Hadebe, to mobilise maximum resources to apprehend those responsible for the murder.

South African Police Service (SAPS) spokesperson Colonel Athlenda Mathe said the 56-year-old mayor was shot dead on Thursday evening at his home. His 18-year-old son was wounded during the attack.

She said: “According to reports, three unknown suspects entered the Mayor’s home in Saselamani village at 7pm where they demanded money from the deceased mayor and his son. When the pair could not comply with the suspects’ instructions, they were allegedly shot at by the trio.

“The mayor succumbed to his injuries on scene and his son survived. The son was transported to a nearby hospital where he is receiving further medical care.”

A case of murder and attempted murder has been registered.

“Police have since launched a manhunt for the group of suspects,” said Mathe.

She said members of the public who know or may have witnessed what transpired are encouraged to report to the Saselamani Police station or call the Crime Stop Hotline number on 0860010111 to assist police investigations.

Trade, Industry and Competition Minister, Ebrahim Patel, says government is working on addressing load shedding.

Patel said once a solution has been found, an announcement will be made through the Minister of Energy.

Speaking on the sidelines of the Black Industrialists and Exporters’ Conference, Patel admitted that load shedding is not good for business.

In his keynote address at the conference, President Cyril Ramaphosa also spoke of the country’s energy challenge, saying this is being addressed.

“In particular, we need to act decisively and urgently to end the load shedding that is causing such damage to our economy and such disruption to our society. Like every other actor in the economy, black industrialists can simply not grow without a reliable supply of affordable energy.

“Much has been done over the last four years to transform the country’s energy landscape and bring new generation capacity online.

“But that is not enough, and we need to move faster. That is why I have brought together all relevant departments and entities to work on an integrated set of measures to add additional power to the grid in the shortest possible time.

“We are currently engaged in consultations with social partners on these measures, and will soon be able to announce a package of measures that provides an effective response to our energy crisis,” he said.

On the funding of businesses, Patel explained that government does not fund businesses but businesses are offered loans that they repay at a later stage.

Patel explained that the Black Industrialists and Exporters’ Conference is a platform for black businesses to showcase their experiences.

“As government, we are getting black businesses talking to one another and networking,” Patel said.

Patel said government welcomed small businesses who provide important services to the community and medium-sized businesses who employ people in productive labour, as well as trade union leaders who represent the workers.

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“We welcome a number of representatives of workers’ trusts, who hold shares in the firms they are working in, with hundreds of thousands of workers now owning such shares.

“We have small panel beater shops that are now on the panels of large insurers after the Competition Commission investigation into restrictive practices and ways to broaden access for small businesses.

“We have industrialists who have invested their money to build new factories, expand mines, develop more agricultural lands, obtain machinery and employ young South Africans,” Patel said.

Patel said SA last year achieved a record performance, exporting R1.8 trillion, representing almost one third of the country’s GDP.

“Some of the exports came from black-owned firms present here today. We are now working with a black exporters’ network to be launched today to increase the volume of exports and create local jobs.

“These are businesses who in many cases have showed resilience; and they are the productive engines that create jobs,” Patel said.

Patel said these are businesses that in many cases have showed resilience and they are the productive engines that create jobs.

“We welcome 18 funding entities who are in the business of financing small and medium sized businesses, including commercial banks, DFIs [development finance institutions] like the IDC [Industrial Development Corporation] and NEF [National Empowerment Fund], and other funders,” Patel said.

Championed by the President since its inception in 2015, the inaugural Black Industrialists and Exporters’ Conference showcased progress of government measures in promoting access and transformation to more black industrialists in the economy and the opportunities that the Africa Free Continental Trade Area (AfCTA) offers.

KwaZulu-Natal Premier, Sihle Zikalala, says it is only when communities are prepared to expose those within their own families, who are involved in criminal activities, that the scourge of crime in the country can finally be dealt with.

Zikalala made the remarks during the memorial service of 13 people, who were from UMzimkhulu, KwaZulu-Natal. The 13 were among 16 people who were shot and killed at Mdlalose’s Tavern in Nomzamo informal settlement, Soweto, two weeks ago.

The memorial service followed several deadly incidents that took place at taverns, including Enyobeni in East London, where 21 young people died. Almost two weeks ago, a mass shooting occurred at Samukelisiwe Tavern in Sweetwaters, Pietermaritzburg, where 12 patrons were shot at randomly, leading to the death of four people.

According to Police Minister, Bheki Cele, at least 130 AK47 cartridges were discovered after the tragic shooting at Mdlalose’s Tavern.

Speaking at the memorial service held in UMzimkhulu Hall on Wednesday, Zikalala warned that violence in society has the potential to derail the programme of delivering a better life for all, and undermines the achievements made by the democratic government since 1994.

“As we gather here at this memorial service, we are called on to be vigilant and to jealously guard our hard won peace. KwaZulu-Natal and indeed our country simply cannot afford the violence and murders. We must give peace and development a chance,” Zikalala said.

Zikalala emphasised that citizens must work side by side to eradicate the culture of violence and bloodshed, and create a new “model man and woman who frown upon violence and intimidation”.

He said that now is the moment to seize the day to create safer, stable and thriving communities, where young people have an array of choices for recreational activities.

More importantly, Zikalala said, efforts must be doubled transform and deracialise the economy to ensure that black people in general and Africans in particular also have meaningful participation in the country of their birth.

“This means that we must create opportunities for the rural youth of KwaZulu-Natal in the villages and townships where they are raised. It is clear that lack of opportunities and rural poverty continue to push poor youth to move to bigger cities, like Durban and Johannesburg, in search of economic opportunities.

“Nearly three decades into freedom and democracy, it is clear that our country still has to overcome apartheid spatial planning, rural poverty, and exploitative labour migration that has been the backbone of the colonial and apartheid economy,” Zikalala said.

Youth urged to take full advantage of opportunities

Meanwhile, Zikalala urged young people to take full advantage of the opportunities that the democratic State is providing to educate and skill them from grade R, all the way to institutions of higher learning.

He said the KwaZulu-Natal provincial government has identified youth skilling, youth economic empowerment, as well as youth employment as an urgent priority.

“Education and skills are fundamental to self-development, and we urge all young people of UMzimkhulu and the Harry Gwala District to make use of them,” the Premier said.

He said government will continue to support initiatives to grow youth employment in KwaZulu-Natal and support youth entrepreneurs through initiatives including Operation Vula, KwaZulu-Natal Youth Development Fund, support for the township and rural economy, the Black Industrialist Programme, set-asides for women and youth and 30% of public procurement going to young people.

“We appeal to all the youth of this province to stand up and look for these opportunities. We also implore the private sector in KwaZulu-Natal to do more to support youth development and economic empowerment.”