Bogus TERS payments to be returned to UIF

The National Prosecuting Authority’s Asset Forfeiture Unit (NPA AFU) has been granted an order in the Eastern Cape High Court to recoup at least R35 million in bogus Unemployment Insurance Fund (UIF) COVID-19 Temporary Employee/Employer Relief Scheme (TERS) applications.
This after an investigation found that during the height of the COVID-19 pandemic, the Chief Executive Officer of the Eastern Cape Transport Tertiary Co-Operative Limited (ECTTC), Dr Nokuthula Mbebe, made several bogus applications to the UIF for TERS payments.
The ECTTC is an umbrella organisation that assists co-operatives to comply with the law and ensure that the local transport industry is regulated.
According to NPA regional spokesperson, Luxolo Tyali, the applications made by the ECTTC were riddled with discrepancies.
“The ECTTC made applications on behalf of its own employees, as well as on behalf of the employees of the affiliate taxi co-operatives that belong to the ECTTC. There were a large number of irregularities… including applications for TERS benefits for 22 persons in the employ of government, 22 persons who were deceased and one person who was incarcerated at the time – persons who obviously did not qualify for the benefits.
“After further investigation, it was discovered that the information – with regard to the incarcerated person and at least one of the deceased persons – was incorrect. The AFU relied on information from the UIF investigators who, in turn, relied on information from the Auditor-General — information that was not accurate. The correct information was eventually relayed to the court with regard to the mentioned deceased person and incarcerated individual,” Tyali said.
He said a further 66 applications were made through the ECTTC, which resulted in a payment of some R220 million.
“When the UIF began to audit these payments, the ECTTC and its affiliate taxi co-operatives could not verify the correctness of the applications via documentary evidence or a paper trail. This is in contravention of the directives made in relation to TERS payments, as well as the Memorandum of Agreement that all entities applying for TERS funds must sign.
“The payments, as they stand, remain the proceeds of unlawful activities, as they do not comply with the law,” Tyali said.
The AFU had already been granted three preservation orders freezing 36 different bank accounts “belonging to the ECTTC, as well as its affiliate taxi co-operatives and linked business entities” and R35 million from these accounts will be reimbursed to the UIF.
Additional security deployed to protect rail infrastructure

The Passenger Rail Agency of South Africa (PRASA) has contracted and deployed additional security along the Central Line in Cape Town following the shooting of two security guards protecting the recovery work between Bonteheuwel and Lavis Town.
The security guards are receiving treatment at a local hospital.
“Contractors were installing overhead copper cables on the line when two armed men in a black VW Polo fired ten shots at security,” PRASA said on Wednesday.
Police are investigating the incident and a case of attempted murder has been filed at the Elsies River Police Station.
“PRASA is on a journey of recovering stolen and/or vandalized rail infrastructure and is aware of the vulnerability of the recovery work to criminal syndicates and opportunistic criminals.
“We have contracted and deployed additional security on the lines we are recovering, but it is clear that we are under siege, and the criminals will stop at nothing to get what they want.
“We commend the bravery and work of the security guards who defended the copper cables, and we would like to wish the injured guards a speedy recovery,” PRASA said.
The agency expressed confidence that the assailants will be apprehended.
“We… trust in the criminal justice system will help turn the tide against the theft of essential infrastructure,” PRASA said.
Ekurhuleni warns of housing scam

The City of Ekurhuleni has warned the public about scammers who are soliciting money from desperate home seekers claiming to put them ahead of the city’s waiting list for housing.
The city’s spokesperson, Zweli Dlamini, said the latest scammers invite people who have applied for RDP houses (Government subsidised housing), through a statement to contact them for housing allocation.
“We distance ourselves from the scammer’s statement which is also an insult to the city’s brand. The city reassures the public that RDP houses and serviced stands are not for sale.
“The allocation of low-cost housing and serviced stands is conducted through a community consultative process wherein the city and councillors get in contact with the rightful beneficiaries to give them regular updates on the status of their housing allocation,” Dlamini said.
The public is urged to report any act of housing fraud to the authorities, namely South African Police Service, or the National Anti-Corruption Hotline: 0800 701 701.
People 50 years and older urged to get booster shot

The Department of Health has updated the COVID-19 vaccination schedule for people aged 50 years and older, and as a result all people falling under this age category are eligible to receive an additional booster dose of the Pfizer vaccine from this week.
This additional booster is available to all people of this age group who have completed at least 120 days or four months since they received their last COVID-19 vaccination of either Pfizer or J&J.
The department said the Pfizer vaccine has shown to be safe and effective for boosting immunity in older persons who remain at highest risk of severe disease and death from COVID-19.
“Out of a total adult population of almost 20 million people who have vaccinated so far, more than 7 million of them are aged 50 years and older,” said the department.
Meanwhile, South Africa has recorded 2 062 new COVID-19 cases which brings the total number of laboratory-confirmed cases to 3 970 993.
The increase represents an 8.8% positivity rate.
The majority of new cases are from Gauteng (34%) followed by Western Cape (20%). KwaZulu-Natal accounted for 13%, Eastern Cape accounted for 11% and Free State accounted for 6%. Mpumalanga and Free State accounted for 7% each respectively. North West accounted for 6%, Northern Cape and Eastern Cape accounted for 3% each respectively and Limpopo accounted for 1%.
The department has recorded 47 deaths, and of these, 10 occurred in the past 24-48 hours. This brings the total fatalities to 101 397 to date.
There has been an increase of 56 hospital admissions in the past 24 hours.
With regards to tests conducted, 25 400 217 tests were conducted in both public and private sectors.
In the public sector, 11 556 038 tests were conducted while 13 844 179 tests were conducted in the private sector.
Treasury notes IMF SA economy assessment

Government recognises the need to address deep-rooted socio-economic challenges, including unemployment, inequality, and poverty, while stabilising government debt.
The comment was made by the National Treasury in response to an International Monetary Fund (IMF) assessment of the country’s economy.
From 26 May – 6 June, IMF staff held meetings with South Africa as part of their routine economic surveillance function, as prescribed in the IMF’s Articles of Agreement.
Economic developments in the country were under discussion during the meetings with IMF staff, government, the South African Reserve Bank, state-owned enterprises (SOEs), business and academia.
The visit by IMF staff did not result in a board discussion or publication of a report on South Africa’s economy, said Treasury in a statement.
In its findings, the IMF was of the view that South Africa’s economic recovery from the COVID-19 pandemic should continue this year as some sectors such as tourism, hospitality and construction, gradually improve.
The staff noted that South Africa was benefiting from favourable commodity prices, which had raised exports.
Nonetheless, the IMF pointed to various shocks that continue to affect the country’s economic outlook. These include the KwaZulu-Natal floods, uncertainty arising from the conflict in Ukraine, tightening of global financial conditions and lower economic growth in China.
“The IMF staff acknowledges progress made in implementing structural reforms and encouraged South Africa to deepen and speed up implementation of structural reforms to address a number of obstacles.
Areas needing urgent attention include growth, load shedding, and addressing deficiencies in the transportation system, which limit the benefits from the higher commodity prices,” said Treasury.
Other key reform areas highlighted include improving procurement processes, transforming network industries, fostering competition to attract private investment; and advancing the functioning of the labour market.
In addition, IMF staff underscored that operations, finances and governance of Eskom and Transnet should be improved to contribute to the sustainability of public finances.
“The staff emphasised the need to implement growth-friendly fiscal consolidation to ensure that the country’s debt as a percentage of GDP is on a declining and sustainable path. Containment of compensation costs and streamlining transfers to SOEs were some of the recommendations tabled.
“In addition, the staff underscored that operations, finances and governance of Eskom and Transnet should be improved to contribute to the sustainability of public finances,” read the statement.
Economic recovery
Responding to this, Treasury said government’s steadfast commitment to restoring sustainability to public finances was supported by better than expected revenue collection, albeit temporary, and fiscal restraint.
“As stated in the 2022 Budget, government is using a portion of the additional revenue to reduce the fiscal deficit and stabilise debt, with the majority targeted to address urgent social needs, promote job creation through the presidential employment initiative, and support the public health sector,” it said.
It said there was faster implementation of economic and SOE reforms, accompanied by fiscal consolidation to provide a stable foundation for growth, easing of investor concerns, and support a faster recovery and higher levels of economic growth.
The National Treasury acknowledged that South Africa’s economic recovery had been “uneven” and that “risks remain high”.
In general, it said, the IMF’s concerns were aligned with government’s response programme to stimulate economic growth, which was guided by South Africa’s Economic Reconstruction and Recovery Plan (ERRP) as well as commitment towards growth and fiscal sustainability.
On fiscal risks posed by some SOEs, the department said the Presidential State-Owned Enterprises Council was considering their value add and which SOEs would be rationalised or consolidated to reduce their continuing demand on South Africa’s public resources.
“The National Treasury is working on a sustainable solution to deal with Eskom’s debt in a manner that is equitable and fair to all stakeholders. Any solution will be contingent on continued progress to reform South Africa’s electricity sector and Eskom’s own progress on its turnaround plan and its restructuring,” it said.
Structural reforms
Treasury said it remains committed to fast-tracking structural reforms to foster job-led growth, as supported through Operation Vulindlela.
In this regard, 26 structural reforms were prioritised. Of these, eight reforms had been completed while another 11 are progressing well.
Key achievements to include:
- concluding the spectrum auction, opening bid windows five and six of the renewable energy programme
- publishing the draft electricity regulation amendment bill
- Cabinet approval of the white paper on the National Rail Policy
- publishing of the Green Drop report to ensure better monitoring of water and wastewater treatment quality
- publishing the revised critical skills list
- issuing of the RFP (Request For Proposal) to initiate third party access to the freight rail network.
The department said work was also underway to reform the procurement system as well as the launching of the e-Visa system in 14 countries.
On energy security, the Treasury said the process of unbundling Eskom was underway.
“On 17 December 2021 the National Transmission Company South Africa SOC Limited (NTCSA) was executed. Eskom has also applied to the National Energy Regulator of South Africa for the transmission license for the Transmission Company.
“On environmental matters, South Africa remains committed to address climate change based on science, equity and sustainable development. South Africa’s Presidential Climate Finance Task Team will advise the country on the execution of the Just Energy Transition (JET),” said Treasury.
R500m road project to rebuild damaged KZN infrastructure

The KwaZulu-Natal Provincial Government has unveiled a multimillion rand project, which will lead to the upgrade and rehabilitation of strategic roads damaged by the recent floods.
Launched in Mbumbulu on Monday, the R500 million road project is part of the provincial government’s continued effort to rebuild transport infrastructure that was damaged by the floods.
KwaZulu-Natal Premier, Sihle Zikalala, led the launch of the infrastructure turnaround plan which includes the upgrading of section P725 from blacktop to tar and the rehabilitating of another section of the road that had been severely damaged.
More than R409 million has been allocated for the upgrading – with R86.5 million allocated to rehabilitate the stretch of the road from eNgonyameni and uMlazi section.
The road is vital in connecting many wards between uMbumbulu, eFolweni, eNgonyameni and uMlazi. It also provides a link to the R603, which is strategic for the movement of goods.
Zikalala said the launch is part of provincial government’s commitment to restore the provincial economy and ensure connectivity in many communities.
He noted that areas surrounding eThekwini Metro were the hardest hit by the recent torrential rains.
The province, through the provincial Transport Department, has to reprioritise budget allocation for this financial year to attend to urgent emergency repairs.
“Working with the South African Road Agency (SANRAL), the department is also attending to projects such as the N2, R102 and M4. The province is moving with speed in restoring damaged infrastructure and will continue to prioritise those communities that were most affected,” Zikalala said.
The construction and rehabilitation of a section of a road is a living testimony that “as the provincial government we are serious about fulfilling the commitment of recovery and reconstruction”.
“This investment will ensure that the people of eThekwini are able to connect and link with important facilities. This will also create jobs and much-needed economic growth for the area.
“Importantly, it will open economic activities which will benefit the emerging small entrepreneurs which were affected by the recent floods,” Zikalala said.
Zikalala made a commitment that the provincial government will be unveiling a number of projects in the next few weeks and handing over contractors that will be doing repairs.
He said the province has more than 1 365 projects that were affected by floods and needs in excess of R6.5 billion to fix them.
eThekwini working on a lasting solution for displaced flood victims

eThekwini Municipality Deputy Mayor, Philani Mavundla, says the city is in discussions with Human Settlements MEC, Jomo Sibiya, to find a lasting solution to the challenges faced by displaced flood victims.
Mavundla was addressing about 40 people who claim to be displaced flood victims from various temporary shelters in eThekwini.
The victims staged a sit-in at the Durban City Hall on Monday, to raise their concerns.
Mavundla explained to the victims the support provided by the municipality to the shelters, and outlined the challenges and processes to be followed to resettle displaced flood victims in safer homes.
He said since the floods in April, the municipality has been providing a range of support services to those living in temporary shelters. These include hot meals, blankets, mattresses, medical services and hygiene packs.
“Together with the Department of Home Affairs, identity documents have been provided to enable families to access other government support interventions, such as grants and pensions. Importantly, the municipality is in the process of identifying suitable land for building homes. In some areas, this process is at an advanced stage.
“We understand the plight of those living in shelters. We also understand the urgency of resettling them in safe homes. We are already in discussions with the MEC for Human Settlements, Jomo Sibiya, to find a lasting solution to this challenge,” Mavundla said.
He said city officials are currently profiling the protesters to establish if they are indeed flood victims and to determine the type of assistance they require.
Calls for calm after measles is detected in Gauteng

Health Minister, Dr Joe Phaahla, has called for calm and vigilance after four cases of measles were detected in Gauteng.
These cases were found during routine surveillance activities aimed at detecting, investigating and responding to every suspected case of this vaccine-preventable disease.
In a statement on Monday, the Department of Health said that over the last two weeks of May, four suspected cases of measles from persons residing in Gauteng had been notified and ultimately confirmed through laboratory testing conducted by the National Institute for Communicable Diseases (NICD).
Three of these cases are individuals residing in Tshwane, which means that the City of Tshwane is experiencing an outbreak of measles. The fourth case is an individual residing in the West Rand of Gauteng.
The department said that all four individuals are presently isolating and are recovering.
The health authorities in the affected districts and communities are working together to identify and conduct vaccination of contacts.
Minister Phaahla has urged parents and caregivers to ensure that their children are up-to-date with their vaccinations in line with the vaccination schedule against measles and other childhood diseases.
“Measles is a highly contagious disease caused by a virus which mainly spreads through infectious airborne respiratory droplets from infected persons when coughing or sneezing.
“However [the] measles vaccine has been in use for almost 60 years and is the best protection against this life-threatening childhood disease. It is safe, effective and available free of charge at public health facilities,” he said.
Symptoms
Measles symptoms include fever, red eyes, runny nose and cough which typically appear before the onset of the disease’s characteristic maculopapular rash.
Children especially those under one year of age may develop complicated measles, which may include pneumonia, eye complications, and rarely, encephalitis (inflammation of the brain).
The department said unvaccinated young children are at highest risk of measles and its complications, including irreversible brain damage and/or death, especially in immunocompromised or malnourished children.
Containing the spread
Citizens have been assured that departmental officials are working closely with the Gauteng Department of Health, the City of Tshwane, the NICD and other stakeholders, including the World Health Organization and UNICEF to investigate and respond to the outbreak.
The response includes increased surveillance and vigilance throughout the province.
According to the South African Expanded Programme on Immunization (EPI), children are given the measles vaccine at six months and 12 months of age. These vaccines are available free of charge at public health facilities.
Measles is a notifiable medical condition in terms of the National Health Act, and clinicians have been alerted on the symptoms to look for.
“If the clinical picture fits with measles, they are urged to complete a case investigation form and send samples to the National Health Laboratory Service for testing,” said the department.
Samples should include blood for antibody testing and a throat swab for viral culture, both marked “NICD Measles Laboratory – attention CVI”.
Upgraded Saldanha Habour to spur economic activity

Public Works and Infrastructure Minister Patricia de Lille will today visit the recently upgraded Saldanha Habour.
The upgrades to the harbour form part of a major refurbishment programme by the Department of Public Works and Infrastructure (DPWI) to 13 proclaimed fishing harbours in the Western Cape. The upgrades were completed in March this year to the value of R501 million.
The Small Harbours Repairs and Maintenance Programme is aimed at bringing the harbours to a greater level of efficiency to revitalise the local economy and to serve the local fishermen, tenants and surrounding communities.
The programme has been completed at all 13 proclaimed fishing harbours where the scope of work included the removal of sunken vessels, dredging of the harbour basins, repairs to slipways, shore crane replacements, security, civil and electrical infrastructure upgrades.
To date, the project has created a total of 925 jobs and empowered local SMMEs to the value of over R116 million.
The bulk of the SMMEs are Level 1/2 BBBEE companies and were vastly spread, ranging from Lamberts Bay in the upper West Coast all the way to the East Coast at Stillbaai Harbour covering all 13 harbours.
The project aims to boost investor confidence within the harbours and many existing tenants are looking to expand their operations coupled with a high appetite from new investors within the harbours which will assist the department in its drive towards attracting private sector investment and revenue generation for the state.
Ultimately the economic spin-offs of the repair and maintenance programme will allow for further job creation and local economic development surrounding the 13 proclaimed fishing harbours along the Western Cape coastline.
The works completed at Saldanha and Pepper Bay Harbours included work on the slipway infrastructure at Saldanha harbour, civil infrastructure as well as electrical infrastructure work both harbours. Around R98.6 million has been spent for the infrastructure upgrades work at the two.
The Saldanha Bay Harbour main contractors appointed SMMEs from the local community. The value of work contracted to SMMEs amounted to approximately R27 million.
A total of 145 local residents also benefitted from work opportunities for the project at Saldanha Bay.
This project is a prime example of the importance of infrastructure development to spur on economic activity and much needed job creation for citizens, the department said.
Minister de Lille and Deputy Minister Noxolo Kiviet will visit the recently completed project and highlight the various works that have been done.
New COVID-19 cases increase by 726

The National Institute for Communicable Diseases (NICD) has confirmed 726 new COVID-19 cases in South Africa at a positivity rate of some 7.2% over the past 24-hour reporting period.
This brings the cumulative number of COVID-19 cases to 3 968 931 in the country with deaths also on the rise.
“Due to the ongoing audit exercise by the National Department of Health (NDoH), there may be a backlog of COVID-19 mortality cases reported. Today, the NDoH reports 33 deaths, and of these, five occurred in the past 24 – 48 hours. This brings the total fatalities to 101,350 to date,” the NICD said.
The institute highlighted that Gauteng, KwaZulu-Natal and the Western Cape continue to lead with the number of new infections.
The provincial breakdown of new cases is as follows:
Gauteng: 274
Western Cape: 166
KwaZulu-Natal: 95
Free State: 51
Mpumalanga: 50
North West: 41
Eastern Cape: 21
Northern Cape: 19
Limpopo: 9
The NICD also reported at least 53 more hospitalisations due to COVID-19.
Meanwhile, at least 33 068 COVID-19 vaccines were administered over the past 24-hour reporting period.
The total number of jabs in arms now stands at some 36 277 964.