Category: News

Police Minister, General Bheki Cele, has assured the community of Riverlea that police are mobilising all their resources and specialised units to restore law and order in the area.

On Monday, Cele led a high level delegation of senior police officers to the area to assess the local police’s responses to illegal mining in the area and other crime challenges raised by the community.

Cele engaged with community leaders and locals in the area and assured them that police are constantly devising strategies and operational plans to combat illegal mining operations in various provinces.

Between 1 April 2022 and 31 March 2023, 1 199 illegal miners were arrested, including 100 South Africans, 1 24 Zimbabweans, 232 Basotho nationals from Lesotho and 79 Mozambicans.

A total of R1.8 million, 9 991 rounds of ammunition and various vehicles and machinery used in mining were seized, amongst other items.

Cele said specialised units will be deployed to the area.

“These specialised units are being brought in to ensure we apprehend these illegal miners and put a stop to these illegal operations.

“Our focus is to ensure law and order is restored in this area. We cannot have a situation where communities live in fear. We are going to deal decisively with these criminals,” said Cele.

Since May 2022, the South African Police Service (SAPS) ensured the establishment of the Economic Infrastructure Task Teams (EITT). Twenty teams have been set up in hotspot areas to combat illegal mining, prevent damage to critical and essential infrastructure, as well as extortion on construction sites.

The South African Revenue Service (SARS) says South Africa recorded a preliminary trade balance deficit of R3.5 billion in June 2023.

According to SARS, the deficit is attributable to exports of R167.6 billion and imports of R171.1 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).

“The year-to-date (1 January to 30 June 2023) preliminary trade balance surplus of R5.6 billion is a deterioration from the R129.6 billion trade balance surplus for the comparable period in 2022,” SARS said in a statement.

Year-on-year export flows for June 2023 were R167.6 billion, which were 8.3% lower compared to R182.9 billion for June 2022, whilst import flows were 6.5% higher, having increased from R160.7 billion in June 2022 to R171.1 billion in the current period.

“On a month-to-month basis, exports decreased by R15.8 billion (8.6%) from R183.4 billion to R167.6 billion between May and June 2023, whereas imports decreased by R2.7 billion (1.6%) from R173.9 billion to R171.1 billion over the same period.

“Export flows decreased in June, driven by iron ores and concentrates, vehicles for goods and vehicles for passengers.

“The value of imports decreased on the back of a decrease in importation of crude oils, telephone sets and unused postage stamps,” SARS said.

Due to ongoing vouchers of correction (VOC), the preliminary trade balance surplus of R10.2 billion announced for May 2023 was revised downwards by R600 million, with the final number at R9.6 billion.

Trade data, excluding BELN for June 2023, recorded a preliminary trade balance deficit of R14.7 billion, with export flows at R151.6 billion and import flows at R166.3 billion.

The preliminary cumulative trade balance deficit for 2023 was R54.4 billion compared to R72.6 billion trade balance surplus during 2022.

Between May and June 2023, exports decreased by R15.7 billion (9.4%), whilst imports decreased by R2.4 billion (1.4%) over the same period.

The Gauteng Provincial Legislature’s Portfolio Committee on Community Safety says it will be writing to President Cyril Ramaphosa and Gauteng Premier Panyaza Lesufi to consider the deployment of soldiers in the province to “to end the scourge of illegal mining in the province once and for all”.

This after the discovery of five bodies – suspected to be illegal miners – were found shot in Riverlea over the weekend, following reports of a gun battle between illegal miners.

Furthermore, last month a gas leak led to the deaths of 17 people in the Boksburg area.

In a statement, the committee said illegal mining is causing “escalating lawlessness and mayhem” in the province.

“The Committee views illegal mining as a form of economic sabotage beyond just tax evasion, but also illicit financial flows with a devastating negative effect on the already struggling South African economy. It is also critical to establish the alleged involvement of Mining companies in illegal mining and their contribution to bringing an end to this.

“The Committee further calls upon the Department of Mineral Resources to assist in holding Mining companies that previously owned these mines legally obligated and accountable in taking full responsibility of rehabilitating them,” the statement read.

According to the committee, it will also be calling leaders in the province before it to explain what measures are being explored to curb the illegal scourge.

“The Committee has therefore resolved to call on the Gauteng MEC for Community Safety, together with the Provincial Police Commissioner, to appear before it and give an account on what measures are being put in place to end illegal mining in the province.

“These measures must have clear action plans and timelines, as the people of Gauteng can no longer afford to live in fear due to the so called Zama Zamas who are in their majority illegal foreign nationals. The safety of citizens should be a priority and we cannot allow lawlessness to continue unabated,” the statement read.

The Department of Mineral Resources and Energy (DMRE) has announced that the price of all grades of petrol and diesel will increase from Wednesday this week.

The price of illuminating paraffin is also expected to rise with the only decrease to be implemented on the price of LP gas.

Adjustments to the prices will be as follows:

• Petrol (both 93 and 95 Octane): 37c increase.
• Diesel (0.05% sulphur): 72c increase.
• Diesel (0.005% sulphur): 71c increase.
• Wholesale illuminating paraffin: 71c increase.
• Single Maximum National Retail Price for illuminating paraffin: 95c increase.
• Maximum Retail Price of LPGas: R1.61 decrease.

The department explained the reasons for the price adjustments.

“The average Brent Crude oil price increased from $75.10 US Dollars [USD] to $79.75 USD during the period under review. The average international product prices of petrol, diesel and Illuminating paraffin followed the increasing trend of crude oil prices during the period under review. These led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 63.59 c/l, 99.09. c/l and 98.71c/l, respectively. However, LP Gas decreased due to lower prices of Propane and Butane.

“The Rand appreciated on average, against the US Dollar [from R18.68 to R18.26 per USD] during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 27.64 c/l, 27.36 c/l and 27.10 c/l, respectively.

“The cumulative slate balance on petrol and Diesel as at the end of June 2023 had a positive balance of is R2.69 million. Therefore, there is no slate levy applicable in the petrol and diesel price structure for August 2023,” the DMRE said.

President Cyril Ramaphosa says although load shedding will not be resolved overnight, Eskom and government is making “significant progress” in areas aimed at reducing and eventually removing it altogether.

The President was addressing the nation through his weekly newsletter on Monday.

“Today, we are releasing a detailed report outlining the work done to improve the performance of Eskom’s power stations, accelerate the building of new generation capacity and drive regulatory reforms to transform the electricity sector.

“The winter months will soon be coming to an end. Although load shedding has continued, as was anticipated, we have managed to avert a worst case scenario by stabilising the performance of Eskom’s power stations and reducing demand,” President Ramaphosa said.

He explained that the power utility is hard at work to address challenges at power stations.

“Eskom’s generation fleet continues to show sustained improvement. Unplanned losses have been reduced to less than 16 000MW in in the last two months, down from more than 18 000MW previously. Planned maintenance has been reduced during the winter period, with Eskom having undertaken significant maintenance in the months preceding winter.

“Looking ahead, damaged units at the Kusile and Medupi power stations are being returned to service on an expedited basis. In combination, these units represent more than 3 000MW of capacity.

“The Eskom debt relief package announced by the Minister of Finance will enable necessary investment in maintenance and expansion of the transmission network,” he said.

Energy Action Plan

A year has passed since President Ramaphosa announced the Energy Action Plan aimed at addressing load shedding and achieving energy security for the country.

President Ramaphosa said since then, fervent work has been done “to add as much power as possible” to the vulnerable power grid.

“Eskom has unlocked close to 400 MW from companies with extra available capacity, and a further 600 MW is currently in the contracting process. We have sourced an additional 400MW from Cahora Bassa in Mozambique.

“We are fast-tracking the procurement of new generation capacity from renewables, gas and battery storage. Later this year, the first three projects from the emergency power programme are expected to connect to the grid. Also later this year, around 2 300MW from the most recent bid windows of the renewable energy independent power producer programme should be in construction,” he said.

President Ramaphosa explained that home and rooftop solar uptake is one of the key outputs of the Energy Action Plan coupled with accelerated private investment in capacity generation.

“It is encouraging to see that more municipalities are allowing customers to feed electricity into the grid when they have surplus electricity. This will provide yet another incentive for businesses large and small to invest in alternative energy sources.

“Regulatory changes have helped to boost private investment in new generation capacity. This work has enabled a massive boom in private investment in electricity generation, with a pipeline of more than 10 000MW of new capacity that will begin to connect to the grid later this year,” he said.

The President acknowledged that although load shedding remains a challenge, gains are being made in addressing it.

“We have maintained that load shedding will not be resolved overnight, but we are making clear progress towards reducing it and eventually bringing it to an end.

“Let us maintain this momentum, and let us all play our part, wherever we can, as we lay the groundwork for an energy secure future,” President Ramaphosa said.

Ending the intricate web of construction site disruptions which threatens lives and thwarts government’s mission of turning the country into a giant construction site that creates jobs and grows the economy, requires a concerted effort from all.

Public Works and Infrastructure Minister Sihle Zikalala is acutely aware of this problem and the importance of the construction sector to the South African economy.

He has condemned these disruptions and subsequent extortions linked with it.

“It is important that we all speak with one voice in condemning site disruptions and extortion affecting this sector.

“It is even more important that we act together to root out these illegal practices which are bringing disrepute and dragging away investment in the South African construction and property sector,” the Minister told a recent Creamer Media webinar.

This as government and role-players have expressed concern over site disruptions which over time, have gained media coverage.

Zikalala has described the construction sector as the “backbone of the economy and social development” and a pillar for economic growth and recovery as per the instruction of President Cyril Ramaphosa when he presented the Economic Recovery and Reconstruction Plan (ERRP).

Head of the Justice and Violence programme at the Institute for Security Studies (ISS), Gareth Newham said disruptions cause damage and affect the ability of the country to use construction in a way that drives economic development and prosperity.

Since taking office in March, the Minister has visited several construction projects to monitor progress.

Among these were blocked and delayed projects caused by the hijacking and disruption of project sites in KwaZulu-Natal.

The rising phenomena of so-called construction mafia who invade, intimidate and disrupt the delivery of projects on the ground has resulted in the opening of 605 cases.

Impact

While some arrests have been made, Zikalala has highlighted the importance of arresting, prosecuting and sentencing of those involved in the scourge that is mostly affecting KwaZulu-Natal.

According to the Minister, site disruptions have cost the economy R68 billion.

Vice President of the Black Business Council, Gregory Mofokeng said the industry is actively cooperating with the police on the matter while contractors have also obtained court interdicts in efforts to curb the scourge.

“Unfortunately, in most of these instances the very criminals do not respect the court interdict. So we find ourselves in a situation where once again we either have to go back and rely on the police to make sure that those court interdicts are enforced.”

He adds that the sector is not seeing “increased activity in terms of making sure that these very criminals are arrested and brought to book.”

Minister Zikalala said that following the intervention of the President, a police unit is now in place.

“I would say that since the unit came into being … there are results that we’ve seen though we have not reached a point where we see kingpins being arrested and sentenced which is quite key.”

Grievances

Meanwhile, a number of reasons have been given as to why some people engage in site disruptions.

Some feel marginalised and excluded from participating in economic opportunities that are available. According to the Minister, these individuals argue that government contracts are given to one and the same companies.

“They argue that when government says for any contract [awarded] that [is] above R30 million then 30% must be subcontracted. They argue that they are not given space to participate, even in that 30%,” said the Minister.

This is in light of the 2017 Preferential Procurement Regulations that state that public works contracts above the R30 million mark, should subcontract an element of 30%, if feasible to advance designated groups.

Commenting on the matter, Director of MDA Attorneys, Euan Massey said employers should be participative in the identification of work that can be subcontracted.

“This requires that employers are participative in the process of identifying work which can be subcontracted. They are therefore required to undertake a number of things firstly to ensure that the work that’s being awarded in that contract contains sufficient work that can be subcontracted to advanced designated groups,” he said.

While the country continues to battle historic challenges including poverty and inequality, site disruptions cannot be condoned.

“I must hasten to say there is no grievance among these that would justify site disruptions, extortion and sabotage of the economy,” said the Minister.

On the other hand, others are of the view that while they try to accommodate small business, some of these companies don’t deliver quality work and therefore fail to fulfil their obligations.

“The argument further says that those who are disrupting [sites] are sometimes given work but don’t want to work … they demand money. Now we must be able to confront this situation and deal with it in a way that will ensure that legality is preserved,” said the Minister.

Empowering communities

On the other side of the coin, is the imperative to ensure that companies are committed to transformation agenda of the country in that they should support small business, the youth, women and people with disabilities.

“In doing so, the policy commitment of localisation must be preserved in all areas.

“It is important that we continue to work together to meet the targets that we’ve agreed upon in the transformation charter of the built environment,” said Zikalala.

He added that when construction projects are commissioned, communities must be briefed to ensure their buy-in in the project adding that the Department of Public Works and Infrastructure (DPWI) will strengthen its internal social facilitation unit.

Mofokeng said the industry is geared towards empowering communities.

“As the construction industry we are geared towards empowering local subcontractors. We are geared towards …creating employment for the locals but the problem comes in where people are saying it is me who is not benefiting therefore this project must stop.”

Sector observations

Chairperson of the Construction Association of South Africa’s (CASA), John Matthews said site disruptions largely occur in the post-implementation stage of a particular contract. That it is often accompanied by the threat of violence or the act of violence itself.

One of the other worrying observations made by the industry when coming to site disruptions is that in some areas, councillors were also being co-opted by criminal elements.

“[This is] especially at the local level where you find that some of these criminals in fact pitch up on construction sites to talk to main contractors with the counsellors.  You find that the counsellors are now also involved in this whole unfortunate incidents where they are actually encouraging people to come and stop projects simply because certain individuals in the community are not directly benefiting,” Mofokeng said.

Responding to this, Zikalala said this needs to be addressed. “If we get that report, we will be able to engage with councils through speakers and then be able to take disciplinary actions against those councillors.”

The Minister also called on contractors to refuse to pay bribes while also adding that whistleblowers must be protected.

The District Development Model said the Minister, could be used as an anchor to working together with industry.

The model is a practical mechanism to enable the three spheres of government to work together, with communities and stakeholders, to plan, budget and implement in unison.

Mathews also spoke of the cost implications incurred as a result of disruptions in having to secure project sites and more importantly, protecting the lives of those working on site.

”Such disruptions have many facets from community groups wanting a piece of the pie so to speak, with real and legitimate concerns, to the extreme threats of the so-called construction mafia-type organisations wanting 30% of profits.”

Kile Mteto, of the South African Women in Plumbing and Trades, said site disruptions not only increase the cost of doing business, but their impact is felt “mostly by the SMMEs, especially women-owned entities as they are at the bottom of the food chain in accessing opportunities of the sector.”

Taking action

Despite the various challenges, Massey said it is encouraging to see that there is interest to tackle this issue.

“… I completely agree with Minister Zikalala that we have to act with one voice in terms of addressing this issue.

“I think that up until now, that hasn’t happened. There’s been a lack of unity amongst all role players in how this is addressed and it seems that more recently, there’s been a real desire to work together to get to the bottom of this problem.”

Massey said proactivity is needed in order to “properly remove the scourge that we are faced with.”

The Minister said a thorough discussion on how to grow infrastructure is necessary.

“I believe we do need to look at whether we need a construction sector master plan.”

Removing all the spanners in the works, definitely requires a societal response.

South African Revenue Service (SARS) Commissioner Edward Kieswetter has welcomed an order issued to Tiar Construction for its sole member to cooperate with the liquidators in the administration of the company’s estate.

The application was instituted by the co-liquidators of Tiar Construction as a last resort to secure the cooperation of the sole member, Mr L Marimuthu, of the insolvent entity.

“This was to compel Marimuthu to cooperate with the co-liquidators in the execution of, and to secure compliance with, legal obligations in the winding up of the estate.

“The issues before the court included the failure of Mr Marimuthu, to disclose the existence of all Tiar Construction’s assets, providing the co-liquidators with all documents and assets relating to the entity, and handing over all documents and assets of the entity,” SARS said on Monday.

During last week’s hearing, legal representatives for Mr Marimuthu applied for the postponement of the matter.

This application for the postponement was refused by the court because it was not satisfied that the application was in good faith and that the litigants could not be allowed to evade processes of court.

“The main application was, however, heard and an order handed down by the court ordering the sole member to deliver a statement of affairs of Tiar Construction as well as to hand over all documents and assets in his possession relating to Tiar Construction and/or confirm the whereabouts of those not in his possession,” the revenue service said.

SARS has acknowledged that in trying economic times the frequency of taxpayers’ facing insolvency rises.

In this regard, the liquidators play a pivotal role during the process of winding up the business of companies and in the recovery all assets, as well as protecting the rights of creditors in the estate – including SARS.

“SARS will resist any efforts by any taxpayer to wilfully engage in a strategy to evade compliance with their obligations in liquidation proceedings and frustrate court processes.

“This is done to the detriment of creditors in the insolvent estate. In many instances, the fiscus is the main victim. SARS will continue to act without hesitation against non-compliant taxpayers and calls on those who act obstructively to stymie the pursuit of liquidation and sequestration to desist,” Kieswetter said.

The Commissioner reiterated that SARS would not tolerate it when taxpayers act maliciously through the abuse of court processes and employ dilatory tactics to deprive SARS what is due and payable to the fiscus.

“I urge all insolvency practitioners to continue to execute their duties fearlessly and determinedly.  These efforts are fundamental to creditors’ abilities to recover debts due to them,” he said.

SARS said it will always work in the manner that supports the growth of the economy, creating jobs, while fighting poverty and inequality.

“Where, for whatever reason businesses do not perform optimally and they are not viable, every role player in the process is duty bound to act ethically and professionally, without fear, favour or prejudice,” SARS said.

Concerted efforts by the provincial multi-disciplinary anti-kidnapping task team to curb incidents of kidnapping in the Western Cape and bring the perpetrators to book yielded positive results with the rescue of a kidnapping victim and arrest of 11 suspects over the weekend.

The suspects are expected to appear in the Blue Downs Magistrate Court today.

On 26 July 2023, a business robbery was perpetrated at a supermarket in Kuilsrivier, where the suspects took cigarettes, smoking equipment, substantial amount of cash and kidnapped a 34-year-old businessman.

Upon reporting of the crime, the multi-disciplinary team sprang into action and an investigation commenced.

All available leads were followed up which led to the arrest of ten suspects.

Further investigation into the matter led the multi-disciplinary team to an address in Tamrisk Street, Delft, where they found the hostage, rescued him and a suspect was subsequently arrested.

The efforts of the team comprising the Hawks investigators, Special Task Force members, Provincial Organised Crime detectives, hostage negotiators, Crime Intelligence and the City of Cape Town commended the management of SAPS in the Western Cape as the team’s efforts are gaining momentum in dealing with kidnappings.

Over 52 000 households in the Moretele Local Municipality in the North West stand to benefit from a sustainable, reliable and continuous supply of potable water from the Moretele South Bulk Water Supply Scheme Project.

Water and Sanitation Minister Senzo Mchunu visited the site of the a 25 megalitres per day (ml/d) reservoir in Dilopye village and a 36.2km bulk pipeline in Mogogelo on Saturday to witness the construction of the infrastructure, which started last month.

Phase 3 of the project will ensure a reliable supply of potable water to the far west of Moretele Municipality.

A total of R640 617 000 has been budgeted for the scheme from the department’s Regional Bulk infrastructure Grant (RBIG).

Phase 1 of the project included the upgrade of the Klipdrift Water Treatment Works from 18ml/d to 42ml/d, which was completed in 2022. Phase 1 ensured that there is adequate potable water from the treatment plant that will be transferred to various networks of reservoirs and bulk pipelines, and ultimately to communities.

Phase 2 included a 30km bulk pipeline from the treatment plant towards the far west end of Moretele, while Phase 3, which is currently under construction, started in June 2023. Its completion is anticipated for June 2024.

Mchunu said upon completion, Phase 3, which includes the construction of a reservoir and bulk pipeline, will ensure reliable supply of drinking water to, among others, seven villages identified in Moretele including Swartdam, Noroki, Ratsiepane, Moeka, Ga-Motle, Kromkuil and Mmakaunyana.

While some of the villages have reticulation from Moretele Municipality, which is a water service authority, Mchunu said the villages depend on unreliable sources for drinking water, including boreholes, water sold from private water tankering and rainwater harvesting due to inconsistent provision from the current system.

The Minister said the 25 ml/d reservoir will have capability to store excess water above the daily required demand and ensure sustained reliable supply to its network of communities uninterrupted.

Addressing the community at Mathibestad’s Lepono Sport Grounds, Mchunu urged the community to be patient, and assured them that water will soon be available in their households.

“We went see the site where the reservoir and the trench of the 36km pipeline are being constructed and are satisfied with the progress. Although we would have loved to come and tell you that we have completed the work and water is being reticulated, we are happy that we are very close to that, Mchunu said.