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Cabinet has approved the tabling of the Financial Sector Laws Amendment Bill, 2020, in Parliament, National Treasury has announced.

In a statement issued on Thursday, Treasury said the Bill is part of the Twin Peaks reform of the financial regulatory system applicable to the financial sector.

The Bill introduces a critical element to the regulatory system on how to deal with a failing bank or other systemically important financial institutions to protect financial stability in a way that reduces reliance on the fiscus.

“This Bill will therefore reinforce and strengthen financial stability in South Africa,” said Treasury.

The Bill enables South Africa to meet the basic international standards, following the 2008 Global Financial Crisis, as endorsed by G20 countries and outlined in the Financial Services Board (FSB) document, ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’. The document sets out the international standard for resolution regimes to address the problem of banks that are considered “too big to fail”.

The underlying policy approach to resolution is contained in two policy papers, ‘Strengthening South Africa’s Resolution Framework for Financial Institutions’ and ‘Designing a Deposit Insurance Scheme for South Africa’, which were published by National Treasury and the South African Reserve Bank in 2015 and 2017, respectively.

“The first part of the Bill introduces a comprehensive framework for resolving all banks, as well as non-bank systemically important financial institutions that may be ‘too big to fail’. The second part sets out the provisions to introduce, for the first time, an explicit, industry-funded deposit insurance scheme to protect qualifying depositors’ funds up to a specified limit when a bank fails,” Treasury said.

The ‘resolution and deposit insurance’ framework contained in the Bill has a number of significant policy objectives, which include:

• · Public funds will no longer be the default source of funding used to bail out failing banks and other large financial institutions;
• · A deposit insurance scheme will be established and managed by the South African Reserve Bank through a newly established Corporation for Deposit Insurance.
• · Losses incurred due to the failure of a financial institution will in the first instance be borne (through bail-in) by shareholders and creditors, who are able to properly assess their investment risks and who had benefited from profits made by the institution as a going concern;
• · The South African Reserve Bank will get additional legal tools to ensure that critical services continue and that stability is maintained in the financial system in the event of a significant failure, and
• · Following international best practice, a modified creditor hierarchy for financial institutions, falling within the scope of the envisaged framework, is introduced, in terms of which covered depositors will rank as preferred creditors.

A 29-year-old male has appeared at the Ngcobo Magistrates Court on charges of contravening the Disaster Management Act regulations.

Members of the Tactical Response Team (TRT) deployed in Ngcobo, Eastern Cape, followed up intelligence information, which led to the arrest of the suspect on 9 June 2020.

“During the execution of a search warrant at Ebumnandini Hardware, which also operates as a supermarket, the following successes were achieved.

“One male suspect, aged 29 years, was arrested after he was found selling tobacco. He was also found in possession of a firearm, a magazine and several rounds of ammunition,” the South African Police Service (SAPS) said on Wednesday.

The suspect faced charges ranging from Contravention of Disaster Management Act Regulations and illegal possession of firearm and ammunition.

“It is possible the suspect could face additional charges due to the nature of his businesses and his status in the country,” SAPS said.

Eastern Cape Provincial Commissioner Lieutenant, General Liziwe Ntshinga, commended the members for enforcing the law and compliance with Disaster Management Act Regulations.

“We appeal to business owners to comply with the regulations by adhering to the items they are allowed to sell during each level of the national lockdown and we urge the community to also comply with the regulations. In doing that, we can all assist in flattening the curve of Coronavirus infections,” Ntshinga said.

Cabinet, at its ordinary meeting on Wednesday, has received an updated report from the National Coronavirus Command Council (NCCC).

The NCCC tabled several recommendations about the enhanced risk-adjusted alert level 3 of the national lockdown. South Africa entered level 3 lockdown on 01 June 2020.

South Africa’s infection rate increased by 2 430 to 55 421 on Wednesday, as the country ramps up testing for COVID-19. The country has tested close to a million people, an increase of 30 330 tests in the past 24 hours.

Cabinet decided to defer approval of the recommendations pending a full health assessment report from the Ministerial Health Advisory Committee on COVID-19.

The NCCC is expected to receive the full presentation by early next week.

“The recommendations are based on submissions made by various sectors and deliberations by the National Joint Operational and Intelligence Structure,” the Cabinet statement said.

This was among recommendations by Cabinet during its virtual meeting on Wednesday, according to the statement issued by the Government Communication and Information System (GCIS) on Thursday.

In the meantime, Cabinet said it was still appealing to all South Africans to adhere to measures put in place to combat the spread of COVID-19.

“The measures include regular washing of hands, social distancing and the wearing of masks when in public.”

Gender-based violence

At the meeting this week, Cabinet also approved the Gender-Based Violence policy framework in Post-School Education and Training System that seeks to respond to the increased number of cases at institutions of higher learning.

The policy framework provides guidance on structures, mechanisms and processes that institutions of higher learning must put in place to prevent incidents of GBV in their campuses.

“In addition to providing oversight structures, it also compels such institutions to create awareness on their GBV policies,” said the statement.

National Petroleum Company

Cabinet approved the proposed appointment of a professional restructuring company that specialises in mergers to investigate the most viable model of this single National Petroleum Company.

“The rationalisation will result in three subsidiaries, that is, PetroSA, Strategic Fuel Fund and iGas merged into one single National Petroleum Company.”

Cabinet said this gives effect to the announcement made by President Cyril Ramaphosa in his State of the Nation Address on 13 February 2020, to repurpose and rationalise some state-owned enterprises to support growth and development.

Resistance and Liberation Movement Museum

Cabinet approved the feasibility study report on the establishment of the Resistance and Liberation Movement Museum (RLMM) to contribute towards conserving the history of the resistance and liberation struggle in South Africa.

“The study, which Cabinet approved in 2015, was commissioned within the context of the Resistance and Liberation Heritage Route (RLHR) Project. The RLHR contributes towards the development and transformation of the South African heritage landscape.”

The museum is said to conserve a series of heritage elements and provide common narrative, memory and experiences relating to the liberation struggle in the country once completed.

National Khoi and San Heritage Route

“Cabinet approved the implementation of the National Khoi and San Heritage Route, which is a national legacy project,” the Cabinet statement said.

The route will identify, highlight, conserve and promote the heritage of the Khoi, Nama, Griekwa, Khorana and San, while addressing the previously neglected and marginalised South African history.

“It also gives effect to the Traditional and Khoi-San Leadership Act, 2019 (Act 3 of 2019), which legislate for the recognition of the Khoi and San traditional leaders.”

Designs of 2021 and 2022 commemorative coins

Cabinet further approved the designs of the 2021 and 2022 commemorative circulation coins which are issued by the South African Reserve Bank (SARB) and the South African Mint Company.

The R5 commemorative circulation coin and the R5 sterling silver, gold plated collectors’ coin will be issued in 2021 to celebrate the Centenary of the SARB.

The fourth Decimal Coin Series of South Africa, which will be issued in 2022, will consist of 10 cent, 20 cent, 50 cent, R1, R2 and R5 coin.

Financial Sector Laws Amendment Bill of 2020

Cabinet approved the submission of the Financial Sector Laws Amendment Bill of 2020 to Parliament.

The Bill proposes to designate the SARB as the Resolution Authority and enhances the SARB’s regulatory tools for discharging its statutory mandate of ensuring the stability of the financial system.

“The Bill proposes a new framework to resolve financial institutions, primarily banks when they enter a period of financial distress. It also introduces South Africa’s first comprehensive deposit insurance scheme that will ensure that depositors are paid their funds when a bank fails.”

Cabinet said such a scheme will protect the vulnerable depositors and ensure minimal disruptions to the financial system and broader economy when such institutions enter into financial distress.

The National Health Laboratory Service (NHLS) CEO, Dr Karmani Chetty, says the institution is working around the clock to reduce the backlog of COVID-19 test samples.

While the backlog of unprocessed specimens was as high as 101 000 on 21 May 2020, Chetty told members of the health committees in the National Assembly and the National Council of Provinces that the number has gradually gone down and that as of Wednesday, the backlog stood at 63 244.

Unprocessed specimens are samples that are older than three days after being registered at a laboratory without being tested.

Briefing the committees on Wednesday, Chetty said the laboratory service had a very difficult time dealing with the backlog during May.

“It has been a very difficult period because the number of samples we were getting on a daily basis was increasing rapidly… but as you can see, we have been processing those backlogs down and as we stand now, it has been 63 000 but we have been improving on that dramatically,” she said.

Chetty said the NHLS has prioritised the Western Cape in tackling the backlog of unprocessed COVID-19 samples because of its high positivity rate.

She said that in the Western Cape, the laboratory service has reduced the backlog from 18 000 at the end of May, and that the backlog currently stood at 3 727 on Wednesday.

“As a result, we have been giving them extra kits for them to reduce the backlog,” she said.

NHLS prioritises tests for high-risk individuals

Chetty said the laboratory service was also prioritising testing for high risk individuals.

“What we have done is we have testing priorities where we have prioritised testing for those with a medical need and clinical diagnosis, testing for high risk individuals, testing of critical frontline workers,” she said.

She said the backlog has mainly been in community screening and that the in-hospital patients who are at risk are prioritised so that the backlog does not impact on them.

Strategy to upscale the number of tests

Chetty said experts have been working towards increasing the number of extraction equipment.

She said the NHLS was also looking at a more targeted and focused testing and also looking at using rapid diagnostic tests. She said type of rapid diagnostic test allows for a blood sample to be put into a machine to check for anti-bodies.

NHLS upscaling its testing capacity

Meanwhile, the laboratory service has upscaled its capacity at a national level in a short space of time to provide significant number of tests on a weekly basis.

“We are trying to improve our capacity to ensure that we are able to meet that demand.

“We have grouped together the provinces of the Western Cape and the Eastern Cape as priority ones because as you can see, the positivity rate is quite high in these provinces,” she said.

Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams has thanked all outgoing councillors at the Independent Communications Authority of South Africa (ICASA) for their contribution.

Wednesday marked the end of term of office of four councillors, while the another councillor has since resigned.

“The contribution of these councillors to the sector is beyond questionable. They were at the forefront of shaping a regulator that plays a role in developing the sector as well as the digital economy,” the Minister said on Thursday.

On Tuesday, the National Assembly approved 10 names from which the Minister of Communications and Digital Technologies will appoint six as ICASA councillors.

The Minister is currently considering the recommended list of names by the National Assembly, and will make an announcement in due course.

“As we begin the countdown to the release of the high demand spectrum, a resourced, stable and agile regulator is in our interest,” Ndabeni-Abrahams said.

South Africa’s infection rate has increased by 2 430 to 55 421 on Wednesday, as the country ramps up testing for COVID-19.

Meanwhile, there are 48 new COVID-related deaths, bringing the toll to 1 210. Of the additional deaths, 37 are from the Western Cape, nine from the Eastern Cape and two from KwaZulu-Natal.

“We extend our condolences to the loved ones of the departed and thank the health care workers who treated the deceased,” Health Minister, Dr Zweli Mkhize, said.

The Western Cape remains the epicentre of the disease, with has the highest death toll at 927 and 36 021 infections.

The Eastern has a record of 147 deaths from its 7 154 cases, KwaZulu-Natal has 64 deaths from its 3 347 cases, while Gauteng has 57 deaths from its 7 195 cases.

Free State has nine deaths from its 401 cases and Limpopo three from its 257 cases.

Meanwhile, Mpumalanga, North West and the Northern Cape each have one death reported.

The country has tested close to a million people, an increase of 30 330 tests in the past 24 hours.

Furthermore, the recoveries to date are 31 505, which translates to 56.8%, while the death rate is at 2.2%.

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The Department of Water and Sanitation (DWS) says the torching of water tanks in Orange Farm, south of Johannesburg, is a major setback in efforts to provide water to communities in need.

The department is placing water tankers and tanks in communities around the country in response to President Cyril Ramaphosa’s call to ensure that water-stressed communities have access to clean water supply to fight the spread of the killer Coronavirus.

Following the President’s call, the Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu, directed the department to immediately act on the President’s call to alleviate the plight of needy communities across the country.

DWS’s Gauteng Provincial Head, Sibusiso Mthembu, in a statement expressed disappointment at the torching of the water tanks, saying this was running counter to the objective of ensuring that communities were not negatively impacted by the virus.

Mthembu said many people are desperate for the assistance the department is providing in the form of water tanks and tankers, and that the actions of some community members are unjustified and utterly unacceptable.

He said: “Coronavirus is spreading at a rapid rate and communities need water to wash their hands. These acts of wanton destruction of property are infringing upon the rights of access to water of other members of the community. We condemn such acts as they demonstrate disregard for other people’s lives.”

To date, the department has provided a total of 2 232 water tanks to the Cities of Johannesburg, Tshwane and Ekurhuleni, as well as the Sedibeng District and West Rand District Municipalities.

Mthembu said communities which lack access to water are particularly at risk during this time. He said the intervention of the department will go a long way to ensure that needy communities are able to practice proper hygiene by washing hands with water and soap to stay healthy.

He urged communities to look after water infrastructure, reiterating that its destruction only sets back whatever strides government is making to guarantee communities are safe from the Coronavirus.

As the number of COVID-19 infection cases in the country continues to rise, with the national death toll now at 1080, President Cyril Ramaphosa has offered his condolences to the families of COVID-19 victims, who have succumbed to the virus.

“Each one of these deaths is a tragedy. Each one represents a unique life: a parent, a child, a sibling or a friend. Each one leaves behind a family and a community in mourning.

“I would like to offer my condolences to all South Africans who have lost someone they love, and wish them strength, courage and hope in the days ahead,” said the President.

On Monday, the total number of COVID-19 cases stood at 50 879.

Over 400 000 deaths have been recorded across the world, making this one of the most devastating pandemics in the last century.

“We should take this moment to remind ourselves that the Coronavirus presents a real danger to all of us. While it may be an invisible enemy, it is nevertheless deadly,” said the President.

While most of those infected with the virus will have only mild symptoms, or no symptoms at all, they can still spread the disease to others who may suffer far more.

To protect themselves and others, the President urged citizens to continue to wear a mask when in public so that it covers the mouth and nose, wash hands frequently with soap or sanitiser, and not to sit or stand too close to others in public transport or in a store.

“While some have tried to downplay the threat posed by the Coronavirus, the majority of South Africans have understood its danger and have acted accordingly. Indeed, the patience and solidarity demonstrated by so many South Africans have saved many thousands of lives,” said President Ramaphosa.

With the country still anticipating its peak, the President said government will continue to take whatever action necessary to safeguard the lives of citizens.

Under lockdown, government built the capacity of the country’s health system, adding thousands of hospital and quarantine beds, securing adequate medical supplies and personal protective equipment, and putting training and protocols in place at all its healthcare facilities to prepare for an increase in infections.

“These measures will prove invaluable as the number of cases continues to increase. Indeed, this is the moment that we have prepared for. We have been advised by experts that the epidemic will become worse before it gets better,” said the President.

President Ramaphosa said while the country has had sufficient capacity to cope with the rate of infection so far, it will continue to monitor the situation closely. If necessary, government will impose a higher alert level in specific parts of the country to prevent a rapid increase in cases.

“It is therefore crucial that all South Africans adhere to the restrictions that remain in place and continue to take basic precautions to prevent the spread of the virus. These precautions remain our best defence against the Coronavirus and are necessary to save lives.

“We all need to play our part in the fight against the Coronavirus. Stay safe and protect South Africa,” said the President.

The lifting of the ban on the sale of alcohol since the beginning of lockdown level 3 in June has ushered an unwanted surge in reported deaths after a lull between March and May.

This was revealed by Police Minister Bheki Cele during a press briefing at the Jabulani Hostel in Soweto on Tuesday.

The Minister was in the area after six men were shot and killed on Monday evening. Police are now searching for three men believed to be linked to the crime.

During the briefing, Cele spoke about two women who were this week brutally murdered in Cape Town and Johannesburg. Naledi Phangindawo, 25, was allegedly heinously hacked to death by a man close to her. The suspect has since been arrested. In Soweto, Tshegofatso Pule, 28, was on Monday found hanging from a tree in Roodepoort where she went missing on Thursday.

“Nationally we’d sit back and complain about 30 people that have died,” said the Minister.

This was until last Monday, when the ban on alcohol during the lockdown was lifted.

“Until Monday – the 1st of June – which is not an entirely dangerous day, for the first time since the lockdown, we got reports of 40 people killed. The next day there were 51 [murders] and there were 69 this past Sunday,” he said.

During this period police were averaging between 20 and 30 murder cases a day.

“That has now just gone up, including attempting murder, including the abuse of women and violence against women,” he said.

The Minister described the murder of the two women as brutal.

“It’s an issue that we raise as police and law enforce that [perpetrators] of crime are well known to the victims. By the look of things, both these ladies were killed by people known to them. I’m not confirming that, the investigations are ongoing,” he said.

He emphasised that it was difficult for law enforcement to curb domestic violence.

This, he said, was because police could not monitor people’s behavior in their homes.

“Unfortunately, in those situations, we react. But it’s a question, we agree, we need to take up. We [need] to work very closely with all other structures and monitor closely gender-based violence, as [cases] can be brutal as we have seen with the two ladies,” Cele said.

He pleaded with men, communities and families to report suspiciously abusive relationships. He said this would ensure the police were proactive in responding in their action.

The City of Tshwane’s Roads and Transport Department, together with the Tshwane Rapid Transit (TRT), suspended the A Re Yeng bus service operations in Mamelodi on Tuesday morning.

The suspension comes after protesting members of a local taxi association attempted to hijack two of the city’s buses.

On Monday, the TRT received a tip-off that there was a planned disruption of the A Re Yeng bus operations in Mamelodi on Tuesday.

At around 4am, the area around the BP Garage in Mamelodi East, near Solomon Mahlangu Road, was blockaded with rocks and debris. The area around Tsamaya (Old Putco Depot) was also blocked off.

“A precautionary decision was taken not to send buses to Mahube and Lusaka and rather start operating from Balebogeng. There was a Putco bus blocking the road which seemed to have been hijacked from a driver. Police rescued the bus at around 6.30am around the BP Garage taxi rank,” the City of Tshwane said.

Most of the trips taking place between 4.30am and 6.30am were undisturbed except for the Lusaka and Mahube areas where the buses did not go as a result of the threats.

“At about 6.34am there was an attempt to hijack two of the A Re Yeng buses, but police acted swiftly and diffused the situation. Police then escorted all the buses out of Mamelodi with the passengers on board.

“After this incident a decision was taken to suspend all operations with a view to safeguarding the lives of the commuters, bus drivers as well as protecting the City’s assets and redirected the buses back to the Belle Ombre and Watloo bus depots,” the City said.

Tshwane Head Administrator Mpho Nawa has condemned the incident and commended law enforcement officials for their swift action to foil the attempted hijacking of the buses.

“The right to protest is an inalienable right enjoyed by all South Africans, however, it is unacceptable to attempt to hijack a bus transporting passengers who were en route to work to earn a living for their families,” Nawa said.

TRT CEO Mike Matebane said the incident was unfortunate as his organisation had a great relationship with the passenger community and the taxi industry in Mamelodi.

“Today, TRT found itself in a very difficult situation due to the imminent threat to the passengers, employees and assets as a result of the violent protest in Mamelodi,” Matebane said.

The situation will be monitored during the day to determine whether it would be safe to operate the afternoon and evening shifts.

The commuters will be updated accordingly. The City has apologised to commuters for the inconvenience caused.