Duma Gqubule weighs in on canned VAT increase
JOHANNESBURG - South Africans won't be paying more for VAT as previously proposed.
That's because Finance Minister Enoch Godongwana has backtracked on the tax increase.
The decision follows consultations and recommendations from Parliamentary committees.
Godongwana will now table a Rates Bill to ensure that VAT remains at 15%.
According to economist Duma Gqubule, the basic goal of budget fiscal and monetary policy is to stimulate economic growth and employment creation.
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IOL News
an hour ago
- IOL News
Scopa express disappointment over SAPO's stagnant audit outcomes
The audit into the South African Post Office found that there was no consequence management for irregular, wasteful, and fruitless expenditure, and investigations were delayed. . Image: Independent Newspapers Archives Parliamentarians on Wednesday expressed their unhappiness with the state the South African Post Office (SAPO) was in, with one even suggesting that the state-owned enterprise should just close shop. This is after the Office of the Auditor-General (A-G) briefed the Standing Committee on Public Accounts about SAPO's audit outcome for 2024/25. The entity, which is under business rescue since, obtained for a third year in a row a disclaimer, which is the worst audit opinion. ANC MP Helen Neale-May said SAPO was a relevant institution to communities and South Africans, but it was allowed to disintegrate over the years. 'It is very disheartening to see such an institution crumble before one's eyes,' Neale-May said. ActionSA's Alan Beesley said the institution was not going to survive. 'It is quite clear it is on life support and essentially the plug should be pulled. Looking at this report and outcomes, it is quite clear, it is not going to survive,' Beesely said. Scopa heard that SAPO's audit outcomes remained stagnant for three years, and no opinion could be expressed due to the mess of its finances. Audit engagement manager Motshekga Makhai said the audit outcome was attributable to the institution's going concern status and failure to support strategies to turn around the business, and failure to provide supporting documents. 'They did not have supporting documents to support line items,' Makhai said. The audit found that the financial statements continued to be concerning, and the control environment was quite weak. Makhai said serious intervention was required for SAPO to produce credible financial statements. 'The business rescue practitioners brought in consultants. This only resulted in a reduction of qualification areas, but the control environment remained the same. Because of the weak environment, some of the qualifications are repeated. It indicates that when there are action plans, they are not implemented or tracked accordingly.' Makhai added that compliance with key legislations remained unchanged, and governance and oversight were areas of concern. 'This was a regression in the current year. It was attributable to the fact that there was no board in place as it was dissolved,' she said, adding that there was no company secretary and board committees were non-existent. The audit found that there was no consequence management for irregular, wasteful, or fruitless expenditure, and investigations were delayed. 'For SAPO to deal with irregular expenditure, they need to ensure that staff understand how to deal with irregular expenditure well and understand the prescripts of law to deal with expenditure. The accounting authority to be appointed must deal with the remaining balance by ensuring there is proper consequence management,' Makhai added. The audit also found that fruitless expenditure was significantly reduced due to the business rescue process. SAPO wrote off R136 million of the fruitless and wasteful expenditure, but it has yet to pay R16m to its creditors. Makhai told Scopa that SAPO achieved 13% of its targets and was way below in terms of its targets for building capacity and capability. 'This means if you do not achieve the core mandate, you are unable to render the much-needed service to the citizens. This results in the loss of trust in the Post Office.' Makhai stated that SAPO blamed its going concern status on its financial constraints. The entity was unable to collect revenue because the business was not doing well, and so serious is the situation that the revenue generated could not even cover the daily expenditure. SAPO's business rescue plan, which was adopted in December 2023, was based on the R6.2 billion commitment from the government. The entity received R2.4bn, while the R3.8bn is still outstanding. The committee heard that R86m was paid to the business rescue practitioners and consultants during the financial year under review. Makhai said SAPO's business modernisation and new business initiative strategies were yet to be implemented to assist in the turnaround and find ways to increase revenue, which is on continuous decline. ANC MP Ntando Maduna was concerned that SAPO was not achieving its strategic performance targets while receiving bailouts. 'It is important that they show the will to change. If consultants have not worked, it is unfair to us to use taxpayers' money to bail out SAPO and pay consultants not assisting to improve internal controls,' said Maduna. Scopa chairperson Songezo Zibi was concerned with whether the rescuing of SAPO was with the right strategy in mind. Zibi said there was a need for a policy rethink about the future of SAPO, which has a similar mandate with other banking institutions in government and also contended with explosion of courier companies. [email protected]
Daily Maverick
an hour ago
- Daily Maverick
Transformative or talkshop: Ramaphosa's National Dialogue welcomed, but will it lead to real change?
The Presidency says the people of South Africa will determine whether the National Dialogue is successful or not. President Cyril Ramaphosa has delivered on his promise of launching a National Dialogue to address a wide range of the country's pressing issues, including unemployment, poor governance, slow land reform, poverty and hunger, gender-based violence and social fragmentation. However, doubts remain about whether the dialogue will lead to tangible outcomes or end up as yet another talkshop with no real change. On Tuesday night, Ramaphosa announced the appointment of an 'eminent persons group' made up of 31 prominent South Africans who will lead the National Dialogue, set to take place on 15 August 2025. The group includes business leaders, former MPs, academics, athletes, actors, as well as traditional and spiritual leaders. Some of the names include Springbok captain Siya Kolisi, Miss South Africa 2024 Mia le Roux, Bishop Barnabas Lekganyane, the leader of the Zion Christian Church, and award-winning actor John Kani. The dialogue will take place in two phases. First there will be the event in August, which will see the representatives engage citizens from all walks of life. Then a National Convention is planned to be held in the beginning of 2026. It is only after the National Convention that a programme of action for the country will be adopted, a move which has been criticised by some as political posturing before the 2026 local government elections. When asked whether there were any indications of tangible outcomes expected from the National Dialogue, Presidency spokesperson Vincent Magwenya responded: 'Well, let's give it a chance. This is a platform for all South Africans to participate. It is the people of South Africa who will determine whether it is successful or not. The government is simply facilitating a dialogue for South Africans to decide the shape and direction of the next chapter of our democratic journey.' While there are already fears that the dialogue may just be a talkshop, Ramaphosa said it was a tried and tested method in South Africa, a reference to overcoming the apartheid regime. 'At every important moment in the history of our country, we have come together as a nation to confront our challenges and forge a path into the future in dialogue with one another. 'Through dialogue, we were able to deal with the challenges that the apartheid system caused in our country and achieved peace and overcame violence. We established a democracy and ended apartheid,' Ramaphosa said. Historic opportunity The National Foundations, supported by more than 50 civil society organisations — including the Thabo Mbeki and Steve Biko foundations — have welcomed the announcement of the National Dialogue. They say it is a historic opportunity for South Africans to reclaim their voice and help shape the future of the country they aspire to build. 'It is rare in the history of any nation for citizens, rather than just their representatives, to be given an opportunity to embark on a historical reflection about the state and condition of their nation, and their prospects for the future. This is an opportunity for us to fashion a brave new vision and programme for our beloved country, derived from this seismic reflection,' said chairperson Nkosinathi Biko. Meanwhile, Neeshan Bolton from the Ahmed Kathrada Foundation welcomed the move and praised the diverse group of people appointed. However, he also raised concerns about who would be chosen as the secretariat and whether there would be enough funding to support the process. 'Depending on who the secretariat is, we will support them and what their overall mandate is and the latitude they have to do their work. They should be able to pull it off. 'Fundamental, too, is going to be resources, and I hope that they don't have to raise (funds) themselves, and that the state will play a significant role in providing the resources that are required. I am fairly pleased with the list of names that are there,' Bolton said. While some have dismissed the dialogue, he said it was ultimately meant to produce a clear and concrete document. 'But a document is only as good as those who are then mandated to implement it,' he added. Advocate Brenda Madumise-Pajibo, a gender-based violence activist, had a different view. She said the dialogue would be a waste of time and slammed the appointment of the eminent persons group. 'The concern is that it's driven largely by the government, and there lies its failure. Secondly, what is the purpose of this dialogue when we know what the challenges faced by this country are — the economy, gendered violence, infrastructure decay, lack of accountability from elected officials, citizens, business and government employees. 'What we are refusing to acknowledge is whether individuals appointed to lead the state have the capacity and the wherewithal to execute government policies,' Madumise-Pajibo said. Mixed reactions Ramaphosa first introduced the idea of a National Dialogue during his inauguration address in June 2024 in response to calls from civil society groups. At the time of the initial announcement, the DA offered conditional support for the idea, stressing that it must be a genuinely national dialogue, not framed solely in the language and perspectives of the ANC. The DA's national spokesperson, Willie Aucamp, has since welcomed the dialogue, which he hoped would lead to tangible outcomes. He said the party would use it as an opportunity to showcase 'constructive commitment' to the process of finding solutions for the country's problems. 'I think it's high time that we as a nation get together and discuss collectively what we see as a road forward for this country. The DA will certainly embrace this opportunity. We hope and believe that what will be discussed there will lead to a better South Africa for everybody. 'We are hopeful that it will not just remain at talking, but that there will be action that will be implemented based on the outcomes of these talks. To just talk will not help; we must implement what we are talking about,' Aucamp said. Meanwhile, in a strongly worded statement, the EFF rejected the initiative, describing it as a politically motivated ploy to reward those with links to the ANC. EFF spokesperson Sinawo Tambo said South Africans were desperate for solutions to unemployment, poverty, landlessness, crime, gender-based violence and corruption — problems that had persisted under the leadership of the ANC since 1994. 'It is therefore manipulative to attempt to construct these challenges as similar to apartheid, and that they can be defeated through social cohesion, when these challenges that plague our society are due to those who have been in power since we as a nation defeated apartheid. 'Ramaphosa is attempting to make South Africans take collective responsibility for the failures of the party he leads, and seeks to mask this scapegoating with the sentimentality of a National Dialogue,' Tambo said. Ramaphosa's spokesperson said the process should be inclusive. 'Our call is to all South Africans in every community and household to participate fully in the process. The National Dialogue stands to be a powerful platform that will shape South Africa's trajectory for many decades to come. No individual or family must be left behind in this process,' Magwenya said. Following the announcement, Ramaphosa said an Inter-Ministerial Committee had been established under the chairpersonship of the deputy president to coordinate the government's contribution to the National Dialogue. 'We will be establishing a steering committee, comprised of representatives of various sectors of society, to set strategic priorities and coordinate implementation of the National Dialogue process,' Ramaphosa said. DM
The South African
an hour ago
- The South African
Mandela's grandson wants Afrikaner 'refugees' criminally charged
Nelson Mandela's 'great-grandson,' Mayibuye Mandela, has called for authorities to press charges against the two groups of Afrikaner 'refugees' who left South Africa for the US. He's also calling on the Department of Home Affairs to revoke their citizenship. The refugees are part of President Trump's resettlement programme offered to South African minority races who have experienced 'persecution'. In a media statement, Mayibuye Mandela – an outspoken member of the Economic Freedom Fighter (EFF) party – shared his strong opinions about white Afrikaner South Africans who had taken up refugee status in the US. He said, 'Revoke their citizenship. Strip them of the right to call themselves South African. 'They have betrayed this country, they have lied about our people, they have attempted to spark international hatred toward our nation. They must never again benefit from the privileges of this republic.' Two groups of Afrikaner 'refugees' have resettled in the US. Images via X: @usembassysa Addressing President Trump, he continued: 'If more of them want to leave, do not waste your planes. Provide a ship. Give them space and let them live in peace. South Africa will not beg racists to stay. Let them go and let them stay gone. 'And as they go, we as a nation must act.' On his X account, Mayibuye Mandela clapped back at critics of his comments. He posted: 'This is our country. We will fight for it, protect its dignity, and defend its people no matter the cost.' Who exactly is the outspoken member of the Mandela family? According to his own admission, Mayibuye is not the literal great-grandson of Nelson Mandela, but rather that of the late president's sister Baliwe. However, he told TimesLive: 'Yes, I am the great-grandson of Nelson Mandela, traditionally and in other ways; you can't do anything [about that]. Those discussions are not going to put bread and milk on my table. Mayibuye did, however, admit that he did not have a close relationship with the freedom fighter. He continued: 'We had a family relationship like anyone else. We would go to dinner, go for breakfast, we'd meet him here and there, and he was too old.' Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 .
