SIU broadens probe into state entities over controversial New Age media breakfast events
Image: File
The SIU will widen its scope of investigation to include five state institutions in connection with The New age (TNA) media breakfasts hosted by the SABC about a decade ago.
Briefing the Standing Committee on Public Accounts, SIU chief investigating officer Zodwa Xesibe said there was not much to report about the investigation emanating from the proclamation issued late last year.
'In respect of the investigation, in a sense, this was proclaimed as part of state capture recommendations.
'This investigation involves entities and one being Eskom, PetroSA, South African Airways, Transnet, the national Department of Human Settlements as well as the SABC,' Xesibe said.
'These are entities that were coerced to hold those business breakfast meetings by TNA at the time it was called The New Age and were paid by SABC.'
She also said the SABC had a contract with TNA for the hosting of the business breakfasts.
'Our involvement in the SABC will be to follow the payment made by the state institutions to SABC and then to TNA,' Xesibe added.
SIU head Andy Mothibi said they will be investigating the business breakfast events that were held and supported by various institutions with SABC as platform used to host them.
'We will be investigating at all the institutions. It is early stages. There are no outcomes yet on this one,' Mothibi said.
In its presentation to Scopa, the SIU said it submitted a motivation for the proclamation in 2019 and 2022.
It said matters forming part of the proclamation came to its attention while investigating certain affairs of the SABC when it became aware of a contract between the public broadcaster and TNA for three years.
'In terms of the agreement, the SABC would broadcast a series of events described as 'The New Age breakfast Briefing brought to you by the SABC hosted by TNA', which (would) be briefings hosted by TNA.'
It also said TNA subsequently concluded agreements with Eskom, PetroSA, SAA, Transnet, and the national Department of Human Settlements.
'In terms of these agreements, the state institutions would pay 'sponsorship fees' to TNA in respect of the business briefings and would, in return, receive media exposure from the business briefings.'
The SIU said it had received further information from the Zondo Commission, which found that the business briefings were not only irregular but wasteful too.
President Cyril Ramaphosa signed the latest proclamation in October 2024.
'The proclamation period covers events which took place between 1 January 2011 and he date of publication of the proclamation, which is 18 October 2024 and includes matters which took place before or after the aforesaid period but are relevant to, connected with, incidental or ancillary to matters in the Schedule of the proclamation or involve same persons, entities or contracts investigated under the authority of the proclamation.'
Xesibe said evidence obtained indicated TNA's involvement in SABC was intertwined with entities such as Eskom, Transnet, and PetroSA.
'The SIU has investigated this matter as far as possible and determined that it can only be investigated to the core with a further proclamation that would mandate such investigation.'
Meanwhile, the SIU's presentation stated that an application was brought by the SABC to set aside the contract on which TNA's claim of R144m was based following the liquidation of the Gupta-owned company.
SIU legal counsel Ntuthuzelo Vanara said the TNA claim against SABC showed the business breakfast briefings were conducted utilising equipment and airtime of SABC without money being paid.
'Because there was a claim for payment due to TNA, we were able to save R145m because the company has gone into liquidation and the liquidators did not pursue their claims against the SABC,' Vanara said.
He stated that the SIU was pursuing the directors of TNA.
'We are to apply for a new date for a hearing against the directors,' Vanara added.
mayibongwe.maqhina@inl.co.za
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
an hour ago
- The Citizen
City says debt relief working, critics warn of looming crisis
The metro has defended its controversial debt relief programme, maintaining that consumer debt has declined. This comes after criticism from opposition parties who claim it encourages non-payment and threatens the metro's financial health. Opposition claimed that despite the debt relief programme, residents' outstanding debt increased by more than R700-million in the previous financial year. The Freedom Front Plus said it was particularly concerned about a 600% increase in new defaults within the 31-60-day payment period. However, metro spokesperson Lindela Mashigo argued that consumer debt has been decreasing since the launch of the incentive in May. 'Between February and March, the debtors' book fell by 13.56%, with a further drop from R26.6-billion to R25.8-billion over the next two months,' Mashigo said. He said these figures prove the initiative is working, allowing residents to settle arrears and keep their accounts in good standing. 'The plan offers ratepayers a 70% discount on outstanding municipal bills if they pay the balance in full, and was introduced to address a historic R30-billion debtor's ledger.' Mashigo dismissed claims of a 600% spike in new defaults as 'factually incorrect'. 'Nevertheless, the city remains committed to addressing all arrear accounts, particularly those that are 30 days and more in arrears.' He said intensified credit control measures are being implemented to reduce the debtors' book and to improve the overall payment levels. 'These measures include stricter enforcement of credit control policies, targeted customer engagement, and proactive monitoring of payment patterns to prevent accounts from falling into longer-term arrears.' Mashigo stressed that the metro maintains a structured payment arrangement with Eskom, honoured in full and on time. 'We have never defaulted on our commitments to Eskom and disciplined financial management has kept essential services running.' Despite the metro's reassurances, opposition parties remain unconvinced. Freedom Front Plus Councillor Mark Surgeon warned that outstanding debt climbed by more than R700-million in the past financial year, even with the debt relief scheme in place. He accused the ANC-led coalition of using the policy as a quick political fix rather than a long-term financial strategy. 'The FF Plus has always maintained that general debt write-offs foster a culture of non-payment,' said Surgeon. Surgeon also cited a R2.28-billion increase in the city's own debt in 2024/25 and a 43% rise in what it owes Eskom, warning of looming fiscal collapse. He said underspending on projects further erodes public trust, calling the budget a 'political wish list' rather than a binding service delivery plan. Surgeon argued that without structural reforms, the debt crisis will only deepen, worsening service delivery and public confidence in municipal governance. The DA shared similar concerns. Former MMC for Finance Jacqui Uys said the policy benefits residents who can pay but choose not to, while doing little for struggling households or for restoring payment discipline. 'The processes followed by the coalition do not ensure the inclusion of defaulting ratepayers back into the payment net,' she said. Uys said the DA had proposed alternative repayment models to help those who want to pay but cannot, but these were rejected. 'The debtors' book might even be closer to R28-billion,' said DA caucus leader in Tshwane Cilliers Brink. Brink said it is clear that there hasn't been an uptake by residents of the incentive scheme of the city. 'The DA warned that the scheme is inadequate, but the bigger problem is that credit control is not happening.' He said other measures, such as rolling out smart meters to indigent residents, are also not happening. 'Instead of collecting what is already due to the city, the ANC coalition has sought to introduce a new tax, the so-called city cleansing levy. Now that the High Court has set the levy aside, it means that there is about R500-million shortfall on top of the R850-million shortfall from the financial year ending in June,' said Brink. Mashigo insists that the metro's approach, combined with stronger credit control and targeted revenue collection campaigns, will stabilise its finances and support long-term service delivery. He said the underspending experienced in the 2024/25 financial year can largely be attributed to delays in project implementation, procurement processes, and the finalisation of contractor appointments. 'In some cases, unforeseen technical challenges and compliance requirements also contributed to slower capital expenditure. While underspending may temporarily affect the pace of certain service delivery projects, the city is actively working to fast-track delayed initiatives and reallocate resources where possible to ensure service delivery targets are met.' He said the city has instituted a 'war room' initiative led by the mayor. 'In this forum, service delivery departments are required to report regularly on the progress of their respective capital programmes and others.' According to Mashigo, the political leadership provides oversight, ensuring accountability and alignment with strategic priorities. 'Importantly, this process operates in conjunction with the statutory oversight functions of the Section 79 Committees and the city's council, which continues to hold the administration accountable for sound budget planning, disciplined execution, and prudent financial management. This layered oversight structure mitigates the risk of undue political interference.' Mashigo said the metro has adopted an approved service delivery budgetary implementation plan that outlines clear performance targets for each department. 'This plan is supported by a funding plan aimed at ensuring financial viability, achieving strategic financial objectives, and strengthening the city's liquidity position. By enhancing revenue collection and optimising expenditure, the city can sustainably deliver essential services to communities, thereby restoring public trust and reinforcing confidence in its financial stability.' He denied that the debt relief programme has fostered a culture of non-payment, saying on the contrary, it has provided much-needed financial reprieve to residents across the city, enabling them to settle arrears and remain in good standing. Do you have more information about the story? Please send us an email to [email protected] or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.
The Herald
2 days ago
- The Herald
Deputy home affairs minister warns: 'Burn government buildings, face consequences'
Home affairs deputy minister Njabulo Nzuza has condemned the burning of the department's Germiston office, calling it 'barbaric' and warning those responsible will face the consequences. Two suspects arrested in connection with the fire appeared in the Germiston magistrate's court on Thursday on charges of arson, damage to property and public violence. Speaking to SABC, Nzuza said: 'Our constitution guarantees us a right to have peaceful protests but protests must not be violent. Expressing your rights must not negatively affect the rights of other people. What they have done is barbaric and I must make it clear law enforcement will take its course. 'It becomes a lesson to anyone in future who wants to burn government buildings that there will be consequences.' The department was co-operating with the police to provide them with all the information needed for the case. He also raised concern about the effect of the fire on service delivery, as more than 500 people will now have to travel elsewhere for home affairs services while those with pending applications face delays. 'Those are people who needed those documents so they can interact with banks, apply for social welfare, fill out their matric forms in schools or apply to universities. Now they will have to face a delay. I don't think anyone can support that. This is wrong and people must be brought to justice.' Nzuza said to minimise disruption the department has set up a mobile service at the Germiston civic centre while work continues to restore normal operations. TimesLIVE
The Citizen
3 days ago
- The Citizen
Seconded municipal manager promises turnaround for yroubled Endumeni
Endumeni Municipality's new municipal manager, Advocate Nontebeko Khambule, says a 'fresh page' is being turned for the debt-ridden municipality, which owes Eskom over R300 million. Speaking at an Endumeni Chamber of Business meeting, Khambule described the number of empty shops in Dundee as 'disturbing' and stressed the urgent need for infrastructure upgrades. 'We must work with the Chamber of Business and community groups to stimulate growth and improve collections,' he said. He also reaffirmed his commitment to 'getting the basics right' — fixing potholes, restoring streetlights, and clearing storm-water drains — using municipal staff instead of costly tenders. Technical manager Mondli Buthelezi said 10,000 meters had been audited ahead of a roll-out of tamper-free smart meters. He confirmed that commercial users, not households, will face seasonal electricity tariffs in winter to align with Eskom charges. He warned that old electrical infrastructure is a major cause of outages. Finance manager Bonga Mkhize highlighted the R550 million unfunded budget and illegal connections as major challenges, despite a 92% collection rate. Endumeni Residents Association's Willie Steenberg welcomed the frank approach but noted that local rates remain higher than in other Northern KZN towns. Chamber president Alan Schonken urged stricter bylaw enforcement to curb illegal trading, public drinking, and pavement blockages. Khambule acknowledged the concerns and said that with a new management team in place, a turnaround is possible if all stakeholders work together. HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at [email protected]. Add us on WhatsApp 071 277 1394
