KZN premier hikes AmaZulu Royal House budget to R86 million
The Premier, Thami Ntuli, announced the allocation of R86-million for the new financial year, an increase from last year's R77,5-million.
However, concerns over the Royal Household Trust's spending and long-term financial sustainability continue to mount.
Ntuli says the increase is not in conflict with the province's cost-cutting, but is to support King Misuzulu in fulfilling his cultural duties.
He says the province is looking to appoint a new board for the Trust that will explore property development and commercial farming to reduce reliance on government funds.
By: eNCA's Zanele Buthelezi
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Daily Maverick
10 hours ago
- Daily Maverick
The writing is on the wall for ArcelorMittal long steel
With the 30 September deadline for winding down the long steel business looming and R1bn in headline losses bleeding from ArcelorMittal South Africa's balance sheet, CEO Kobus Verster is running out of patience with what he calls 'misguided policies' that have crippled the local steel industry. Speaking after the release of devastating interim results that showed a loss of R394-million despite a cash injection from the Industrial Development Corporation, Verster delivered a blunt message to the government: fix the structural problems strangling steel production or watch South Africa's last integrated steelmaker cannibalise itself to survive. 'If that's not on the cards and we can't get agreement on that, then I have to find an alternative to basically recapitalise the business from within,' Verster told Daily Maverick, outlining plans to sell off valuable assets including Saldanha Steel, which he described as being 'in very good condition' with potential for green direct reduced iron production. 'Saldanha Steel is a valuable asset. We had intent for it in terms of green DRI (direct reduced iron). The assets are in a very good condition, but I can't wait five or six or seven years. Maybe there's a partnership or another party that can give me value.' The warning comes as ArcelorMittal prepares to monetise what it calls 'non-core assets' – including Saldanha Steel, the Tubular Mill, Vereeniging Bar Mill, ArcelorMittal Rail and Structures, and various properties – in a desperate bid to shore up its balance sheet and keep the lights on at its remaining flat steel operations. What this means for you As I reported just a few weeks ago, the closure of the long steel business directly threatens about 3,500 jobs. However, as seen with the closure of the Saldanha Steel plant in 2020, the collateral damage goes far beyond that. At the time, management said about 900 direct jobs would be lost. The downstream impact has been far wider, forcing the closure of, among many other supplementary businesses, a local car wash that was used by Saldanha Steel employees. Steel businesses that relied on Saldanha Steel, such as Anderson & Kerr, as well as Duferco Steel Processing, have also taken knocks that resulted in retrenchments. Five years later, many of the employees who once worked at Saldanha Steel remain unemployed and at least one has taken on a job as a local petrol attendant to keep food on the table. 'Misguided policies' At the heart of ArcelorMittal's crisis lies what Verster characterises as a web of 'misguided policies' that have systematically undermined integrated steel production while inadvertently subsidising smaller scrap-based mills. The most contentious is the Price Preference System on scrap metal, which ArcelorMittal claims has transferred 'more than R60-billion over a decade from informal workers and recyclers to a handful of capital-intensive scrap-based mills.' But scrap policy is just one front in what has become an infrastructure war of attrition. Rail performance has 'deteriorated substantially,' forcing ArcelorMittal to transport 62% of raw materials by road – up from 20% – while rail transport dropped 30%. 'Our plants are designed to take a train, tip it into our conveyor system, and it takes everything to the relevant places,' Verster explained. 'Now you have to go and offload those big trucks in the yard, you have to get equipment and move that around, and you have to accommodate about 370 trucks per day into your operation. Those are the types of costs.' The combined impact of disruptive rail and electricity interruptions added R358-million in costs during the first half of 2025 alone. Import invasion While domestic infrastructure crumbles, imports have surged to more than 35% of local steel demand, prompting ArcelorMittal to seek protection through safeguard duties. The company achieved a partial victory in June when a provisional safeguard duty of 52.34% was imposed on corrosion-resistant steel coil for 200 days, based on findings of 'serious injury' to local industry and 'critical circumstances'. But Verster argues the government should go much further: 'The government should be much more aggressive in implementing more blanket protection against all steel, which all other countries are doing. Countries have 25% duties, and they enforce it – then you should not have less.' He pointed to Canada's quotas and additional duties to exclude Chinese products, while noting that even provisional duties already in place haven't shown their full impact, partly because imports are sometimes declared at '10% of the value'. The long steel endgame Despite the IDC's R1.683-billion lifeline – now fully utilised – the long steel business remains on death row. Verster confirmed that 'the timeline and our conditions are exactly the same' for the 30 September wind-down date. The IDC funding, he said, has 'largely neutralised' the losses from the long steel business, but ArcelorMittal 'cannot assume any further financial risks related to the Long Steel Business beyond the next few months'. The company is awaiting the outcome of the IDC's due diligence process, but appears to be preparing for the worst. Asset monetisation plans are already being finalised, with proceeds earmarked to 'reduce debt levels and invest in the core Flats Business for earnings and cashflow improvement'. Cautious optimism Despite the grim numbers, Verster detected signs of improvement in recent months. 'Recently, we perform[ed] a lot better on that front and it also appears the market is taking a bit more material in the last two months than previously, so hopefully that will be behind us.' The company is pursuing what it calls 'export replacement' strategies. Verster said, 'Our intent is not just to recover the 10%. Our intent is to recover the 10% but then move beyond that and replace more imports.' However, the outlook for the second half of 2025 remains cautious, with domestic demand expected to stay constrained despite modest improvements in global steel sentiment. The bottom line What emerges from ArcelorMittal's interim results is a portrait of an industry under siege – not just from global market forces, but from a perfect storm of policy failures, infrastructure collapse and regulatory inaction. Verster's message to the government is clear: 'You cannot have these expensive rail and electricity costs and think manufacturing organisations can survive. Once again, it's not a thing you see – you see the same issues in the smelters and ferro-alloys and others.' His frustration is palpable. 'This is not a crisis you can almost say is a South Africa steel issue. It's not a steel issue. It's an economic issue.' DM
Daily Maverick
10 hours ago
- Daily Maverick
Letter to Mahlamba Ndlopfu: General Mkhwanazi turned July into Justice Month
Ah, Chief Dwasaho! July, by far the longest month since the invention of the Gregorian calendar, has finally expired — no turkey, no fairy lights, just Breaking News. Instead of 'Christmas in July', we got Crime Scenes aplenty. My leader: July 2025 will be remembered as the month that gave us the most expensive press conference in South African history, courtesy of KwaZulu-Natal's no-nonsense top cop, Lieutenant-General Nhlanhla Mkhwanazi. His 6 July presser lasted just under an hour. Still, the investigations that it birthed will cost an eye-watering R147.9-million — not for bottled water or a mic, but for the Judicial Commission of Inquiry into criminality, political interference and corruption in the criminal justice system arising from the specific allegations made public by General Mkhwanazi. July, Justice Month But can we give the general his flowers while the lilies are fresh? Unlike many of our over-scripted ministers who confuse 'pressers' with amateur sketch performances, General Mkhwanazi arrived armed with results. His unit, the so-called Political Killings Task Team, turned July into Justice Month. Ten politically or gang-linked murders were solved — all linked by ballistics to a single AK-47 allegedly belonging to KT Molefe and his gang. Suspects arrested. Crime networks rattled. Now, the headline act — Katiso 'KT' Molefe, aged 61, a Sandton businessman by title, but allegedly a drug trafficker, racketeer and underworld boss by reputation. He stands accused of masterminding the murder of Pretoria nightlife icon DJ Sumbody, who was killed along with his bodyguards, Sibusiso Mokoena and Sandile Myeza, back in 2022. But that was only Molefe's opening act. He is also linked to the assassination of Soweto's DJ Vintos, real name Hector Buthelezi, and the murder of businessman Don Tindleni. Then there's the April 2024 killing of Armand Swart, a Vereeniging engineer gunned down in a case of mistaken identity; the intended target was a whistleblower at Swart's company who had lifted the lid on Transnet SOC Ltd tender corruption. Malcom X and Kenny Kunene And now, my leader, the pattern repeats: 'KT' Molefe nears arrest, and suddenly the political girdle tightens. This week, 'businessman' Malcolm X told eNCA that on the day Molefe was detained in December 2024, he called former Hawks boss General Godfrey Lebeya to verify whether the officers descending on Molefe's Sandton home were legitimate. Malcolm X said he acted on behalf of Molefe's brother, who feared rogue forces might masquerade as the police. Lebeya confirmed Malcolm X's identity and said he had despatched a verification team. Jeso. Fast forward to last week, Kenny Kunene, a former Johannesburg Metro MMC for Transport and co-founder of the Patriotic Alliance, was spotted at the Sandton residence where 'KT' Molefe was rearrested. Kunene said he had accompanied a journalist to conduct an exclusive interview with Molefe when the police burst in. He insists he is not friends with Molefe. Didn't General Mkhwanazi speak of politicians, businesspeople and police officers protecting criminals? The Cat, nine lives and DJ's blood Vusimuzi 'Cat' Matlala, also described as a tenderpreneur, is firmly in the sights of Mkhwanazi's A‑Team. His alleged hit squad mirrors 'KT' Molefe's network — the same Tiego Floyd Mabusela and Musa Kekana accused in the DJ Sumbody murder. Notably, Mabusela and Kekana also face charges in attempted hits tied to Matlala, notably the cinematic but botched assassination of socialite Tebogo Thobejane — two syndicates in one deadly ecosystem. Boko Haram And now, my leader, the media is peeling back layer after layer of the Mamelodi underworld's onion, and what's emerging is more chilling than a horror flick. Cat Matlala is no lone wolf — he is allegedly deeply embedded in Mamelodi's syndicate known locally as 'Boko Haram', a brazen extortion network that has terrorised businesses, collecting 'protection' fees with the peculiar courtesy of issuing receipts. He's reportedly operating as the underworld's chief extortionist and narcotics broker, running nightclub-inspired protection rackets where cash, guns and violence are the price of admission. Some insiders have dubbed him the 'Godfather of Gas and Glocks', a title that feels less metaphorical and more municipal — a man who carved out territory at the crossroads of drugs, intimidation and nightclub gatekeeping. A recent eNCA Checkpoint broadcast delved into the gang's evolution, once confined to township lanes, now sprawling into Gauteng's suburbs with muscle flexing that mimics terror groups more than local syndicates. The network reportedly employs surveillance, tracking informants and deploying hit squads if 'payments' slow down. Matlala's alleged role is central, not as a foot soldier but as a kingpin, placed atop a pyramid built from fear, loyalty and the politics of protection. A patriot with secrets, or brown envelopes? Now, to the final act: Brown Mogotsi, long whispered to be close to on-leave Police Minister Senzo Mchunu, claims he's not trembling in Gucci loafers, but sitting comfortably atop the intelligence food chain. He admitted to being what he called an underground crime-intelligence informer, boasting involvement in the arrest of fugitive Thabo Bester in Tanzania, as well as years of covert assignments across borders. He insisted he had been a freelance operative embedded since at least 2009, sharing insider knowledge with crime intelligence handlers. Contrast that self-portrayal with his criminal record, revealed by Correctional Services: Mogotsi has three convictions dating back to 2011 — two separate sentences for assault with intent to cause grievous bodily harm (GBH), one for defeating the ends of justice, and another lengthy term for GBH plus reckless driving. Despite this, he insists his history doesn't disqualify him from furnishing 'deep underground experience' to investigators. So, which Brown are we dealing with, a patriot with secrets, or a fixer with brown envelopes? Whichever version we choose, one truth remains: this is no cameo, but prime time, and General Mkhwanazi's dossier is getting juicier by the minute. Sindiso Magaqa the latest twist On Monday, the Political Killings Task Team rearrested Zweliphansi Skhosana, the former municipal manager of Umzimkhulu Local Municipality, in Durban. He faces charges including murder, conspiracy to commit murder, and the unlawful possession of prohibited firearms in connection with the 2017 ambush of Sindiso Magaqa, who was then an ANC councillor. Skhosana had previously been arrested alongside the late political heavyweight Mluleki Ndobe, but those charges were mysteriously withdrawn in 2019. Why? Prosecutorial discretion or political protection? Prison vibes Now to the final act, my leader — the Political Killings Task Team, has just netted two more suspects (one a mastermind) in the murder of DA councillor Nhlalayenza Ndlovu who was gunned down in December 2023 at his Mpophomeni home in Pietermaritzburg. Among the newly arrested were a 56-year-old inkosi and a 26-year-old man. According to the police, the hit was coordinated from inside Pietermaritzburg Correctional Centre. These two join the three other alleged hitmen already detained, all accused of orchestrating the plot that claimed Ndlovu's life in front of his family. Correctional Services didn't escape Mkhwanazi's exposé, and was named as part of the criminal underworld ecosystem. National crisis Of course, none of these breakthroughs happened by accident. Mkhwanazi's unit relied on sharp intelligence, ground-level informants and one scarce commodity: sheer will. And here's the rub — why does only one province treat organised crime as a full-blown national crisis? Where are the other nine generals with nine-point plans? This is where you come in, my leader. South Africans aren't just hungry for justice — they're ravenous. When we say 'let the law take its course', we don't mean at a snail's pace with a flat tyre. We mean heads must roll, orange overalls must be fitted, and dockets must stop vanishing like tenders in the wind. So, as we close the blood-splattered chapter that was July, a month that read like a battlefield report, I ask you, my leader: When last did a general deliver this much with so little PR polish? When last did a police unit (Mkhwanazi's Men) solve more murders — 436 suspects arrested, including 35 SAPS members, and 156 firearms recovered? Lieutenant-General Mkhwanazi deserves more than a thank you. He deserves support, protection, and replication. Now, through the commission of inquiry, we may finally know the politicians, metro cops, prison warders and other state actors working in tandem with the criminal underworld. Perhaps, at last, our prisons and courthouses will overflow with trials and convictions.
Daily Maverick
10 hours ago
- Daily Maverick
After the Bell: How much is a business idea worth?
This may be an unpopular view, but I'm not convinced one person should get billions for one simple insight that would probably have been implemented anyway. Through all of the years I have been lucky enough to be a journalist, there is one fundamental dynamic that has become completely entrenched in our society, and most others. It is that the rich are getting richer while the poor are falling further and further behind. One of the big drivers of this seems to be the way in which salaries for CEOs have really increased in the past few years. Now, I fully expect and understand that someone who is able to create value for themselves and others should be paid well. And I do mean really well. It seems entirely moral to me that people should be paid for doing constructive things. I do wonder though about cases that really involve a rise in technology, or just one insight. So, Mark Zuckerberg has literally created an industry. But he did this as part of technological changes in society. He would not have been able to do it without being American, being at Harvard, and being there when he was. Something similar must have happened in 2022 when soaring platinum prices resulted in the CEO of Sibanye-Stillwater, Neal Froneman, getting paid about R300-million. Now, I could never do what Froneman does. He has a rare combination of skills and the ability to lead a group of people to enable others to make money. And, of course, much of his salary was in the form of shares, their value increased in line with platinum prices immediately after the Covid pandemic. This means that this money was not paid out directly by the company, but was the result of the increase in the value of shares he had been given before the rally. The case of The Foschini Group CEO Anthony Thunström is an interesting example. In 2024, he was paid 43% less than the year before because the group missed certain targets. This year, he was paid R45-million because he hit those targets. While he cannot control all of the variables around him, there is something about this that seems intrinsically fairer to me than Froneman's situation, where he benefited hugely from a historic dynamic that lifted platinum prices. That said, he could argue, perhaps, that only he could have ensured his company was able to take such full advantage of that increase. I was thinking about all of this watching the Constitutional Court's ruling in the Nkosana Makate case against Vodacom. He and Vodacom have been arguing for nearly 20 years over how much the network should be paying him for his insight that it should start a 'Please Call Me' service. I really thought today would be the day this case would finally end. I mean, really, how long can one case drag on? Instead, all of the judges found the Supreme Court of Appeal (SCA) had got the case hopelessly wrong. But, being on the Constitutional Court, they also felt they should not have to sift through the arguments and the maths. Now the SCA must do it again, with a new Bench of judges. For me, at the heart of it is: How much can one idea be worth? I can see that, for Zuckerberg, perhaps that idea could be worth a huge amount – he did create something that changed the world. For Elon Musk, perhaps his ideas – around electric cars, rockets and goodness knows what else – will literally save the planet. That must be worth quite a lot. But like Musk and Zuckerberg and Froneman, there are other forces at work in the Makate case. Obviously on the one side is Vodacom, one of our biggest companies with huge resources. It will fight for many years to prevent having to pay out any amounts that go into the billions. While it can appear as if Makate is on his own, in fact at least part of his campaign has been financed through contingency fees with law firms and, during at least one stage, other groups. This means that both sides will fight forever. The stakes are that high. This may be an unpopular view, but I'm not convinced one person should get billions for one simple insight that would probably have been implemented anyway. It's true that the Please Call Me service is now old hat, but at the time it was revolutionary. But it was one simple insight into a technology that was evolving very quickly. And MTN already had their own Please Call Me service up and running before Vodacom was able to implement theirs. Should he receive compensation? Sure. Millions? Maybe. Billions? Surely not. Of course, no matter how rich or comfortable we may be, we all have our own financial hopes and dreams. Some of us just want to pay off our bond. Or our kids' school fees. These are all legitimate. And that's why our demands to be properly paid are also entirely legitimate. Even if your first name is Elon, and you are hoping and dreaming of going to Mars. DM
