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IOL News
14-05-2025
- Business
- IOL News
Macua says R284 million in social development funds missing from South African mining sites
In a statement on Tuesday, Macua - a prominent social and community advocacy organisation - argued that if this pattern was extrapolated nationwide, it pointed to an astonishing R25 billion in potential theft from communities dependent on mining activities. Image: Supplied Banele Ginidza The Mining Affected Communities United in Action (Macua) has announced that a conservative estimate of at least R284 million in Social and Labour Plan (SLP) funds remained unaccounted for across 11 mining sites. This alarming trend, termed 'Crumbs Capture,' suggests a systematic appropriation of developmental funds intended to uplift mining-affected communities. In a statement on Tuesday, Macua - a prominent social and community advocacy organisation - argued that if this pattern was extrapolated nationwide, it pointed to an astonishing R25 billion in potential theft from communities dependent on mining activities. 'Crumbs Capture' describes a morally bankrupt ecosystem where even the limited resources allocated for development are siphoned off through inflated tenders, ghost projects, falsified delivery reports and elite capture, all while communities languish in deepening poverty. The findings will be formally presented in a report scheduled for launch this Thursday, representing the third volume of Macua's series of community-led investigations conducted since 2018. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ This report culminates from extensive audits of SLPs across various provinces, including North West, KwaZulu-Natal, Mpumalanga, Limpopo, Free State, and Northern Cape, revealing the stark realities experienced by communities in Phola, Mononono, Robakala, Ikemeleng, Meloding, and Magojaneng, among others. "Rather than benefiting communities, these resources are routinely iInflated through tenders, reported as complete without delivery, hijacked by local elites and used to greenwash exploitation under the guise of corporate social responsibility," it said. "In essence, 'Crumbs Capture' refers to the looting of the little that was meant to redress historical injustice—a morally bankrupt system where even the crumbs are stolen, deepening poverty and inequality in the name of development." The audits illuminate a disheartening disparity: while the 11 audited mining companies reported over R376.25m in SLP commitments, only R92.25m was confirmed to have been delivered in terms of tangible infrastructure or services. This discrepancy leaves a staggering R284m unaccounted for — either undocumented, misrepresented, or lost to fraudulent practices. Macua said the 11 companies involved reportedly generated a collective turnover of R218.8bn over the SLP period, yielding profits estimated at R72.23bn. Such figures starkly highlight the grotesque imbalance between corporate profits and community neglect. Macua said while mining firms thrive, the communities meant to benefit from legally mandated development are left grappling with crumbling infrastructure and unrealised promises. "The audit findings do not reflect isolated administrative errors—they reveal a systemic model of developmental dispossession, where accountability mechanisms are absent, public institutions remain silent, and mining companies operate with near-total impunity," Macua said. "The R284 million unaccounted for is not just a number—it represents broken clinics, unsafe roads, undelivered skills programmes, and lives diminished by a system designed to extract and abandon." The report also critiques the Just Transition Illusion, a narrative woven into the broader context of the Just Energy Transition (JET). While government and mining firms tout JET as a pathway to inclusive growth and climate resilience, the report depicts a bleaker reality: JET is being employed as a facade to conceal systemic fraud, elite collusion, and broken commitments, with SLPs that should redistribute mining wealth instead acting as instruments of theft. The community audits revealed shocking completion rates across mining areas. In Mononono, for example, an abysmal 10% completion rate was tallied, with a mere 5% of promised community benefits delivered. Similarly, Rabokala achieved just 7.1% completion and 9.6% value, while MNS reported no project delivery whatsoever. These findings collectively paint a portrait of a systematic pattern of exclusion, misreporting, and financial opacity. The Chancellor House case study in Magojaneng serves as a striking example of these discrepancies. Here, the United Manganese of Kalahari (UMK)—partially owned by Chancellor House, the investment arm of the African National Congress—failed to account for over R172m in SLP obligations. Official reports boasted extensive infrastructure development, yet investigations revealed a stark contrast: little evidence of completed projects, and community members reported exclusion from essential planning processes. Visit:
IOL News
12-05-2025
- Business
- IOL News
ACS secures baggage handling monopoly as court dismisses ACSA appeal
The fallout between ACS and Acsa stems from the airport manager's decision in 2023 to terminate ACS' longstanding role in providing baggage screening services with the intention of taking over these services directly. Banele Ginidza The Aviation Co-Ordination Services (ACS) has celebrated its hold on the over multi-billion rand baggage handling monopoly after the Gauteng Division of the High Court dismissed the Airports Company of South Africa's (Acsa) appeal against an order that stopped it from procuring baggage screening equipment. In a statement on Friday, ACS welcomed the high court decision, saying it said confirmed that the critical replacement of aged Hold Baggage Screening (HBS) equipment may proceed at key international airports, which is crucial to ensure public safety and airport efficiency. The ruling upholds the High Court's mandamus order of 5 November 2024, requiring Acsa and the South African Civil Aviation Authority (SACAA) to allow ACS to replace the relevant equipment at OR Tambo and King Shaka International Airports while a main review case is still before the courts. The fallout between ACS and Acsa stems from the airport manager's decision in 2023 to terminate ACS' longstanding role in providing baggage screening services with the intention of taking over these services directly. The ACS said Acsa went ahead with this even though it is the airlines, and not Acsa as the aerodrome operator, that is responsible for providing HBS services at airports (with ACS legally mandated by the airlines to operate and manage HBS). ACS said it had provided uninterrupted, efficient and cost-effective HBS operations at Acsa airports for more than 20 years – with its operations commended as an example of global best practice. In response, ACS approached the courts to review and set aside Acsa's decision to insource HBS services including issuing a R3.15 billion tender for HBS equipment. The company said to avoid service disruption while this main matter is under review by the courts, ACS applied for urgent relief to ensure that it could continue upgrading aging HBS equipment at OR Tambo and King Shaka airports. The High Court granted this request in November 2024, stipulating that ACS is permitted to replace four Level 3 back-up HBS units at OR Tambo and King Shaka International Airports and that SACAA must approve the replacement and allow the process to be completed within ten days of the order being made. ACS said Acsa and SACAA had sought to suspend these directives through an appeal, arguing that they should not be enforced while broader legal proceedings, mainly the review of Acsa's plan to insource HBS services, are ongoing. However, the High Court judgment has dismissed this appeal, affirming that these orders remain operational and enforceable during the review process. 'The replacement of these units is essential to maintaining uninterrupted, internationally compliant baggage screening services at South Africa's major airports,' said Duke Phahla, CEO of ACS. 'We are pleased that the Court has recognised the urgency and importance of this work, and that we can now move forward in the interests of all airline passengers.' BUSINESS REPORT
IOL News
07-05-2025
- Business
- IOL News
Government pushes for Arcelormittal South Africa business sell-off amid R1. 2bn bailout
The government is pushing for the sale of components of Arcelormittal South Africa (Amsa) business to identified buyers following a substantial R1.2 billion bailout from the Industrial Development Corporation (IDC). Image: SUPPLIED Banele Ginidza The Minister of Trade, Industry and Competition (the dtic), Parks Tau, said on Tuesday that the government was pushing for the sale of components of Arcelormittal South Africa (Amsa) business to identified buyers following a substantial R1.2 billion bailout from the Industrial Development Corporation (IDC). Answering an onslaught of questions from members of the portfolio committee on trade and industry in Parliament, Tau explained the scenario facing the automotive sector, which has expressed concerns over Amsa's troubles. Tau said the automotive sector had individually and through the Automotive Business Council (Naamsa) indicated that with Amsa doing defunct, the industry would have to follow suit as importing long steel would not be viable. "We can't as a department, even the IDC as a minority shareholder with 8.2% shareholding, go out to the market and say the company is for sale. It is inappropriate and illegal," Tau said. "We have asked Amsa to test the market appetite for the whole of the company or different components. Sometimes people have different technologies for different parts. At this point, our intervention is to share the information." Despite his recent absence from deliberations over the past two weeks, Tau reassured members that discussions regarding potential sales were ongoing, though no clear announcements can yet be made regarding the path forward for Amsa. In a bid to facilitate the possible divestment of non-core land assets, investment advisors Investec have been enlisted, even as State efforts remain focused on preserving the long steel business, notably ruling out the sale of the pivotal long steel plant in Newcastle. Tau said the option of building separate capacity for long steel products was also ruled out as the required period ranged between 18 to 24 months, which would have still crippled the automotive and other Amsa main clientele. In its briefing on the implementation of the Steel and Metal Fabrication Masterplan, the dtic said there has been a loss of 2 290 jobs from September to December 2024. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ It said the Organisation for Economic Co-operation and Development (OECD's) Clean Energy Finance and Investment Mobilisation (CEFIM) programme was finalising its South Africa Steel Decarbonisation pathways report based on an economic assessment of three selected low carbon technologies related to carbon capture, storage and use. "UNIDO (United Nations Industrial Development Organisation) as part of its Mitigation Action Facility (MAF) is finalising a €25 million fund to be managed by the IDC for the next five years to accelerate steel decarbonisation," said director general Simphiwe Hamilton, adding that a pipeline of projects from interested primary mills is being developed by the IDC. "The second round of assessments has been successful with SA being one of 7 countries selected to progress to the detailed feasibility phase." Addressing broader industry impacts, the Steel and Metal Fabrication Masterplan, which is in motion, anticipates active involvement in transmission development following the National Transmission Company of South Africa's (NTCSA) recent agreements with 19 local firms, valued at approximately R32 billion over eight years. "The process to be appointed to the EPC panel will be opened to the market annually around July each year, to enable other companies to participate. It is a move that reaffirms the country's commitment to improving its transmission grid capacity," Hamilton said. "This collaboration between the public and private sectors, was also through the efforts of the working group on the transmission development plan." The anticipated rise in demand for tower steel and line construction presents an additional avenue for local steel manufacturers, projecting a requirement for approximately 452 175 tons of steel over the next decade. "This would amount to about 3 800 tons per month when smoothed out over 120 months;well within the capacity of local manufacturers," he said. "The steel product demand mix for local transmission towers is approximately 90% light, medium and heavy sections and 10% plate products. Minimills are capable ofsupplying some components; excluding the heavy sections." BUSINESS REPORT
IOL News
07-05-2025
- Business
- IOL News
Nersa stands firm on licensing private operators amidst Eskom's court battle
Eskom contends that Nersa violated its own regulations by issuing these licences without the proper industry rules, potentially jeopardising the integrity of the electricity supply chain. Image: IOL/Independent Newspapers Banele Ginidza The National Energy Regulator of South Africa (Nersa) has expressed confidence in its decision to grant trading licences to private electricity operators, despite Eskom's legal challenge. Eskom contends that Nersa violated its own regulations by issuing these licences without the proper industry rules, potentially jeopardising the integrity of the electricity supply chain. At the core of the dispute is Eskom's frustration over licensing that permits private operators to trade electricity, diverging from the traditional path of virtual wheeling agreements. The challenge suggests a fear that these new entrants might cherry-pick the best-paying customers, leaving Eskom burdened with slower-paying clients. Nersa chairperson Thembani Bukula on Tuesday said the dispute Eskom had with the traders revolved around certain areas that traders will take the best paying customers and leave the utility with slow payers. "That dispute is one we will still see ventilated in court, if it comes to that. But the Electricity Regulation Act is very clear, you have to have a licence if you are going generate transmit, distribute, trade import and export," Bukula said. "That is what is being applied right now, but we have not seen the papers, we have heard they will bring the case' around that but as we speak they are already upto 10 traders in this country doing the wheeling." He said Nersa still awaited Eskom's virtual wheeling pilot results from which the regulator would assess and make determination of whether its proper or not. "There were issues around who collects the money and whether there is line of sight between offtaker and generator and those issues have not been finalised," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Bukula said with curtailment rules having been approved last month, Eskom can use curtailment as an ancillary service and that the amount is in the existing Multi-Year Price Determination (MYPD) and the percentage to be applied would be determined as the process unfolds. Curtailment is expected to harness an additional 3 000MW and the process was expected to solidify over the next three years of the MYPD. Meanwhile, Electricity and Energy Minister Kgosientso Ramokgopa said the release of the updated Regulatory Rules on Network Charges for Third-Party Transportation of Energy was the most consequential intervention in South Africa's electricity sector. "It's going to help us remake the energy and electricity landscape in the country," Ramokgopa said. "It's also consistent with our objective of ensuring that we are able to achieve energy security in the country. We are able to diversify generation sources and we don't only rely on Eskom for electricity generation in the country." Conditions for third-party participation include that participants must be licensed and registered with the Nersa, power purchase agreements, connection and use-of-system agreements must be appropriately concluded and that the grid code compliance and auditable metering were required. The updated wheeling framework is aimed at supporting open access to the electricity network, which will allow consumers to choose power sources – enabling competition and lowering electricity prices. "We are democratising this space. We are not just relying on Eskom as a sole generator of electricity, there will be multiple generators of electricity. And with competition comes efficiency, comes innovation, research and investment, and we are likely going to drive the prices down," Ramokgopa said. "That's why when we talk about affordable electricity, these are part of the elements [and] the components that are going to make it possible for us to make energy affordable for everyone, including the poor and downtrodden and those that are in villages, those are who are in peri-urban areas." BUSINESS REPORT
IOL News
23-04-2025
- Business
- IOL News
Nersa calls for urgent reforms to integrate gas into South Africa's energy mix
The National Energy Regulator of South Africa has underscored the critical need for accelerated policy and regulatory reforms to firmly establish gas as a cornerstone of the nation's energy landscape. Banele Ginidza The National Energy Regulator of South Africa (Nersa) has recommended acceleration of policy and regulatory reforms to entrench gas in the country's energy mix. This call comes against the backdrop of ongoing concerns regarding the underdevelopment of the local gas industry, which remains heavily reliant on the Sasol Mozambique natural gas project due to a lack of significant indigenous proven gas reserves. According to the strategy report published by Nersa on Tuesday, the energy regulator pointed out that while there's a robust long-term potential for domestic gas production, immediate steps must be taken to diversify gas supply sources. This includes enhancing pipeline connectivity from Mozambique via the ROMPCO pipeline and securing liquefied natural gas (LNG) imports from both regional and international markets. Despite the promising synergies between natural gas and renewables, NERSA noted with concern that both sectors have developed independently rather than in an integrated manner. The report warned that a similar disconnect could emerge as South Africa explores its nascent hydrogen economy, which remains largely conceptual at this stage. Nersa said although a myriad of government policies and strategic plans recognised the need for gas in South Africa's energy mix, the gas industry had not seen significant development beyond the Sasol Mozambique natural gas project. "While opportunities that seek to drive gas development exist, the industry is faced with challenges and barriers that continue to undermine the critical role that gas can play to contribute to the country's energy security and climate change goals," Nersa said. The report further highlighted the limited success of extensive offshore exploration efforts over the last 50 years across South Africa's five major hydrocarbon basins. Only one producing offshore gas field, the PetroSA F-A/E-M, has been discovered, and it has since depleted. Prospects such as the Ibhubesi gas field remain undeveloped, while uncertainty looms over the Total Brulpadda exploration project following TotalEnergies' recent withdrawal. Currently, South Africa imports approximately 160 million gigajoules of natural gas annually from Mozambique's Pande/Temane fields, mainly through Sasol Gas and Kwande Gas via the ROMPCO pipeline. To mitigate the constraints of indigenous gas supply, the country is looking to tap into regional sources such as the Rovuma Basin in Mozambique, Angola, Tanzania, and Namibia, alongside pursuing LNG imports. To facilitate this shift, Nersa has urged the development of more robust gas infrastructure, particularly LNG import facilities at key port locations like Richards Bay, Coega, and Saldanha. A well-defined LNG import strategy is essential to ensure that procurement frameworks deliver competitive pricing and maximise benefits for the South African market. Additionally, the regulator emphasised the importance of expanding pipeline infrastructure to support potential domestic gas production and prioritising new gas-to-power generation capacity. This approach is framed as critical to achieving the scale necessary for the development of extensive gas infrastructure. Nersa has also called for expedited completion of legislative instruments such as the Gas Amendment Bill and the Upstream Petroleum Resources Development Act to provide clarity and certainty in the industry. In recognising the synergy between gas and renewable energy, Nersa is advocating for the implementation of the Gas IPP Procurement Programme as a foundational element within the Integrated Resource Plan (IRP). It encourages aligning the Gas Master Plan (GMP) with ongoing initiatives and proposals, incorporating considerations for converting existing diesel and coal-fired power stations into gas-fired facilities as part of a medium- to long-term strategy. Notably, Nersa has approved five companies for small-scale LNG infrastructure projects, including a small-scale liquefaction plant and storage solutions, with a combined investment of R6.6 billion. Moreover, four companies have been licensed for virtual compressed natural gas (CNG) projects, further supporting the growth of private sector initiatives in the gas landscape. The small-scale LNG market is poised for rapid development, predicted to outpace the traditional gas pipeline sector alongside the anticipated advancements in LNG infrastructure facilitated by the Department of Mineral Resources and Energy's Independent Power Producer procurement programme. BUSINESS REPORT
