Latest news with #CoJ
IOL News
22-07-2025
- Business
- IOL News
Auditor-General highlights rampant R1bn irregular expenditure in Johannesburg
Auditor-General Tsakani Maluleke pointed out that the malpractice observed in Johannesburg is not an isolated issue, but part of a broader trend seen across major municipalities in South Africa. Image: Thobile Mathonsi / Independent Newspapers The Auditor-General Tsakani Maluleke has drawn attention to the alarming reality of irregular expenditure within the City of Johannesburg (CoJ), revealing that the municipality was leading the nation in this regard with contracts exceeding R1 billion awarded to contractors with connections to officials. In a webinar hosted by the Centre for Development and Enterprise (CDE) Conversations, Maluleke pointed out that the malpractice observed in Johannesburg is not an isolated issue, but part of a broader trend seen across major municipalities in South Africa. However, she said a concerning aspect of this issue related to existing National Treasury regulations that allow municipalities to pay start-ups in advance for transactions not exceeding R2 000. She highlighted that these regulations may unintentionally facilitate corrupt practices within the CoJ. "The CoJ has high irregular expenditure year-on-year and it does not seem to be a situation that is getting under control. So it raises questions about whether the Council, the Speaker, the Mayor are decisive," Maluleke said. "It is undesirable, it raises a series of conflicts. It raises the question if the contract is in the interest of the city or in the interest of the the individual concerned." Maluleke emphasised that while the law did not expressly prohibit municipalities from engaging in transactions with family members of councillors or employees, there was a vital obligation to disclose such dealings, particularly when they exceed R2 000. Video Player is loading. 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Next Stay Close ✕ "We have got to look at different players in the ecosystem of accountability and our analysis is local government is a different sphere of government from provincial and national government, but they are not meant to be autonomous," she said. "They are not meant to operate as islands. These are public resources. We find too many municipalities do things that nobody hold them accountable for. And then they all wait for the AG to come every year they all lament and then we start the thing again next year." Maluleke said her experience in recent years showed that when accounting officers faced scrutiny, they were often transferred, creating instability that hampers accountability. "Our experience in the last few years is that accounting officers where we are zeroing-in to issue a certificate of debt, they get moved around and because we dont hire or fire them," she said. "What you find is that a Council will keep that role very unstable, make someone act for six months another one for six months. It just delays the process. So it might delay the AG but worse of all it continues to weaken the institution. It must often be deliberate." Maluleke said accounting officers too often did not go into the details of the plans that they sign off on. "All too often they don't do that. They might tick a box and say we have seen the plan, but you never seen evidence of suggestions that should be amended so that there is coherence for a province," she said. "No wonder then some of the plans are cut and paste jobs by consultants, and yet they pass and then when they are being implemented, all manner of adjustments are made during the year, which runs into a different costs far way above what it should have cost. "We have got to ask where is the provincial legislature when we have gone into this. We find some of them did not know they were supposed to get certain reports let alone look at them. Sometimes they get them bit did not do anything with them. "I believe we must be much more impatient with municipal leadership that simply does not submit financial statements because these are public funds. And so the very least you can do, whether or not the statements are credible, is to submit them. It's something we should never tolerate, that and disclaimers is something we must leave behind. 30 years into democracy that should not be our experience." BUSINESS REPORT
The Citizen
05-07-2025
- Business
- The Citizen
City of Johannesburg property market chaos
Johannesburg homeowners are urged to try as soon as possible to obtain the approved building plans for their properties – or face the prospect of having to pay thousands of Rands for new plans to be drawn up, thanks to the chaotic state of the City of Johannesburg (CoJ) building plan records. That's the warning from Denese Zaslansky, CEO of the FIRZT Realty group, who notes that the banks are increasingly insisting that home sellers produce accurate and up-to-date building plans to ensure that all structures on the property are 'legal' before they will grant bonds to prospective buyers. Buyers who intend to renovate will usually also require building plans for the property. 'This is quite understandable, but unfortunately, the previously approved building plans for many thousands of Johannesburg homes are scattered among the disorganised heaps of files and documents that were abandoned in various parts of the Metro Centre when it was evacuated in 2023 (see timeline below), and are proving very difficult and slow to retrieve at this stage. 'We appreciate that the CoJ has just announced a plan to rescue and re-organise those files full of building plans, town planning documents and other municipal records in a new archive in Newtown but for now, according to various architects we work with, most staff of the city's displaced development planning department are still working from home. They also only have access to the shuttered Metro Centre for two hours a day to try to find plans and any other documents that are officially requested. 'This means that home sellers who don't have their own copies of previously approved plans now often have no choice but to commission an architect to draw up new 'as built' plans and have those approved. And this could cost them anything from around R25 000 to R100 000 or even more, depending on the age, size and condition of their property and how complicated the plan approval process is.' She says these costs could include: Architect's fees for measuring an existing home and drafting 'as built' plans, starting from around R20 000 for a 250sqm single storey home and R28 000 for a double storey building; Current CoJ submission fees (to get the plans examined and approved) of R25/sqm; Additional compliance fees including around R2500 for engineer's sign off on structural elements, anything from R850 to R5000 for fire department and HOA approvals and R3500 for sustainable building regulation exemptions if the home was built before 2011; and R30 000 or more for the removal of any restrictive title deed clauses. 'The architect will also need to check if the property is correctly zoned for what has been built and if not, either submit a new Site Development Plan for approval or in the worst case scenario, start a rezoning process for the property. This would add a further cost.' If the building is more than 60 years old, the plans will also need to be approved by the Heritage Council and if a building line needs to be relaxed, the town planning department will need to agree. Any one of these additional approvals can take up to three months to obtain, before the plans can finally be sent to the building control office to be checked and signed off, which itself can take anything from two weeks to two months.' Consequently, Zaslansky says, the time required to get the new plans approved will often exceed the time it would take to transfer the property. 'But where plans are not immediately available, the parties can attach a signed annexure to the sale agreement to delay transfer until approved plans are secured. 'Alternatively, if the seller cannot afford to pay for new approved plans, they can agree to allow the conveyancer to withhold an agreed sum from the sale proceeds to cover the cost of obtaining the plans post-sale.' She also says that while approved building plans are not a transfer requirement at this stage, it is worth noting that in terms of the National Building Regulations, all structures erected must have planning approval from a local authority and must be built in accordance with the approved plans. 'Homeowners should also note that they will need to get revised plans approved if they make any structural alterations, for example to internal or external walls, or change the use of any part of the building, for example a garage to a home office. The addition of carports and pools also requires planning permission.' Issued by FIRZT Realty
The Citizen
02-07-2025
- Politics
- The Citizen
Killarney Country Club lease dispute sparks community support
The Killarney Country Club (KCC) is at the centre of a high-stakes legal battle with the City of Johannesburg (CoJ), which seeks to evict the 122-year-old institution from its historic premises. However, recent developments show that the community is not standing by silently. A petition, launched by the Lower Houghton Residents Association (LHRA), has been gaining traction. It calls for support of the club's continued occupation of the land it leases from the city. The petition argues that removing KCC would be devastating for the suburb's security, maintenance, and character. As it stands, over 3 000 ratepayers are believed to be backing the petition. Also read: Rosebank Homeless Association calls for community support as winter approaches Club president Darryn Faulds has reaffirmed that the current lease, registered at the Deeds Office, remains valid until 2040. He also revealed that the club has already addressed the initial breach notices relating to a billboard and a sub-let restaurant, La Vie en Rose, both of which have since ceased operations. Despite these efforts, the CoJ proceeded with an eviction notice, which KCC has challenged in court through a formal review application. In a positive turn, Faulds noted that recent engagements with the Johannesburg Property Company (JPC), representing the city, may open a path to settlement. A court date is still set for August 13, while both parties have filed their legal arguments. Also read: Hatzolah bowls fundraiser rolls to victory at Killarney Country Club While the club welcomes the community's show of support, it had no prior knowledge of the petition before its circulation. 'It is a tremendous outpouring of support,' said Faulds. 'This club is open to the public, serves as a voting station, and hosts a wide array of community events.' Although the petition was launched independently, Faulds sees it as a sign of the club's value to the broader community. The club continues to operate fully and has pledged to keep members and residents informed. Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
26-06-2025
- General
- Daily Maverick
‘We pay more for less' — 600+ readers on rising electricity and rates
Many households are barely coping. More than 100 respondents said they're slashing spending on food, healthcare and transport just to keep the power on. The tone is one of quiet resilience but rising desperation. 'My daughters are helping us by combining together to buy us electricity. The R200 levy is killing us. We purchase R400 and only receive 74 units,' says reader Sello Mashigo. 'Our electricity bill spiked by R3,000 in the last month and we had load shedding. We're on solar, so it can't be from heavy use. It came right after a new post-paid meter was installed. We used to be flush with cash, now we're just keeping our heads above water. I worry about our financial future,' says reader Alison Coulter. Solar has become a survival tool – 48 respondents said they've gone solar but costs haven't dropped much. 'I took a considered decision to install both solar water heating and solar PV. It's early to say, but it looks as if I can achieve payback in about a decade.' Households are turning to gas geysers, stoves, inverters and air fryers – and cutting back wherever they can. Geysers are switched off, use is limited. It's a clear sign that Eskom's prices have become unaffordable. Municipal billing: Paying more for less A dominant theme is the sense of being charged more while receiving less. Readers spoke of unexplained hikes, a lack of billing transparency and unresolved disputes. Municipalities most frequently mentioned were Johannesburg, Ekurhuleni and Cape Town – often described as unresponsive or extractive. 'Every month the bill rises even though we are careful with energy and water use. We dread its monthly arrival and can foresee a time, quite soon, where paying it will become impossible.' 'Our municipality calls for public input on rates increases, but when we submit feedback, it's ignored. Smaller homes pay the same sanitation rates as large ones. It's insulting, especially for pensioners.' 'Asset rich, cash poor. We've lived in our home for 42 years and are being forced out by up to 40% increases in municipal rates and services.' 'I run an Airbnb to cover costs, but with electricity and water throttling, it's a false comfort. My meter runs on air. CoJ won't fix it. I'm thinking of selling, even at a 30% to 40% loss.' 'My municipal bill has increased by 300% in the 10 years I've lived in the semi-rural Eastern Cape. Services have deteriorated in that time. I'm selling my house.' 'We are pensioners. My husband is 80 and still works. We will probably have to sell our house in the next two years. We are extremely anxious about the future.' 'We pay more for less and if you dispute the bill, you're ignored until disconnection.'
The Citizen
09-06-2025
- Business
- The Citizen
State capture allegations come back to haunt RAF acting CIO
While RAF CEO launches legal bid to overturn his own suspension. It is not certain that the RAF board realises that the primary purpose of the fund is to 'compensate victims timeously'. Picture: Shutterstock The Road Accident Fund (RAF) board placed its acting chief investment officer (CIO) Sefotle Modiba on precautionary suspension following allegations that parliament's Standing Committee on Public Accounts (Scopa) was given misinformation about Modiba's departure from the City of Johannesburg (CoJ). It has also emerged that RAF CEO Collins Letsoalo has lodged an urgent high court application to review and set aside last week's decision by the fund's board to suspend him with immediate effect for insubordination for defying a board instruction for him to attend a Scopa meeting on 28 May. Letsoalo is alleging the decision is unlawful, irrational, and unreasonable and is requesting the court to order his immediate reinstatement as RAF CEO. The application is scheduled to be heard next week. RAF board deputy chair Dr Nomonde Mabuya-Moloele confirmed to parliament's Portfolio Committee on Transport last week that the RAF board had recommended at a special meeting tonight to rescind a decision to place Letsoalo on special leave and to then place him on suspension. Mabuya-Moloele further confirmed that Modiba had been placed on precautionary suspension with full pay and benefits with immediate effect. This is due to concerns regarding Modiba's previous employment at the CoJ and other matters that are currently under investigation. ALSO READ: RAF CEO placed on special leave with full pay, as MPs grill fund Charges 'were dropped' say Modiba's attorneys Scopa member Patrick Atkinson of the DA said during last month's Scopa meeting that a letter was sent to the committee by Vuyo Manisi Inc Attorneys on behalf of Modiba stating that: The CoJ decided to withdraw all charges of misconduct against Modiba; There was a mutual separation agreement between the CoJ and Modiba; and All of what is stated in the letter is well documented and backed up by concrete evidence that their client, Modiba, did not leave the CoJ with any charges hanging over his head. Atkinson said the letter further stated that Modiba feels aggrieved because of comments made by Scopa chair Songezo Zibi on a matter that had already been finalised and is inaccurate. He said the letter urged Scopa to refrain from 'using false information' and committee members not 'to entertain wrong information concerning their client's [Modiba] departure from the CoJ'. ALSO READ: R25.5 billion deficit over five years — Can RAF afford to pay out claims? Charges against Modiba 'were not dropped' – CoJ Atkinson said the reality is that Scopa sought information from the CoJ and he would like to state the facts of the response it received from the CoJ. He said with regard to the claim that the charges against Modiba were dropped because the CoJ no longer believed he had a case to answer, the CoJ said: 'According to our records, the charges against Mr Modiba were not dropped. He resigned during the disciplinary process.' Atkinson said the second question from Scopa to the CoJ was whether there was a mutual separation agreement as part of the settlement when Modiba resigned and had the charges dropped. Atkinson replied that the CoJ said: 'No, there was no mutual separation between Mr Modiba and the CoJ. 'There was a proposal for mutual separation from his [legal] representative, which proposal was rejected by the CoJ representatives. Subsequently, the employer resigned and left of his own volition.' ALSO READ: Expert accuses RAF of misrepresenting itself and its purpose 'We have been lied to again' – Scopa Atkinson said the CoJ was further asked if Modiba resigned of his own accord before the disciplinary inquiry could proceed – and since he was no longer an employee there was no longer a reason to pursue the matter any further? He replied that the CoJ said: 'Mr Modiba resigned during the disciplinary process when the parties could not reach any consensus on mutual separation.' Atkinson said the issue Scopa has, which is extremely serious, is that 'we have been lied to again'. 'Mr Modiba instructed a lawyer to send us a letter with falsehoods and lies,' he added. 'Now, I think the situation here is that certainly the [RAF] board needs to speak to Mr Modiba and see whether you want to continue to employ him on the basis of a lawyer's letter sent to Scopa which does not attest to the information we received from the CoJ,' he said. Atkinson also requested Scopa to report Modiba's attorney to the Legal Practice Council. 'In essence, a lie has been sent to this committee under a lawyer's letter under the full knowledge of Mr Modiba and his attorney,' he said. 'So we would ask that that attorney be reported to the Legal Professional [Practice] Council and that [the] letter be subject to an investigation.' ALSO READ: RAF management muzzled employees during investigations, SIU says The R2.6bn that left CoJ's coffers During the Scopa meeting with the RAF in March, Scopa chair Zibi referred to the fact that Modiba had reportedly left the CoJ after facing disciplinary charges related to the withdrawal of R2.6 billion. He said these funds were later linked to Regiments Capital, a firm cited during the Zondo Commission of Inquiry into Allegations of State Capture. Zibi pointed out in last month's Scopa meeting that he had asked the RAF for information about Modiba in October 2024 – and with a simple email that took four minutes the committee to draft, it received the response from the CoJ that Atkinson had mentioned. 'The [RAF] board is failing,' said Zibi. 'Vacancies in critical positions, litigation without a head of legal, people in positions who are still trying to find their feet, lawyers who rock up in court to try and overturn a matter and they don't argue it, inability to send a simple email to a previous employer to ask about the appropriateness of an employee, who then proceeds to send a lawyer's letter that is suspect at best. 'This situation cannot continue any longer. It's making a mockery of parliament and its oversight.' ALSO READ: WATCH: Letsoalo denies misleading Scopa on RAF's state of affairs Transport department to report on action being taken Zibi asked Deputy Minister of Transport Mkhuleko Hlengwa, when he next reports to parliament about the RAF, to report on what is being done to remedy this situation. Hlengwa told the Portfolio Committee on Transport last week that he would be having a meeting with the RAF board this week (the week starting 9 June) on a number of issues. The Department of Transport stated on Friday that this meeting 'will evaluate the prospects of the current board to restore good governance and effective administration at the entity so that it fulfills its primary purpose of compensating road accident victims timeously'. 'The department will consider appropriate interventions post this meeting to ensure the stability of the entity, good governance, and the fulfilment of its mandate.' This article was republished from Moneyweb. Read the original here.
