Latest news with #DBSA
IOL News
6 days ago
- Business
- IOL News
The PIC's Resilience: From Steinhoff to R3 Trillion – Now Let Its CEO Lead
Public Investment Corporation (PIC) CEO Patrick Dlamini. Image: Supplied The Public Investment Corporation (PIC) is one of South Africa's greatest institutional assets—literally and figuratively. Despite being rocked by scandals such as the Steinhoff collapse, and years of political brinkmanship, the PIC has not only survived but tripled its assets to over R3 trillion. This is no small feat. It is a testament to the resilience of the institution, the professionalism of its staff, and, above all, the power of workers' collective capital. This remarkable growth didn't happen by chance. It is the legacy of seasoned leadership: Elias Masilela, who brought post-crisis stability after 2008; Dr. Dan Matjila, who expanded its developmental investment mandate; and Abel Sithole, who defended its integrity through unprecedented political pressure. Today, the PIC has a new CEO, Mr Patrick Dlamini, who brings an unblemished record of ethical leadership and financial discipline from his tenure at the Development Bank of Southern Africa (DBSA). His appointment marks a turning point—not just for the PIC, but for every public servant whose pension is invested through it. This Is Workers' Money—Not a Political Slush Fund Let us be clear: over 90% of the PIC's assets belong to public servants—teachers, nurses, police officers, and cleaners. These are ordinary South Africans who dedicate their lives to public service, and whose dignity in retirement rests on the prudent management of these funds. That the PIC has grown from R1 trillion to R3 trillion in just over a decade is a testament to the power of worker-led capital and the calibre of iits custodians. But history has shown that political interference—not market forces—is the PIC's greatest threat. We've seen attempts to pressure the institution into bailing out failing state-owned enterprises. We've witnessed the weaponisation of 'strategic investment' language to mask corrupt deals. And we've watched as principled CEOs have been hounded out of office for refusing to rubber-stamp politically motivated transactions. Let there be no doubt: the vultures are circling once again. Defend the Institution, Defend the Workers CEO Patrick Dlamini must be allowed to lead—without fear, favour, or interference. His mandate is not to please politicians; it is to grow workers' assets in a manner that is ethical, transparent, and impactful. He has already shown, through his time at the DBSA, that developmental finance and good governance can coexist. That is the leadership the PIC needs, and that is what public servants deserve. We therefore call for: Unambiguous support for Dlamini's independence. The PIC cannot afford to lose yet another CEO to political manoeuvring. Robust parliamentary oversight that rejects looting disguised as 'strategic investment.' Any effort to hijack workers' pensions for factional ends must be publicly exposed and legislatively defeated. A sharpened focus on investments that uplift the working class, such as affordable housing, student accommodation, healthcare infrastructure, and job-creating industries. These are investments that return financial value and social justice. The PIC Is Not for Sale Let us remind ourselves: the PIC is not a political toy. It is not a honey pot for the connected few. It is the backbone of 1.2 million public servants' pensions—and by extension, the dignity of their families, communities, and future generations. To the politicians: hands off. To the workers: stand up and be counted. To Patrick Dlamini: stay the course—we've got your back. If the PIC is to remain a vehicle for economic justice and shared prosperity, it must be led by professionals and protected from predators. South Africa needs institutions it can trust. The PIC, if properly defended, can remain exactly that. Tahir Maepa. Image: Supplied * Tahir Maepa is the Secretary General of the Public Service & Commercial Union (PSCU). ** The views expressed do not necessarily reflect the views of IOL or Independent Media.
IOL News
25-07-2025
- Business
- IOL News
Why Parliament's buildings were uninsured during the devastating fire
The restoration and rebuilding work is set to be completed in November 2026 for the New Assembly building and the following month in the Old Assembly just in time for the State of the Nation Address in 2027. Image: Phando Jikelo / Independent Newspapers The buildings of Parliament were not insured when they were gutted by fire three years ago, Secretary to Parliament Xolile George said on Friday. 'The State does not insure immovable property to a large extent as we know, including movable property. There is no insurance. It covers that by placing funds to rebuild whenever there are issues or replaces those assets,' he said. George was responding to questions from MPs when implementing agent, the Development Bank of Southern Africa (DBSA) and Parliament briefed the Joint Standing Committee of Financial Management of Parliament on the rebuilding and restoration work. George also said the National Treasury had issued an instruction note in 2007 that clearly stated departments not to insure immovable properties. 'These buildings were not insured at the time of the fire. The replacement is done as per appropriation from the national fiscus to rebuild. We may not know the reasons for that, given the large scale of the portfolio of the state. It might have been informed by these considerations. I don't know,' he added. During the meeting, MPs heard that at least R574 million has been spent to date on rebuilding the buildings gutted by fire in January 2022. DBSA group executive for infrastructure delivery, Chuene Ramphele, said the cost of restoring and rebuilding the gutted buildings was R4.4 billion. 'We have already spent R574 million. These are reconciled by the National Treasury and Parliament,' Ramphele said. He told the MPs that the work done at the precinct had entailed five work streams that included enabling a work safe access route, MPs' offices, rubble removal, asset recovery, and spatial planning and designs, among other things. Ramphele also said the gutted buildings were a crime scene after the devastating fire until 2023. 'It was under police watch. That was lifted in February 2023. Technically, work started in March 2023,' he said. However, Ramphele said there was much significant work completed at that particular time. He said some of the achievements were the demolition work which came to the tune of R73m. The designs were completed in November 2023 and presented to the multi-party forum and chief whips in January 2024. The heritage application process, started in November 2023 in consultation with the South African Heritage Resource Agency, was approved in December 2024 following an intensive consultative process. Ramphele also said the construction and restoration have started after construction companies were appointed following the issuing of a work permit for construction by the Department of Employment and Labour. He said work was happening underground. 'You may not see things really happening. You see cranes. We started the kind of work happening in the basement,' he said. The presentation made to the committee showed that work in the New Assembly and Old Assembly would be completed in November 2026 and January 2027, respectively, just in time for the State of the Nation Address. Ramphele said they projected to commission, test, and hand over the New Assembly in November 2026. 'At that time, the building will be practically complete at 95%. It can really be used.' He stated that the building can be used around January 2027. Ramphele also said the Old Assembly will be commissioned, tested, and handed over in January 2027. He said they were monitoring the timelines closely. 'We really work hard with contractors, consultants, Parliament, and everyone involved to make sure these milestones are achieved and get these buildings completed,' Ramphele said. George echoed the sentiments of MPs that issues of weather could not be used as an excuse for not completing the project unless something unreasonable happened. However, George said a stream of ground was found under the Old Assembly buildings. 'It is known that the stream has always existed. I think the engineers, like any other, would find answers so that it does not materially impact the progress per set timelines. We will be watching that also to ensure the project is completed as planned,' he said. [email protected]
The Citizen
25-07-2025
- Politics
- The Citizen
Parliament fire: Over R500m already spent as restoration project now expected to cost R4.4bn
The reconstruction of Parliament is expected to be completed in late 2026. Smoke billows out of the National Assembly building after the fire at Parliament on 2 January 2022 in Cape Town. Picture: Gallo Images More than R500 million has already been spent on repairing Parliament after a fire in 2022, with the total cost of the reconstruction project now projected to reach R4.4 billion. This was revealed during a meeting of the joint standing committee on the financial management of parliament on Friday. MPs received updates on the investigation into the fire that destroyed parliament, which was not insured, as well as progress made in the ongoing restoration efforts. The Development Bank of South Africa (DBSA) provided detailed briefings on the restoration process, while officials from the auditor-general's office dealt with the financial management of the project. Sections of the National Assembly and Old Assembly buildings suffered major damage during the fire on 2 January 2022. The reconstruction is expected to be completed in late 2026 following delays that have extended the original deadline. Zandile Mafe, who admitted to starting the fire and was charged with terrorism and arson, was declared unfit to stand trial in December 2023. Parliament fire: Restoration progress Chuene Ramphele, DBSA group executive for infrastructure delivery, said during the meeting that work was initially stalled as the parliamentary site was treated as a crime scene and secured by police. 'Technically, the work actually started in March 2023,' he told the joint committee. Ramphele said that significant progress had been made since work officially began, including the construction of 155 offices for MPs on Plein Street. 'At this stage, our focus is primarily on the refurbishment,' he said. ALSO READ: Macpherson accused of being 'weak' after saying he's being sidelined over Parliament fire He said that demolition works were completed in March 2024 and came in under budget at R73 million, saving R2 million in the process. Due to design changes and necessary statutory approvals, the initial R2 billion budget had risen. 'When we concluded the detailed designs, you'll see that we started to be very sure of what are the detailed costs,' Ramphele said. 'After the final approval and the designs, the budget for both the refurbishment of the National Assembly and Old Assembly buildings amounted to R3.6 billion.' Watch the meeting below: Ramphele also said the DBSA is applying a risk-monitoring approach to minimise the impact of unforeseen challenges, such as bad weather, given the tight timeline. The revised total budget includes R900 million allocated for upgrading the information and communications technology (ICT) infrastructure. National Assembly construction Ramphele said that Raubex Construction was awarded a R2.27 billion contract to work on the new National Assembly wing. 'The site was handed over in April after having appointed [the company] in December 2024,' he said. He noted that the delay was caused by difficulties in obtaining a construction permit from the department of labour. READ MORE: Parliament quietly reclaims its power 'We could not start if we did not have the construction permit and also making sure that the occupational safety issues are intact to avoid any issues because our biggest risk that we want to mitigate is to ensure there is no fatality on the site or any particular kind of incident.' Ramphele told the committee that guarantees are in place to manage the contractor's performance in case of failure to deliver. 'Other things about the project contract management in place is how we are going to manage the penalties and the penalty regimes that are going to apply in that regard.' Timelines At the moment, work is focused on the basement and structural foundations, including support pillars for two additional floors and a new roof structure. 'At this point in time, the work is happening underground,' he said, adding that 'we want a climate resilient Parliament'. Ramphele said that once the three basement levels are complete, the team will begin construction of the first through sixth floors, including beams and slabs. READ MORE: Parliament allocates R71m for medical aid for former MPs This phase will take approximately 12 months, with the project expected to reach 40% completion by April 2026. Interior finishes – including flooring, toilets, offices, committee rooms, the public gallery and a banquet hall – will require another 18 months, pushing projected progress to 75% by September 2026. Ramphele said the full restoration of the new National Assembly is expected to be completed within 20 months. 'At that point, we will be looking at commissioning the building. In particular we are looking at November 2026. So at that time, the building will be practically complete.' Old Assembly restoration According to Ramphele, a contractor for the Old Assembly building was appointed last month. The R1.3 billion project is expected to take 18 months. Ramphele confirmed that the site has already been handed over to the contractor. He concluded with an update on the overall cost of the parliamentary restoration. 'So far, we have already spent, with what has been happening and what we have done, R574 million. 'Ultimately, the entire programme of Parliament is at a cost of around R4.4 billion with the major items being the National Assembly and Old Assembly.' NOW READ: Reconstruction of Parliament to finally begin – will include gym, sauna and daycare centre
Zawya
17-07-2025
- Business
- Zawya
South Africa: Reside Summit 2025 calls for bold investment in alternative residential sectors
Leading voices in real estate, policy and investment issued a strong call for capital to be directed into alternative residential sectors to drive sustainable growth and inclusivity in South Africa's urban landscape. The second day of the Reside Summit 2025 at the Sandton Convention Centre in Johannesburg was marked by a call for established financiers and institutional investors to allocate funding towards real estate developments focusing on multifamily rental housing, retirement living and student accommodation. Demographic shifts and economic pressures are driving demand for affordable homes, purpose-built student accommodation and dignified retirement living. Speakers at the Reside Summit 2025 emphasised that these sectors offer both social impact and steady returns for investors willing to look beyond traditional real estate classes. 'If we want cities that work for everyone, we need capital that moves with purpose. Alternative residential sectors like student housing and retirement living, aren't fringe - they're foundational to inclusive urban growth. We thank all our partners for showing up with bold ideas and real commitment. Together, by reshaping spaces, we're reshaping futures,' says Debbie Tagg, chairperson of the Reside Summit. The Development Bank of Southern Africa (DBSA) is one of the major financiers that believes in investing in alternative real estate markets – particularly when these investments align with its core mandate of addressing South Africa's most pressing social and developmental needs. Palesa Ryan, the DBSA's head for Social, Health, and Education Palesa Ryan, the DBSA's head for Social, Health, and Education, reaffirmed the DBSA's commitment to supporting real estate developments, particularly those that address the country's most urgent housing needs. 'The DBSA stands ready to finance real estate developments across South Africa, but our mandate is clear: our primary focus is on affordable housing. We believe that by channelling capital into this sector, we can drive both social and economic transformation,' said Ryan during her presentation at the Reside Summit on 10 July. She emphasised that the DBSA is actively seeking partnerships with developers, municipalities and other financiers to unlock new affordable housing projects. Ryan added: 'Affordable housing is not just a social imperative – it's a resilient asset class that can deliver stable, long-term returns. We are eager to work with stakeholders who share our vision for inclusive, sustainable urban growth.' Retirement living: Integrating health, wealth and dignity Under the theme Transforming Spaces, Enriching Lives, this year's Reside Summit also shone a spotlight on retirement living and how this housing option integrates health, wealth and dignity. As South Africa's population ages, retirement living has emerged as a sector in need of attention, said Tim Gibson, director at Herdsmore. 'Retirement living in South Africa is at a crossroads. We must go beyond simply providing accommodation and focus on integrated communities that offer healthcare, social engagement and a sense of dignity for our seniors,' said Gibson. Herdsmore, under Gibson's leadership, is pioneering the development and management of modern retirement communities that blend independent living with access to healthcare, wellness programs and community activities. Their approach is rooted in international best practices but tailored to South Africa's unique demographic and cultural context. Gibson stressed the importance of collaboration between the public and private sectors to unlock capital and scale up quality retirement options: 'We see enormous potential for impact and returns in this space. By working together, developers, investors, and government can create environments where older South Africans thrive, not just live.' Student accommodation: building for the next generation The acute shortage of quality student accommodation was a major focus at the summit. Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA) Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA), estimated that South Africa faces a shortfall of 300,000 student beds. PSHA, established in 2019 by leading private providers, now represents 80,000 beds nationwide, many of which meet or exceed government standards. Mamabolo explained that student accommodation is about much more than just providing a place to sleep: 'Student accommodation is a very important part of our youth's future and the higher education system. It's not just about providing beds, it's about ensuring the dignity of students, supporting their futures and enabling their success.' While there is strong interest from private sector investors to support new student accommodation developments, Mamabolo noted that current government policy is making it increasingly difficult for these investments to be viable. In 2023, the National Student Financial Aid Scheme (NSFAS) introduced a cap limiting the maximum amount paid for a student's accommodation to R52,000 per year. The intention was to control costs and standardise spending, but, as Mamabolo pointed out, this cap is too low for providers to cover the real costs of building and running quality, compliant student housing. Research by PSHA shows that the true cost to sustainably provide accommodation that meets government norms and standards is closer to R66,000 per bed per year. The cap makes it financially unfeasible for private providers to invest in or maintain student housing, threatening the sector's sustainability and limiting students' access to safe, dignified accommodation. As a result, PSHA has called for the removal of the NSFAS cap and for funding to better reflect the actual costs of delivering quality student housing, so that providers can continue to meet the needs of South Africa's growing student population. As day two of the Reside Summit 2025 concluded, the message was clear: South Africa's urban future depends on bold, coordinated investment that includes alternative residential sectors. By directing capital into affordable housing, retirement living and student accommodation, stakeholders can achieve sought-after sustainable returns as well as social impact, reshaping cities and enriching lives for generations to come.
Zawya
15-07-2025
- Business
- Zawya
Reside Summit 2025 calls for bold investment in alternative residential sectors
Leading voices in real estate, policy and investment issued a strong call for capital to be directed into alternative residential sectors to drive sustainable growth and inclusivity in South Africa's urban landscape. The second day of the Reside Summit 2025 at the Sandton Convention Centre in Johannesburg was marked by a call for established financiers and institutional investors to allocate funding towards real estate developments focusing on multifamily rental housing, retirement living and student accommodation. Demographic shifts and economic pressures are driving demand for affordable homes, purpose-built student accommodation and dignified retirement living. Speakers at the Reside Summit 2025 emphasised that these sectors offer both social impact and steady returns for investors willing to look beyond traditional real estate classes. 'If we want cities that work for everyone, we need capital that moves with purpose. Alternative residential sectors like student housing and retirement living, aren't fringe - they're foundational to inclusive urban growth. We thank all our partners for showing up with bold ideas and real commitment. Together, by reshaping spaces, we're reshaping futures,' says Debbie Tagg, Chairperson of the Reside Summit. The Development Bank of Southern Africa (DBSA) is one of the major financiers that believes in investing in alternative real estate markets—particularly when these investments align with its core mandate of addressing South Africa's most pressing social and developmental needs. Palesa Ryan, the DBSA's Head for Social, Health, and Education, reaffirmed the DBSA's commitment to supporting real estate developments, particularly those that address the country's most urgent housing needs. 'The DBSA stands ready to finance real estate developments across South Africa, but our mandate is clear: our primary focus is on affordable housing. We believe that by channelling capital into this sector, we can drive both social and economic transformation,' said Ryan during her presentation at the Reside Summit on 10 July. She emphasised that the DBSA is actively seeking partnerships with developers, municipalities and other financiers to unlock new affordable housing projects. Ryan added: 'Affordable housing is not just a social imperative - it's a resilient asset class that can deliver stable, long-term returns. We are eager to work with stakeholders who share our vision for inclusive, sustainable urban growth.' Retirement living: integrating health, wealth and dignity Under the theme 'Transforming Spaces, Enriching Lives', this year's Reside Summit also shone a spotlight on retirement living and how this housing option integrates health, wealth and dignity. As South Africa's population ages, retirement living has emerged as a sector in need of attention, said Tim Gibson, Director at Herdsmore. 'Retirement living in South Africa is at a crossroads. We must go beyond simply providing accommodation and focus on integrated communities that offer healthcare, social engagement and a sense of dignity for our seniors,' said Gibson. Herdsmore, under Gibson's leadership, is pioneering the development and management of modern retirement communities that blend independent living with access to healthcare, wellness programs and community activities. Their approach is rooted in international best practices but tailored to South Africa's unique demographic and cultural context. Gibson stressed the importance of collaboration between the public and private sectors to unlock capital and scale up quality retirement options: 'We see enormous potential for impact and returns in this space. By working together, developers, investors, and government can create environments where older South Africans thrive, not just live.' Student accommodation: building for the next generation The acute shortage of quality student accommodation was a major focus at the summit. Kagisho Mamabolo, CEO of the Private Student Housing Association (PSHA), estimated that South Africa faces a shortfall of 300,000 student beds. PSHA, established in 2019 by leading private providers, now represents 80,000 beds nationwide - many of which meet or exceed government standards. Mamabolo explained that student accommodation is about much more than just providing a place to sleep: 'Student accommodation is a very important part of our youth's future and the higher education system. It's not just about providing beds, it's about ensuring the dignity of students, supporting their futures and enabling their success.' While there is strong interest from private sector investors to support new student accommodation developments, Mamabolo noted that current government policy is making it increasingly difficult for these investments to be viable. In 2023, the National Student Financial Aid Scheme (NSFAS) introduced a cap limiting the maximum amount paid for a student's accommodation to R52,000 per year. The intention was to control costs and standardise spending, but, as Mamabolo pointed out, this cap is too low for providers to cover the real costs of building and running quality, compliant student housing. Research by PSHA shows that the true cost to sustainably provide accommodation that meets government norms and standards is closer to R66,000 per bed per year. The cap makes it financially unfeasible for private providers to invest in or maintain student housing, threatening the sector's sustainability and limiting students' access to safe, dignified accommodation. As a result, PSHA has called for the removal of the NSFAS cap and for funding to better reflect the actual costs of delivering quality student housing, so that providers can continue to meet the needs of South Africa's growing student population. As day two of the Reside Summit 2025 concluded, the message was clear: South Africa's urban future depends on bold, coordinated investment that includes alternative residential sectors. By directing capital into affordable housing, retirement living and student accommodation, stakeholders can achieve sought-after sustainable returns as well as social impact - reshaping cities and enriching lives for generations to come. ABOUT RESIDE SUMMIT Launched in 2023, the Residential Investment & Development (Reside) Summit aims to bridge the gap between stakeholders in the public and private sector, construction firms, property developers, investors, financial institutions, and industry bodies.
