Latest news with #Kganyago
The Citizen
2 days ago
- The Citizen
SIU blocks R3.3 million pension payout of former Gauteng HOD
The SIU secured a court order stopping Gasela's pension payout as criminal investigations continue into corruption and fraud allegations. The Special Investigating Unit (SIU) has secured a court order stopping the pension payout of a former Gauteng head of department (HOD) as criminal investigations continue into corruption and fraud allegations. The unit obtained an interim order from the special tribunal to stop the Government Employees Pension Fund (GEPF) from processing about R3.3 million in pension benefits for Matilda Matozi Gasela, the former HOD at the Gauteng department of agriculture, rural development and land reform. Additionally, until the legal proceedings are concluded, Gasela is prohibited from accessing or claiming these funds under the order which was given on May 15, 2025. Gasela allegedly played key role in mismanaging trash-collecting vehicles contract Gasela began her tenure as HOD in 2018 and allegedly played a key role in mismanaging a contract with Enviro Mobi (Pty) Ltd (later known as Groen Mintirho). SIU spokesperson Kaizer Kganyago said that Gasela authorised additional payments and approved a R6 499 712.64 settlement for 'storage costs' — an item not included in the original contract — even though the company failed to deliver the vehicles. ALSO READ: SIU to investigate Defence department's surgical mask tender from 2021 Senior counsel explicitly advised against this payment, which was later declared fruitless and wasteful expenditure. 'Her actions allegedly contravened the Public Finance Management Act (PFMA) and contributed to the depletion of public funds, as the SIU contends, in what it describes as a fraudulent scheme,' Kganyago said. After discovering evidence of criminal activity, the SIU referred the case to the National Prosecuting Authority (NPA). The SIU sent this evidence to the NPA to consider pursuing criminal charges against Gasela, including fraud, corruption and maladministration. October 2024 arrest In October 2024, authorities arrested Gasela and her six co-accused. Her co-accused include: Loyiso Mkwana, chief director: sustainable use of environment, who also served as the bid evaluation committee chair. Thandeka Mbassa, former HOD. She left in August 2018. Abdullah Mohamed Ismail, former chief financial officer and chair of the bid adjudication committee. Matlhekelo Elsie Mabe, director of Mvest Trading (Pty) Ltd. Tinyiko Mahuntsi, director of Enviro Mobi. Puleng Peter Mabe, former director of Enviro Mobi and a former member of parliament Infographic: Supplied ALSO READ: NPA lacking in lottery probe The accused appeared before the Palm Ridge Specialised Commercial Crimes Court inJohannesburg. They were linked to financial mismanagement and illegal procurement in connection with the R33 million contracts that the Ekurhuleni metropolitan municipality (EMM) and the department gave to Enviro Mobi. Kganyago confirmed that the SIU filed papers in the special tribunal to review and cancel the contract and recover R33 731 463.64 in financial losses suffered by the state. R33m financial losses 'Furthermore, as part of consequence management, the SIU has made disciplinary referrals to the department against implicated officials. An administrative referral was made against Enviro Mobi for blacklisting,' he said. According to Presidential Proclamation No. R.15 of 2021, the SIU was tasked with investigating claims of maladministration in the department and Ekurhuleni specifically concerning the contracting or purchase of 200 portable three-wheel motorised trash-collecting vehicles. ALSO READ: Thrrr…Phaaa: Musician Selaelo Selota's Mercedes frozen as SIU probes misuse of lottery funds During the 2023/24 financial year, the SIU finished its investigation into this issue and delivered the report to the president.
The Citizen
2 days ago
- Business
- The Citizen
Reserve Bank cuts repo rate by 25 basis points
The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points, with effect from 30 May. This reduces the prime lending rate from banks to 10.75 %. Five members favoured this action, while one preferred a cut of 50 basis points. 'Looking forward, we have revised down our inflation forecasts. This reflects the lower starting point, as well as a stronger exchange rate assumption and lower world oil prices. 'These factors offset pressure on fuel costs from the higher fuel levy announced in the Budget. In addition, our previous forecast included VAT increases, which have since been cancelled,' SARB Governor Lesetja Kganyago said on Thursday, while delivering the Monetary Policy Committee statement. The inflation was below 3% again in April. The undershoot of the target mainly reflects falling fuel costs, but underlying inflation is also well contained. Core inflation came in at 3%, at the bottom of SARB target range. 'Now that inflation has slowed, we have a chance to lock in lower inflation at low cost. This scenario illustrates that opportunity,' Kganyago said. While the inflation outlook appears benign, the MPC considered an adverse scenario, which illustrates the upside risks. 'This was based on a global slowdown, triggered by escalating trade tensions, where the rand depreciates sharply. The scenario showed how a country with some fundamental vulnerabilities, like South Africa, risks stagflation, with growth moving lower while inflation rises due to currency weakness. In these conditions, monetary policy tightens to stabilise the macroeconomy. 'The threat of rand depreciation that we warned of at our last meeting, given both global and domestic factors, manifested last month, with the currency briefly touching a multi-year low against the US dollar. However, the exchange rate has since recovered, and conditions seem more settled than they did in March, even if the global environment remains uncertain,' he said. The Gross Domestic Product (GDP) projections were trimmed and the growth was currently expected at 1.2% this year, rising to 1.8% by 2027. 'The global environment remains difficult, which makes domestic reform critical for achieving healthy growth. The SARB's main contribution is to deliver price stability, and we see scope to lock in low inflation and clear the way for sustainably lower interest rates. 'Additional measures that would improve economic conditions include reaching a prudent public debt level, further repairing and strengthening network industries, lowering administered price inflation, and keeping real wage growth in line with productivity gains,' Kganyago said. – At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
2 days ago
- Business
- IOL News
SA Reserve Bank cuts repo rate offering relief
South African Reserve Bank announces a 25 basis point cut to the repo rate, providing much-needed relief for borrowers. Experts weigh in on the implications for the economy and property market. SARB Governor Lesetja Kganyago. Image: SA Reserve Bank. South Africans repaying vehicle, home loans and other debts received some good news on Thursday as the South African Reserve Bank (SARB) lowered the repurchase rate (repo rate) for the country. SARB Governor Lesetja Kganyago announced a cut to the repurchase rate (repo rate) by 25 basis points (BPS). This came after the central bank's Monetary Policy Committee (MPC) met this week and voted to decrease the repo rate from 7.50% to 7.25%. This means that the repo rate will decrease from 7.50% to 7.25% and the prime lending rate will decrease from 11.00% to 10.75%. "In the previous MPC statement, we warned of downside risks to our growth forecast. We have now trimmed our GDP projections and currently expect growth of 1.2% this year. The outlook for structural reforms remains positive, but there are also headwinds," Kganyago 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 ✕ Ad loading Dr Andrew Golding, the CEO of the Pam Golding Property, said the cut is welcome relief for consumers. Golding said: "The MPC seized the opportunity to give South Africa's economy a much-needed boost in sentiment. Furthermore, with inflation surprising on the downside in recent months and, with a petrol price cut likely next month, although partially offset by the hike in the fuel levy, price pressures are likely to remain subdued. The consumer inflation rate is currently well anchored below the lower limit of the 3%-6% inflation target." Meanwhile, Samuel Seeff, chairman of Seeff Property, said the rate cut was welcomed, but more is needed. "This is the fourth rate cut by SARB since the latter half of last year. The Bank missed a crucial opportunity to provide a more meaningful cut of at least 50bps as a vital boost for the economy, consumers and the property market. The conditions for a robust rate cut are ideal given the remarkably low inflation which, despite the recent benign increase to 2.8% is still comfortably below the SARB's 3-6% target range. Additionally, despite global volatility, the strengthened Rand poses no risk of igniting an inflationary spiral, given the subdued demand-side pressures," Seeff said. "Even with the latest rate cut, the interest rate is still above pre-Covid levels. This continues to erode any benefits from previous rate adjustments and remains an impediment to real economic growth so vitally needed. The high interest rate has done considerable damage to the economy. Consumers are struggling, and while this rate cut will bring much needed relief," Seeff said. As a result of the 25bps rate cut, mortgage repayments will reduce by (Based on a 20-year repayment period at the prime rate): R900 000 bond – from R9,290 to R9,137 – thus saving R153 R1 000 000 bond – from R10,322 to R10,152 – thus saving R170 R1 500 000 bond – from R15,483 to R15,228 – thus saving R255 R2 000 000 bond – from R20,644 to R20,305 – thus saving R339 R2 500 000 bond – from R25,805 to R25,381 – thus saving R424 'With inflation at historic lows and household budgets still under pressure from slow economic growth, any easing in the interest rate environment is a meaningful win for consumers. Lower borrowing costs translate directly into more affordable monthly repayments, which can help unlock greater activity in the property market,' regional director and CEO of RE/MAX of Southern Africa, Adrian Goslett said.
The South African
3 days ago
- Business
- The South African
Interest rates cut: How much you'll SAVE on a R1 million bond
The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) voted to reduce the repo rate by 25 basis points, with effect from Friday, 30 May. This reduces the prime lending rate from banks to 10.75%. Five members favoured this action, while one preferred a cut of 50 basis points. 'Looking forward, we have revised down our inflation forecasts. This reflects the lower starting point, as well as a stronger exchange rate assumption and lower world oil prices. 'These factors offset pressure on fuel costs from the higher fuel levy announced in the Budget. In addition, our previous forecast included VAT increases, which have since been cancelled,' SARB Governor Lesetja Kganyago said on Thursday, while delivering the Monetary Policy Committee statement. The inflation was below 3% again in April. The undershoot of the target mainly reflects falling fuel costs, but underlying inflation is also well contained. Core inflation came in at 3%, at the bottom of SARB target range. 'Now that inflation has slowed, we have a chance to lock in lower inflation at low cost. This scenario illustrates that opportunity,' Kganyago said. While the inflation outlook appears benign, the MPC considered an adverse scenario, which illustrates the upside risks. 'This was based on a global slowdown, triggered by escalating trade tensions, where the rand depreciates sharply. The scenario showed how a country with some fundamental vulnerabilities, like South Africa, risks stagflation, with growth moving lower while inflation rises due to currency weakness. In these conditions, monetary policy tightens to stabilise the macroeconomy. 'The threat of rand depreciation that we warned of at our last meeting, given both global and domestic factors, manifested last month, with the currency briefly touching a multi-year low against the US dollar. However, the exchange rate has since recovered, and conditions seem more settled than they did in March, even if the global environment remains uncertain,' he said. The Gross Domestic Product (GDP) projections were trimmed and the growth was currently expected at 1.2% this year, rising to 1.8% by 2027. 'The global environment remains difficult, which makes domestic reform critical for achieving healthy growth. The SARB's main contribution is to deliver price stability, and we see scope to lock in low inflation and clear the way for sustainably lower interest rates. 'Additional measures that would improve economic conditions include reaching a prudent public debt level, further repairing and strengthening network industries, lowering administered price inflation, and keeping real wage growth in line with productivity gains,' Kganyago said. The South African Reserve Bank's monetary policy committee meets every second month to announce changes – if any – to the country's repo and prime lending rates. The meetings in 2025 are scheduled to take place in January, March, May, July, September and November – and always on a Thursday at 15:00. Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB – and the deciding vote if necessary. Month Date Outcome January 30 January 25 basis point cut March 20 March No change May 29 May 25 basis point cut July 31 July September 18 September November 20 November The table below shows the monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime. In addition, it shows the now 'old' 11% repayments as well as the repayments following the announcement of a 25 basis point cut as well as the monthly saving: Bond Old (11%) New (10.75%) Saving R750 000 R7 741 R7 614 R127 R800 000 R8 258 R8 122 R136 R850 000 R8 774 R8 629 R145 R900 000 R9 290 R9 137 R153 R950 000 R9 806 R9 645 R161 R1 000 000 R10 322 R10 152 R170 R1 500 000 R15 483 R15 228 R255 R2 000 000 R20 644 R20 305 R339 R2 500 000 R25 805 R25 381 R424 R3 000 000 R30 966 R30 457 R509 R3 500 000 R36 127 R35 533 R594 R4 000 000 R41 288 R40 609 R679 R4 500 000 R46 448 R45 685 R763 R5 000 000 R51 609 R50 761 R848 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Star
3 days ago
- Business
- The Star
SA Reserve Bank cuts interest rates
Ashley Lechman | Published 5 hours ago The South African Reserve Bank (Sarb) Governor Lesetja Kganyago on Thursday announced a cut to the repurchase rate (repo rate) by 25 basis points (BPS). This comes after the central bank's Monetary Policy Committee (MPC) met this week and voted to decrease the repo rate from 7.50% to 7.25%. This means that the p rime lending rate in the country will decrease from 11.00% to 10.75%. The decision come s off the back of Statistics South Africa announcement last week that CPI inflation edged up slightly from 2.7 % in March to 2.8% in April. Kganyago said, "Five members preferred this action, while one member preferred a cut of 50 basis points." The governor said that global economic conditions have been volatile. "A combination of higher trade barriers and elevated uncertainty is likely to weaken the world economy. We have therefore lowered our global growth projections, from 3.1% to to 2.5% for 2025," he said. "In the previous MPC statement, we warned of downside risks to our growth forecast. We have now trimmed our GDP projections and currently expect growth of 1.2% this year. The outlook for structural reforms remains positive, but there are also headwinds," Kganyago said. "We have revised down our inflation forecasts. This reflects the lower starting point, as well as a stronger exchange rate assumption and lower world oil prices. Our previous forecast also included VAT increases, which have since been cancelled," the governor said on Thursday. "The threat of rand depreciation that we warned of at the previous MPC meeting manifested last month, with the currency briefly touching a multi-year low against the US dollar. However, the exchange rate has since recovered, and conditions seem more settled now than they did in March," Kganyago said. "We considered a scenario with a 3% inflation objective, which corresponds to the low end of our target range. This showed a lower path for interest rates, with the policy rate falling below 6%, instead of staying around 7%, as in our baseline forecast," he said. Ahead of today's announcement, Debt experts and economists had widely predicted a cut in the rate. Casey Sprake, an economist at Anchor Capital, said South Africa's headline consumer inflation edged slightly higher in April, rising to 2.8% year-on-year from 2.7% in March. The latest inflation data strengthened the case for monetary easing. 'With core inflation easing, wage growth muted, and consumer demand soft, real interest rates remain in restrictive territory. This means that current monetary policy is still exerting a significant dampening effect on the economy. As such, we expected the South African Reserve Bank (SARB) to cut the repo rate by 25 basis likelihood of a third rate cut later in 2025 remains evenly balanced at this stage,' Sprake said.
