Latest news with #NationalTreasury
IOL News
13 hours ago
- Politics
- IOL News
SAPS's political interference probe to cost R147. 9 million, says Justice Department
The Department of Justice has confirmed a R147.9 million budget for the six-month inquiry into allegations of political interference and corruption within SAPS Image: IOL Graphics The Department of Justice and Constitutional Development has confirmed that the Judicial Commission of Inquiry into allegations of political interference and shielding of criminals within the South African Police Service (SAPS) is estimated to cost R147.9 million over six months. 'We can confirm that the Department of Justice and Constitutional Development is responsible for the procurement process for services for the commission, in consultation with the commission chairperson and secretary,' said departmental spokesperson Terence Manase. The commission, chaired by Justice Mbuyiseli Madlanga, was established by President Cyril Ramaphosa following explosive allegations made by KwaZulu-Natal Police Commissioner Lieutenant General Nhlanhla Mkhwanazi. The claims included interference by senior police officials, including Police Minister Senzo Mchunu, in politically sensitive investigations and the disbanding of elite anti-corruption units. Manase confirmed that due to time constraints, the department has applied to the National Treasury for a deviation from standard procurement procedures and is awaiting feedback. 'We have since applied for deviations from the National Treasury, but the amount that we have put on the table is what we estimate.' 'I did not check what could be the reason and challenge for the deviation,' he told IOL News. Manase said Justice Minister Mmamoloko Kubayi has expressed her intention to develop a Standard Operating Procedure (SOP) or guiding framework for the establishment and operation of commissions of inquiry. 'The aim is to table this document at Cabinet for approval, thereby ensuring it becomes a government-sanctioned policy,' Manase said. According to Manase, the envisioned SOP will promote consistency, enhance efficiency, and ensure cost-effectiveness. 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 It will cover key operational areas including: - Organisational structure - Reporting formats - Information security and access - Implementation and monitoring mechanisms - Compensation structures for employees, commissioners, evidence leaders, and legal teams - Administrative costs such as office leases, website setup, and security 'The SOP will provide a ready-made blueprint that can be followed whenever a commission of inquiry is announced by the president, eliminating the need to design processes from scratch each time,' said Manase. Justice Madlanga, a respected jurist and former Chief Justice candidate, addressed the media on Monday, assuring the public that preparations for the commission's work are well under way. Public hearings are expected to begin in August, although no specific start date has been confirmed due to ongoing evidence assessments and consultations. 'The fact that General Mkhwanazi made the allegations doesn't mean we are immediately ready for hearings,' Madlanga said. 'There must first be assessments and further consultations.' The commission is currently in its setup phase, including the procurement of a venue in Gauteng, where the hearings will be held. Once the location is finalised, the public will be informed, including how to submit information online to support the inquiry. Madlanga emphasised the importance of public trust and transparency, given the gravity of the allegations, and stated that consultation with the commission's first witness is imminent. Jeremy Michaels, spokesperson for the commission, opened Monday's briefing by pointing out the importance of punctuality, structure, and public accountability throughout the inquiry. The commission will run parallel to ongoing Parliamentary investigations, after mounting pressure from police unions and civil society groups for urgent presidential intervention to restore integrity within the SAPS. IOL Politics
IOL News
15 hours ago
- Business
- IOL News
Germany advances South Africa's Just Energy Transition with R10bn loan
The National Treasury on Monday said this KFW loan, which forms part of the country's third Development Policy Operation, signified a continued commitment to structural reforms crucial for enhancing the efficiency, resilience, and sustainability of the country's infrastructure, particularly within the energy sector. Image: Supplied Germany has finalised a €500 million (around R10.4 billion) loan aimed at supporting South Africa's Just Energy Transition (JET) through the KFW Development Bank (KFW). The National Treasury on Monday said this KFW loan, which forms part of the country's third Development Policy Operation, signified a continued commitment to structural reforms crucial for enhancing the efficiency, resilience, and sustainability of the country's infrastructure, particularly within the energy sector. The loan agreement, signed in the presence of prominent stakeholders including the World Bank, the African Development Bank, the Japan International Cooperation Agency, and the OPEC Fund, builds on two previous policy loans concluded in 2022 and 2023. Altogether, these initiatives represent Germany's pledge made at the COP26 summit to aid South Africa's Just Energy Transition Partnership, which is designed to combat climate change while supporting the country's socio-economic development. On Monday, Finance Minister Enoch Godongwana underscored the significance of this partnership, pointing out that the collaboration with Germany and KFW was vital for advancing the nation's development agenda. Godongwana said this loan was a significant step towards strengthening short- and medium-term energy security measures, promoting decarbonisation, and ultimately realising inclusive economic growth through job creation for disadvantaged communities. 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 He further emphasised the need for ongoing policy and institutional reforms in the energy sector, adding that he believed that creating an enabling environment was essential to attract the necessary investments for a successful and just energy transition. Echoing these sentiments, Cornelia Tittmann, KFW's country director for South Africa, expressed optimism about the potential impacts of the loan. Tittmann said this financial assistance sought to support the South African government's commitment to energy sector reforms, which will facilitate the country's climate obligations and engage the private sector, thus opening new avenues for economic cooperation between Germany and South Africa. KFW's financing, which totals €1.3bn over three policy loans, is a cornerstone of the broader efforts to implement structural reforms. These goals include strengthening public institutions, catalysing private investments, and improving service delivery across key sectors in the South African economy. Tittmann specifically acknowledged the leadership of the National Treasury in coordinating this operation, highlighting the strengths of a collaborative approach over the past four years. According to Treasury, the financial terms of the new loan are notably favourable, featuring a nominal value of €500m, with a maturity of 13 years and a three-year grace period, alongside a fixed interest rate of 4.31%. The KFW loan also comes after South Africa last week inked a 15-year, R8.4bn loan agreement with the African Development Bank in a bid to bolster its energy transition efforts. This financing is part of the third Development Policy Operation and comes with collaboration from key international players including the World Bank, KFW, Japan International Cooperation Agency, and the Organization of the Petroleum Exporting Countries Fund for International Development (OPEC Fund). In November 2024, Agence Française de Développement (AFD) also finalised a landmark R7.6bn loan to drive South Africa's Just Energy Transition Plan (JETP). This loan builds on the €300 million (R5.7bn) public policy loan provided in 2022, bringing France's total contribution to the JETP to €700m of the €1bn pledged at COP26 in Glasgow. BUSINESS REPORT
The South African
16 hours ago
- Business
- The South African
South Africa secures R10.4 billion loan from German bank
South Africa has been granted a €500 million (R10.4 billion) loan for the implementation of the country's Just Energy Transition (JET) plan by the German Cooperation via KFW Development Bank (KFW). ALSO READ | South Africans doubt R7 billion BRICS loan will be used to fix roads This loan is part of South Africa's third Development Policy Operation and participants included the World Bank, African Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund. 'It supports structural reforms to enhance the efficiency, resilience and sustainability of the country's infrastructure services, with a specific focus on the energy sector and climate mitigation. 'KFW's financing forms part of government's broader efforts to implement structural reforms that strengthen public institutions, crowd in private investment, and improve service delivery across priority sectors of the economy,' National Treasury said on Monday. This loan agreement builds on the two policy loans concluded in 2022 and 2023, and forms part of Germany's pledge at COP26 to support South Africa's Just Energy Transition Partnership (JETP). Germany's three policy loans, implemented by KFW, total €1.3 billion and form part of a larger package of JETP projects supported by the German Government via loans, technical assistance and grants. 'The Minister of Finance, Enoch Godongwana, [has] highlighted the significance of South Africa's partnership with Germany and KFW that remains critical to South Africa's development agenda and marks a significant step towards strengthening South Africa's short- and medium-term energy security measures, promoting decarbonisation and enhancing the socio-economic benefits of the energy transition for disadvantaged communities, thereby enabling inclusive economic growth and fostering job creation. 'The Minister also emphasised the need for further policy and institutional reforms in the energy sector to create an enabling environment for the investment required for a just energy transition,' National Treasury said. KFW's Country Director for South Africa, Cornelia Tittmann, said the loan seeks to support the government of South Africa's continued commitment to reforms in the energy sector, which give effect to South Africa's climate commitments and enable the private sector to participate, opening new avenues to strengthen economic cooperation between Germany and South Africa. 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.
IOL News
21 hours ago
- Business
- IOL News
Sarb's potential shift to 3% inflation target could benefit South African economy
Analyses undertaken by the Sarb, the National Treasury, and other experts highlight significant potential benefits from reducing the inflation target to 3%. Image: File Economists have concurred that the South African Reserve Bank (Sarb) could help lower the borrowing costs, boost investor confidence, and economic growth by reducing its inflation targeting to 3% per annum. This comes as discussions have emerged regarding whether South Africa's current inflation target midpoint of 4.5% is consistent with price stability and whether adjusting it to a lower rate might help secure the current trend of low inflation Analyses undertaken by the Sarb, the National Treasury, and other experts highlight significant potential benefits from reducing the inflation target to 3%. Recent comments from the Sarb about potentially lowering the inflation target led market participants to recalibrate inflation expectations downward. According to the Bank of America (BofA) Global Research's latest South Africa Viewpoint on Monday, there is more to gain and less to lose by moving to 3% inflation target. 'We think moving to 3% is almost certain. The Sarb would not have intensified its desire if it did not have buy-in - at least in private if not publicly. Markets would not have reacted positively if the moves were in doubt,' said Tatonga Rusike, BofA's sub-Saharan Africa economist. 'An announcement could be made with the concurrence of the finance minister at either of the upcoming MPC meeting(s) - the Mid-term Budget presentation in October or the Budget 2026 presentation in February. Inflation is already benign and does not require the Sarb to change its current rate cycle. 'Other than influencing expectations through moral suasion, work still needs to be done in publishing the advantages of the 3% inflation target to the non-technical public, price setters and labour unions. South Africa moved from 3-6% to a 4.5% mid-point target in 2017. Reaching it was helped by central bank credibility and supportive supply-side factors - low oil and food prices. The Brent oil price averaged $63 per barrel between 2017 and 2019 while food inflation averaged 7% in 2017, 3.2% in 2018 and 3.1% in 2019. This made it easier to reach 4.5% and the central bank was cutting the policy rate through the cycle. Earlier this year, Sarb Governor Lesetja Kgayango said one particular issue that both advanced and emerging market economies grappled with was making sure that their targets were efficient and aligned with clear and practical definitions of 'price stability'. 'Most advanced economies have settled on maintaining inflation targets at 2%, while emerging markets are closer to the 3% mark,' Kganyago said. 'Early adopters of inflation targeting have updated their frameworks to better reflect changing realities on the ground, with Armenia being the latest central bank to also reduce its target to 3%.' In its latest annual report, the Sarb said the 'main concern with South African inflation is not our ability to hit the target. Rather, it is that our target is high compared to other countries.' The bank said although an inflation rate of 4.5% may seem moderate, it still causes prices to double every 16 years, and this is hard to reconcile with its constitutional obligation to safeguard the value of the currency. Investec chief economist, Annabel Bishop, said concurred with the advocacy for a lower inflation target, asserting that such a move would foster a more advantageous interest rate environment. 'A persistently lower rate of inflation would result in a lower interest rate environment which in turn would benefit the economy, the bond market and consumers. At 3% year-on-year inflation the neutral interest rate would be 5% not 6.5% with inflation at 4.5% year-on-year,' Bishop said. 'In addition, higher than expected tax collections would allow for a reduction in the fiscal deficit and so could reduce the borrowing requirement, again positive for the bond outcome, although the market has largely adopted a wait and see attitude.' BUSINESS REPORT
Bloomberg
a day ago
- Business
- Bloomberg
South Africa Gets €500 Million German Loan for Fossil-Fuel Shift
South Africa got a €500 million ($582 million) loan from Germany to help it fund its shift away from its reliance on fossil fuels. The German Society for International Cooperation known as GIZ — though state owned lender KfW — will provide the 13-year facility with a three year grace period at a fixed rate of 4.31%, South Africa's National Treasury said in a statement Monday.
