Latest news with #NationalTreasury
The Citizen
an hour ago
- Business
- The Citizen
Collect your June SASSA grants from tomorrow
SASSA has confirmed that Pretoria grant recipients can collect their payments from tomorrow, with June payout dates now officially announced. Below are the payment dates for Older Person's, Disability, and Children's grants in June: Older Person's Grant 3 June 2025 Disability Grant 4 June 2025 Children's Grant 5 June 2025 All social grants, barring the Social Relief of Distress (SRD) grant, increased in April this year. Delivering the 2025 Budget Speech in Parliament earlier this year, Finance Minister Enoch Godongwana stated that the number of social grant beneficiaries – excluding those receiving the SRD grant – was expected to rise to around 19 million in 2025/26 and 19.3 million in 2027/28 due to a growing population of older persons. Godongwana said that for 2025/26, social grants were allocated approximately R284.7 billion. 'As announced by the President in the State of the Nation Address, the SRD was to be used as a basis for the introduction of a sustainable form of income support for unemployed people. 'The future form and nature of the SRD would be informed by the outcome of the review of active labour market programmes, which was expected to be completed by September 2025. 'The truth was that ours was one of the most comprehensive social safety nets among emerging economies. This reflected our commitment to addressing poverty and inequality, while keeping our spending sustainable,' he said. The grant increases that took effect in April were: Old age grant: increased from R2185 to R2315 War veterans grant: increased from R2205 to R2335 Disability grant: increased from R2185 to R2315 Foster care grant: increased from R1180 to R1250 Care dependency grant: increased from R2185 to R2315 Child support grant: increased from R530 to R560 Grant-in-aid: increased from R530 to R560 In the Budget Review, National Treasury stated that the budget for social grants was increased by R8.2 billion over the medium term to account for higher living costs. 'An amount of R35.2 billion was allocated to extend the payment at the current SRD rate of R370 per month per beneficiary, including administration costs,' the department said. Also read: Is there an outbreak of Staphylococcus in Pretoria? Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Eyewitness News
2 days ago
- Business
- Eyewitness News
Treasury rules out further drawdowns from GFECRA to boost revenue
CAPE TOWN - The National Treasury has ruled out any further drawdowns from the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) to bolster revenue. In last year's budget, the finance minister announced a R100 million withdrawal from the account to pay off some of its debt. The account, held by the South African Reserve Bank (SARB), is meant to protect the country against foreign exchange fluctuations. There is currently around R390 billion in the account. Twenty-five million rand will be drawn down in each of the next two financial years. Responding to public comments on the budget on Friday, the head of the Treasury's Asset and Liability Management, Ravesh Rajlal, told Parliament's finance committees it was not an option to take out more money. "There is an agreement that we have with the SA Reserve Bank, and what we need to do is that gets updated on a yearly basis, so I think at the time of the medium-term budget policy statement, we will make further announcements in that regard." Rajlal said it was also not preferable to renegotiate the country's debt because it would send a distress signal to the markets. "So, it's important to highlight that we don't go into a renegotiation of our debt, because that will result in a significant impact on our debt stock. What will happen then, obviously, is the ratings agencies will downgrade us and obviously that will have serious repercussions for our borrowing programme."
Daily Maverick
2 days ago
- Politics
- Daily Maverick
IDT mistrust (Part Two) — Minister Zikalala's ‘whitewash' that secured IDT CEO Malaka her job
Former public works minister Sihle Zikalala lowballed the findings of an investigation he had commissioned, paving the way for Tebogo Malaka's appointment as chief executive of the Independent Development Trust (IDT) despite her involvement in a R45-million lease scandal. Evidence suggests that interventions by former public works minister Sihle Zikalala and his close comrade, then-IDT chair Kwazi Mshengu, stifled National Treasury investigations into allegations against then acting-CEO Tebogo Malaka and substituted a superficial probe by Zikalala's department. Nine days before the 2024 national elections, Zikalala endorsed Malaka's elevation from acting to permanent CEO on the basis that his probe 'found no wrongdoing' against her, but the probe had not been mandated to investigate Malaka. Last month the IDT was slapped down in its attempt to review the contract that Malaka was accused of mishandling after Malaka herself had deposed the founding affidavit. Part One of this series showed how Kwazi Mshengu, Zikalala's confidant and then-IDT chair, led the board in abandoning a National Treasury investigation into the parastatal's procurement of a new head office lease — even refusing to be briefed on its provisional findings. Mshengu and the board asked Zikalala to have his Department of Public Works and Infrastructure, of which the IDT is an implementing agency, investigate instead. The current story shows that while departmental auditors went on to produce a damning report on procedural irregularities, they had also warned Zikalala they were unequipped to probe — and could not investigate — substantive allegations against Malaka and others — a limitation he readily accepted. Despite the auditors recommending a further probe by the department's anti-corruption unit, Zikalala instantly wrote to Mshengu endorsing Malaka's appointment, claiming the auditors had 'found no wrongdoing' on her part. This was on 20 May 2024, just nine days before the national elections that ushered in the Government of National Unity. Mshengu signed off on Malaka's appointment six weeks later, as new ministers — including the DA's Dean Macpherson, Zikalala's successor — were being sworn in. Zikalala's exoneration proved decisive for Malaka, whose elevation from acting to permanent chief executive was blocked after she had entered a five-year, R45-million lease with politically connected Moepathutse Property Investments behind the board's back. This followed a procurement process marred by allegations of favouritism. Moepathutse, which has denied wrongdoing or any relationship with Malaka and sued the IDT for damages and costs, which the IDT itself estimates amount to almost R14-million, after it failed to occupy the building. The IDT responded by washing its dirty linen in court. It argued that the lease was invalid because tender specifications had been 'tailor-made' for Moepathutse's Irene property and because Malaka had signed without the requisite board authority. The IDT's defence took a potentially fatal hit two weeks ago when the Gauteng Division of the High Court in Pretoria dismissed a review application it had brought to set the lease aside. The judge found that the IDT had failed to prove the lease was 'tainted by any illegality' in any way. Malaka — despite being heavily conflicted — had deposed the IDT's founding affidavit. Under pressure In response to amaBhungane's questions, Zikalala, now Macpherson's deputy, did not address why his endorsement of Malaka had claimed 'no wrongdoing' despite the probe's limited remit. He said, however, that he had held back Malaka's appointment for more than a year pending the investigations, and that she had 'engaged in legal challenges through her lawyers relating to [her] appointment'. Zikalala said that when he became minister in March 2023, his predecessor, Patricia de Lille, had already recommended Malaka to the Cabinet. 'I am the minister who withdrew the [recommendation] for investigations to be conducted.' As detailed in part one, the board then considered procuring a forensic firm to conduct a probe, but hesitated to entrust the process to IDT management, then led by Malaka in acting capacity. One thing led to another and the National Treasury, assisted by law firm ENS, commenced a forensic investigation on the board's behalf. Towards the end of the year, a reconstituted board, now chaired by Mshengu, canned the Treasury investigation and asked Zikala to have his department investigate internally instead. The board's resolution still targeted Malaka though, calling for Moepathutse's selection to be probed 'specifically relating to the relationship between the lessor and the acting CEO'. But the new probe was neither forensic nor focused on Malaka. Zikalala — who said he was committed 'to serve with integrity, transparency and accountability' — shared the final report with amaBhungane. This report shows that the request to investigate had been routed through the department's inter-governmental relations unit to the internal audit unit, not its governance, risk and compliance branch, whose remit includes fraud and corruption investigations. The audit unit agreed to help, but only with an 'assurance audit' to check compliance with control prescripts. 'Internal audit performs assurance audits and not investigations/forensic audits which reside within governance, risk and compliance.' So concerned were the auditors that the limitations of their approach be understood that they insisted on Zikalala's approval and board concurrence before they started. 'The minister approved the proposed assurance audit approach on 15 March 2024.' The internal audit chief signed off on her team's report two months later. Within its narrow lane, the report was damning. It was 'unable to provide reasonable assurance that the procurement process was fair, transparent and regular'. It identified multiple gaps in the procurement file and 'material non-compliance to procurement policies, laws and regulations'. However, the report also reiterated that 'our audit did not cover the review of conflict of interest of executive management, the board members, [and supply chain management] officials to any bidder, especially to the recommended bidder'. This, it said, 'requires special tools that we do not have'. The auditors went on to recommend that the board, in consultation with the minister, ask the governance, risk and compliance anti-corruption unit after all 'to investigate further the areas' they could not cover or where information had been unavailable to them. No wrongdoing On 20 May 2024 — the same day the audit report was signed — Zikalala addressed a letter to Mshengu in his capacity as board chairperson. 'You will recall the proposal,' he wrote, 'to hold in abeyance the matter of the confirmation of Ms Tebogo Malaka… pending the conclusion of the investigation… The investigation by the department has been completed and no wrongdoing was found on the part of Ms Malaka. 'As such, I want to confirm my concurrence to the board's decision to appoint Ms Malaka as the IDT chief executive officer.' Zikalala did this knowing his audit team had not probed allegations against Malaka — and despite briefings from the previous board that the Treasury had been tasked to do just that. Zikalala sent the letter nine days before the elections saw the ANC lose its majority and he lost his post. Mshengu signed off on Malaka's appointment on 3 July 2024, the day new ministers, including Macpherson, were sworn in. Both Mshengu and Zikalala denied there was any connection between their respective actions of canning the Treasury probe, declaring Malaka cleared by the department, and getting her appointed before Macpherson took charge. Mshengu, whom Macpherson removed from the board, said: 'You would also know that IDT is a state entity and its operations are not subject to changes in government. Therefore, the appointment of Ms Malaka as CEO had nothing to do with changes in government. In any event, no one knew what would be the outcomes of the national general elections.' Zikalala said the board had terminated the Treasury investigation of its own accord and that there was 'no so-called 'haste' on my part' to appoint Malaka. He reiterated that he had ordered investigations after becoming minister and had paused the appointment 'for a period of more than a year until there were legal procedures initiated against me as minister'. Another investigation Zikalala also stressed that Malaka's appointment was not the end of the road and that the governance, risk and compliance anti-corruption unit had in fact 'commenced its deeper investigation' as recommended by the internal auditors. That probe only started last November, months after Zikalala was replaced as minister. The department confirmed that the investigation was concluded in mid-February, but was awaiting the director-general's sign-off. Its terms of reference included 'determining whether there was irregular, improper and/or criminal conduct by IDT official(s) and/or third parties'. AmaBhungane has submitted a request under the Promotion of Access to Information Act for the canned Treasury investigation reports, and will do the same for the anti-corruption unit report. Who will pay? Meanwhile, the costs of this debacle continue to mount. When Moepathutse filed its damages claim, the IDT responded with a special plea, claiming that the bid had been tailored to suit Moepathutse's building and that Malaka had concluded the lease without board approval, which was required due to its value. The IDT asked the court to pause the damages suit it applied in order to review its own decision and void the lease. When the IDT finally filed the review in March 2024, the deponent to its founding affidavit was none other than Malaka — hopelessly conflicted. She put hardly any admissible evidence on the table and the outcome was predictably dire. In a judgment delivered on 16 May, acting judge S J Myburgh complained repeatedly that the IDT had provided no evidence that its decisions were improper. 'The IDT has failed to show that the agreement concluded between itself and the respondent was tainted by any illegality. I thus find myself in agreement with the argument made by the respondent that this application is simply an attempt by the IDT to avoid liability in terms of the now cancelled agreement.' The court dismissed the IDT's application with costs, and Moepathutse's damages claim, which the IDT's latest annual report says now stands at almost R14-million, is effectively irresistible, unless, perhaps, the IDT throws Malaka under the bus.
The Citizen
3 days ago
- Business
- The Citizen
‘We have a National Treasury problem': Fuel levy hike defended amid criticism over tax strategy
At least R3.5 billion in revenue would be lost by not increasing the fuel levy, according to National Treasury. Petrol pumps are pictured at a filling station in Melville on 20 January 2021. Picture: Tracy Lee Stark The National Treasury has defended its decision to increase the general fuel levy in the budget 3.0 amid criticism over its broader tax policy. On Friday, officials from the Treasury and the South African Revenue Service (Sars) appeared before Parliament in a joint meeting of the Standing Committee on Finance and the Select Committee on Finance. They were responding to public submissions on the fiscal framework and revenue proposals, which outline South Africa's economic policies, revenue projections, and government expenditure limits. This follows the tabling of Finance Minister Enoch Godongwana's third national budget for the 2025/2026 financial year, after months of political impasse. The budget includes a fuel levy increase of 16 cents per litre for petrol and 15 cents for diesel, effective from 4 June. However, the Economic Freedom Fighters (EFF) are challenging the hike in court. National Treasury's revenue projections Treasury's head of tax and financial sector policy, Christopher Axelson, addressed the committee on the revised revenue outlook. Axelson noted that revenue projections had decreased by R61.9 billion compared to the budget tabled in March. This decline was driven in part by the withdrawal of proposed increases to value-added tax (VAT) and adjustments to zero-rated items. 'That increase was reduced slightly, but it still required a large amount of additional revenue to make sure we have a fiscally sustainable trajectory for our debt and debt-service costs, and because of that, this May 2025 budget does include R18 billion in additional revenue for 2025/2026 and has R1 billion in tax relief in 2026/2027,' the Treasury official said. He also indicated that a further R20 billion in unspecified tax policy adjustments is anticipated for the 2026 budget. To fund expenditure priorities, Treasury has opted for a range of tax measures, including no changes to personal income tax brackets or rebates, an inflationary increase in the fuel levy, and above-inflation hikes in excise duties on alcohol and tobacco. Diesel refund relief for primary sectors was also announced. ALSO READ: Budget 3.0: Fuel levy replaced VAT hike but is it the better option? Axelson pointed out that past personal income tax increases had failed to raise the intended revenue, while corporate income tax remains 'highly volatile'. 'Corporate income tax increases are the most damaging to growth, and if you reduce growth, it reduces the tax bases as well, so it is not as effective.' Axelson pointed out that a VAT increase was the most efficient revenue-raising option but had to be scrapped due to opposition. As a result, a bulk of the revenue shortfall was addressed by not adjusting personal income tax and rebates for inflation. He also explained that Treasury has aimed to avoid increasing taxes over the last five years in an effort to support economic recovery, adding that the country's tax system was 'progressive'. National Treasury defends fuel levy hike Moreover, Axelson responded to comparisons between the fuel levy hike and a VAT increase. 'The quantum is very different. The VAT increase over three years would have raised about R75 billion. Increasing the fuel levy by inflation is closer to around R12 billion.' He defended the levy hike, arguing that it had not been raised in the previous three budgets. 'Part of that was due to the very high oil, petrol and diesel prices [but] those have been coming down lately. The recent non-adjustment in the March budget was to provide relief for VAT.' READ MORE: VAT reversal overshadowed by fuel levy hike Axelson emphasised that the fuel levy is a significant source of state revenue, contributing about 5% to total tax revenue. 'This is a specific tax, a cents per litre, so these kinds of specific taxes, which are the same as excise duties, they need to be adjusted by inflation; otherwise, the real value of that tax will go down over time.' He warned that Treasury would lose about R3.5 billion in revenue by failing to increase the fuel levy. 'The vast majority of the tax revenue increase is all on the personal income tax side. Around R16.7 billion of the R18 billion in increases is all on personal income tax.' Watch the meeting below: Axelson told the committee that various alternative revenue proposals – such as eliminating the employment tax incentive (ETI), increasing corporate income tax, introducing a wealth tax, and partially adjusting tax brackets – will be considered in the 2026 budget. 'A lot of them are very good and interesting proposals which we are going to have to consider very carefully and hopefully have a more consultative process before the next budget.' He added that although the finance minister has the authority under the Customs and Excise Act to implement an interim fuel levy adjustment via a notice in the government gazette, Parliament has the right to intervene. 'We do hope the notice will be published quite soon [but] Parliament may decide to intervene [as] there is legislative oversight.' Tax policy criticised Civil society and political parties reacted strongly to the Treasury's presentation. The Budget Justice Coalition, one of the organisations that made submissions, rejected claims of a progressive tax system. 'Our tax system can look progressive on paper, but it doesn't actually work that way, and we know that all too well in a country that is marked by some of the highest levels of inequality,' the organisation's chairperson, Matshidiso Lencoasa, said. She argued that South Africa's tax policy burdens the poor, while wealthy individuals and corporations continue to exploit loopholes to their advantage. READ MORE: Fuel levy pain: Brace for possibility of petrol price hike in June Lencoasa further criticised the proposed VAT and fuel levy increases, describing them as 'blunt instruments' that would place a heavier financial strain on the country's most vulnerable populations. Pieter Faber, senior executive of taxation at the South African Institute of Chartered Accountants (Saica), also expressed concern. Faber said the institution cannot support further tax increases in an already high-tax environment, especially amid rising national debt and ongoing concerns about the lack of government accountability, as highlighted in the Auditor-General's report on local government this week. Fuel levy increase under scrutiny MK Party MP Des Van Rooyen criticised the delayed implementation of alternative proposals. 'My expectation was that most of the inputs would be accommodated in this budgeting cycle,' Van Rooyen said. He asserted that the fuel levy increase was more regressive than the scrapped VAT hike. 'There should be a thunderous response against this proposal.' Democratic Alliance (DA) MP Pieter Britz called for a fairer distribution of the tax burden. READ MORE: EFF files urgent interdict to stop proposed fuel levy hike EFF MP Omphile Maotwe strongly disagreed with Treasury's position on the fuel levy. 'National Treasury refuses to increase corporate income tax for ideological reasons and not practical ones. They oppose a wealth tax because their underlying assumption is that the state must serve those who already have wealth.' She also challenged the narrative of a progressive tax system. 'The claim that our tax system is progressive cannot be taken seriously,' Maotwe said, accusing the department of ignoring alternative proposals. 'It is clear that we have a National Treasury problem,' she added.
The Citizen
3 days ago
- Automotive
- The Citizen
Limpopo Speaker denies R6m luxury car claims
POLOKWANE – Limpopo Legislature Speaker Dr Makoma Makurupetje has denied allegations of extravagant spending after media reports claimed that over R6m in public money was used to procure two luxury vehicles – one apparently for her personal use. In response to the claims, Makurupetje has called for a full investigation into the legislature's vehicle procurement practices. She rejected reports suggesting she bypassed National Treasury guidelines, which cap the cost of official vehicles at R1.2m. 'I was really shocked to hear that a vehicle was bought for me, and I deny the R6.5m expenditure,' she said. Makurupetje clarified that upon assuming office in June, the official vehicle used by her predecessor had already exceeded its mileage limit, and the deputy speaker's vehicle had been involved in an accident. As a result, a procurement process for new vehicles was already underway before she and her deputy took office. She disclosed that the vehicle assigned to her cost R1.4m, while a Mercedes-Benz purchased for the deputy speaker cost R1.5m. Although both figures exceed the Treasury cap, she explained that the purchases fall under the Financial Management of Parliament and Provincial Legislatures Act of 2009 and not the Public Finance Management Act (PFMA), which applies to other government entities. Makurupetje has ordered a detailed review to determine whether Treasury guidelines were breached. She also revealed that she recently learned of a third vehicle, which she has never seen. She is awaiting a full report from Legislature to clarify this issue. 'If it turns out that I was misled by the Secretary regarding the procurement of any vehicle, I will take decisive action,' she said. The Speaker also referred to ongoing forensic audits within the legislature, which were launched following the resignation of the chief financial officer and the suspension of another senior finance official. She suggested that the recent media reports may be linked to resistance to internal reforms underway in the legislature. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
