Latest news with #NtsweMokoena
IOL News
19 hours ago
- Business
- IOL News
Public sector leave payouts could drain R16 billion from state coffers
The Public Service Commission has revealed that the government is sitting on a backlog of more than R16 billion Image: Ntswe Mokoena/GCIS. The Public Service Commission has revealed that government is sitting on a backlog of more than R16 billion in unpaid leave benefits owed to almost 190,000 public sector employees. According to the entity, the money is linked to more than nine million days of vacation leave that were accumulated before July 1, 2000, when the policy still allowed employees to keep unused leave and convert it into cash later. In an interview with public broadcaster SABC earlier this week, PSC Commissioner Anele Gxoyiya said that the figure reflects a potential future cost, not money that has already been paid out or lost. 'The money that we're talking about, the R16 billion that we're talking about, is the contingent liability, which means the leave that was accrued, if you convert it into cash, for now, it amounts to that R16 billion,' Gxoyiya told the public broadcaster. 'So it's not actually the rands and cents that have been lost by the state, but rather the money of the state or the money of the employees that is in the state.' He said this only applies to leave that was saved before the new policy was introduced in July 2020. 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 ✕ 'After 2020, then, they are compelled to take that particular leave every year before the end of June,' he said. 'All employees who have not taken their leave before the end of June, then they will have forfeited their leave.' Gxoyiya confirmed that the money would only be paid out if employees retire, resign, or die. 'That's exactly what it means when we speak about the contingent liability. It's the eventuality. So it's not the money that has already been lost.' He also said this is not a result of mismanagement, but was allowed under the law at the time. 'The monies that were accumulated it was within the rights of the employees to do that,' he said. 'I wouldn't call it mismanagement, because at that time, they were legally allowed to do that.' IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
a day ago
- Business
- IOL News
Capitec supports identity verification fee increase amid TymeBank criticism
Home Affairs Minister Leon Schreiber described the changes as a 'matter of national security, plain and simple.' Image: Ntswe Mokoena/GCIS Capitec has come out in support of the Department of Home Affairs' plan to raise fees for identity verification, stating that the upgrades are necessary to improve security and fight fraud. This comes after criticism from TymeBank CEO and Co-founder Coenraad Jonker, who described the fee increase as a 'catastrophic 6,500% increase in indemnity verification fees.' 'We are calling for a phased, performance-linked model that enables planning and protects financial access for underserved communities. This decision puts the Department on the wrong side of history. Digital transformation should open doors, not close them,' Jonker said. In a statement to IOL, Capitec said it 'supports the Department of Home Affairs' initiative to upgrade the National Population Register and enhance the stability and reliability of its Online Verification System.' The bank emphasised that the changes were crucial for developing a secure digital economy and tackling identity fraud. They also said that they would cover the extra costs internally, so customers would not see an increase in banking fees. 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 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. Next Stay Close ✕ "While we understand these crucial upgrades require a fee increase from the Department, we have decided to absorb the additional costs. This means our clients will see no change to their banking fees as a result of this initiative for the current financial year," the bank said. "The digital identity verification service is a critical building block to prevent fraud, which ultimately comes at a significantly higher cost to all South Africans. By ensuring this system remains robust, we are helping to build a safer and more accessible financial future for everyone. "Capitec remains committed to working with the government to advance secure digital banking and protect our clients from evolving threats". IOL previously reported that the Department of Home Affairs said it was acting to stop the abuse of the identity verification system, accusing some private companies of overusing the National Population Register for profit while paying fees too low to sustain the service. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
2 days ago
- Business
- IOL News
Here's why South African identity checks are about to become more expensive
Home Affairs Minister Dr Leon Schreiber has announced major reforms to the identity verification system, including new tariffs to prevent abuse and protect national security. Image: Ntswe Mokoena/GCIS The Department of Home Affairs has moved to stop what it calls the exploitation and profiteering of South Africa's identity verification system, accusing some private entities of overwhelming the National Population Register (NPR) for profit while paying rock-bottom fees that left the state unable to maintain the system. For more than ten years, registered users, including major banks and private companies, have paid as little as 15 cents per identity check, a price the department now says enabled abuse, degraded public services, and posed a serious risk to national security. 'The artificially-low pricing structure has led to such severe under-investment in the NPR that it now poses a direct threat to financial inclusion, to the ability of the government to combat identity and financial crime, and to national security,' the department said. Minister of Home Affairs Dr Leon Schreiber announced that a new pricing model will take effect from July 1, raising the cost of real-time identity verifications to R10 per check. To ease the transition and avoid overloading the system, a low-cost R1 batch verification option will also be introduced for off-peak use. The move follows years of complaints about Home Affairs' 'system offline' issues, which the department now links directly to unchecked demand from underpaying institutions. Some users reportedly made massive profits by building private services on top of the state's database, while the system itself crumbled under pressure. 'Some users then went on to exploit the unreliability of the system created by their excessive use, to create third-party verification services that charge prices vastly in excess of those paid to Home Affairs,' the department said. The failure rate of the current system had skyrocketed to over 50%, defeating the purpose of real-time identity checks and crippling services at frontline offices. But a modernised verification platform, now rolling out nationwide, brings that failure rate down to under 1%, the department 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 ✕ Minister Schreiber was blunt in his assessment. 'This is a matter of national security, plain and simple. Every responsible State on earth must take the necessary steps to ensure a functional population register.' He said the reform would also support South Africa's financial system by addressing weaknesses flagged by the Financial Action Task Force (FATF), which placed the country on its grey list due to inadequate safeguards against financial crime. Calling on all users of the verification system to act in the national interest, Schreiber added; 'I thank the many stakeholders who expressed support for this vital reform… and call upon all users of the OVS to rise above narrow profiteering to support the safeguarding of national security.' The overhaul is also a critical step toward the government's goal of establishing a Digital ID system, with the upgraded NPR expected to serve as the foundation. 'A healthy NPR is also a prerequisite for a functional Digital ID, this investment in the NPR is an investment in national security, in financial inclusion, and in the value of our cherished South African identity,' Schreiber said. IOL News
IOL News
2 days ago
- Business
- IOL News
Home Affairs ID verification fee hike sparks debate amid push to end ‘system abuse'
Home Affairs Minister Leon Schreiber described the changes as a 'matter of national security, plain and simple.' Image: Ntswe Mokoena/GCIS The Department of Home Affairs has announced a massive 6 500% increase in the cost charged to companies for verifying identities against the National Population Register (NPR), citing 'unsustainable under-pricing' that has crippled its systems and threatened national security. The new fee structure, gazetted on Monday, will raise the cost of real-time ID verification via the Online Verification System (OVS) from just 15 cents to R10 per transaction. A more affordable R1 rate will apply to batch verifications conducted during off-peak hours. Home Affairs Minister Leon Schreiber described the changes as a 'matter of national security, plain and simple.' 'For years, financial institutions and private companies have effectively been subsidised by the state,' Schreiber said. 'That model is no longer sustainable. The failure to properly fund the NPR has contributed to severe system outages and increased vulnerability to identity fraud.' The OVS has been in use since 2013 by banks, insurers, mobile network operators and other third-party entities to verify customers' identities in real time, helping to prevent fraud and identity theft. But the department says it has been severely strained by excessive traffic and misuse, largely due to the rock-bottom cost of accessing the service. In a statement, the department warned that the 'extreme under-pricing' led to overwhelming volumes of verification requests that caused failure rates of over 50% and contributed to the notorious 'system offline' problems at Home Affairs offices nationwide. 'These outages have had cascading consequences — from financial exclusion to failed document applications — and have weakened the integrity of our entire civil registration system,' the department said. The new price structure and upgraded verification system will take effect from 1 July. The department says the upgraded OVS has already cut failure rates to below 1%, allowing for real-time verifications without delays. The overhaul has received support from the Congress of South African Trade Unions (COSATU), which said the previous pricing created 'a decades-long de facto subsidy for financial institutions.' 'This perverse arrangement resulted in the NPR being overwhelmed and Home Affairs staff bearing the brunt of public frustration,' COSATU said in a statement. 'Workers have lost wages while queuing for days because of system crashes.' However, the trade union federation warned it would closely monitor how private companies respond. 'COSATU will engage affiliates in the financial and retail sectors to ensure that banks and insurers do not use this adjustment as an excuse to increase fees on customers.' Analysts say that while the new fee structure makes economic sense, it raises concerns about whether companies will pass the additional costs on to consumers. Despite this, the department remains firm in its stance that the upgrade is necessary to restore public trust and national data security. 'The state has a duty to ensure the NPR functions as a modern, secure system,' said Schreiber. 'This reform puts us on the right path — for citizens, for financial integrity, and for the future of digital public services in South Africa.'
