Latest news with #OrganisationUndoingTaxAbuse
TimesLIVE
5 days ago
- Business
- TimesLIVE
Just one Gupta property finds a buyer at Saxonwold auction
Furniture from two of the houses was sold as a separate lot per property. The loose assets of house No 5 were sold to an in-person bidder for R100,000, while the furniture of house No 7 went for R60,000. The furniture for house No 3 was not sold. Park Village Auctions disposal manager Graham van Niekerk described the outcome as 'exactly what we expected'. He said despite house No 3's rundown condition, it had more redevelopment potential. 'You can see for yourself the scope to upgrade it or start from scratch. The other two are very unique and difficult properties,' said Van Niekerk. He attributed the lack of interest in houses No 5 and No 7 to several factors: high municipal valuations, poor structural condition, restrictive zoning (residential 1) and the stigma associated with the Gupta name. Outside the compound, a small group of people protested, demanding justice and accountability for the family's alleged role in state capture. 'This is not the first time we have protested,' said Li Gula, from the Organisation Undoing Tax Abuse (Outa) 'We want the Guptas to come back and account. The NPA is moving far too slowly. The Zondo commission cost taxpayers millions and yet justice still drags on.' Lazarus said the auction was part of an effort by business rescue practitioners to open the process to public scrutiny. 'There is a stigma around these properties, but the most important thing is transparency. Everyone had the same opportunity to bid,' he said. Lazarus acknowledged that properties No 5 and 7 were always going to be tough sells. 'They are in serious disrepair and need major investment to restore. The business rescue team will now explore alternative methods to dispose of them, including closed tenders.' The auction may not have cleared all assets but it opened a rare public window into what remains of the once-powerful family's South African empire now reduced to crumbling mansions and unresolved questions.
The Citizen
21-07-2025
- Automotive
- The Citizen
Call to extend driver's license validity
South Africans have complained about the slow pace at which driver's license cards are being issued. The Organisation Undoing Tax Abuse (Outa) executive director advocate Stefanie Fick has written to Minister of Transport Barbara Creecy to consider extending the validity for all licence cards to 10 years and waive fines and temporary licences for those whose new licence cards are stuck in the backlog. This comes after the Department of Transport reported a backlog of 690 000 driving licence cards, arising from the breakdown earlier this year of the sole card-printing machine. Outa CEO Wayne Duvenhage said after months of delay, the department had finally filed papers in the High Court in Pretoria aimed at overturning the R898 million contracts awarded to Idemia South Africa to supply a new driving licence card machine. Duvenhage said the auditor-general took their concerns seriously: 'We commend Minister Creecy for acting on them. This is how civil society, oversight institutions and public representatives should work together to tackle maladministration.' He added: 'In early September last year, Outa exposed procurement irregularities in this contract and submitted a detailed report to Creecy, who passed it on to the auditor-general of South Africa and asked for further investigation. That request was accompanied by Outa's detailed report outlining allegations of procurement irregularities.' ALSO READ: 'Self-destructing' number plates for Gauteng? Here's what to know Duvenhage said the court papers outline multiple flaws in the contract, including a nearly R400 million cost escalation, from the original Cabinet-approved budget of R486.385 million to the signed contract of R898.597 million. Also contributing was the use of outdated pricing, omission of printing material costs, evaluation errors in scoring, machine assessments and bidder non-compliance and weak documentation. AfriForum also wanted Creecy's to issue temporary licences free of charge to motorists who renew their licences on time, amid the backlog in the issuing of driving licence cards. Spokesperson Louis Boshoff said the department had ignored workable solutions, such as extending the validity period of licence cards. – [email protected] NOW READ: RAF CEO placed on special leave with full pay, as MPs grill fund
The Citizen
11-07-2025
- Politics
- The Citizen
Never-ending parliamentary village build ‘a cash cow'
Civic groups demand answers as Mpumalanga's parliamentary village remains incomplete eight years after its deadline. Civic activists have called on authorities to investigate why the Mpumalanga government has not finished the construction of the province's parliamentary village. The project, begun in 2014 and should have been completed in 2017, was originally budgeted to cost R300 million, but has now sucked up more than R500 million. Mpumalanga provincial spokesperson George Mthethwa said the government was 'striving to finish the project as soon as we can. Mpumalanga's parliamentary village remains incomplete 'A lot of work has been done.' But he added, that 'one of the major factors of delays is interruption of projects by communities demanding employment and the construction mafias, who demand 30% from contractors.' ALSO READ: Dam level warnings intensify in Mpumalanga 'These challenges put the lives of workers at risk, thereby obstructing the finalisation. In some instances, delays are caused by natural causes, such as rain.' A source close to the matter said the project was being delayed intentionally because 'there are government officials who rented out their houses to associates of their colleagues, so they fear the completion of the project will interrupt their businesses'. Wayne Duvenage, CEO of the non-profit civil rights group, Organisation Undoing Tax Abuse, said it was another example of a combination of gross maladministration, stemming from a possible combination of poor leadership, lack of oversight and high probability of corruption. Example of gross maladministration, lack of oversight and corruption Duvenage said the only reason the project did not reach finality is that someone, or persons, was making a lot of money out of an ongoing and overpriced project. 'I don't think for one minute that this is an innocent delay. ALSO READ: Armed men rob Mbombela filling station, flee on foot 'If there is no corruption involved, then it is gross incompetence and lack of leadership oversight, in which case someone should be fired. 'But that won't happen, because there is a high possibility of connected cadres and cronies eating from this healthy flow of money. 'Unfortunately for you and I and every [tax-paying] citizen, just as this has happened in many similar incidents in the past, we will bear the brunt of this loss and the likelihood of anyone being held accountable is extremely slim.' 'This is outrageous' – Godi Former MP Themba Godi said: 'This is outrageous. 'Budgets cannot be allocated yearly to the same project and yet there is no completion. ALSO READ: Mpumalanga education opens housing allowance fraud case against two officials 'The departments submit annual procurement plans to the National Treasury. Surely there should be mechanisms to account for and confirm expenditure on previous projects? 'If money is spent but the projects are not complete, clearly the money has been misappropriated. 'The money has been stolen. Money stolen 'A simple forensic check would reveal the corruption of the tender holder and the officials who made the payments.' The DA in the province has called on the government to immediately act against the construction mafia, which has crippled the construction industry and delayed infrastructure projects. NOW READ: David Mabuza's funeral date confirmed as Mokonyane dismisses ANC criticism claims
IOL News
16-06-2025
- Business
- IOL News
A Tale of Two Forces: Fiscal vs Monetary Policy tug-of-war
The fuel levy makes up approximately 6% of the government's total revenue and is the fourth-largest revenue-generating item in the government budget, collecting R730 billion over the past decade. Image: File 'It was the best of days; it was the worst of days.' In recent weeks, South Africa has dominated international news concerning its US-South Africa relations, which nearly overshadowed the outcomes of Budget 3.0 delivered by Finance Minister Enoch Godongwana on May 21, 2025. The VAT increase proposed in Budget 2.0 was revoked and replaced with a fuel levy increase of 16 cents per litre for petrol and 15 cents for diesel. Although considered a necessary evil, the fuel levy increase affects the economy and households similarly to the scrapped VAT increase. This levy follows a 12.74% rise in electricity prices effective from April 1 and precedes a 25 basis-point repo rate cut on the 29th of May 2025, reducing the prime lending rate to 10.75%. Much appears to be occurring simultaneously or in brief bursts, affecting various economic agents in different ways. South Africa is a fuel-importing nation, relying on nearly 80% of its crude oil on imports, which constitutes a substantial part of the country's import bill. Although fuel prices are regulated in South Africa, they remain influenced by market forces, such as the exchange rate and the dollar oil price. While managing fluctuations in international fuel prices is beyond our fiscal control, levies and fees fall within our remit. 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 ✕ According to the Organisation Undoing Tax Abuse (OUTA), from 2009 to 2014, South Africa's Basic Fuel Price (BFP) was the largest component of domestic fuel prices, ranging between 51% and 58% before decreasing to 30% in 2020. However, taxes and levies have been increasing, accounting for almost 70% of the fuel price in 2020. The fuel levy makes up approximately 6% of the government's total revenue and is the fourth-largest revenue-generating item in the government budget, collecting R730 billion over the past decade. Although it is not the biggest source of government revenue, it generates more revenue than customs duties or alcohol and tobacco excise duties, which should have been the sacrificial lamb protecting the local market. As reported by the Department of Mineral Resources and Energy (DMRE), in December 2021, the price of inland 95-octane petrol stood at R20.29, comprising a basic fuel price of R9.74 (48%), taxes and levies of R6.67 (33%), retail and wholesale margins of R2.74 (14%), and storage and distribution costs of R1.14 (6%). The Road Accident Fund levy of R2.18 (1%) was not included. South Africa's fuel prices are heavily influenced by levies and taxes rather than by global market fluctuations. According to the Stats SA 2021 report, there are 13 different charges depending on the type of fuel and one's place of residence. Are we undermining our economy by self-sabotaging? The South African Petroleum Industry Association (Sapia) reports that fuel prices rose by 21% in 2017/2018, leading to cost-push inflation and economic growth falling below 1%. This latest levy increase is likely to have a similar impact in an already frail economic environment. Higher electricity and fuel prices raise production and operational costs, leading to a decrease in aggregate supply, as businesses rely on the transportation of goods for production and retail purposes. This ultimately results in lower output, which, in turn, affects employment, wages, and investment as firms implement cost-containment measures to remain productive. As businesses pass the burden onto consumers by charging higher prices for their products and services, this leads to cost-push inflation pressures that alter spending behaviour, as consumers make trade-offs between food, repaying debt, electricity, commutes, and other essential household expenses. Consequently, aggregate demand in the economy will dampen as disposable income is eroded, thereby hindering economic growth. Although businesses and consumers were cushioned by the R1.27 drop in the basic fuel price shortly after the increase in the fuel levy, in the long term, the higher levy undermines South Africa's economic growth. An additional financial relief for consumers was a 0.25% reduction in the prime rate from 11% to 10.75%. Although this interest rate reprieve was moderately welcomed by South Africans, if higher fuel levies drive inflation, the South African Reserve Bank (SARB) may hesitate to cut rates further, limiting growth stimulus. Additionally, a fuel levy hike raises costs immediately, while rate cuts have a lag effect, thus taking time to stimulate growth. Rate cuts benefit indebted middle-class borrowers, boost borrowing, encourage business expansion, and stimulate economic activity, but do not offset fuel inflation for the poor. The fuel levy increase risks hurting short-term growth and rising inequality, disproportionately affecting low-income earners and households. These two policy decisions have opposite impacts. The fuel levy hike increases inflation, thereby reducing economic activity, while an interest rate cut spurs growth. To counter this challenging balancing act, the economy must grow at a higher rate to increase tax revenues and productive government spending. A higher growth rate will create jobs, reducing the number of economically inactive workers who rely on social grants as they shift to personal taxpayers. Growth also signifies positive business performance. This will broaden the tax base as more individuals gain employment, diverting the government's spending from social grants to more growth-enhancing initiatives. Moreover, corporate taxes will also increase. Very little can be accomplished with the low growth rate of 0.6% recorded in 2024 and 0.1% during the first quarter of 2025. If growth continues on this downward trajectory, government revenue and public expenditure will remain constrained.
IOL News
10-06-2025
- Automotive
- IOL News
Rising costs of maintaining outdated driving licence machine alarm South African watchdogs
Transport Minister, Barbara Creecy, said the driving licence card printing machine had been out of service for 38 days since April 1, resulting in a backlog of 733 000 licence cards. . Image: GCIS Amid talks over the past 10 years about the government obtaining a new licence card machine, the Organisation Undoing Tax Abuse (Outa) said it is concerned over the millions of rands spent on maintaining the one and only printer after several breakdowns. This was after Transport Minister, Barbara Creecy, said the machine had been out of service for 38 days since April 1, resulting in a backlog of 733 000 licence cards. Creecy disclosed this in response to a written parliamentary question from Rise Mzansi leader, Songezo Zibi. Creecy said the machine was broken for 17 days in 2024/25, 48 days in 2023/24, and 26 days in the 2022/23 financial year. The department paid R9 267 862 for the repair and maintenance in 2022/23, R1 651 772 in 2023/24, R544 747 in 2024/25, and R624 988 so far. The department also had to fork out R4.4 million for overtime payments between the 2022/23 and 2024/25 financial years. Creecy said she has directed that a declaratory order be sought from a competent court on the tender to acquire a new machine, in order to ensure that no further irregular expenditure occurs. 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 Government continues to spend millions repairing and maintaining its only driving licence card printing machine. Image: SUPPLIED Outa's chief executive officer, Wayne Duvenage, said the organisation was concerned by the length of time it takes for the department to get the court to nullify the contract - riddled with irregularities and potential corruption. 'Why does it take so long to get this process done?' he asked. 'Lots of money spent on maintaining and overtime costs to catch up with backlogs. This is very concerning. The government has been talking about a new driving licence card machine for about 10 years now, with multiple tenders awarded and cancelled for the past 5 years and still, we are nowhere near resolving this issue. Incompetence and political interference at its best,' Duvenage said. Department of Transport spokesperson, Collen Msibi did not respond to a request for comment on Monday.
