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IOL News
12 hours ago
- Business
- IOL News
Maile tables revised R172. 3bn budget, vowing service delivery and fiscal discipline
Gauteng MEC for finance and economic development re-tables budget for 2025/2026, focusing on service delivery and economic growth Image: Gauteng Legislature The Gauteng Provincial Government Finance MEC Lebogang Maile has re-tabled the province's increased 2025/2026 Budget, emphasising service delivery, fiscal discipline and inclusive growth in the country's economic hub. The revised budget now amounts to R172.3 billion — an R886.6 million increase from the initially proposed R171.5 billion. Maile presented the revised Budget to the Gauteng Provincial Legislature and explained that the additional funds were made possible through the provincial allocation of unspent resources and revenue over-collections from the previous financial year. 'These resources enable us to better respond to the urgent needs of our communities and to reinforce our commitment to service delivery,' he stated. He further said that the re-tabling was a necessary response to the extraordinary delays and disagreements at the national level, where the postponement and subsequent amendments to the national budget caused ripple effects on provincial planning. 'The developments at the national level, including the postponement and withdrawal of the Division of Revenue Bill, compelled us to withdraw our initial provincial Budget and re-table it within the legal framework provided by the Public Finance Management Act,' Maile said. According to Maile, the priorities outlined in the State of the Province Address (SOPA) are comprehensively funded in this 2025 Medium-Term Expenditure Framework (MTEF) Budget within and across all budget votes. Maile said that this deliberate alignment ensures that the government's strategic objectives - such as infrastructure development, social services, safety, and economic growth - are adequately resourced to deliver tangible and measurable impacts for Gauteng residents. He expressed confidence that these investments will translate into real change, improving the lives of the people across the province and reaffirmed the commitment made during the Medium-Term Budget Policy Statement (MTBPS) tabling in November last year. 'Fiscal discipline is non-negotiable. We will continue prioritizing efficiency gains and making strategic trade-offs to fund our government's priorities. Managing our finances responsibly is fundamental to building a resilient Gauteng that can sustain growth and development, even in difficult economic times.' 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 ✕ Maile stressed that fiscal discipline requires provincial and municipal governments to uphold fiscal positions that are aligned with macroeconomic stability. He argued that this is essential for maintaining investor confidence and economic resilience and for ensuring equitable and sustainable service delivery across all communities. He also highlighted that exploring alternative funding sources is crucial for long-term fiscal sustainability. 'Provincial departments and entities are actively investigating innovative financing mechanisms—such as public-private partnerships, donor funding, and blended finance models—to supplement constrained revenue streams. 'These efforts will enable the government to expand its investment capacity while maintaining prudent financial management,' said Maile. Prioritising Critical Sectors with Targeted Allocations The allocations outlined in the budget are focused on addressing the most urgent and impactful needs: The Gauteng Department of Human Settlements was allocated R332 million to improve sanitation in informal settlements (R232 million) and to secure land and structures against illegal occupations (R100 million), directly tackling the issues of land invasion and service delivery gaps highlighted in SOPA. The Department of Roads and Transport will receive R314.9 million, with R150 million targeted at 54 priority roads across the five economic corridors and R115 million for repairing traffic lights and streetlights, improving mobility and safety. Maile announced that the Departments of Agriculture, Rural Development, and Environment have been allocated R23.8 million and R18 million, respectively, to build capacity and implement environmental initiatives, including the clean and green campaign aimed at improving urban environments and public spaces. Other critical sectors include health, education, safety, sports, arts, ICT, and infrastructure. The budget ranges from R50 million for school upgrades to R1.5 billion for ICT expansion and R3.6 billion for infrastructure development. He said these investments are designed to accelerate service delivery, foster economic growth, and improve the quality of life for all residents. The Budget also prioritised social programs, with R5.4 billion allocated to Social Development to address urban poverty, homelessness, and skills development. The Department of Community Safety will receive R2.3 billion to enhance policing, community safety efforts, and law enforcement visibility, including deploying Gauteng Traffic Wardens to restore law and order. Maile announced that R1 billion is being funded for arts, culture, and sports, which supports community engagement and social cohesion and hosts major national and international events. In digital transformation, Maile said R1.5 billion is allocated to expand ICT connectivity, including Wi-Fi hotspots and CCTV installations in townships, contributing to safer and more connected communities. Maile reaffirmed that maintaining fiscal discipline remains an uncompromising priority. He said the government is committed to managing expenditures efficiently, identifying savings, and making strategic trade-offs to fund priority programs. 'Our approach is to ensure that every rand spent delivers maximum value to our people,' he said. 'This requires us to be disciplined, innovative, and unwavering in our commitment to responsible governance.'
IOL News
3 days ago
- General
- IOL News
KwaZulu-Natal schools face food delivery problems due to non-payment of service providers
Service providers in the National School Nutrition Programme have warned that some KwaZulu-Natal schools will be without food for schools meals this week due to some service providers not being paid. Image: Pixabay Service providers contracted to feed KwaZulu-Natal schoolchildren have warned that some schools will not receive food deliveries on Monday, 2 June, due to non-payment of invoices by the provincial Department of Education. The National School Nutrition Programme (NSNP) Service Providers Association says many of its members have not been paid for April and earlier invoices despite submitting all necessary documentation, and the department has offered no formal communication or explanation for the delay. The issue of payments, either not being made or being late, have been a challenge since the start of the school year. Last month, the payment issues was also raised by the services providers. The KZN education department admitted that there had been some service providers who were not paid and said this was due to system errors. NSNP association spokesperson Thabang Mncwabe said the non-payment of some service providers "places over a million learners across the province at risk of going without food on Monday'. 'It not only undermines the constitutional rights of learners especially under Section 29(1)(a) of the Constitution, but also sets a disheartening tone for Youth Month.' The association said the department is in breach of Section 38(1)(f) of the Public Finance Management Act, which requires valid invoices to be paid within 30 days. 'We cannot allow financial mismanagement, poor planning, and a continued disregard for legal obligations to compromise the dignity, health, and education of South Africa's children,' Mncwabe 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 It called on the national Minister of Basic Education to urgently intervene and hold the provincial department accountable, while also demanding the immediate implementation of the Pretoria High Court ruling which the association affirms the rights of service providers to be paid on time. In response, the KwaZulu-Natal Department of Education admitted that some NSNP service providers were excluded from the most recent payment run, attributing it to technical problems related to the implementation of a new financial management system. 'The Department is affected following the implementation of the new Standard Charts of Accounts (SCOA V6), which includes a complete refreshing of the BAS technical environment,' it said. 'Whilst the Department captured all submitted invoices for the month of April and other previous months, a number of service providers were randomly omitted in the process,' it added. According to the department, the Provincial Treasury is investigating the cause of the omissions, and a special payment run has been scheduled for Tuesday, 3 June. Payments are expected to reflect by Friday, 6 June. MEC for Education Sipho Hlomuka appealed for understanding and urged schools to continue feeding learners where possible. 'We have requested that principals of schools whose service providers have been affected by this impasse humbly engage service providers to deliver food items to schools and also ensure that learners do not go hungry,' said Hlomuka. 'We call for patience and cooperation during this period of transition and frustration.' THE MERCURY
The Citizen
4 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!
The Citizen
4 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.
TimesLIVE
4 days ago
- Business
- TimesLIVE
Special Tribunal stops pension to former Gauteng agriculture head Matilda Gasela
The Special Investigating Unit (SIU) has obtained an interim order preventing the processing of a R3.3m pension payout to Matilda Matozi Gasela, former Gauteng agriculture, rural development and land reform department head. The order, granted by the Special Tribunal on May 15, also restrained Gasela from accessing or claiming these funds pending finalisation of legal proceedings against her. Gasela assumed office as head of department in December 2018 and is alleged to have played a pivotal role in the mismanagement of a contract involving Enviro Mobi (later known as Groen Mintirho). 'Despite the company's failure to deliver the required vehicles, she authorised further payments and approved a settlement of R6.5m for purported 'storage costs' — an expense not stipulated in the original contract. 'Senior counsel had explicitly advised against this payment, which was later declared to be fruitless and wasteful expenditure,' the SIU said on Friday. Her actions allegedly contravened the Public Finance Management Act (PFMA) and contributed to the depletion of public funds in what the SIU described as a fraudulent scheme.
