Latest news with #R1-billion
Daily Maverick
30-07-2025
- Politics
- Daily Maverick
Nine Wasted Years: State Capture and the failure to implement the Zondo Commission's recommendations
The Zondo Commission provides a valuable framework to eradicate State Capture and we must begin implementing its recommendations. We simply cannot afford another nine wasted years. This year marks nine years since advocate Thuli Madonsela released the ' State of Capture ' report and three years since the 'State Capture Commission' came to an end. R1-billion was spent on the State Capture Commission, yet we still have no significant progress in addressing State Capture cases. What we do have is multiple excuses from institutions tasked with implementing the commission's findings and recommendations. The Civil Society Working Group on State Capture has been tracking the implementation of the findings of the commission, and what we have found is a generally lacklustre approach to addressing State Capture. How can we expect corruption and State Capture to be eradicated if we are failing to implement the most basic of recommendations that were set out in the commission's report? The Zondo Commission The Zondo Commission, led by Former Chief Justice Raymond Zondo, was a commission of inquiry into allegations of State Capture, corruption and fraud in the public sector, including organs of State. It came about from the findings of former public protector Madonsela, who looked into allegations of crooked appointments of Cabinet ministers, directors and awarding of state contracts and other benefits. Her key recommendation was the appointment of a judicial commission of inquiry headed by a judge. The terms of reference of the Zondo Commission were very broad in scope, with the commission being appointed to investigate matters of public interest concerning allegations of State Capture, corruption and fraud. The commission found that State Capture did indeed take place between 2009-2018, the so-called 'nine wasted years' of the Jacob Zuma administration. The commission made extensive recommendations, some specific and focused and others much broader and far-reaching, including recommendations for the investigation and potential prosecution of some individuals and reform of various government processes and institutions. During this year's State of the Nation Address, President Cyril Ramaphosa revealed some of the progress being made in addressing State Capture. According to Ramaphosa's address, the SIU and Asset Forfeiture Unit had recovered R10-billion in State Capture-related cases. Ramaphosa also said that Parliament would introduce two key pieces of legislation relating to State Capture, one on combating money laundering and the other on protecting whistle-blowers. What is being done to ensure State Capture is addressed? Asset Recoveries The commission recommended coordinated action from various law enforcement entities including the Asset Forfeiture Unit (AFU), the Independent Police Investigate Directorate (Ipid), the Hawks, the Financial Intelligence Centre, South African Revenue Service (Sars), Reserve Bank, and the Special Investigating Unit (SIU) to achieve the recovery of monies lost to State Capture. The progress in recoveries is very slow – only R10-billion has been recovered from State Capture investigations. The money that the state spent that was tainted by State Capture amounted to R57-billion, with Eskom and Transnet's fraudulent contracts making up the biggest chunk. Of this money, the Guptas received R15-billion. Some estimate that the true cost of State Capture and corruption during that period is in fact R500-billion. So the recoveries are a really small fraction of the cost of State Capture and corruption. Combating money laundering At the end of 2022, Parliament passed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, to avoid the 'greylisting' of South Africa by the Financial Action Task Force (FATF). This was an important move toward ensuring financial transparency. However, the challenge is ensuring the beneficial ownership register is functional, accurate and accessible. This year, the President said South Africa would strengthen the legislation with further legislative and systemic improvements. It should include these elements. Whistle-blower protection Most of the evidence from the Zondo Commission came from whistle-blowers, and the commission was very clear in its recommendations relating to whistle-blowers, detailed in Part I Volume 4. However, to date, the whistle-blower legislation framework remains incomplete. In July 2023, the Department of Justice released a discussion document outlining proposed reforms. While the document includes several commendable proposals aligned with the Zondo Commission recommendations and civil society submissions, it fails to consolidate the existing complex and inconsistent legal framework, which remains a major obstacle for whistle-blowers. Additionally, it dismisses the idea of offering incentives to whistle-blowers. Civil society has argued that the proposed legislation is inadequate, and the outcome of the legislation to be introduced remains uncertain. Parliament The commission highlighted how parliamentarians failed in their duty to hold the executive accountable and prevent State Capture. Despite the commission's damning findings, MPs continue to neglect their responsibilities, prioritising party loyalty over the public good. Once again, we see most MPs not implementing the commission's recommendations and essentially not recognising the importance of the process to strengthen democracy. Many seem unaware that they play an important oversight role over the Presidency and the appointment to SOEs and legislative reform. Outa has closely monitored parliamentary activities and believes that Parliament's ongoing failure to combat State Capture and entrenched corruption remains a major threat to democracy. Some of the accused in the State Capture Commission, like Lucky Montana, Brian Molefe and Siyabonga Gama, are serving as MPs in Parliament for the uMkhonto Wesizwe party. Cedric Frolick, David Mahlobo and Malusi Gigaba serve as MPs for the African National Congress (ANC). These MPs oversee the institutions they are accused of collapsing and oversee the implementation of the Zondo Commission recommendations. Only a small number, such as Zizi Kodwa, have been held accountable, though with limited consequences. Criminal Justice System (National Prosecutions Authority) Most of the recommendations of the Zondo Commission were for further investigations and prosecutions. No high-profile politician or corporation has been successfully prosecuted. Even with enough evidence, the NPA has failed to prosecute major State Capture cases like Prasa, Transnet and Eskom. Moreover, the collapse of the extradition of the Gupta brothers and the implosion of the Nulane case raise serious concerns around the NPA's effectiveness in handling State Capture cases. The bungling of high-profile State Capture cases is unfortunate, because it shows that elites can get away with impunity because the state is failing. What should we be doing? Without fully addressing State Capture at all levels, we continue a cycle of establishing commissions of inquiry without making the systemic change needed for non-repetition. We need to ensure that State Capture is fully addressed. For this to happen, all state parties need to come on board and do their part. As for civil society, we will continue to apply pressure to state institutions and corporations to take accountability and redress their role in State Capture. The Civil Society Working Group on State Capture will continue tracking the implementation of Justice Zondo's recommendations, and we will be coordinating campaigns on whistle-blower legislation and keeping an eye on the upcoming NDPP appointment process. We simply cannot afford another nine wasted years. We need to spotlight the anniversary of the Zondo Commission to track the progress of State Capture and to keep the conversation concerning State Capture on the national agenda. The true impact and cost of State Capture will never be understood. Its severe impact will continue to be felt by the most vulnerable in our society for years to come. The Zondo Commission provides a valuable framework to eradicate State Capture, and we ought to begin implementing its recommendations now. DM Letlhogonolo Letshele is a campaigner at Open Secrets and represents Open Secrets and the Civil Society Working Group on State Capture. Open Secrets is a non-profit organisation which exposes and builds accountability for private-sector economic crimes through investigative research, advocacy and the law. To support our work, including the investigations that go into the Unaccountable series, visit Support Open Secrets.
The Citizen
15-07-2025
- Business
- The Citizen
Fairer and transparent KZN budget urgently needed
As one of South Africa's most populous provinces, KZN faces immense pressure to deliver quality services – with the departments of education, health, social development, transport, and public works serving as the central engines of service delivery. This is according to the DA in KZN, which says the 2025 Division of Revenue Bill forms the cornerstone of the province's fiscal framework. DA KZN Spokesperson on Finance, Tim Brauteseth, says this Bill determines how nationally-raised revenue is distributed across the three spheres of government. He says there needs to be a greater focus on the Bill's implications for KZN's government departments and municipalities. In education, Brauteseth said, while allocations have increased nominally, they fail to keep pace with inflation, rising pupil numbers, and infrastructure backlogs. 'This, while our rural schools continue to operate without proper sanitation, libraries, or digital access. We call for a ringfenced infrastructure grant for rural schools and performance-linked incentives for provinces that improve literacy and numeracy outcomes,' said Brauteseth. Meanwhile, in health, he said the provincial hospitals and clinics are under strain due to staff shortages, outdated equipment. Despite funds intended for medicine being ringfenced, he said poor management of medicine stockpiles hampers timely delivery, to the ultimate detriment of patients. Moreover, Brauteseth added that the social development allocations remain modest despite growing demand. 'During recent public hearings, citizens raised concerns about the funding of NPOs that deliver critical services. 'KZN's departments of transport and public works face similar challenges. Road maintenance and infrastructure upgrades are essential for economic development, yet funding remains unspent in the case of transport; close to R1-billion will remain unspent,' he said. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
17-06-2025
- Politics
- IOL News
What you, the reader, have to say about the world at large: Letters to the Editor
Rise up young people for you are our future In a post-match interview after the test match triumph national cricket captain Temba Bavuma remarked that he is more than a black cricketer. To be recognised as more than a black cricketer is special. Temba Bavuma you are enough. Temba Bavuma you are beyond peoples imaginations and inferiority complexes. Temba Bavuma you are a special human being. The national youth commission act of 1996 defines young people in South Africa between the ages of 14 and 35. The youth of 1976 had to struggle and sacrifice for their rights and privileges. We honour their legacy, tenacity and vision. The right and dignity to learn in any language should forever be a platform for destiny and not a platform of destruction. History portrays the 1976 youth protesting for equality and freedom. As a young person Temba Bavuma had to similarly protest through his cricket ability for the God given right to shine. Despite the trappings and limitations bestowed upon him directly and indirectly by society and the racial legacy of apartheid, Bavuma stood tall with hope arising evermore. The truth, however, is that their are many Temba Bavuma's still fighting, protesting quietly waiting, working, dreaming for their moment. Let us not be the barriers that limits the potential of young people who are more than ready to shine under the African sun. History cannot repeat itself. The youth of 1976 fought for better. The youth of 1976 died so that freedom can not only be imagined but lived. Let us not be the gatekeepers of people's dreams and ideals, let us give young people especially an opportunity to rise up beyond our fears. The future and best of South Africa is here and lives amongst us. Young people we acknowledge you, we recognise you, we see you. Young people you are our champions. Rise up and be counted. Hope is rising! | Steven John Bam Southfield All talk and no action makes him a dull man Last Tuesday, the president unveiled a grand plan to rescue South Africa: A national dialogue with all role players to discuss the country's crisis and find solutions. A convention kicks off on August 15, led by 31 eminent figures from across society. It won't end there – the process will continue beyond the opening event. While some welcomed the Indaba, others were sceptical. The EFF dismissed it as another elite gathering. Analyst Siyabonga Ntombela called it more lip service – just talk to cover up the failings of a corrupt, inept, government. South Africa has been full of talk for decades – commissions, inquiries, conferences, committees. What came of the R1-billion Zondo Commission? Were any big fish jailed? Thousands of hours wasted in meetings. Now this 'dialogue' is budgeted at R700 million. After endless speeches and banquets, delegates will retreat to their mansions and chauffeurs – while the poor freeze in shacks. Will this change their lives? You're dreaming. Ramaphosa knows full well what's wrong – anyone on the street can tell him: ANC politics. He already has the tools to govern. What has his bloated GNU cabinet achieved? Ministers enjoy banquets and joy rides on the taxpayer's back – R202m in travel and accommodation since July. Deputy President Paul Mashatile alone spent millions on trips with his wife. The government may be ineffective, but it excels at making millionaires: 55 000 state employees have hit that mark. It echoes the royalty before the French Revolution. Ramaphosa lacks the courage, will and determination to fix the mess. The dialogue is a deflection. Forced into coalition, he now wants to look inclusive. But this is just another ploy – all talk, no action. | T Markandan Kloof Disappearance by design or death? It is my firm belief that Markus Jooste, former CEO of Steinhoff, never committed suicide. The alleged gunshot death on March 21, 2024 – just a day before his arrest warrant – was likely a calculated vanishing act, aided by corrupt police and complicit politicians. Recent revelations reported by the Daily News support this view: no post-mortem, no morgue number, and no evidence of the weapon used. Jooste, fined R475 million by the FSCA for looting state pension funds, simply disappeared. This echoes the mysterious death of Gavin Watson, CEO of Bosasa, who allegedly died in a car crash in 2019. His demise was steeped in doubt – a private pathologist even suggested he died before the accident. Jacob Zuma, speaking at the funeral, hinted at assassination. Watson was deeply entangled in state capture, securing R12 billion in tenders and funding ANC campaigns. Another example: Thabo Bester, the convicted murderer and rapist, who faked his own death in a prison fire and fled the country in 2022. He was later recaptured in Tanzania. And Brett Kebble, the mining magnate fatally shot in 2005 – seven bullets, but an 'assisted suicide.' Investigations revealed he orchestrated his own killing to escape financial collapse and criminal exposure. A disturbing pattern emerges: powerful, politically connected figures facing justice, who conveniently die, or vanish, under suspicious circumstances. These men lived by greed, corruption, and the pursuit of influence. As a nation, we must commit to the truth. For now, speculation thrives and fuels a growing public mistrust. Whether these were genuine deaths or choreographed disappearances, the signs are clear: South Africa's elite may be escaping justice – again. | Kevin Govender Umhlatuzana Israel doesn't give two hoots about peace Israel's unprovoked military assault on Iran, a sovereign country, violates international law and is a shameless act of imperialist violence that needs to be unequivocally condemned. African countries, Asian countries and Middle Eastern countries need to take a lesson from apartheid Israel's 'self-defence' and 'pre-emptive strike'. Most Western countries, including Israel, are not interested in negotiations and peaceful co-existence. Why will the US support a strike on Iran and at the same time coerce Iran to the negotiating table. China, North Korea, Russia are viewed as major hurdles to the goals of US imperialists around the globe, especially in the Middle East and its Arabian Gulf. The vast amount of oil and gas resources in that region and the important waterway for global trade is of significant geopolitical interest to the imperialist countries. Hence, Iran, a key ally to both Russia and China, needs to be tamed in order for America and its imperialist allies to achieve their objectives. It is time that the ordinary people in the Middle East to rise up against their regimes and bring about a life of dignity for all. The occupation of Palestine must end, the genocide in Gaza and these imperialists wars must be stopped. While the world is focused on Iran, the criminal and inhuman conditions of the lived realities in Gaza must not be forgotten. | MOHAMED SAEED Pietermaritzburg If DA is pro LGBTQ, why support them? In a recent letter by a DA MPL, his cries for support of this controversial initiative hints at how desperately the LGBTQ community wants to be seen as a normal facet of society, when, in reality, it's a very unusual group of people trying to act normal. Personally, I cannot accept it when, during these LGBTQ rallies, all sorts of sexual acts are performed and unusual behaviour of humans are tolerated for the sake of sympathising with these groups of people. One has to remember that our children are always watching, learning and taking it in and processing it as normal, when, in most homes, they are taught that there are only two genders. If anything, these highly offensive, in-your-face rallies cause more harm than raise awareness of so-called 'diversity and inclusion'. We have to be so careful what we put on display for our youth to witness and take away from such experiences. I won't encourage anyone who believes in biblical values to attend the June 28 march. That we are a predominantly Christian nation, should make us wonder if the DA still deserves our support, given it's ties with the LGBTQ agenda, as well as it's involvement with the World Economic Forum. How can we, as believers of Jesus the Christ, accept these atrocities? I call it an atrocity because the impact it is having on our youngsters is devastating and it only creates confusion and opens doors to unusual human behaviour. Regarding the DA's tolerance of Klaus Schwab's Orwellian tendencies and totalitarian tactics, I can only assume that we are in for a completely digitised future where everything we do will be under surveillance and we will literally be put in a digital cage, forfeiting most of our freedoms for an assumed 'more efficient home affairs'. I'd like to challenge the DA leadership to refocus and realign itself with the values that we as South Africans expect from a government who regard biblical principles very highly, or have we now sacrificed these principles at the altar of 'diversity and inclusion' to garner more support and pretend that we care about everyone and want to please every soul? Wake up DA. | L Oosthuizen Durban Keyboard politicos deserve no respect As we are fast approaching the 2026 Local Government Elections, we will see more people jumping political ships for their own selfish gains. Most political parties abandon their own hard-working activists and parachute careerists into positions of power, but these overnight keyboard politicians have no people's interests at heart but to advance their own personal interests Parties have attracted opportunists and careerists who would never have had the courage and devotion to principles and values that were required during the worst times. Though servant leadership requires members of the highest calibre, today's politics attract people who are contemptuous of all notions of patriotism and serving the people, who are driven by a value system characterised by the pursuit of personal wealth at all costs. They join with great ease that procedures permit with the sole aim of furthering their personal careers and using their access to state power to enrich themselves. Many see their membership as a means to advance their personal ambitions, to attain positions of power and access to resources for their own individual gratification .We have an inescapable responsibility to attend to these matters frankly and decisively, one of these negative features is the emergence of careerism in politics. | Thulani Dasa Khayelitsha DAILY NEWS
Eyewitness News
13-06-2025
- Eyewitness News
There are more than 20,000 unfinished RDP houses in the Free State
A couple in Bolata village in the eastern Free State have waited 14 years for their RDP home to be finished. Theirs is one of more than 20,000 Breaking New Ground (BNG, formerly known as RDP) houses in the province that are incomplete, says Zimasa Mbewu, spokesperson for the Free State Department of Human Settlements. These projects are 'blocked' mainly because contractors failed to complete the work they have been paid for. Toloko Mofokeng and his wife Monyaduwe Tshabalala were allocated an RDP house in 2011, to be built on a piece of land where they lived. A contractor arrived the same year but left without doing anything. A second contractor left after levelling the ground. A third contractor put in a concrete slab before also abandoning the project. Fourteen years later, the couple live in a shack next to the slab. The shack leaks when it rains and will need to be rebuilt soon. Mofokeng, tired of waiting, says he is considering building his own mud hut on the concrete foundation. Mbewu says the department has scrapped contractors who left work undone and 'blocked' housing projects, including Mofokeng's home, will be completed over the next two years. She declined to name the contractors responsible for Mofokeng's incomplete house, as disputes over payment were still taking place. LONG HISTORY OF HOUSING FAILURES The Zondo Commission found that between 2010 and 2011, under former Premier Ace Magashule, about R1-billion was spent on housing projects in the Free State, many of which were never completed. In 2014, the province entered into a R255-million corrupt tender for the removal of asbestos roofs. That trial is continuing. In 2021, the Auditor General wrote that for three years, the housing department had spent most of the grants received for housing but had delivered 'significantly fewer houses than the target', with no consequences for contractors who failed to meet their targets. In 2024, the Auditor General commended the department on improving internal controls, but the department only reported completing 50 Breaking New Ground houses against a target of 2,065. The Auditor General found there was insufficient evidence that even 50 houses had been built. 'I could not determine the actual achievement, but I estimated it to be materially less than reported,' the Auditor General wrote. This article first appeared on GroundUp. Read the original article here.
Daily Maverick
08-06-2025
- Business
- Daily Maverick
‘No problem,' says Joburg as R1bn tender goes to officials' families or friends
The City of Johannesburg defends the award of massive transport contracts to politically connected families, despite concerns from the Auditor-General and civic watchdogs A week after Auditor-General revealed that the City of Johannesburg had awarded R972-million in dodgy family-linked tenders, city spokesperson Nthatisi Modingoane has confirmed that the metro government sees no problem and will not investigate. Six awards (or contracts) valued at almost R1-billion were made to the family of either a city official or councillor for the extension of the BRT/Rea Vaya bus system in 2023. The extension of the city transport service is eight years behind schedule, and a final deadline for the end of 2024 was also missed. 'There is no regulatory provision that prohibits the Municipality to award contracts to the category of people in question (spouse, child or parent of a person in service of state either actively or in the past twelve months). Therefore, the question whether the City failed in oversight and due diligence is misplaced,' said Modingoane. The Auditor-General has a different view. 'Although there is no legislation that prohibits municipalities from making awards to suppliers in which close family members or business associates of employees or councillors have an interest, such awards create conflicts of interest for these employees or councillors and/or their close family members or business associates. The possibility of undue influence cannot be discounted, especially if the person could have influenced the procurement processes for these awards, potentially creating opportunities for irregularities.' While Modingoane confirmed the awards were made for the BRT/Rea Vaya extension, he would not provide further details. He said the connected council official had not sat in on the award decision. Asked if the award would be rescinded or investigated, Modingoane said, 'To rescind such an award will be unlawful and the Municipality will be exposed to litigation risks as a result'. He said that the transactions had been disclosed in the city's annual financial statements as required by law, and no further investigation was necessary. BRT-Rea Vaya veers off track When cities commit to ending spatial inequality (which means that poor black people live on the outskirts while the middle and wealthy classes live in the city near opportunities and amenities), there are two ways to do so: provide transport for workers to get to economic opportunities or increase social housing near jobs. In Johannesburg, the rapid bus transport system was an innovative idea to mediate apartheid planning by making it cheap, easy and fast for workers living on the city's outskirts to go into town, to where they worked, or to get around. The city, which began as a gold mining town, was built along the ultimate apartheid master plan. Black people were housed in dormitory towns and suburbs far out of the white city in enclaves easily controlled by security forces if they resisted – the violent response to the 1976 student rebellion was the obvious example of how it worked. The BRT/Rea Vaya incorporates the taxi industry and co-owns two companies that run the system, PioTrans and Litsamaiso. The city pays BRT/Rea Vaya for trips made. The system has not been without conflict, especially with PioTrans. Its expansion to the north (the so-called Phase 1C) of the project has fallen prey to serial infrastructure and leadership weaknesses that beset local government, which Maluleke highlighted. The city has expanded north, and job opportunities are increasingly available in the new nodes. Phase 1C would almost double the number of buses and take people to where the opportunities are. But new stations lie dormant as delays have repeatedly impacted on roll-out. The weaknesses include corruption (as the R972-million contracts suggest), institutional capacity, effective project governance, ineffective planning, procurement and contract management weaknesses and a lack of accountability for poor performance. Maluleke's report lays bare all these factors. Phase 1C is eight years behind schedule, and the Johannesburg Development Agency (JDA) missed a pledge to get it running by the end of 2024. Daily Maverick regularly tracks the route to check, and progress is still far from complete. This detracts from the effort to end spatial inequality and get young people into jobs — Gauteng and Johannesburg have among the highest youth unemployment rates. Because it is subsidised, trips on the Rea Vaya are cheaper than other forms of public transport. Intervention delivers little Johannesburg is under soft intervention by the Presidency because of its rapidly collapsing infrastructure and services, but after 100 days, most residents say the impacts on the ground are imperceptible. In the past week, there have been multiday water cuts in the east of the city and power outages in the near west and across the inner city as underground fires roar through cabling. Last week, Mayor Dada Morero launched a 'bomb squad' to help him improve city management. MMC for Transport Kenny Kunene said, 'I have not heard anything about it (the R972-million dodgy tenders).' He said he would investigate and revealed that when he started his job in 2021, R23-million had been stolen from the BRT and officials had been suspended, but reinstated after the ANC intervened. He had ensured they exited as part of an anti-corruption plan, he told Daily Maverick. Failing management Johannesburg's audit outcome was unqualified with findings. (For context: the board of a private sector CEO of a company with a budget of R88-billion – Joburg's budget – would sack a CEO for this outcome.) The city lost R2.9-billion in water and R4.93 billion in electricity. Auditors ensured city finance officials reduced fruitless and wasteful expenditure to R1.48-million in 2023/24. Over the past three years, this figure stood at R354-million. The AG said the quality of its submitted statements was poor, but good on publication after remediation. The quality of its performance reports was poor. The overall status of its financial controls was poor. The BRT/Rea Vaya delays symbolise this failing management. The AG also found that 'The City of Johannesburg did not coordinate effectively with its entities. This was due to misalignment between the metro and its entities on expectations and plans, obligations, budgets and timelines for the successful delivery of key projects.' The DA has lodged a formal complaint with the Special Investigating Unit over the R1-billion in awards to companies that are linked to current and former councillors, said its head of caucus, Belinda Kayser-Echeozonjoku. 'This shocking report paints a grim picture of a city where public money is seemingly treated as a personal piggy bank by those elected to serve it. At a time when Joburg's streets are crumbling, power outages are the norm and basic service delivery is in freefall, it is unacceptable that councillors may be benefiting from a broken procurement system.' Risk is that nothing will be done – Corruption Watch 'The worrying thing is that it is a sizeable amount – it may be six officials (or six awards to one official) or their relatives who cost Joburg residents just under R1-billion. 'The official response is quite disturbing. The biggest risk is that nothing will be done, and another big transport infrastructure is threatened. Metro governments are regressing in terms of their reports to the Auditor-General,' said Moepeng Talane of Corruption Watch, who assesses all AG reports for the organisation. 'It's worrying and urgently needs the intervention of the provincial governments,' she said. DM
