Latest news with #R1.3-billion
Daily Maverick
20-05-2025
- Automotive
- Daily Maverick
Nelson Mandela Bay is the most ‘fixable' metro in SA
Nelson Mandela Bay is the hub of the South African automotive industry, with the largest concentration of original equipment manufacturers and component suppliers that account for more than 40% of the country's auto sector employment and more than half of vehicle exports. This metro, which we have dubbed the Bay of Opportunity, is the country's only two-port city, and with more than 300 days of sunshine a year, is a great place to live, work and visit. It is home to leading manufacturers in sectors such as beverages and pharmaceuticals, the hub of SA's wool and mohair processing and exports, the second-biggest citrus production area in the country and home to two of the country's largest industrial automation and software development specialists. The depth of manufacturing activity and technological expertise is a key strength, but this sector is under severe pressure, as evidenced by recent plant closures and production volume reductions, with accompanying loss of employment. The challenges are not only local, but globally induced by rapid technological advancement and digitisation in manufacturing, the shift to new energy vehicles, and most recently, the impact of import tariffs by the US, sparking uncertainty and a wave of trade wars across the globe. As a country, we are on the back foot where the competitiveness of production locations drives global manufacturing decisions. Nelson Mandela Bay is particularly vulnerable, given our high reliance on manufacturing and, particularly, the automotive sector. It is not only manufacturing which is under strain – key sectors including tourism and retail are feeling the pressure, as are SMMEs across the spectrum of the local economy. These are especially sensitive to increasing costs of doing business, such as rising electricity tariffs and revenue losses caused by power outages and the impacts of crime. While we can't tame the global headwinds, the Bay business community has unified behind taking action on the local challenges where we can make a meaningful difference. With almost a decade of political instability in the metro council, with a revolving door of executive mayors and city managers, many of the executive directors in acting positions, and a drain of critical skills, have severely impacted the maintenance of infrastructure and delivery of basic services. Electricity losses in the last financial year, for example, amounted to R1.3-billion, and almost half the metro's billable water is 'lost' to leaks and pipe bursts. The most critical role in the metro is that of city manager, and since 2020, we have seen 15 incumbents come and go. It is clear to us as organised business that if this position were permanently filled by a competent, skilled and experienced individual, this could be the single most impactful way to help bring back stability, and along with it, the more efficient delivery of basic services to ratepayers and communities. Practical solutions These challenges are not unique to the Bay, but what is unique is the collaborative rolling up of sleeves and solution-seeking that the NMB Business Chamber has been driving over the past three years. We are by no means trying to take over government responsibilities, but instead of complaining from the sidelines, we are focusing our energies on finding practical solutions which can have a positive impact. As part of a Master Memorandum of Understanding which we have in place with the municipality, engineers and other technical experts from industry are volunteering their time to work alongside municipal officials to resolve problems such as frequent unscheduled electricity outages and an overburdened sanitation system, by finding root causes and rolling out a programme of action to fix these. And, by and large, we have found municipal officials willing to work with us, because they too want to get the job done. Through our Adopt A Leak initiative, we fixed leaks in seven impoverished areas, saving the metro 1.7 million litres of water a day, demonstrating what is possible if action is taken on the ground. Our Adopt-a-Substation project sees business stepping in to provide security against vandalism and theft at key substations. The Struandale industrial area recently marked two years free of vandalism and theft that had caused unscheduled outages, thanks to security provided at the four substations serving manufacturers and surrounding residential areas. Initiated by industry in Perseverance, the concept of businesses forming geographic clusters to lobby collectively and work together on tackling issues specific to their areas has become a movement of 11 clusters across the metro, supported by the Business Chamber. We have seen improved lighting and security measures on the beachfront, cleanups taking place across the metro, repairs to potholes, drains, traffic lights and streetlights, and reinstating road markings – all contributed to and participated in voluntarily by a growing number of businesses. Other metros and national business organisations are now turning to Nelson Mandela Bay to see how we do it, and how these models can be replicated. As the third-smallest metro in population terms, and the second-smallest by area, with manageable urban sprawl and a business community willing to work together for the greater good and 'hold the line', we believe it is not too late to fix Nelson Mandela Bay. We firmly believe that the Bay is the most fixable of South Africa's metros and is the best possible place for the rolling out of innovative interventions, which can potentially be replicated elsewhere.
The Citizen
01-05-2025
- Politics
- The Citizen
Questions raised for unaccounted funds at Gauteng Social Development
A staggering R1.3-billion in irregular expenditure has been recorded within the Gauteng Department of Social Development (DSD), raising alarm over the mismanagement of public funds intended for the province's most vulnerable residents. Between April and December 2024 alone, an additional R210-million in irregular spending was generated, while two Pretoria-based children's homes went without subsidy payments. This move has fuelled criticism of the department's handling of non-profit organisation (NPO) funding. Despite persistent warnings from the Auditor-General, no investigations or accountability measures were taken, said Alan Fuchs, DA Member of the Gauteng Standing Committee on Public Accounts (SCOPA). 'Officials and politicians act as though the law doesn't apply to them,' said Fuchs. He accused Premier Panyaza Lesufi and Social Development MEC Faith Mazibuko of failing in their oversight responsibilities and allegedly sitting on forensic reports that could reveal corruption. The fallout has had a real-world impact. Fuchs warned that mismanagement has forced many NPOs to shut their doors, leaving hundreds of children, the elderly, and disabled residents without critical care services. 'Echoes of Life Esidimeni can be heard,' he said, referencing the infamous tragedy in which mentally ill patients died after being moved to unlicensed NGOs. DA Shadow MEC for Social Development, Refiloe Nt'sekhe, has tabled a motion in the Legislature for an official inquiry into the department's failures. But it has yet to be debated, a delay she claims is a political strategy to shield those implicated. 'There's literally no political will or accountability here,' Nt'sekhe said in an interview with Rekord, expressing frustration over the department's silence and refusal to release key forensic reports. She pointed to audits conducted by firms BDO and Bowmans, as well as the Special Investigating Unit's work, as further evidence of widespread financial misconduct. These reports have not been made public, and role players interested in finding the truth have to rely on whistleblower leaks. 'We even said they should be tabled in the portfolio committee and also be tabled in the House. To date, nobody has seen these reports,' she said. The DSD has reportedly reduced its funded NPOs from 2 061 in 2014 to just 1 328 in 2025. Nt'sekhe called this a 'significant decrease' and said it raises 'serious concerns about the support available for poor and vulnerable Gauteng residents' As of the time of publication, questions submitted to the DSD have gone unanswered. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
27-04-2025
- Politics
- The Citizen
Gauteng Social Development probed for unaccounted funds
A staggering R1.3-billion in irregular expenditure has been recorded within the Gauteng Department of Social Development (DSD), raising alarm over the mismanagement of public funds intended for the province's most vulnerable residents. Between April and December 2024 alone, an additional R210-million in irregular spending was generated, while two Pretoria-based children's homes went without subsidy payments. This move has fuelled criticism of the department's handling of non-profit organisation (NPO) funding. Despite persistent warnings from the Auditor-General, no investigations or accountability measures were taken, said Alan Fuchs, DA Member of the Gauteng Standing Committee on Public Accounts (SCOPA). 'Officials and politicians act as though the law doesn't apply to them,' said Fuchs. He accused Premier Panyaza Lesufi and Social Development MEC Faith Mazibuko of failing in their oversight responsibilities and allegedly sitting on forensic reports that could reveal corruption. The fallout has had a real-world impact. Fuchs warned that mismanagement has forced many NPOs to shut their doors, leaving hundreds of children, the elderly, and disabled residents without critical care services. 'Echoes of Life Esidimeni can be heard,' he said, referencing the infamous tragedy in which mentally ill patients died after being moved to unlicensed NGOs. DA Shadow MEC for Social Development, Refiloe Nt'sekhe, has tabled a motion in the Legislature for an official inquiry into the department's failures. But it has yet to be debated, a delay she claims is a political strategy to shield those implicated. 'There's literally no political will or accountability here,' Nt'sekhe said in an interview with Rekord, expressing frustration over the department's silence and refusal to release key forensic reports. She pointed to audits conducted by firms BDO and Bowmans, as well as the Special Investigating Unit's work, as further evidence of widespread financial misconduct. These reports have not been made public, and role players interested in finding the truth have to rely on whistleblower leaks. 'We even said they should be tabled in the portfolio committee and also be tabled in the House. To date, nobody has seen these reports,' she said. The DSD has reportedly reduced its funded NPOs from 2 061 in 2014 to just 1 328 in 2025. Nt'sekhe called this a 'significant decrease' and said it raises 'serious concerns about the support available for poor and vulnerable Gauteng residents' As of the time of publication, questions submitted to the DSD have gone unanswered. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
25-04-2025
- Politics
- The Citizen
Calls grow for action in Gauteng NPO scandal
A staggering R1.3-billion in irregular expenditure has been recorded within the Gauteng Department of Social Development (DSD), raising alarm over the mismanagement of public funds intended for the province's most vulnerable residents. Between April and December 2024 alone, an additional R210-million in irregular spending was generated, while two Pretoria-based children's homes went without subsidy payments. This move has fuelled criticism of the department's handling of non-profit organisation (NPO) funding. Despite persistent warnings from the Auditor-General, no investigations or accountability measures were taken, said Alan Fuchs, DA Member of the Gauteng Standing Committee on Public Accounts (SCOPA). 'Officials and politicians act as though the law doesn't apply to them,' said Fuchs. He accused Premier Panyaza Lesufi and Social Development MEC Faith Mazibuko of failing in their oversight responsibilities and allegedly sitting on forensic reports that could reveal corruption. The fallout has had a real-world impact. Fuchs warned that mismanagement has forced many NPOs to shut their doors, leaving hundreds of children, the elderly, and disabled residents without critical care services. 'Echoes of Life Esidimeni can be heard,' he said, referencing the infamous tragedy in which mentally ill patients died after being moved to unlicensed NGOs. DA Shadow MEC for Social Development, Refiloe Nt'sekhe, has tabled a motion in the Legislature for an official inquiry into the department's failures. But it has yet to be debated, a delay she claims is a political strategy to shield those implicated. 'There's literally no political will or accountability here,' Nt'sekhe said in an interview with Rekord, expressing frustration over the department's silence and refusal to release key forensic reports. She pointed to audits conducted by firms BDO and Bowmans, as well as the Special Investigating Unit's work, as further evidence of widespread financial misconduct. These reports have not been made public, and role players interested in finding the truth have to rely on whistleblower leaks. 'We even said they should be tabled in the portfolio committee and also be tabled in the House. To date, nobody has seen these reports,' she said. The DSD has reportedly reduced its funded NPOs from 2 061 in 2014 to just 1 328 in 2025. Nt'sekhe called this a 'significant decrease' and said it raises 'serious concerns about the support available for poor and vulnerable Gauteng residents' As of the time of publication, questions submitted to the DSD have gone unanswered. 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!
The Citizen
23-04-2025
- Business
- The Citizen
Tshwane's financial turnaround signals hope for sustainable recovery
The Tshwane metro has received a welcome vote of confidence from Global Credit Ratings (GCR), which has affirmed the metro's unsolicited long-term rating while revising its outlook from Stable to Positive. This follows sustained progress in the municipal fiscal management, particularly in tackling long-standing liquidity constraints. The revised outlook comes amid signs of recovery, marked by an operating surplus of R2.1-billion for the financial year ending June 30, 2024, up from R1.3-billion the previous year. GCR further noted an improvement in liquidity, with year-end cash balances doubling from R1-billion in 2023 to R2-billion in 2024. According to the GCR, much of this is credited to the reclassification of highly liquid investments and stricter spending controls. Deputy Mayor Eugene Modise welcomed the rating revision. He said it reflected the metro's commitment to transparent, disciplined governance. 'This improved outlook is not just a credit rating; it's a reflection of our commitment to rebuilding the financial health of our city,' Modise said. 'Through strategic debt reduction, improved billing, and firm expenditure controls, we are gradually restoring confidence in our administration.' The rating agency highlighted key contributing factors, including improved billing accuracy, moderate tariff increases, and stronger interest collection from outstanding debtors. Notably, the metro has also made strides in addressing its debt with Eskom, reducing the total from R6.7-billion in November 2024 to R5.6-billion by March 2025. Modise added that Tshwane's financial progress will directly benefit residents. 'A stronger financial foundation means we can better deliver on our promise of reliable services, responsive governance, and critical infrastructure investment,' he said. 'We remain focused on ensuring every rand is spent wisely and transparently.' GCR acknowledged ongoing challenges, such as the need for continued improvements in cash flow and long-term debt management. Modise said the positive shift in outlook opens up investment opportunities and improves the metro's fiscal credibility in the eyes of national and international stakeholders. 'A positive rating outlook also improves investor confidence, potentially drawing new funding and partnerships into the metro's development plans, particularly around service infrastructure and economic upliftment in underserved communities,' he said. Financial experts note that the metro's ability to secure a fully funded budget and adhere to repayment plans demonstrates a significant step toward long-term sustainability. 'These developments are not just about numbers,' said Modise. 'They are about restoring the greatness of our city through diligent service delivery, efficient resource management, and collaboration with the people of Tshwane.' Modise insisted that continued execution of its financial recovery strategy is essential. He said the focus will remain on maintaining liquidity stability, enhancing revenue collection, and improving service delivery through better governance. ALSO READ: Sinoville residents reclaim their street and battle illegal squatters 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!
