Latest news with #R1.6-million
The Citizen
31-07-2025
- The Citizen
Pretoria prosecutor and constable in the docks for extorting R1.6m
Pretoria prosecutor and constable in the docks for extorting R1.6m A suspended prosecutor and a Wierdabrug police constable who allegedly demanded payment of R1.6-million in exchange for a businessman's release were granted bail on July 30 by the Pretoria Magistrate's Court. The court granted bail to the pair after they were charged with extortion. Advocate Avinash Ramapararat (45), the suspended prosecutor based at the Pretoria Specialised Commercial Crimes Unit (SCCU), and Constable Abdul Haig Shaik (37), a police officer stationed at Wierdabrug Police Station, were each granted R5 000 bail. According to National Prosecuting Authority (NPA) Gauteng spokesperson Lumka Mahanjana, in February 2024, Shaik allegedly contacted the businessman and requested that he report to the Wierdabrug Police Station regarding a fraud and theft case opened by Agynt Commodities. Mahanjana said the case was related to a coal transaction between Agynt and the businessman's company in 2023. Upon arrival, the businessman was arrested by Shaik and placed in a holding cell. While in custody, the two accused allegedly demanded payment of R1.6-million in exchange for the businessman's release. She said the businessman paid the money and was later released. Mahanjana said that after a few months had passed, the businessman made a follow-up on the case, and was told the case number given to him was unrelated to his matter. 'He then reported the incident to the Directorate for Priority Crime Investigation, which led to the arrest of both accused on July 25.' Mahanjana said: 'During their bail application, the State did not oppose bail, as both accused had co-operated with the investigation, were not deemed flight risks, and had confirmed residential addresses. 'In addition to the current matter, the pair also face separate charges of extortion and corruption in a case before the Pretoria North Magistrate's Court.' Mahanjana said the court postponed the matter to October 24 for the Director of Public Prosecutions' decision, while the separate matter will return to court on October 27 for disclosure. She said the NPA is committed to fighting crime, including within its ranks. She said Ramapararat was placed on suspension pending finalisation of internal disciplinary processes. LISTEN: Do you have more information about the story? Please send us an email to [email protected] 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.
Daily Maverick
24-07-2025
- Business
- Daily Maverick
Nelson Mandela Bay mayor accused of ‘financial misconduct' over funding rollover for flood disaster projects
The ANC-led coalition government in Nelson Mandela Bay on Thursday rammed through the approval of a 'top up' from city coffers to fund flood disaster projects that were intended to be financed by a R53-million conditional grant. While the Nelson Mandela Bay metro remains at high risk of losing R53-million in flood disaster funding for Kariega, Executive Mayor Babalwa Lobishe on Wednesday urged council to approve that a top-up amount be paid from city coffers to fund the shortfall in the projects. According to council documents, the metro has spent R1.6-million of the proposed R52.3-million so far — and the mayor wants R7-million from the Roads and Stormwater budget to be reprioritised for flood projects as a 'top up'. Democratic Alliance councillor Rano Kayser pointed out to the mayor that the rollover for the funding had not yet been approved by the National Treasury. He cited a Treasury circular stating that rollovers would not be granted in cases where key positions such as city manager and chief financial officer (CFO) have been vacant for more than six months — or where CFOs have been serving in acting roles beyond that period. Kayser said the city failed to spend the money in time. 'The Acting City Manager gave us the assurance that the money will be spent,' Kayser said. 'He even boldly said he visited Kariega, but after all these visits he still failed to spend the R53-million.' In June 2024, Kariega was hit by devastating flash-flooding after a cloud burst dumped 230mm of rain in the area in less than two hours. In October, heavy rains in the metro again damaged parts of Kariega and Gqeberha. But as it was a conditional grant, there was a limited time during which the money could be spent. The metro did not spend the money in time and now has to apply for a rollover of funds. In a letter addressed to Lobishe, Kayser pointed out that the metro must apply for a rollover of the funds by 31 August and a decision in this regard will only be made by 22 October. He said despite no application for a rollover being made by the metro, Lobishe has now asked the metro to approve a 'top-up' budget to be paid from the metro's budget. This, Kayser pointed out in his letter, was 'financial misconduct. This item illustrates the failure and incompetence of the administration. The item is misleading to the council.' He stressed in council that no rollover of the funding had been approved. On its social media pages, the metro claimed the council approved the rollover of funding, but added that this must still be approved by National Treasury. 'I wrote to the executive mayor tabling the allegations of misconduct,' Kayser added. 'She has 7 days to bring the item to council. It has all the elements of misconduct.' He said the metro, through its failure to spend the money, had lost R53-million. 'It may be in the bank account, but it cannot be used. For every project relating to the floods the money has been lost.' The ACDP's Lance Grootboom agreed. 'This is conditional funding. You must apply to the National Treasury for a rollover first,' he said. He pointed out that Treasury was clear in a circular that no rollover requests will be considered where a municipality has a vacant CFO post or had a CFO in an acting position for more than six months. Added to the risk, Grootboom pointed out, is that the metro's city manager has been on suspension (since 2023). 'It is basically an illegal request,' he said. 'You want the metro to top up the money, but you will only get an answer [later].' He later said the issue would have to be addressed by the Standing Committee on Public Accounts. The metro has a pattern of underspending grant funding from National Treasury and has in the past three years lost millions. The MMC for Budget and Treasury Khanya Ngqisha said the opposition was telling the metro not to spend the money. 'We have an accounting officer. He doesn't take decisions without advice. The problem is that some of the political parties listen to wrong advice from junior officials.' He admitted that no money was spent yet. 'If there is anything wrong, the Auditor-General will deal with it.' Acting City Manager Ted Pillay said Lobishe's request should be amended to indicate a budget adjustment instead of a rollover. This was then approved by the council. However, Lobishe then later, after voting, said she didn't want the changes proposed by Pillay. 'He had no right to correct my item. I didn't fix it myself.' A second decision, this time based on the original, unamended item, was then passed — despite objections from opposition councillors, who argued this violated council procedures. They said the proper route was for the Speaker to take the item on review. DM
Daily Maverick
02-07-2025
- Business
- Daily Maverick
Shelter or income generator — Risks and rewards of owning a property
In South Africa, keeping a roof over your head means more than just making monthly payments, it's about doing whatever it takes to hold onto the family's most valuable asset. Whether you're in a townhouse in a leafy suburb, or in a crowded taxi in a township, you probably know someone who's moved into a back room or a smaller flat so they can rent out their main home and keep up with the bond. 'The property is most probably the biggest asset you will ever own,' said Mfundo Mabaso, product head of FNB's home and structure business unit. For many South Africans, especially first-generation homeowners, a house is more than shelter; it's a symbol of progress and a vessel for generational wealth. But what happens when life throws a curveball and money gets tight? An all too common trend Mabaso has seen families 'vacate the main home and take residence in the garage to rent out the main home so that they can keep up with the repayment of the bond.' For them, losing the property is unthinkable. It's the last thing they're willing to give up. Two speeds of property investment Mass-market homeowners: These are often first-time buyers who see property ownership as a milestone and a way to build wealth. When financial pressures mount, these families might downsize within their own property – moving into smaller spaces like garages or back rooms – and rent out the main home to cover bond repayments. Affluent investors: Those with multiple properties who, when faced with economic challenges, tend to rent out their primary residences and downsize to smaller units. This strategy helps them maintain their investment portfolios and keep their long-term financial plans intact. Even if you're rich, you aren't immune to financial pressures. Mabaso explained that when wealthier families hit hard times, they often rent out their primary residence and downsize to something more manageable, all in a bid to hold onto their investment properties and keep their financial plans intact. The numbers behind the struggle This determination to hold onto property is riding a swell of a rising market. Property prices in South Africa are soaring, with the average residential price surpassing R1.6-million for the first time, and the annual growth rate in average residential prices now reaching 6.4%. Source: The Africanvestor Pieter Wessels, trustee of the PD Wessels Trust and owner of a Stellenbosch property, understands this well. 'Property like a house or flat is 'bricks and mortar'. You can see it,' he said. For Wessels, the appeal lies in leveraging a relatively small deposit into a significant investment, something much harder to achieve with shares or crypto. However, he quickly pointed out the risks. 'The less you pay, the easier it is to earn a better return in the form of rental. If you buy in a 'good' area, you might also get meaningful capital growth on your property apart from earning rental income.' Legal fees, transfer costs, and taxes on rental income are all part of the reality check for would-be investors. Security in a steady job While Wessels approaches property ownership from an investment perspective, others such as Thato Pheko, a high school teacher in the Free State, focus on the security that comes with steady employment. For Pheko, buying a house on a bond was about providing her children access to better schools near the city. 'I manage the payment with my salary,' she told Daily Maverick. Pheko feels insulated from major risk because she works for the government; a sector where, in her experience, sudden job losses are rare. 'I do not feel that there is much risk for me because I work for the government,' she said, confident that her employment stability will see her through the life of her bond. What this means for you Understand the full cost of property ownership: Beyond the purchase price, factor in legal fees, transfer costs, taxes on rental income, and ongoing maintenance; Plan for financial fluctuations: Job security and steady income can help, but unexpected challenges happen. Know your options, such as payment holidays or loan term extensions, and communicate early with your lender if you face difficulties; and Seek professional advice: Whether it's financial planning, tax implications, or legal matters, expert guidance can help you make informed decisions and protect your investment. When trouble strikes Financial stability can be fragile. Mabaso urged homeowners not to wait until it's too late. 'When you hit hard times, talk to your bank and that's the best thing that you can do for yourself.' Too often, he said, customers avoid the conversation, missing out on solutions such as payment holidays, interest-only periods or term extensions. If those options don't do the trick, banks may offer a 'quick-sell' process to protect your credit record before repossession becomes the only option. 'The execution or repossession of the properties is the action of last resort,' Mabaso said. By understanding the risks and rewards and knowing when and how to seek help, you can better navigate the complexities of the market and safeguard your home for the future. DM
