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The South African
2 days ago
- Business
- The South African
Correctional Services launches prison BAKERIES to save costs
Correctional Services Minister Dr. Pieter Groenewald has announced the continued expansion of the department's inmate-run bakery programme, aimed at reducing outsourcing costs and promoting self-sustainability within South African correctional facilities. Speaking at the launch of a new bakery at Westville Prison in Durban, Groenewald said the initiative has already saved taxpayers hundreds of millions of rands and will continue to grow as part of broader cost-cutting and rehabilitation efforts. 'This bakery alone will save R3 million annually for the taxpayer. Across all self-sufficiency projects last year, we saved nearly R500 million,' Groenewald said. To date, 13 bakeries have been rolled out across various prisons, with plans to expand further. At Westville, 50 inmates work in shifts to produce more than 3 800 loaves of bread daily, at a cost of R8 per loaf – significantly lower than the R23 per loaf paid to private service providers. Beyond cost savings, Groenewald highlighted the rehabilitative impact of the programme, with inmates gaining valuable skills to aid reintegration into society post-incarceration. Mlindeni Xaba, one of the inmates working in the Westville bakery, expressed gratitude for the opportunity. 'I'm thankful to the officials who helped us make better choices. Now I have the skills to open a business once I'm released and support my family,' Xaba said. The bakery programme forms part of a wider self-sufficiency strategy that includes vegetable farming, abattoirs, and tree nurseries within correctional facilities. Groenewald noted the significance of these projects amid rising operational costs and a budget reduction of R11.7 billion over the past five years. 'We'll continue enhancing self-sufficiency to lessen reliance on the state and ensure inmates leave with real skills,' he said. The Department of Correctional Services plans to scale these efforts further, with long-term goals of fully internalising food production and expanding vocational training opportunities for inmates. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
18-07-2025
- Business
- IOL News
South Africa not a failed state, say market commentators
South Africa remains economically and institutionally intact, despite persistent service delivery issues and declining public trust in parts of the state. Image: Picture: Henk Kruger/ Independent Newspapers South Africa remains economically and institutionally intact, despite persistent service delivery issues and declining public trust in parts of the state. According to Old Mutual chief economist Johann Els, the country does not meet the definition of a failed state when assessed against key economic indicators, institutional strength, and its continued ability to attract foreign investment. 'We're moving in the right direction,' Els stated. Yet, the 2024 Edelman Trust Barometer found that only 22% of South Africans trust government institutions to do what is right, while a 2023 Afrobarometer survey showed that 70% of respondents expressed low trust in Parliament. Despite this, South Africa recorded R11.7 billion in direct investment inflows in the first quarter of 2025, a 56% increase, according to the South African Reserve Bank. Els attributes the country's resilience to strong legal and regulatory systems, a stable constitution, and a political environment that, while volatile, has allowed for peaceful transitions of power. Els said South Africa compares favourably with peer emerging markets such as Argentina, Brazil, Mexico, Turkey, Russia, India, and China. While corruption remains a significant issue, he notes that South Africa performs better than several of these countries and remains well ahead of states such as Zimbabwe and Russia. Although it does not rank among the top performers like Mauritius, South Africa's institutional foundations remain intact. The 2025 IMD World Competitiveness Yearbook ranked South Africa 58th out of 67 economies. While this was a decline from the previous year, the country still scored relatively well on institutional strength, legal frameworks, and public finance - key components that underpin economic stability. Els said that although there are widespread failures in parts of the state, such as in municipalities, state-owned enterprises, and some national departments, this does not constitute overall state failure. Issues such as water and electricity supply interruptions, potholes, and other service delivery breakdowns are symptoms of dysfunction in parts of the state, not the collapse of the state itself. Els added that political developments have had a direct impact on investor sentiment. The formation of a Government of National Unity (GNU) in June 2024 eased investment concerns, increasing confidence that the state would be able to implement economic policy. While some uncertainty returned earlier this year due to budget-related issues and questions about the sustainability of the GNU, Els says overall political risk has moderated. Political analyst and author Prince Mashele also maintains that South Africa is not a failed or failing state. He says a key marker of state failure is a refusal by ruling parties to accept electoral defeat or their use of violence to remain in office, dynamics that are not present in South Africa. He argues that the ANC's willingness to enter into a GNU following the 2024 national elections demonstrates political maturity and an adherence to constitutional processes. 'The ANC is not resisting... The ANC is not destabilising the country politically,' said Mashele. Mashele adds that the ANC is being 'processed out of power', a trend he says has so far been peaceful. He warns, however, that ANC deployees in government are intensifying corruption as individuals prioritise personal gain in anticipation of losing political power. 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 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. Next Stay Close ✕ The GNU as a coalition of political opponents, rather than aligned partners, said Mashele. The ANC and DA, as the two largest parties in the arrangement, are not pulling in the same direction, and Mashele said both parties view participation as a strategic opportunity to weaken the other. He noted that while there has been no agreed policy platform or joint strategy meeting since the GNU was formed, the arrangement is likely to continue because both parties want to avoid being blamed for its collapse. Looking ahead, Mashele predicts a further decline in ANC dominance, particularly in urban metros such as Johannesburg, where he expects the DA to grow its support in the 2026 local government elections. He also anticipates that the GNU will endure until at least 2027, when the ANC holds its next elective conference. At that point, Mashele said internal party dynamics could lead to the GNU's collapse, especially if a new ANC leadership emerges on an anti-Ramaphosa and anti-coalition platform. Despite internal tensions and a lack of unified policy direction, Mashele says the GNU's continued existence creates space for the private sector to function under a relatively stable government. He notes that, while the arrangement is weak, it is not expected to collapse in the short term. IOL
The Citizen
22-05-2025
- Business
- The Citizen
Tshwane makes strides in corruption fight as city tackles R13bn irregular expenditure backlog
Tshwane expects to conclude investigations into an additional R1 billion worth of irregular expenditure by the end of the 2024-2025 financial year. Tshwane Executive Mayor Nasiphi Moya announced significant progress in the city's fight against corruption, revealing that investigations into R11.7 billion worth of unauthorised, irregular, fruitless and wasteful expenditure have been completed this financial year alone. The mayor delivered the update during a progress briefing held at Tshwane House in Pretoria West on Thursday. The city expects to conclude investigations into an additional R1 billion worth of irregular expenditure by the end of the 2024-2025 financial year, bringing the total reduction to R12.7 billion from an initial balance of R13 billion. This represents a dramatic improvement from the previous financial year, when only R1.2 billion worth of investigations were completed. 'This has positioned the city to comply with commitments to the Agsa (Auditor General of South Africa) and National Treasury in respect of reducing historic UIFW balances,' Moya said. ALSO READ: Tshwane's R54.6bn budget draws mixed reactions Tshwane accelerates disciplinary action The intensified oversight has yielded concrete results in terms of accountability measures. The number of cases where disciplinary action has been recommended against officials has increased from 126 in February to 349 currently. Criminal prosecution referrals have risen from 39 to 44 cases, while over 900 cases have been referred to the financial disciplinary board, up from just 70 in February. The city has dismissed 85 officials, an increase from 77 reported in February. 'These dismissals range from sexual harassment, rape, to fraud and corruption, bribery, theft and dereliction of duty,' Moya explained. In a notable development, the mayor announced that a former section 79 chairperson will be referred to the Speaker's Office for investigation regarding violations of procurement policies. 'They said a councillor issued a letter giving permission to a private company to make use of our outdoor advertising space, which is outside our procurement processes,' she said. The long-awaited investigation into the Refilwe and Caledonian stadium projects has also concluded. 'I'm happy to announce the investigation was concluded, and there are five officials that have been issued with letters of intention to suspend,' Moya revealed. ALSO READ: Gauteng's waste collection woes: R1 billion needed for landfills, R60 million for fleets Company blacklisting initiative As part of efforts to clean up the city's service provider panel, the National Treasury is currently processing eight companies for blacklisting and restriction due to poor performance or contract contraventions. Moya admitted that the city has faced challenges in serving these companies with formal notices, as many have vacated their registered addresses. 'Upon legal advice, the city will proceed with steps to have these companies blacklisted in absentia and restore [the] integrity of our panel of service providers,' Moya said. To support ongoing governance improvements, the budget allocates R36 million to group audit and risk for forensic investigations in the fight against corruption. ALSO READ: Here is how Tshwane will be spending its R54.6 billion budget Court victory on salary disputes The city achieved a significant legal victory when the Labour Court granted an exemption from implementing a 5.4% wage increase on 9 May 2025, while referring the matter of a 3.5% increase for the 2021-2022 financial year back to the South African Local Government Bargaining Council. Following constructive meetings with the South African Municipal Workers Union (Samu) and the Independent Municipal and Allied Trade Union (Imatu), all parties agreed to participate in a mediation process under section 150 of the Labour Relations Act. 'All parties affirmed that mediation offers the best opportunity to reach a mutually beneficial outcome in a timely manner,' Moya said, while acknowledging that both unions expressed disappointment with the court's ruling on the 5.4% increase and reserved the right to appeal. NOW READ: Mayor Moya is working, not hiding
