Latest news with #R143
The Citizen
2 days ago
- Business
- The Citizen
SA consumers prioritise lifestyle over essentials
Mzansi's spending habits reveal a nation hooked on status and convenience, even if it means financial strain and mounting debt. When South Africans go to therapy, it's retail. There seems to be no end to the lengths anyone will go to in order to wear the right brands, dine at the trendiest spots and keep up appearances, all while quietly cringing when the bills arrive. Research across several studies suggests that Mzansi has a serious appetite for instant gratification. We are spending big, often prioritising nice-to-haves over essentials. Household spending hits trillions In 2022 and 2023, South African households collectively spent a staggering R3 trillion, according to Statistics SA – an average of R143 691 per household. A significant portion of this, nearly 76%, went on housing, food, transport and insurance. But when it comes to non-essentials, many are splurging on things that could easily be avoided. Entertainment costs are soaring According to a 2023 study by the Bureau of Market Research, South Africans spent R176.7 billion on entertainment and media in 2022, with projections to hit R231.2 billion by 2027. Streaming services like Netflix, Showmax and Amazon Prime are now a staple in most homes, but they come at a steep price. High-income households, especially men over 40, are reportedly forking out over R1 000 a month for these services according to a Standard Bank published survey in 2023. Lower income households aren't immune to spending on showbiz either. Monthly costs on television average R336. ALSO READ: Lower wage workers being exploited as 43% of South Africans buy food on credit DStv, which has seen its premium package prices rise from R625 in 2013 to over R1 000 now, continues to have a tight grip on consumers. Despite financial strain, 66% of lower-income households kept their DStv subscriptions, often sacrificing essentials like food or domestic help just to avoid cancellation. Biltong and big weddings don't come cheap But what is a rugby game on an expensive subscription service without indulging in over-priced air dried meat. Biltong prices have surged, according to Reddit users and anecdotal evidence at store level. It shot up by almost 60% in the past eight years to almost R400/kg in some instances. Some Reddit users have called out biltong for being 'three times the price of meat'. Wedding season is coming up and here nobody spares expense when it comes to declarations of love. One Reddit user shared their wedding costs, estimating between R800 and R1 500 per head for a 120-person event, with venue costs alone ranging from R35 000 to R120 000. Add in food, which can cost R350 to R500 per person, décor and photography, and the total balloons into the price of a small apartment. Education expenses bite into budgets Thanks to failing state education, spending on learning has also rocketed. StatsSA noted that education only accounts for 2.45% of total household consumption. ALSO READ: Repo rate cut no help for consumers on brink of financial disaster Yet, in real life, many families are spending far more than this. One Reddit user said that their family spends R10 000 a month on education-related expenses per child, just for decent schools. South Africans are big on takeaways and restaurant meals. Stats SA's 2023 report shows that takeaway and restaurant meals account for 3.6% of household expenditure, a higher percentage than some families spend on education. The rise of food delivery services have fuelled this trend. This is despite the cost of restaurant delivered meals being charged at a premium. Food delivery, fashion, and debt trap South Africa's high data costs are infamous and Independent Communications Authority of South Africa research last year showed that households spend between R300 and R900 per month on mobile services. Fashion eats money, too. Younger people are spending a large chunk of their income, sometimes 12-15%, on clothing, often financed through store accounts or credit. The need to show off expensive name brands burn wallets. According to BankServAfrica's 2023 survey, car instalments are the second highest debts consumers incur after home loans. People are overspending because they believe they are buying status. Credit can sink anyone when mismanaged. According to TransUnion's 2024 Credit Insights report, 41% of active credit users are over-indebted. NOW READ: Gambling addiction referrals rise 40% as billions spent on betting advertising
IOL News
01-08-2025
- Business
- IOL News
City of Johannesburg council writes off R144m in irregular, fruitless, and wasteful expenditure
The City of Johannesburg plans to write off over R144 million in irregular, fruitless and wasteful expenditure. Image: File The City of Johannesburg will write off over R144 million in irregular, fruitless, and wasteful expenditure after investigations into how the losses occurred. Departments within the municipality incurred approximately R144 million in irregular expenditure and approximately R208,000 in fruitless and wasteful expenditure, according to a report tabled at council. "The (municipal public accounts) committee received 15 investigative reports. Of the 16 recommendations, from the 15 reports, the committee agreed with 15 recommendations: to recommend that R143,841,628.82 of irregular expenditure and R207,765.39 of fruitless and wasteful expenditure be certified as irrecoverable and regularised," the council heard. According to the report tabled in council, these amounts include irregular and fruitless expenditure for the various departments, and the committee reviewed each investigative report and made a determination on the recoverability of unauthorised, irregular, fruitless, and wasteful (UIFW) expenditure in accordance with the Municipal Finance Management Act and the committee's terms of reference. 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 "While the UIFW expenditure is too numerous to detail within this report, the investigative reports and the minutes of the Committee meetings may be made available for inspection. "For each expenditure, the committee ensured that, if required, corrective action be undertaken to prevent a recurrence of the UIFW expenditure," reads the report. The committee stated that in order to perform continuing oversight, it will maintain a register of all UIFW expenditure written off/recovered, service providers involved, and track the implementation of corrective action recommended. Council certified as irrecoverable and regularised the R144m in irregular expenditure by the City of Johannesburg for the 2012/13 to 2017/18 financial years, as well as the irrecoverable and regularised R207,765.39 in fruitless and wasteful expenditure for the 2019/20,2021/22, and 2022/23 financial years. Councillors urged the accounting officer (acting city manager Kiba Kekana) to submit the report to the National Treasury, together with the minutes of the meeting of council that reflect the council resolution for the report, within seven working days of its adoption. Additionally, group finance must submit a report with evidence attesting to the submission to the municipal public accounts committee.
The Citizen
17-07-2025
- The Citizen
City says Craighall pensioners owe R143k for unpaid services, not billing error
For Barrie and Geraldine Brookstone, life in their Craighall home has been anything but peaceful. The retired couple in their 70s say they are being billed for electricity linked to a meter that is not even installed at their property, and they have the documents to prove it. Yet despite their pleas and proof of mismatched meter numbers, they continue to receive letters from City Power threatening disconnection unless they pay a total municipal debt of over R143 000. Barrie claims he has paid around R10 000 a month in recent months to keep the lights on, while mostly living in just one room with his partially paralysed wife. 'They keep saying I owe thousands, but I've paid and paid,' he said. Also read: Elderly Craighall Park couple face R143k City Power bill, for a meter that's not theirs A new prepaid smart meter was eventually installed on July 16 after months of confusion and frustration. City responds with facts and a firm stance. Following the initial article, the City of Johannesburg issued a statement addressing the Brookstones' concerns. According to their records, the R143 000 bill is not just for electricity, but for combined municipal services including property rates, water, sewer and refuse. Kgamanyane Maphologela, director of communications, said, 'The property owners have a long-standing pattern of irregular payments and are classified as part-paying customers.' The city claims the couple have either underpaid or skipped payments altogether over the past four years. The city added that despite repeated opportunities, no formal debt repayment arrangement has been made. As such, the property has been flagged for disconnection under Project Lokisa, a city-wide campaign to target defaulting accounts and illegal connections. Also read: Residents along Louis Botha Avenue furious as City Power fails to fix damaged infrastructure Customers facing financial difficulties are urged to approach the municipality to make formal payment arrangements. Various payment options are available, including debit orders, EasyPay retailers, and online banking. City Power shifts billing responsibilities In a separate statement, City Power announced that as of July 1, it has officially taken over electricity billing from the City of Johannesburg. This shift is aimed at resolving persistent billing issues and restoring trust with residents. City Power CEO Tshifularo Mashava said the change is designed to bring greater accuracy and accountability to the process. 'By taking full ownership of the billing function, we are putting customers at the centre of our operations,' she said. Also read: Tips to reduce power usage and stay warm this winter A new city-wide audit of electricity meters is already underway to ensure every household is correctly billed. A dedicated unit has also been created to handle billing queries and speed up resolution times. Residents with queries are encouraged to email [email protected] or call 011 490 7484. For Barrie, who insists the numbers still don't add up, the issue remains deeply personal. 'We just want clarity and fairness,' he said. 'Someone must be held responsible for this mess.' The city says they are open to working with all residents, but payment or at least an arrangement is non-negotiable. Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
10-07-2025
- General
- The Citizen
Elderly Craighall Park couple face R143k City Power bill, for a meter that's not theirs
An elderly Craighall Park couple is questioning how they've racked up a R143 806,12 City Power bill – when they barely use electricity and the meter number on their bill doesn't match the actual meter at their home. Barrie (75) and Geraldine (74) Brookstone say they've received several disconnection notices from the city, despite only using electricity in their bedroom and lounge. 'We watch TV at night, keep the geyser on for two hours a day, and the fridge runs. That's all,' said Barrie. Their most recent notice, issued on July 1, shows nearly R100 000 in current usage, a figure they say is impossible given their lifestyle. The couple believes they are being charged for someone else's electricity. 'We've checked, the meter number on the bill and the actual meter at our house are completely different,' said Barrie. Also read: Residents along Louis Botha Avenue furious as City Power fails to fix damaged infrastructure They've already spent about R17 000 trying to replace meters, and at one point, Barrie was told to pay R4 000 into a private account to get help. 'It felt wrong, but I was desperate,' he said. Now, with their home under offer, the unresolved account is holding up the sale. 'We just want to move forward, but we can't until this is sorted,' Barrie said. The Gazette will be contacting City Power for comment and will update the article when a response is received. Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
27-06-2025
- Business
- IOL News
R21 billion a month: The true cost of municipal workers
Statistics South Africa's latest financial census reveals that municipalities spent a staggering R143 billion on staff salaries in 2024 Image: Graphics A quarter of all the money spent by municipalities in South Africa last year went towards paying staff, an amounting to R143 billion of overall operating expenditure of R561.1bn. Electricity purchases were the next biggest expense, followed by writing off unpaid debts, according to Statistics South Africa's 2024 financial census of municipalities released this week. In Statistics South Africa's quarterly financial statistics of selected municipalities, also released on Thursday, showed that water sales went up 7.9% in March when compared with a year ago, while sales only increased 0.3%. This could well hint at the sheer volume of water that is lost through burst water pipes. In terms of monthly electricity purchases, these increased 9.9%, with sales gaining 8.5% year-on-year in March. Statistics South Africa's census also showed that South Africa's municipalities secured R576bn in revenue last year, while there was a total of R385.6bn. The data also showed that, by the end of last June, municipalities owed their lenders, suppliers and other creditors a combined amount of R385.8bn, 7.9% more than a year ago. The provinces which showed the highest percentage increases between 2023 and 2024 were: North West (15.9%) Mpumalanga (13.2%) Limpopo (10.8%) The provinces which had the lowest percentage increases between 2023 and 2024 were: Western Cape (2.8%) Eastern Cape (4.1%) Out of the R561.1bn in expenses, the smallest item was paying councillors. According to Payscale, the average salary for a city councillor this year is R294 915 – and there are 9 473 councillors in 213 municipalities. In March 2025, another Statistics South Africa print (quarterly financial statistics of selected municipalities) shows that councillor costs were R967 million for the month of March, while staff costs came in at R21 billion.
