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The Citizen
29-05-2025
- Business
- The Citizen
Tough budget for Ekurhuleni
Ekurhuleni's total expenditure budget of R64.8 budget would be subjected to non-negotiable conditions Ekurhuleni MMC for Finance, Strategy and Corporate Planning, Jongizizwe Dlabathi, on Thursday tabled a R65.5 billion budget. According to Dlabathi, tough economic realities, lack of optimal collection, revenue leakages, weak liquidity position, ineffective expenditure management and the assumption that 90% of municipal revenue should be generated internally, were among key factors in the budget. Bullish about improving alignment and effectiveness of existing revenue collection systems, Dlabathi projected an additional estimated R2.1 billion gross revenue in the current financial year. 'Given that we intend not to borrow over the medium-term, all departments that are involved in the revenue generation value chain will have to pull together to ensure the achievement of our revenue goals in the medium and long-term. 'This will be spearheaded at the level of the Revenue Enhancement Committee that has since been put in place by Executive Mayor Nkosindiphile Xhakaza. 'The budget posture is guided by the directive to ensure a responsive city, working with agility to restore service delivery to communities. 'This directive demands that we focus on the core basics – providing quality, equitable and sustainable services to all in a manner that ensures the ideal quality of life,' said Dlabathi. Non-negotiables He said Ekurhuleni's total expenditure budget of R64.8 budget would be subjected to non-negotiable conditions, which would include: Spending within the allocated budget. Linking spending to the provision of essential services and goods. Fostering economic procurement and realisation of value for money. Strengthening internal capacity to reduce over-reliance on contracted services. ALSO READ: Joburg budget hanging by a thread: ANC fights to get their way as partners gun for them Key expenditure breakdown allocations include: Water and sanitation repairs will receive and maintenance R550 million,mainly to ensure resilient infrastructure that secures a sustainable supply of water and sanitation services—stretching to fixing water and sewer leakages. From the total of R20.7 million earmarked for human settlements, R7.5 million will be channelled towards basic repairs and maintenance work for selected hostels—with the rest covering the maintenance of rental units, including Ekurhuleni Housing Company. The Energy Department will receive R1.4 billion towards infrastructure and equipment maintenance related to substations, network enhancement, with R103 million allocated to the repairing of street and traffic lights, under the Operation Khanyisa Mhali. Additional R254 million has been allocated to the protection of energy infrastructure. Through the ' Siyakhuculula Manje and Clean Kasi ' programme, a total of R226 million has been allocated to environmental resources, waste management repairs, maintenance materials and supplies to support internal capacity to cut grass, maintain cemeteries, remove weeds, prune trees, and maintain landfill sites, wetlands, lakes, and dams. A total of R946 million has been allocated for roads and transport management, with road rehabilitation and pothole patching done under the auspices of the Hlasela Amapotholes project. A total of R41.3 million will be used for repairing and maintaining traffic signals. While more funds are still required, R54 million will go towards addressing sinkholes. Capital expenditure has been allocated R3.1 billion. An employee budget will be R13.4 billion – towards annual salary increments and the recruitment of additional workforce. Dlabathi said the budget will implement the recruitment of 700 permanent cleaners and 290 permanent EMPD (Ekurhuleni Municipal Police Department) officers to maintain strategic offices and buildings. 'A budget of R303 million will be allocated over the medium-term to equip the staff with essential tools of trade necessary to optimise performance. Time provision must prioritise departments that are providing essential services. 'The long-term trajectory is that of implementing the 70/30 ratio for service delivery, wherein 70% of the services are rendered in-house, with 30% contracted. 'As we implement the capital budget, we must not be found wanting with our supply chain management, planning, organising and as well as overseeing the completion of capital projects within time, scope and quality,' added Dlabathi. NOW READ: How Joburg plans to spend R89 billion
The Citizen
08-05-2025
- Business
- The Citizen
FSCA fines Ninety One Fund Managers R3 million for Fica non-compliance
Fica aims to combat money laundering and terrorism financing and other related criminal activities. All accountable institutions must comply. The FSCA has fined Ninety One Fund Managers R3 million for Fica non-compliance and directed the company to fix the identified contraventions and also warned it against future breaches. The Financial Sector Conduct Authority (FSCA) decided to take administrative action against Ninety One Fund Managers, a registered manager of collective investment schemes in terms of the Collective Investment Schemes Control Act and an accountable institution under the Financial Intelligence Centre Act (Fica) after an inspection. The FSCA is responsible for supervising and enforcing compliance with Fica by managers of collective investment schemes. ALSO READ: FSCA fines 3 financial services providers R1.2 million for Fica non-compliance FSCA inspection at Ninety One showed Fica non-compliance The FSCA conducted an inspection of Ninety One in terms of section 45B of Fica in September 2023 as part of its ongoing supervisory activities and found that Ninety One was in breach of sections 42(1) and (2) of Fica. This section requires accountable institutions to develop, document, maintain and implement a Risk Management and Compliance Programme to identify, assess and mitigate money laundering and terrorist financing risks. The FSCA says while Ninety One had developed a programme, it failed to implement it effectively, particularly regarding the risk rating of its clients. The programme was also technically deficient and did not adequately address these issues: Performing customer due diligence under sections 21, 21A, 21B and 21C when suspicious or unusual activity is identified (section 42(2)(j)); and determining whether a transaction is reportable as related to terrorist financing (section 42(2)(o)). According to these sections, accountable institutions must develop, document, maintain and implement a risk management and compliance programme for anti-money laundering, counter-terrorist financing and proliferation financing. The programme must outline how an accountable institution will mitigate its anti-money laundering, counter-terrorist financing and proliferation financing risks and ensure compliance with Fica. ALSO READ: FSCA dishes out fines for R2.1 million, R1.6 million and R200 000 FSCA inspection also found Ninety One did not verify and identify clients In addition, the FSCA found that Ninety One also did not comply with the provisions of section 21, 21B and 21C that require accountable institutions to identify and verify the identity of clients and beneficial owners and conduct ongoing customer due diligence. Fica requires accountable institutions to conduct customer due diligence, which includes identifying and verifying clients, obtaining information on business relationships, conducting ongoing due diligence, and establishing whether the clients are politically exposed persons. At the time of inspection, the FSCA says Ninety One did not adequately identify or verify some clients and their beneficial owners, nor conducted the required ongoing due diligence. Ninety One then lodged an appeal with the Fica Appeal Board after the FSCA imposed the administrative sanction of R3 million in November 2024. The FSCA says Ninety One disputed the findings relating to customer due diligence. 'However, after further constructive engagements between the FSCA and Ninety One, the company agreed to settle the matter, which was confirmed as an order of the Appeal Board in terms of section 45D(7) of FICA in April 2025. The appeal has since been withdrawn.' ALSO READ: FSCA fines Mika Finansiële Dienste R1.1 million for FICA non-compliance FSCA agreed to suspend part of Ninety One's fine Due to Ninety One's remedial actions, the FSCA agreed to suspend R500 000 of the R3 million financial penalty for a period of three years, conditional upon full remediation and sustained compliance with relevant provisions of Fica during the suspension period. The FSCA says it views the breaches identified at Ninety One as serious, especially considering the size, complexity and risk exposure of its business as well as its position and impact in the South African market. 'An effective a Risk Management and Compliance Programme is essential not only for protecting institutions from financial crime, but also for safeguarding the integrity of the broader South African financial system. 'Proper due diligence of all clients is crucial to help identify and mitigate against suspicious and criminal elements from infiltrating the financial system. Financial institutions operating within large, international financial services groups are expected to demonstrate a heightened level of vigilance in this regard,' the FSCA says in a statement. 'This sanction serves as a reminder that the FSCA will not tolerate non-compliance with Fica. All accountable institutions are urged to continually review and enhance their anti-money laundering and terrorist financing controls at the highest levels and conduct thorough risk assessments on a regular basis. Failure to do so will result in firm regulatory action.' ALSO READ: FSCA's Regulatory Actions Report shows impressive numbers of enforcement Fica and the Financial Action Task Force The Financial Action Task Force (FATF) greylisted South Africa in February 2023 due to its failure to comply with FATF standards and measures to combat illicit financial flows, terrorist funding and potential threats to the integrity of the global financial system. FATF is an intergovernmental body established in 1989 by the ministers of its member jurisdictions to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security.
The Citizen
06-05-2025
- Business
- The Citizen
SA's film success faces a Trump-sized threat
A 100% US tax on foreign films could endanger local productions and wipe out SA's competitive edge in global cinema. An area of the South African economy which has defied the prophets of doom – and has burnished the country's reputation – is the film production industry. Apart from stunning locations, South Africa has a wealth of local cinematic talent, from actors to behind-the-cameras techs… and, from the point of view of foreign film-makers, our rand's weakness means this country is hugely enticing as an affordable movie location. But that may all change drastically. We say may because we – and billions across the world – are hanging on the whims of the White House in Washington. President Donald Trump's latest foray in his campaign to 'Make America Great Again' has been to lash out at the apparent imbalance in cinema production by slapping 100% tax on imported movies. Never mind that the US really is the proverbial 500-pound gorilla in the movie-making business, exporting films valued at more than $120 billion (about R2.1 trillion) annually, a fraction of what it imports from other countries. The SA production industry is worried, though. If implemented, Trump's tariff would apply to locally made films, potentially even productions filmed here, and series sold into the US. ALSO READ: Brenda Ngxoli stars in new rom-com: 'A Scam Called Love' That market remains one of the most lucrative globally for international distribution, especially for English-language content. They have a reason to be worried, because Trump says the levy would apply to 'any and all Movies coming into our Country that are produced in Foreign Lands'. That could discount the currency advantage we have and make it prohibitively expensive for foreign companies to come here to shoot. It goes without saying that thousands of jobs in the movie production sector itself – and the ancillary businesses which rely on it – will be at risk. Let's hope that Trump has another rush of blood to the head and changes his mind again.
The Citizen
05-05-2025
- Business
- The Citizen
Standard Bank told to pay back the money
It paid out more than R2.1m from a deceased estate to a fake executor and tried to argue that it followed proper due diligence. The court didn't buy it. Costs were awarded against the bank, not least because 'a customer has no duty to anticipate criminal activity'. Picture: Gallo Images/Foto24/Brendan Croft Standard Bank has been instructed to pay back more than R2.1 million paid to a fake executor by the name of Johan Botha, who managed to convince the bank and the Western Cape High Court master that he was the authorised executor of the estate of Constance Arnot, who passed away in August 2021. The case highlighted some astonishing vulnerabilities in a system meant to safeguard deceased estate assets. It also reaffirms the legal principle that it is the bank, not the customer, who is liable in the event money is paid out to the wrong person, particularly where negligence is concerned. In her final will from 2013, Arnot named her son-in-law James Turner as executor of her estate. On 21 September, shortly after Arnot passed away, Turner submitted the will, death certificate, and his acceptance of trust as executor to the master's office at the court. He then asked the master to issue the required letters of executorship. It was a full year later, after complaints from Turner's attorneys, that the letters of executorship were issued. What was not known to Turner at the time was that in February of 2022, the master had also issued letters of executorship to one Johan Botha. ALSO READ: Prudential authority fines Absa R10 million for FICA non-compliance Documents supplied, payment made Botha had meanwhile approached Standard Bank via email, claiming to be the executor of Arnot's estate. The bank's officer in charge of deceased estates demanded certified documents, which Botha appeared to provide, including a copy of the will where he was named as the executor. This was given further credence by stamps on the will certifying it as a certified true copy of the original. Thus satisfied, the bank proceeded to pay out funds from Arnot's account in April 2022 to Botha and another named recipient, Katherine Smuts. Turner later found out that the funds had been paid out and immediately contacted the bank to find out to whom and why the funds had been paid out, and based on what documents. A series of emails passed between Turner's attorneys and the bank, which refused to release the documents requested, claiming Botha was listed at the master's office as the executor of the estate. ALSO READ: FSCA fines African Bank R700 000 for misleading advertising [VIDEO] Bank's refusals … and suggestion The bank also claimed it could not release the requested documents on the basis that they related to a third party, which would put it in violation of the Protection of Private Information (Popi) Act. By October 2022, Turner's attorneys demanded that the bank pay the funds into the estate account. The bank refused on the grounds that it had already made payment to Botha and suggested Turner take the matter up with Botha directly. 'Only the bank can claim the funds back from Botha, not the applicant,' reads the judgment. 'This is why the bank's response to the applicant to rather liaise with Botha regarding the funds, when the latter demanded payment of the funds, was cynical to say the least. This, despite its refusal to give any information regarding Botha.' The bank claimed it followed proper procedures and verifications before transferring the funds to Botha. ALSO READ: Former customer charges Absa with perjury and defamation Matter taken to court Frustrated and determined to uphold his duty as executor, Turner took Standard Bank to court in June 2023, seeking a declaratory order that the bank's closure of Arnot's accounts and payment to Botha were unlawful, demanding the return of R2.19 million plus interest, and the disclosure of documents justifying the bank's actions. The case exposed a series of failures by Standard Bank, revealing how easily the alleged fraud had slipped through its processes. Turner argued that his case did not rely on negligence or wrongdoing by Standard Bank, but on his entitlement, as the legitimate executor, to payment from the bank. When Turner's attorneys received some of the documents supplied by the bank in its reply, they found a series of 'inconsistencies, deficiencies and abnormalities in the emails and documents emanating from Johan Botha'. They also argued that the bank and its employees were extraordinarily negligent, with no rational or reasonable basis to be satisfied with the documents supplied by Botha. ALSO READ: Smackdown for Standard Bank in home repo case Superficial check The bank's admin officer, Cindy Camp, did a superficial check – consulting the master's portal, which incorrectly reflected Botha as executor – without noticing that Botha's documents were not legitimate. 'Had Ms Camp called the telephone number shown on the portal page to confirm details she would have been in contact with the applicant, and the fraud may well have been exposed,' reads the judgment by Judge Nobahle Mangcu-Lockwood. 'Ms Camp would have had no reasonable or rational basis on which to regard Botha's scant details as adequately verified by checking it against the information shown on the Master's portal.' Mangcu-Lockwood slammed the bank's male fides (bad faith) for trying to introduce a further affidavit while still refusing to provide information requested by Turner's team. 'Pointedly, no documents were provided to [Turner] which were provided to the bank by Botha for closure of the accounts and transfer of the funds to him, and that remains the position to date,' she said. The judge rejected the bank's attempt to blame Turner for delays in securing his letters of executorship, citing case law that a customer has no duty to anticipate criminal activity. The court ruling hinged on the bank's contractual obligation, not its negligence. Its closure of Arnot's bank accounts and the payment to Botha were unlawful, and the bank was ordered to pay over the R2.1 million deceased estate to Turner. Costs were awarded against the bank. This article was republished from Moneyweb. Read the original here.
IOL News
26-04-2025
- Business
- IOL News
Last chance for South African matric pupils to join the Allan Gray Fellowship Programme
Matric pupils across South Africa are encouraged to apply for the Allan Gray Fellowship Programme. The programme offers mentorship, funding, and entrepreneurial development to shape the next generation of responsible entrepreneurs. The deadline for applications is April 30, 2025. Image: Pexels Matric pupils from across the country who display entrepreneurial potential and academic excellence have been invited to apply for the Allan Gray Fellowship Programme and join the ranks of hundreds of entrepreneurs who, in turn, have launched over 340 businesses and created thousands of jobs. The Allan Gray Orbis Foundation (AGOF), a member of the Allan and Gill Gray Philanthropies, has made a final call for Grade 12 pupils who believe they have what it takes to be a change-maker to apply for its Fellowship Programme ahead of the April 30, 2025, application deadline. The Foundation will provide successful candidates with entrepreneurial mindset development, personal and academic mentorship, and funding for their university studies. These opportunities will allow them to develop their skills and become high-impact, responsible entrepreneurs. According to Stats SA, the percentage of young people actively looking for work but unable to find it climbed from 36.8% in 2014 to 45.5% in 2024. Charleen Duncan, the Foundation's head of programmes, stated that the Allan Gray Orbis Foundation is committed to tackling unemployment through a long-term, systems-oriented strategy. 'We believe in developing entrepreneurial mindsets and competencies in high-potential young people, not just so that they can seek employment but also so they can create it,' she said. Duncan said that through the Allan Gray Fellowship and Allan Gray Scholarship Programmes, and more recently, the Postgraduate Fellowship pilot, the Foundation is building a pipeline of values-based, responsible entrepreneurs who are equipped to drive meaningful change. 'As we celebrate 20 years of impact, we're proud to reflect on a growing ecosystem: nearly 1 000 Allan Gray Fellows have entered the entrepreneurial space, launching over 340 businesses and creating more than 3 000 jobs. 'These enterprises have collectively generated over R2.1 billion in annual revenue and, most importantly, have positively impacted the lives of over 1.5 million people,' she said. Duncan added that this milestone isn't just about employment figures but also about transforming the trajectory of the economy through ethical, sustainable entrepreneurship. 'That is the heart of what we're celebrating: lives meaningfully improved, and a journey of impact that continues to unfold,' she said. Programme beneficiary Ngabelwa Nikwe graduated from the association this year and said he was able to pursue a BSc in Computer Science and Business Computing, later followed by a BCom Honours in Information Systems at the University of Cape Town through the assistance of the programme. 'Every step of the way, the Foundation stood beside me. Not as a passive funder, but as an active force in shaping who I would become,' he said. Today, Nikwe is a software engineer at an international tech conglomerate, working across global systems and cutting-edge technologies. In addition, he is also an entrepreneur. 'The vision is both simple and bold: to create scalable, tech-driven solutions that generate meaningful work and spark economic growth.' Nikwe said membership in AGOF goes beyond financial contributions, it is a commitment to transformation. 'They invest in people, not numbers. They believe in your potential before the world even sees it. They nurture your passion, fuel your purpose, and connect you with a community of trailblazers who are just as hungry to create change,' he said. He stated that without AGOF, many beneficiaries likely would not have had the opportunity to study, build, or lead. 'It is my belief that all pupils should apply and experience what I have experienced; the Foundation doesn't just invest in your future, it helps you create it. 'If you have vision, drive, and the courage to dream differently, AGOF is the place where your ideas will be challenged, nurtured, and ultimately unleashed. You'll be part of a family that holds you accountable, uplifts you, and connects you with fellow changemakers across the continent,' said Nikwe. He added that as he transitions from Candidate Fellow to Fellow, he is very grateful and feels an even greater sense of duty. 'Now it's my turn to pay it forward. To build. To mentor. To spark.' Fellowship application requirements: South African citizenship Applicants must be under the age of 21 in the year of application. A minimum of 60% in pure Mathematics or 80% in Mathematical Literacy for final Grade 11 results. A minimum average of 70% for final Grade 11 results (excluding Life Orientation). An intention to study towards a Commerce, Science, Engineering, Law, Humanities, Arts, or Health Sciences degree (excluding Medicine, Veterinary Science, and Dentistry) at one of the following partner universities: WITS, UJ, UCT, NMU, RU, UWC, SU, UP, UFS, UKZN, or TSiBA. For more information, visit
