Latest news with #R2.5
eNCA
3 days ago
- Business
- eNCA
Explosive report into Prasa contracts
CAPE TOWN - A draft forensic report by law firm Webber Wentzel into Prasa reveals disturbing corruption at Passenger Rail. It shows how the state owned entity has been bleeding money on sub standard contracts, some of which were unnecessary and others that were never completed. WATCH | Open Secrets wants Hawks to finalise PRASA investigation findings A News24 article has detailed how Prasa was overcharged, defrauded, and exploited, with findings that some contractors over-inflated prices by 2000% . The report has also found that some trains are being repaired only to be left at depots. These repairs have already cost the entity R2.5 billion rand. Following the explosive report, ActionSA has written to the Transport Minister demanding accountability.
The Citizen
5 days ago
- Business
- The Citizen
Nsfas R2.5m head office delays prolong terminating lease
The current Nsfas leadership has distanced itself from the controversial agreement The National Student Financial Aid Scheme (Nsfas) continues to pay R2.5 million monthly for its headquarters, as legal delays prolong the termination of an alleged irregular lease agreement. The student funding agency recently disclosed that judicial scheduling constraints have pushed back the critical court application to set aside the contentious lease beyond the initially planned April 30 deadline, prolonging the financial burden on the cash-strapped organisation. Nsfas legal battle continues with SIU support The scheme is working with the Special Investigating Unit (SIU) to pursue a lease cancellation in court. 'Nsfas has engaged extensively and is cooperating fully with the Special Investigating Unit regarding the lease termination process,' the organisation said. The student aid scheme emphasised its alignment with the SIU's legal strategy, declaring that it 'would comply with any court decision on the matter' while working as a co-applicant in the unit's application to void the lease. ALSO READ: Nsfas recovers over R850 million following SIU probe Parking spots costing millions Beyond the substantial monthly rental payments, Nsfas acknowledged additional concerns surrounding parking facilities at the headquarters, which carry a five-year price tag of R18.6 million. The agency defended the current payments as unavoidable contractual commitments established when the lease was originally executed. 'Nsfas confirmed that it pays a monthly rental of R2.5 million, in accordance with the existing lease agreement with the landlord,' officials stated, noting that 'this amount reflects contractual obligations negotiated at the time of signing.' ALSO READ: Higher education minister withdraws appointment of Seta board chairpersons Nsfas board distances itself from previous decisions The current Nsfas leadership has distanced itself from the controversial agreement, emphasising that the lease arrangement preceded the board's appointment. Despite this, board members acknowledged their duty to address inherited problems. 'While this lease predates the appointment of the current Nsfas Board, the Board remains committed to its core mandate of implementing a comprehensive turnaround strategy founded on transparency, accountability, and fiscal responsibility.' Reform strategy underway The agency outlined extensive measures being implemented to prevent similar situations in the future. As part of this strategy, the scheme vowed to uphold a zero-tolerance policy towards wastage, fraud, and corruption. Nsfas added that 'any irregular contracts will be terminated in strict adherence to established due process.' ALSO READ: SIU launches probe into National Skills Fund Contingency planning for relocation Anticipating an eventual successful lease termination, Nsfas revealed it has begun developing backup plans to ensure seamless operations during any potential headquarters transition. The preparations form part of a broader organisational restructuring initiative. The scheme explained that contingency arrangements 'aim to minimise operational and staff disruptions' while the organisation collaborates 'with relevant stakeholders to finalise arrangements.' The relocation planning aligns with Nsfas' wider regionalisation objectives, designed to enhance both operational effectiveness and service delivery to students across the country. Broader legal action against irregular contracts The headquarters lease represents just one component of Nsfas' extensive legal campaign to address questionable agreements inherited from previous administrations. According to a May 7 presentation to parliament's higher education portfolio committee, the agency is pursuing multiple contract cancellations in court. The organisation confirmed it has begun implementing recommendations from both the Auditor-General and the SIU as core elements of its institutional transformation Programme. These reforms encompass technology system improvements, enhanced contract oversight, and strengthened internal governance mechanisms. ALSO READ: No party favourites: Minister defends appointment of Mantashe's son to Seta board Future vision despite current challenges Despite ongoing financial and legal complications, Nsfas leadership maintained its commitment to the organisation's fundamental mission of supporting disadvantaged students' educational aspirations. 'Nsfas envisions a future where every eligible student, regardless of background, has equitable access to transformative education,' officials stated in their recent parliamentary report. The agency asked for patience as it navigates the complex legal and administrative processes required to resolve inherited irregularities. 'Nsfas remains committed to transparency, good governance, and responsible management as we undertake these critical reforms. We thank the public and all stakeholders for their continued support and understanding,' the organisation declared. READ NEXT: Higher Education and Nsfas vow action amid Durban student protests
IOL News
28-05-2025
- General
- IOL News
Gauteng Education Department warns of alarming rise in school fire incidents
The Gauteng Department of Education has raised the alarm over the increase in the number of fire incidents in Gauteng schools following a fire that broke out at the Riverlea Secondary School. Image: Supplied The Gauteng Department of Education (GDE) has raised an alarm over the number of fire incidents across its schools in the province. The department has recorded at least 29 fire incidents across Gauteng schools between the 2021/22 and 2025/26 financial years. According to the department, of these, six schools have been repaired by the Department at a total cost of R9.3 million with an additional 10 schools having been repaired through insurance claims, School Governing Body (SGB) funding, or private donations. On Tuesday, departmental spokesperson, Stave Mabona indicated that 13 schools have not yet been repaired due to the extent of the damage. The department has also confirmed that the reconstruction of Riverlea Secondary School, where a devastating fire destroyed 11 classrooms last month, will cost approximately R2.5 million. Mabona indicated that the department has implemented fire safety measures at the school after a fire which started in an unused classroom, quickly spread to an entire classroom block, including four classrooms used by Grade 8 pupils, and the boys' toilet block was damaged. Mabona added that some of the cases have been referred to the Gauteng Department of Infrastructure Development, led by MEC Jacob Mamabolo. "These cases have been referred to the Gauteng Department of Infrastructure Development (GDID) for detailed assessment and project implementation. The exact cost for these repairs will be determined following completion of those assessments. The department acknowledges that many schools lack adequate fire safety infrastructure. "While some high-risk schools have been equipped with firefighting resources, including extinguishers, fire blankets, and emergency signage, compliance across all schools remains a work in progress. Firefighting and emergency response training is provided to learners and educators through accredited programmes," Mabona stated.
IOL News
27-05-2025
- Business
- IOL News
Understanding prescribed debt: why millions of South Africans pay expired credit
Millions of South Africans unknowingly pay expired debts due to a lack of awareness about their rights. This article explores the concept of prescribed debt, the aggressive tactics used by collectors, and essential steps consumers can take to protect themselves. Image: Kindel Media/Pexels In theory, prescribed debt offers relief: if a debt hasn't been acknowledged, paid, or legally pursued within three years, it's no longer enforceable. But in reality, many South Africans are still being hounded for these expired debts, and most don't know they have the right to say no. Many consumers don't realise they have rights when it comes to old debt. If you haven't made a payment, acknowledged the debt, or been legally pursued in three years, it may be prescribed, and no longer legally recoverable. But even a simple phone call where you say, 'I'll pay when I can' can restart the clock. The National Financial Ombud (NFO), South Africa's financial watchdog for consumer justice, handled 40,859 cases in its first year (March 2024–March 2025) across banking, credit, insurance, and other financial services, resolving over 60% of credit-related cases—including many prescribed debt disputes—in favour of consumers. The bigger issue is how prescribed debts often remain on credit reports, damaging people's chances of renting homes, securing jobs, or qualifying for new credit. Why are credit bureaus still listing prescribed debt? We've seen countless cases where consumers are unfairly penalised for debts that should've been erased years ago. What is prescribed debt? Under South African law, most credit-related debt prescribes after three years of no payment, acknowledgment, or legal action. This is governed by the Prescription Act. Yet debt collectors continue to chase these expired debts — often using aggressive tactics, unclear language, or verbal traps. In townships and rural areas, many consumers are approached in their home language and pressured into making promises they don't fully understand. 'Just answering a call or saying 'yes' can have consequences. That's why legal advice is so important. The Rise of Credit — and Collection Pressure The economic stress is clear. According to the Eighty20 Credit Stress Report, in Q4 2024: Total loan balances reached R2.5 trillion , a year-on-year increase of R78 billion (3.2%) Credit card debt grew by nearly 6% Retail credit balances increased by 4% Overdue debt hit R200 billion , making up 8% of total debt, up R11.5 billion from the previous year With more people relying on personal loans and store credit just to stay afloat, collection activity is also on the rise, including efforts to recover debt that may legally be prescribed. Grey Areas and Unethical Practices Prescribed debt collection has become a lucrative industry for certain attorneys and debt buyers. Many operate in legal grey areas, using scare tactics to trick consumers into paying expired debt. In some cases, people receive SMSes that look like court summonses. It's misleading, and often, illegal. Consumers need to know that they have a choice — and that fear shouldn't guide financial decisions. 5 Ways to Protect Yourself Understand the 3-year rule : If no payment, acknowledgment, or legal action has occurred in three years, most debts prescribe. Be careful what you say : Avoid phrases like 'I'll pay soon' — this can reset the prescription period. Get legal advice : Don't ignore communications, but don't assume you must pay either . Check your credit report : Dispute prescribed debt listings with the credit bureau. Request written proof : Never agree to pay without a written record of the debt's validity. Not all debt prescribes. Court orders, municipal debt, and home loans with bonds may be enforceable for 15 to 30 years. But for most unsecured credit — the kind being chased today — the three-year limit still applies. Rather than avoiding the calls or blindly agreeing to pay, speak to a professional.' * De Lange is a director and head of legal at Milaw Legal. PERSONAL FINANCE
Eyewitness News
26-05-2025
- General
- Eyewitness News
GDE says repairing Riverlea High classrooms gutted by fire to cost around R2.5m
JOHANNESBURG - The Gauteng Education Department said that repairing classrooms gutted by a fire at Riverlea High School would cost around R2.5 million. In April, a blaze broke out at the Randburg school, damaging 11 classrooms, including a block of toilets. While the cause of the fire is still being investigated, the department has since provided four mobile classrooms, as repairs are set to take a while to complete. Department spokesperson Steve Mabona said they were also improving the school's safety infrastructure. "And the school is currently in a better place to be in a position to fight any fire that might be, or rather, occur in the school. We noticed that the last safety inspection, rather the fire safety inspection, was not recorded prior to the incident. But plans are afoot to make sure that the City of Johannesburg assists us, you know, in the second quarter."
