Latest news with #R28-million
eNCA
3 days ago
- Politics
- eNCA
MK Party blames Shivambu for R28m debt
JOHANNESBURG - The MK Party blames its former secretary general, Floyd Shivambu, for the R28-million debt it's incurred. The party announced it has officially fired Shivambu, who's forming his own political party. The MKP declined to divulge details of the debt, but said its books have passed an audit. After Shivambu had stepped away from the MKP, he claimed some members were stealing R7-million monthly from the organisation. The uMkhonto Wesizwe Party has been in existence for less than two years, yet it has experienced a revolving door of leadership, with countless leaders having come and gone, some unceremoniously. By: Moloko Moloto
Daily Maverick
05-08-2025
- Politics
- Daily Maverick
Deputy President Paul Mashatile caught between luxury property, a shiny diamond and a hard place
The ANC's National Executive Committee broke for an hour on Sunday to deliberate on allegations of impropriety swirling around Deputy President Paul Mashatile and Human Settlements Minister Thembi Simelane. The ANC's National Executive Committee (NEC) deliberated on the fate of two of its most senior members, Deputy President Paul Mashatile and Human Settlements Minister Thembi Simelane, over the weekend and is expected to provide an update on the Integrity Commission's reports on their conduct soon. Opening a shopping centre in Durban days before the NEC conference, Mashatile continued to boldly deny that there was anything irregular about two luxury properties – worth R63-million – that he had declared in Parliament's Register of Members' Interests. Speaking at the official opening of the Inkosi Simingaye Shopping Centre at KwaXimba near Cato Ridge in Durban on 31 July, he responded to a question about the properties by saying 'people must read'. 'There is nothing in Parliament that I said that I own a house. I said I live there,' he insisted. On Sunday, the NEC broke for an hour, asking Mashatile and Minister of Human Settlements Thembi Simelane to excuse themselves while the Integrity Commission presented cases on allegations of corruption. Outing himself Mashatile was outed by News24 after the public release of Parliament's Register of Members' Interests in late July. Mashatile had declared ownership of the two properties – a multi-bedroom mansion in Constantia, Cape Town, worth R28-million, and another in Waterfall, Midrand, worth R37-million. News24 has had eyes on Mashatile's luxury lifestyle for ages and in 2024 first reported that a company, belonging to Mashatile's son-in-law, Nceba Nonkwelo, had bought the Constantia house in 2023. Mashatile lives in the house when he is in Cape Town. Nonkwelo is married to Mashatile's daughter, Palesa. Whether or not the declaration in the register was a Freudian slip, this annual ritual of holding public representatives to account has uncovered a tidy stash belonging to the deputy president. Diamonds are not forever Over and above his eye for property bling, Mashatile has admitted to receiving a diamond from grifter Louis Liebenberg, currently behind bars, awaiting trial on various criminal charges. Liebenberg had boasted that he had given the deputy president a diamond as a gift. In the meantime Mashatile has paid a R10,000 fine imposed by the Joint Committee on Members' Ethics for failing to declare the gift. Mashatile had stated that he wanted to have the diamond 'weighed' to check its value before declaring it. And besides, it had been a gift for his wife, Humile. This response – doing the deed out in the open – was not appreciated by the committee. Liebenberg also gifted former president Jacob Zuma about R1-million to sue News24 journalist Karyn Maughan and prosecutor Billy Downer. Simelane and the ghost of VBS Daily Maverick and News24 first sniffed out that former Minister of Justice, now Minister of Human Settlements, Thembi Simelane had taken out a R575,600 loan she obtained from VBS corruption-accused fixer Ralliom Razwinane in 2016. Simelane later told the portfolio committee for justice and constitutional development that she had had no improper relationship with Razwinane or his company, Gundo Wealth Solutions. Gundo had been appointed by the Polokwane Municipality to provide investment brokerage services for three years in March and April 2016. Between 16 September 2016 and 5 May 2017, Polokwane invested R349-million in five transactions with VBS and withdrew its money between 16 March and 3 July 2017, earning R12.7-million in interest. As Kyle Cowan and Pauli van Wyk wrote in October 2024: 'Since the publication of the existence of the loan by Daily Maverick and News24, Simelane has steadfastly maintained there was no conflict of interest then – between Gundo being a service provider to Polokwane while she was mayor and getting a loan from them – or now – with her oversight of the National Prosecuting Authority that is pursuing cases against dozens of VBS fraud- and corruption-accused persons and companies.' Simelane was shifted to Human Settlements when the heat reached the kitchen. She will know her new fate soon. DM
Daily Maverick
06-05-2025
- Business
- Daily Maverick
Renergen defends its financial position against wild social media claims
Energy company Renergen has responded to Daily Maverick queries and directly denied social media claims suggesting the company lost control of assets due to a default on its Standard Bank loan. 'There has never been property ownership through the Standard Bank financing,' Renergen said via email, describing the claim as misinformation circulating online. 'The SBSA Loan is secured by a third-ranking pledge of Tetra4's assets and shares held by Renergen in Tetra4, and further by Mr Nicholas Mitchell and Mr Stefano Marani pledging shares in Renergen as security.' There is truth to claims that Renergen breached several loan covenants as at 28 February 2025, involving facilities from the Development Finance Corporation (DFC), Industrial Development Corporation (IDC), and Standard Bank South Africa (SBSA). However, as Renergen pointed out in a response to Daily Maverick, these defaults were temporary and resolved shortly after the reporting period. As detailed in its preliminary financial statements released on 30 April 2025: note eight of the report discloses that Renergen 'did not meet certain loan covenants as at 29 February 2024', which included the required asset cover ratio for a key loan facility. Although the company did not consider these breaches to have a material impact on its going concern status, it noted that the lenders 'have provided waivers subsequent to period end,' which is confirmed in note 18. Importantly, Renergen stresses that these waivers 'effectively addressed the immediate concern', and no creditors have called in loans or taken possession of assets. Proof is in the production pudding Contrary to claims that the company is far off its production goals, Renergen's figures show significant progress: Liquefied natural gas (LNG) production rose 70% year-on-year to 4,885 tonnes. LNG sales increased 74.2% to 4,633 tonnes. Liquid helium (LHe) commissioning was completed in the second quarter of the current financial year. Liquid helium sales began on 14 March 2025, shortly after the reporting period. Despite this, costs associated with commissioning the helium train – without immediate helium revenue – contributed to a deeper annual loss. Renergen reported a R236-million loss after tax and a gross loss of R28-million, down from a R10-million gross profit the year before. Revenue, however, increased by 79.7% to R52-million, largely due to LNG sales. The company chalks the larger loss up to high depreciation, rising input costs and the timing mismatch of helium revenue recognition. Litigation risk not imminent Concerns also remain around the unresolved litigation with Molopo Energy, which alleges that Renergen's sale of a 5.5% stake in Tetra4 triggered a loan acceleration. The company disputes this, saying that even in a worst-case scenario, the liability would be limited to a R50-million repayment. Looking ahead, Renergen is banking on additional funding. It has secured a $10-million inflow in April 2025 from an undisclosed third party, with the potential for a further $20-million. It is also pursuing a Nasdaq IPO aimed at raising R2.9-billion ($150-million) and expects to finalise a $795-million loan package from the DFC and SBSA – part of which will refinance existing debt. Strained, not sinking Renergen is under pressure, there's no denying that. Losses have widened, debt covenant breaches legitimately occurred, and the success of its financial restructuring is wholly reliant on external funding and market confidence. But the bright spots of its operational progress and continued lender support suggest a company navigating the turbulence typical of complex energy infrastructure roll-outs. The narrative of 'serious trouble' may overstate the case. Investors would do better to track helium and LNG output in the months ahead – as well as progress toward the planned IPO – to assess whether Renergen can turn the corner from startup stress to stable operation. DM
