Latest news with #R4.6bn
TimesLIVE
07-05-2025
- Business
- TimesLIVE
KZN transport MEC Duma calls out contractors for delayed, abandoned road projects
KwaZulu-Natal transport MEC Siboniso Duma has raised concern about the performance of contractors awarded tenders to build and rehabilitate roads in the province. Duma told a media briefing on Wednesday 30 contractors responsible for road projects have cost the department an estimated loss of R4.6bn due to their failure to meet deadlines. Two contractors have abandoned their projects entirely. Duma said a meeting was convened after a surge of complaints about poor execution of road projects. These complaints stemmed from stalled or incomplete projects which have left significant gaps in the province's roads infrastructure. 'We convened this briefing after an engagement with contractors awarded tenders to construct new roads and rehabilitate [existing] roads in the province,' he said. Duma took responsibility as a public representative, acknowledging the frustration of residents and stressing the department's commitment to accountability. 'A lot of blame, at times rightly so, has been placed at the feet of the department as the custodian of public transportation. However, the reality is we have contractors failing to honour their contracts and it is time we, as the department, name and shame them.
TimesLIVE
07-05-2025
- Business
- TimesLIVE
KZN transport MEC calls out contractors for delayed, abandoned road projects
KwaZulu-Natal transport MEC Siboniso Duma has raised concern about the performance of contractors awarded tenders to build and rehabilitate roads in the province. Duma told a media briefing on Wednesday 30 contractors responsible for road projects have cost the department an estimated loss of R4.6bn due to their failure to meet deadlines. Two contractors have abandoned their projects entirely. Duma said a meeting was convened after a surge of complaints about poor execution of road projects. These complaints stemmed from stalled or incomplete projects which have left significant gaps in the province's roads infrastructure. 'We convened this briefing after an engagement with contractors awarded tenders to construct new roads and rehabilitate [existing] roads in the province. Duma took responsibility as a public representative, acknowledging the frustration of residents and stressing the department's commitment to accountability. 'A lot of blame, at times rightly so, has been placed at the feet of the department as the custodian of public transportation. However, the reality is we have contractors failing to honour their contracts and it is time we, as the department, name and shame them. 'From today [Wednesday] we will implement punitive measures to ensure we recover money from contractors who have abandoned road construction projects and those who fail to complete projects on time. 'We also note and understand that in recent years contractors were affected by the Covid-19 pandemic, as projects had to be halted to ensure the safety of workers. 'As we were recovering from the pandemic and as construction of our infrastructural projects resumed, the province experienced major floods in December 2021 and 2022, resulting in adjustments and reprioritisation.' Duma said despite these challenges the department has allocated R13bn to infrastructure development, with R9.2bn earmarked specifically for transport infrastructure. Of this, R3.8bn will go towards the construction of new projects while R4.3bn is set aside for roads maintenance. 'More than R102m will be spent on infrastructure planning and design with more than R927m being allocated to support programmes in transport infrastructure.' A significant portion of this budget will be used to tackle the potholes problem. The department has already procured 55 trucks dedicated to pothole patching and will acquire 25 more to reinforce efforts. The department has appointed more than 100 road workers and foremen. 'We allocated a budget of more than R216m towards pothole patching which needed heavy investment in maintenance and rehabilitation.' There are 39 construction projects and 44 rehabilitation or resealing projects under way. However, many of these have faced delays, particularly those managed by the 30 contractors who have failed to deliver. 'Projects managed by these contractors have stalled, with some having been abandoned. There are instances where projects, including site establishment, have not even started. To date, the cost of such delays is R4.6bn,' said Duma. 'We cannot afford to drop the ball due to contractors' failures. Our focus remains on accountability and efficiency, ensuring that KZN citizens see value for their money.'
Zawya
04-03-2025
- Business
- Zawya
South Africa: Santam's insurance profits soar by 58% following strategic growth moves
Leading short-term insurer Santam released its financial results on Monday, 3 March 2025, highlighting a year of robust growth and strategic expansion. The company's strong premium growth, improved underwriting, solid investment returns, and disciplined cost management all contributed to a highly successful 2024 financial year. Santam's continued focus on market expansion and operational efficiency has reinforced its position as a key player in the insurance sector, demonstrating resilience in an evolving economic landscape. Santam's financial results showed a 10.5% increase in gross written premium, surpassing the insurer's long-term targets. The company also reported a significant improvement in its underwriting margin, rising to 7.6% from 3.5% the previous year. This growth was largely driven by the turnaround of Santam's property portfolio, which became profitable after years of losses. Higher premiums and better risk selection played a key role in this recovery. Additionally, Santam noted that strategic pricing adjustments and policy condition changes helped mitigate the impact of elevated claims resulting from extreme weather events. Santam reported a 13% increase in net income, driven by strong underwriting performance and solid investment returns. Strategic growth boosts Santam also benefited from strategic expansions over the past year, which contributed to its strong performance. The insurer's business outside South Africa grew by 28%, now accounting for 18% of total gross written premium. A key highlight was the success of its MTN device insurance offering, which outperformed expectations and exceeded its original business plan. Additionally, MiWay delivered a strong turnaround, achieving a double-digit underwriting margin. Strong capital returns Santam reported a capital coverage ratio of 166%, slightly exceeding its target range of 145% to 165%. During the period, the insurer maintained tight control over expenses and capital management, ensuring operational efficiency. Santam declared a final dividend of 985 cents per share, marking an 8.8% increase from the previous year. This brings the total ordinary dividend distribution to 1,520 cents per share. The insurer achieved a return on capital of 32%, well above its 24% target, benefiting from favourable market conditions both locally and internationally. Overall, total net income rose to R3.68bn, up from R3.25bn the previous year. Santam's conventional insurance profit surged by 58% to R4.6bn, while profits in its alternative risk transfer business climbed 51%. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
