Latest news with #R400m
TimesLIVE
7 days ago
- Business
- TimesLIVE
R400m and counting: public sector bosses cash in as SOEs flounder
MP and DA deputy spokesperson on public service and administration Leah Potgieter has criticised "rampant executive spending" across public entities. Portgieter said more than R400m is spent annually on executive salaries across 117 entities and likely more across the full landscape of nearly 700 state-owned enterprises (SOEs). The DA highlighted entities including: Transnet, where the CEO earns R8.5m despite operational failures and a R47bn bailout; The Passenger Rail Agency of South Africa paying its CEO R7.8m amid audit disclaimers and service collapse; The Road Accident Fund, where the CEO earns R7.1m even though the fund is technically insolvent; Rand Water, where ongoing service delivery failures contrast with the CEO's R5.4m remuneration. 'This reflects a broken system with weak oversight and eroded public accountability,' said Potgieter. The party called on the public service and administration minister to establish a standardised executive remuneration framework for public entities, enforce mandatory disclosure and justification when salary norms are exceeded and work with parliament on systemic governance reforms in line with public service principles. 'The excessive salaries remain not only unjustifiable but an affront to the millions of South Africans who rely on basic services that are consistently failing,' she said. This comes after a parliamentary reply shed light on the multi-million rand remuneration packages received by CEOs and top executives at SOEs and financial institutions. DA MP Jan Naudé de Villiers asked the finance minister to provide full details for the total remuneration, benefits and bonuses of CEOs and the most senior officials at state-owned and state-linked entities reporting to him. In his response the minister revealed total pay, benefits and performance bonuses of senior officials in public finance institutions such as the Development Bank of Southern Africa, the South African Revenue Service, the Financial Sector Conduct Authority and the Financial Services Providers (FAIS) ombud. He also revealed many operate outside the salary guidelines set by the department of public service and administration. The annual remuneration report from the 2023/24 office of the FAIS ombud showed five top executives earned a combined total of more than R9.5m. The highest-paid executive was CFO Shaun Maharaj, who earned a total package of R2.4m in 2023/24, including a base salary of R1.89m, a performance bonus of nearly R100,000 and other benefits. Ombud John Simpson earned R2.3m despite receiving no pension contribution or performance bonus. In the 2024/25 financial year, Maharaj's package increased to R2.7m including a performance bonus of more than R319,000 while Simpson's total package rose modestly to R2.5m. In his response the finance minister highlighted that the FAIS ombud does not follow department of public service and administration salary scales. 'The office operates in a highly specialised industry with a unique structure. Market remuneration benchmark survey data is used to determine internal pay scales using the Hay grading system.' The Development Bank of Southern Africa stood out as the highest payer with its CEO earning R10.5m in 2023/24, an amount that jumped to R15.5m in 2024/25. This includes guaranteed pay, allowances, benefits and variable pay. The minister confirmed bank is not governed by department of public service and administration remuneration limits. At the Financial Sector Conduct Authority, the commissioner earns a cost-to-company salary of R5.8mn which includes a monthly employer retirement fund contribution of R47,774 and he does not receive a bonus. The authority also falls outside of department of public service and administration control. 'Authority remuneration is cost-to-employer. There are no allowances and the bonus plan does not apply to the commissioner,' said the minister. The Government Employees Pension Fund pays its principal executive officer a base salary of R4m with additional allowances and retirement contributions bringing the total to R6.7m. For the 2023/24 financial year the executive also received short- and long-term incentive bonuses totalling R3.2m, pushing the overall remuneration above R9m. The minister said the fund also does not follow department of public service and administration remuneration rules, instead benchmarking against private sector norms. The Revenue Service commissioner received a guaranteed package of R8.2m with a R2m performance bonus paid in 2024/25 for the previous year's performance. A bonus of R2.4m was paid the year before. The minister said the service is governed by its own legislation and is not subject to the department of public service and administration guidelines. Several other state-linked entities also reported significant pay packages: C+South African Special Risks Insurance Association CEO: R4.6m basic salary and R1.8m bonus in 2023/24. Financial Intelligence Centre director: R3.6m package, no bonuses. Independent Regulatory Board for Auditors CEO: R4.78m. Land Bank CEO: R4.94m, with additional cellphone and petrol allowances. No bonuses paid yet for 2024/25. Ombud Council chief ombud: R2.93m salary plus R28,000 bonus in 2023/24. Entities which did report compliance with department of public service and administration guidelines are the Government Technical Advisory Centre, where the acting head earns R1.9m, and the government Pension Administration Agency, where the CEO earned R2.2m with no bonuses.
The Citizen
02-08-2025
- Business
- The Citizen
Agro fund to create jobs and drive rural growth by 2027, says agriculture MEC
Agro fund to create jobs and drive rural growth by 2027, says agriculture MEC The MEC for agriculture, rural development, land and environmental affairs (Dardlea), Khethiwe Moeketsi, tabled the department's 2025/26 financial year budget at the Provincial Legislature on Tuesday, July 22. The department received approximately R1.6b for the financial touched on various issues and plans the department has for the people of Mpumalanga. She said Mpumalanga remains a predominantly rural province, but one with immense agricultural potential, favourable climatic conditions and abundant resources. ALSO READ: Mpumalanga Fresh Produce Market misses another deadline: Agriculture announces postponement of launch When discussing the Mpumalanga Agro Fund, she described it as a transformative R400m blended-finance partnership designed to drive inclusive agricultural development within the province. 'This is a strategic undertaking between Dardlea and the National Empowerment Fund. The agro fund is open to other strategic partners, and various agreements of collaboration are under way.' The expected impact includes the creation of 1 200 new agro-processing jobs by 2027; focused investment in key value chains such as grains, poultry, cannabis and aquaculture; and direct support to strategic zones such as the Nkangala Grain Corridor and the Mkhondo AgriHub. Moeketsi discussed a strategic focus on targeted groups. She said their focus remains clear: youth, women and persons with disabilities must be central to the agricultural revolution. 'This year, we will operationalise the Inkanyezi Poultry Project at Chief Albert Luthuli and activate 'Eggsellent by Lebo' at Thembisile Hani Municipality, both female-owned enterprises. As we approach Women's Month, we are conscious of the integral role women play in this sector. 'We continue with the focus on empowering women in agriculture, rural development and the environment. We will strengthen this empowerment to ensure that farming, agro-processing and environmental activities are streamlined.' The revival of the Senteeko Tea Estate in the City of Mbombela is one of the matters discussed during the budget speech. The tea estate has now been restituted to the Shamile CPA Committee and includes electrification, sewer upgrades and factory design. ALSO READ: Public works and Bushbuckridge municipality give back to Vuhlayiselo Disability Centre 'There are farmers in the Bushbuckridge Local Municipality who will be supported with irrigation systems and perimeter fencing for vegetable production, such as Danica Primary Cooperative and Elmorah Green.' Moeketsi also mentioned the Phezukomkhono Mlimi Programme, saying it represents a strategic shift in addressing food insecurity. 'Not through temporary handouts, but by empowering communities to produce their own food and build sustainable livelihoods. This approach focuses on enabling self-sufficiency, resilience and dignity. 'In 2025/26, we will support 13 000 households, establish 690 food gardens, and cultivate 18 000 hectares, creating 520 Expanded Public Works Programme jobs in the process,' Moeketsi said.
The Citizen
02-07-2025
- Automotive
- The Citizen
Santaco wants faster progress on infrastructure and licensing reforms
Santaco wants faster progress on commuter support, infrastructure, and licensing reforms The South African National Taxi Council (Santaco) has responded with cautious optimism to the 2025 National Transport Budget Vote. It welcomed key commitments while urging the government to act more decisively on long-standing industry challenges. Santaco's delegation, led by first deputy president Mazwe Nkonki, attended the budget vote tabled by Transport Minister Barbara Creecy in Cape Town on Wednesday. While acknowledging some progress, the council stated that critical issues facing the taxi industry remain unresolved. Road safety targets Santaco endorsed the Department of Transport's target to reduce road fatalities by 45% by 2029, describing it as 'a commendable ambition'. Although the council stressed that reaching this goal would require concrete actions such as round-the-clock traffic law enforcement and intensified public awareness efforts. 'We call for increased 24-hour traffic visibility and awareness campaigns to support this goal,' Santaco said in a statement. 'Poor road conditions continue to damage vehicles and endanger lives. We urge government to implement regular monitoring and maintenance of all roads, especially because the taxi industry's routes move from the very rural areas to the most urbanised areas.' Minister Creecy confirmed in her speech that Sanral had taken over 3 099km of provincial roads and would reprioritise maintenance efforts through its Route Road Maintenance Programme. ALSO READ: DA demands full AGSA report on R400m driving licence tender Growing frustration over commuter subsidy delays One of Santaco's strongest criticisms was the continued exclusion of taxi commuters from public transport subsidies. 'While we note the intent to explore a subsidy model, the pace is too slow. 'With taxis transporting over 60% of commuters daily, a fair, inclusive subsidy system must be urgently introduced to ensure affordability and equity,' said Nkonki. Although Creecy said her department is committed to working with the industry to reduce vehicle repayment costs and align operating licences with financial terms, Santaco stressed that 'intent alone is not enough'. ALSO READ: Outa calls for no fines during driver's licence backlog Implementation lags The council applauded the taxi industry's inclusion in government transformation and decarbonisation efforts, including the Transformation Fund, which aligns with the 2020 National Taxi Lekgotla resolutions. 'This assures the industry that government supports our idealised socio-economic development of the sector in collaboration with government,' Santaco said. However, they flagged that the implementation has been sluggish. Santaco said it supports Creecy's plans to streamline operating licence issuance and tie licence validity to vehicle finance terms. 'This will support compliance and financial sustainability for taxi owners,' the council stated. ALSO READ: Three teachers dead, two injured in horror Eastern Cape crash Industry urges accelerated action While expressing cautious optimism, Santaco outlined urgent priorities: Fast-tracking a taxi commuter subsidy model Improved maintenance of roads and taxi ranking facilities 24-hour traffic enforcement Accelerated operating licence reforms aligned with loan repayment terms 'Santaco remains committed to constructive engagement and a transport system that is fair, safe, and inclusive for all,' it said. NOW READ: Transport minister has big hopes for big plans
IOL News
27-06-2025
- Business
- IOL News
Lesaka Technologies acquires Bank Zero for R1. 09 billion, boosting its fintech capabilities
Bank Zero CEO Yatin Narsai said their acquisition by Lesaka Technologies would allow the online digital bank to accelerate new revenue streams, improve capital efficiency and unlock synergies across their ecosystem. Image: AI Ron Lesaka Technologies' share price shot up 17.1% Friday morning after announcing it has entered into a R1.091 billion agreement to acquire 100% of South Africa's digital lender, Bank Zero Mutual Bank. The companies said Friday the acquisition will be settled through a combination of new shares—such that the shareholders of Bank Zero will own about 12% of Lesaka's shares at the time of completion of the proposed transaction—and up to R91 million in cash. "The acquisition of Bank Zero is a transformative event in Lesaka's journey, enabling us to better serve our consumers, merchants, and enterprise clients by embedding a trusted, well-engineered neobank capability into our fintech platform,' said Lesaka chairman Ali Mazanderani in a statement. "Our focus has always been on using technology to remove friction, lower costs, and challenge legacy banking norms. Joining forces with Lesaka allows us to accelerate that mission at scale—reaching more customers, faster. It represents a critical step for Lesaka and Bank Zero in realising new revenue streams, improving capital efficiency, and unlocking synergies across our ecosystem," said Bank Zero CEO Yatin Narsai. The 12% stake is valued at about R1bn based on the R88.26 share price. The share price was trading at R81.99 on Friday monring. The selling shareholders of Bank Zero—which include its chairman Michael Jordaan, CEO Yatin Narsai, and other key members of the bank—will collectively hold a 12% stake in Lesaka. The transaction is still subject to the regulatory approvals such as by the Prudential Authority and Competition Commission. Bank Zero, founded in 2018, is built on modern technology on an app-driven platform and a zero-fee banking model, offering retail and commercial banking services. As of the end of April 2025, Bank Zero had a deposit base in excess of R400m and more than 40 000 funded accounts across South Africa. Bank Zero's digital banking infrastructure and its operational banking licence, together with Lesaka's fintech and distribution platform, would transform the way Lesaka is able to conduct business in the future, said Mazanderani. These include better servicing of Lesaka's customers through full banking services, unlocking synergies and opportunities, accelerating innovation, and streamlining Lesaka's Consumer, Merchant, and Enterprise divisions—all enabling a shift in the financial profile of Lesaka and empowering the combined group to deliver greater value to consumers and businesses. 'Lesaka expects the transaction to support a more optimised balance sheet in the future, allowing the group to finance the existing and continued growth in lending books through customer deposits, driving stronger lending unit economics,' Lesaka said. In addition, the reduction in the use of bank debt in the group's Consumer and Merchant divisions would help to deleverage Lesaka's debt. After the deal, Lesaka could achieve a more than R1bn reduction in debt.
The Citizen
10-06-2025
- Automotive
- The Citizen
DA demands full AG report on R400m driving licence tender
In March, the R400m driving licence tender took a wrong turn. The DA has demanded the immediate release of the full report by the Auditor-General of South Africa (AGSA) into the failed driving licence card tender. This follows the repeated breakdown of South Africa's only licence card printing machine, which DA spokesperson on transport, Dr Chris Hunsinger, called a 'collapse that continues to paralyse renewals for millions of motorists'. Driver's licence machine The latest failure of a staggering 733 000 card backlog caused by yet another breakdown of the country's sole driver's licence printing machine has laid bare the systemic dysfunction at the heart of the Department of Transport. 'Despite years of promises to upgrade to smart card technology and to acquire a second machine, the department has failed to deliver,' Hunsinger said. ALSO READ: Here's how much it cost to repair SA driver's licence card printing machine over three years Wrong turn In March, the R400m driving licence tender took a wrong turn after Minister of Transport Barbara Creecy instructed her department to file a high court application for a declaratory order regarding the R400 million tender for driving license card machines. This follows the AGSA's identification of irregularities in Idemia's South African contract as the preferred bidder. The Citizen sought comment from Creecy's spokesperson, Collen Msibi. No response had been received by the time of publication. The story will be updated if a comment is received. AG report Creecy received the final report from the AG in February on the investigation into alleged serious irregularities about the procurement process for the provision of a new machine for the production of the planned new driving licence card. In September 2024, Creecy instructed the AG to expedite and widen the audit scope for the new driving licence card procurement process after new evidence emerged of alleged serious irregularities in the decision to make Idemia the preferred bidder. The contract awarded in 2022 to a French company for new smart card printing equipment was flagged by the Auditor-General as irregular, with costs ballooning from a budgeted R486 million to R898 million, an overrun of more than R400 million. ALSO READ: The driver's licence machine is fixed, but another problem remains 'Department hiding' Hunsinger claims the department has 'hidden behind court proceedings and refused to release the full AG report to Parliament or the public.' He said to 'break the deadlock', the DA will submit a formal Promotion of Access to Information Act (PAIA) request for the full Auditor-General's report. Parliamentary questions Hunsinger added that the DA will also table parliamentary questions to establish whether the AG's findings have been referred to the Treasury, the Presidency, or any law enforcement authority. 'The DA will push for a parliamentary summons of Driving Licence Card Account (DLCA) officials, together with senior leadership from the Department of Transport, to account for this ongoing failure. 'The Department of Transport has shown little regard for its constitutional obligation to be transparent and accountable. We will not accept a government that hides behind broken machines and broken promises,' Hunsinger said. Creecy's action followed the Organisation Undoing Tax Abuse (Outa), providing her with new evidence of alleged serious irregularities in the decision to make Idemia the preferred bidder. ALSO READ: Driver's licence expired while printing machine is broken? Here's what you should do
