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IOL News
2 days ago
- Business
- IOL News
Telkom reports solid results as it reinstates dividends after four years
Telkom has reported impressive results for the year ending March, driven by its data-centric strategy, leading to the reinstatement of dividend payments after a four-year hiatus. Image: Ian Landsberg/ Independent Newspapers Telkom delivered solid results in the year to March as its data-centric strategy continues to drive performance, with the telecommunications group reinstating dividend payments after a four-year hiatus. Group CEO Serame Taukobong said the company's 'strategic vision is translating into exceptional results, demonstrating our unwavering commitment to strengthening our position as the digital backbone of South Africa'. In its results, issued on Tuesday morning, it said group revenue gained 3.3% to R43 billion thanks to strong growth in mobile service revenue, which was up 10.2%, as well as fibre-related data revenue, up 10%. The JSE-listed company has been focusing on three key pillars: sales engine optimisation, network excellence, and customer-centric value. 'We will continue to navigate global macro-economic uncertainties and domestic challenges like high unemployment and the need for sustained economic growth to support our connectivity businesses," Taukobong noted. During the year, it 'prioritised strategic investments in our infrastructure, expanding fibre and 4G/5G coverage to underserved areas while enhancing urban network performance,' said Taukobong. Telkom said it would maintain capital expenditure for future growth within a range of 12% to 15% of revenue. 'Our data-centric strategy continues to be the key driver, enabling us to deliver sustained, impressive performance,' Taukobong said. Mobile and fibre service revenue growth across the group, combined with effective cost efficiency programmes, aided earnings before interest, tax, depreciation, and amortisation gaining by 25.1%. Telkom Consumer saw mobile service revenue increase by 10.2%, with a 19.5% surge in its mobile data subscriber base to 15.2 million. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Meanwhile, Openserve delivered fibre-related data revenue growth of 5.9% and maintained what Telkom said was 'a market-leading 50.4% fibre to the home connectivity rate'. BCX recorded fibre-related data revenue growth of 12.7% and cloud services revenue growth of 5.8%. 'We are pleased to confirm the reinstatement of a dividend, signalling a renewed focus on delivering value to shareholders after a four-year suspension,' said Taukobong. The board declared a final ordinary dividend of 16c per ordinary share and a special dividend of 97.8c per ordinary share for the year. This payout is worth R1.3 billion to shareholders. IOL
IOL News
2 days ago
- Business
- IOL News
Ratepayers in Durban face hefty costs due to eThekwini Municipality's legal errors
Ratepayers in Durban are left to shoulder the financial burden of a R30 million legal battle involving the eThekwini Municipality. Image: IOL / RON AI Durban's ratepayers are being forced to absorb the financial consequences of officials who continue to make unlawful decisions without fear of accountability Asad Gaffar, chairperson of the eThekwini Ratepayers Protest Movement (ERPM), remarked after the city incurred costs in a R30 million tender legal battle between the eThekwini Municipality and a service provider, Daily Double Trading, which culminated in a recent decision by the Constitutional Court. The Constitutional Court dismissed the municipality's leave to appeal against the Supreme Court of Appeal judgment - the city wanted the upper courts to overturn the Durban High Court ruling in 2022, which ordered it to pay Daily Double Trading R30 million as a settlement to the R43 million claim the company had made for work done. The municipality argued that it did not authorise an attorney to settle with the service provider; therefore, it could not be liable for the payment. However, it did not oppose the matter in court. The municipality is now liable for an additional R20 million in expenditures, including substantial legal fees, as a result of the matter continuing since 2018 at an interest rate of 10% annually. Reverend Thulasizwe Buthelezi, the MEC for the Cooperative Governance and Traditional Affairs (Cogta), called on the municipality to recover the money from the officials involved in causing the wasteful expenditure. Gaffar said the ERPM reiterates its longstanding concern over the widespread culture of impunity, maladministration, and legal recklessness within the municipality. He said that ratepayers were being forced to absorb the financial consequences. He applauded Buthelezi's decisive intervention and his demand for full disclosure of legal costs, as well as disciplinary action against those responsible. 'This is not merely an issue of legal error, but it is a systemic governance failure that has placed further strain on an already embattled municipality, struggling with service delivery backlogs, infrastructure decay, and financial instability,' Gaffar said. The ERPM called for the full implementation of consequence management measures, including disciplinary processes, civil recovery of losses, and, where warranted, criminal referrals.
IOL News
4 days ago
- Business
- IOL News
Opposition parties demand action over eThekwini's costly legal disputes
Pressure is piling on eThekwini Municipality mayor Cyril Xaba to take action after the City incurred legal and interest costs after failing to pay a service provider. Image: File Photo Opposition parties in the eThekwini Municipality have called for accountability from the officials who have caused the City to incur costs in a R30 million tender legal battle between the City and the service provider which ended up in the Constitutional Court. Last week, the Constitutional Court dismissed the City's leave to appeal the Supreme Court of Appeal judgment - the City wanted the upper courts to overturn the Durban High Court ruling in 2022 which ordered it to pay Daily Double Trading an amount of R30 million as a settlement to the R43 million claim the company had made for work done. The City's argument was that it did not authorise an attorney who reached a settlement with the service provider therefore it could not be liable for the payment, however, the City did not oppose the matter in court. With the matter dragging on from 2018 at a cost of 10% interest, the City is now liable for an extra R20 million in costs - with significant legal costs on top of this. In the wake of the Concourt decision, the DA on Sunday called for the immediate suspension of City Manager Musa Mbhele and his referral to the Financial Misconduct Board. In a statement, the party said the damages stem from the municipality's 2013 decision to cancel contracts with Daily Double Trading 479CC, adding that courts previously ruled that the cancellation was unlawful. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'The DA believes that, as the head of the city's administration, Mbhele has a duty to safeguard public funds and not act recklessly when ratepayers' money is at stake. The party believes that his conduct in this matter warrants a formal investigation by the Financial Misconduct Board and that he should be suspended from his duties pending the outcome. "The City manager had every opportunity to comply with previous court orders related to this matter but refused to, in the process, wasting public money to defend the indefensible,' said the party. Joining the calls, ActionSA provincial leader, Zwakele Mncwango also called on Mbhele to be liable as an accounting officer or else tell the council who had provided legal advice to him to continue defending the matter after several court judgments. Mncwango also questioned the capabilities of the City's legal services unit as the continued dismissal of the case right up to the Constitutional Court meant that the City had been receiving poor legal advice. 'There is a serious problem here, whether Mbhele was appealing this matter (based) on his opinion that the City legal services are incompetent. It is not a legal opinion but a political one,' said Mncwango. The EFF's eThekwini chairperson Themba Mvubu said while his party commended the effort by the municipality to try and save taxpayers' money, there was a need find the officials who illegally authorised to negotiate a settlement with the service provider, without the necessary authority.
The Citizen
27-05-2025
- The Citizen
Land dispute in Mpumalanga as claimants clash over farm ownership
Residents claim land was rightfully theirs, but officials deny their ownership, leading to tensions. There's a big fight over land in Mpumalanga and it doesn't involve expropriation without compensation, or even white farmers – it's a battle between two groups who believe they were dispossessed of the same tract of land. Nkomazi Game Reserve is the site of a clash between the residents of Vergelegen Farm and the department of land reform and rural development. Vergelegen Farm is situated in Badplaas, a few kilometres from Nkomazi local municipality where the Nkomazi Game Reserve is situated. Residents and government embroiled in land dispute The squabble started recently when the community claimed their parents had successfully claimed the land they were occupying, but the authorities refused to hand over the title deed. A source told The Citizen that instead of giving the title deed to the 'rightful' owners, the department opted to hand over the ownership of the farm to the families that were claiming ownership of the Nkomazi Game Reserve, just to silence them. 'What I know is that the department is trying to protect the game reserve, so whoever tried to claim its ownership was given a piece of land on the farms near the reserve,' said the source. ALSO READ: How to ensure that your future life insurance claim is paid out 'The complaint is valid because the land was given to other people and the department claims that they can't locate the data relating to their claim.' The residents yesterday said they tried in vain to convince the government to hand over the title deed. Community leader Lucky Maseko alleged the farm in question was successfully claimed by the elders some years ago, but they delayed collecting the title deed from the department's head office in Tshwane. Delay in collecting title deed 'We went to the land affairs offices in Mbombela and we were told to approach their office in Piet Retief,' said Maseko. 'But they told us they can't locate the information about the farm that we are occupying.' He said about 40 households residing on the farm want proof of ownership so that they could be able to develop their farming businesses. ALSO READ: Eskom reaches R43 million settlement with PwC over controversial contract He said most of the residents in the area were raising livestock and other farming-orientated businesses. 'The officials from the department took advantage of our illiterate parents and told them the only way to get the title deeds was to go to Tshwane,' he said. 'Without having any proof of ownership, we are not safe because people can come and evict us anytime.' Maseko family stayed on farm since 1977 Maseko said his family stayed on the farm since 1977, while others have been there longer. It is not the first time Badplaas farm communities accused the department of giving the farm to the claimants who were not part of the community. Tomorrow, officials from the department are expected to meet more than 10 families from Theeboom Farm, just a few kilometres from Vergelegen Farm, to talk about allegations of handing over the land to the 'wrong claimants'. ALSO READ: RAF blocks R65 million worth of fraudulent claims The Theeboom Farm residents also claim they were not consulted before the land they are occupying was handed to other people. They claim that those who are in possession of the title deed came and destroyed their agriculture projects to make way for the development in the area. Department of rural development and land reform spokesperson Zithini Dlamini denied the allegations. Dept denies allegations 'The property in question is owned by the Mashoba Community Trust after a successful restitution claim that was lodged with the department in terms of the Restitution of Land Rights Act, 1994 (Act 22 of 1994),' she said. 'The complainants and other families are currently residing on this property as farm occupiers and are not members of the trust. 'The department has on many occasions attempted to engage the farm occupiers to establish the extent of their rights to secure their tenure security as it is the mandate of this department. ALSO READ: Manyeleti land restored to community after successful claim 'However, the farm occupiers do not want to cooperate as they feel they are the owners as they have been staying on this property for many years.' Dlamini said the department needs to conduct a land rights inquiry to determine and establish their rights, then engage the current owners of the land. Mashoba Community Trust, to negotiate the release of the portion they reside on or an alternative portion to secure their tenure rights. She added the occupiers were not willing to cooperate with the officials from the department.
Daily Maverick
25-05-2025
- Daily Maverick
East London attorney wins back ownership of farm after protracted court battle
Roger Smith sold his land under the threat of expropriation. Nearly two decades later, he won it back — and a scathing court judgment against the Buffalo City Metropolitan Municipality. An East London attorney has, after a long legal battle, won back ownership of a farm in Buffalo City (East London) that he was forced to sell to the municipality under the threat of expropriation. The attorney, Roger Smith, bought Wembley Farm in 1985. In 1999, facing the threat of the property being expropriated for use as a municipal cemetery, he reluctantly agreed to sell it to the municipality for R670,000. He was also paid a consolation fee of R35,100, removal costs of R5,000 and transfer duty of R43,700. But the cemetery was never built. The farm, left abandoned, fell into disrepair. 'The house, outbuildings, reservoirs and other infrastructure … have been vandalised and destroyed,' noted Judge Mbulelo Jolwana in his judgment. Smith first approached the court in 2008, arguing he had been coerced into the sale under a false pretext — that the land had been designated for use as a cemetery. When it was later found unsuitable for that use, he claimed the original agreement had no legal standing. That case was dismissed on the basis that his claim had prescribed, but he was granted leave to appeal. The parties then tried to settle the case. The agreed terms of the settlement included that the ownership of the property would be restored to Smith if he paid the municipality R3.6-million — the sale price plus interest. 'It was further agreed that Smith would pay an additional amount of R4.3-million as a contribution to the costs incurred by the municipality in the litigation before it was settled.' The municipality also made it a condition of settlement that one hectare of the land would be used to build a fire station. This was ratified by the Buffalo City council only in 2021, mostly due to delays brought about by the Covid-19 pandemic. Smith then went to court to have the settlement made an order of court. On 6 June 2023, his attorney wrote a letter to the municipality's attorney, attaching the revised settlement agreement and requesting that it be signed and returned to him to facilitate its implementation. Smith's attorney further confirmed that he was holding in trust an amount of R7.4-million to be paid to the municipality in settlement. However, the municipal manager would not sign the settlement agreement. Smith went back to court, complaining that he had been prejudiced by ongoing delays and the municipality's failure to comply with the terms of the revised settlement agreement. 'Invalid' Buffalo City's municipal manager, Mxolisi Yawa, stated in papers before the court that the municipality was obliged to oppose the application to make the settlement an order of court. He said the council resolution confirming the settlement was 'invalid' because it did not comply with the Municipal Finance Management Act. Yawa argued that the only way Smith could get his farm back was to successfully sue the municipality. He said the council had to consider the fair market value of the property before arriving at a decision. 'It is important to point out that at no stage during the protracted settlement negotiations did [Yawa] communicate to Smith or his attorney that he questioned the validity of the settlement agreement or that he doubted its lawfulness,' said Judge Jolwana. 'It does not appear that he communicated his discomfort about the alleged non-compliance even with the municipality's own attorney. Instead, there was an unexplained failure to sign the settlement agreement, notwithstanding its formal endorsement thereof through a council resolution that to date is still extant. 'It was only when these proceedings were instituted that, in the answering affidavit, Yawa raised, for the very first time, his concerns about non-compliance with the Municipal Finance [Management] Act.' The judge said that in the documented history of the case, it had been pointed out that the property could not be used for the purpose for which it was acquired — the construction of a cemetery. He said the municipality has not made a case that it needed the property, apart from the portion for the establishment of a fire station. He said this was a restitution of the property and not a transfer as specified in the Municipal Finance Management Act. 'That any property may be expropriated for a legitimate public purpose is not controversial, at least if regard is had to the Constitution,' said Judge Jolwana. 'That legitimate public purpose was the establishment of a municipal cemetery in this case. It is common cause that it later transpired that the property was not suitable for that purpose after the registration of the transfer of the ownership of the property to the municipality had been finalised. 'The property was acquired by the municipality to alleviate its need for land that is suitable for the establishment of a municipal cemetery. Put differently, Smith was deprived of his right to ownership of the property through expropriation or threat thereof for that legitimate public purpose. The legitimate public purpose for which the applicant's right to have, to use and to keep the property was therefore infringed for a justifiable and legitimate public purpose and in the public interest. 'That was the understanding at the time Smith's property rights were infringed. Once that public purpose became unattainable, the consequent unlawfulness of Smith's deprivation of his property rights and the unconstitutionality of that entire process became fatally indefensible, leading to the entire edifice and rationale for the expropriation collapsing.' Judge Jolwana ordered that the settlement be made an order of court. He also made a punitive costs order against the municipality, reasoning that, '[Yawa] lamentably chose opaqueness when transparency was required. [He] decided to attempt to renege from the settlement agreement only when he received papers for this application, which it was agreed should be instituted. This he seems to have done without even presenting his views to the Buffalo City council. This, in circumstances in which the municipality's legal department had no difficulties with the lawfulness of the agreement.'
