Latest news with #R459
The Star
10-08-2025
- Business
- The Star
Gauteng department faces scrutiny over R8. 4 million contracts to questionable 'military veterans'
The Gauteng Department of Sports, Arts, Culture, and Recreation (SACR) is slated after awarding over R8.4 million to companies claiming to be owned by 'military veterans,' despite records showing some directors were born in the 1990s. The Military Veterans Act of 2011 defines a military veteran as any South African citizen who falls into one of the following categories: Those who rendered military service to any of the military organisations involved on all sides of South Africa's liberation war from 1960 to 1994; Those who served in the Union Defence Force before 1961; and Those who became members of the South African National Defence Force (SANDF) after 1994 have completed their military training, no longer perform military duties, and have not been dishonourably discharged from the military. Following questions raised by the Democratic Alliance (DA) in the Gauteng Provincial Legislature (GPL), the party stated that Gauteng MEC for Sports, Arts, Culture, and Recreation, Matome Chiloane, confirmed that the department awarded contracts to 24 companies owned by military veterans over the past three financial years. Kingsol Chabalala, DA Gauteng Shadow MEC for Sports, Arts, Culture and Recreation, stated that the awarded companies have provided a range of services, including security at libraries such as Driezik and Kagiso, as well as managing events for wreath-laying ceremonies and celebrations for Human Rights and Heritage Day. He highlighted that the documents, in possession of The Star , exposed a troubling trend of false claims, pointing out that many companies on the list are directed by individuals born in the 1990s, which disqualifies them from being considered genuine military veterans. 'A closer inspection of the entities reveals a disturbing pattern of misrepresentation. Notably, several listed companies have directors who were born in the 1990s, making them far too young to be categorised as military veterans. For instance, the director of RE DLALA GAME TRADING, which received R459 156.46, was born in 1990; the director of Intellectditcom, backed with R147 700, was born in 1995; and the director of MATHABATSEME ENTERPRISE, which received R486 349.50, was born in 1996.' Chabalala further asserted that this represents a clear abuse of procurement processes to secure profitable contracts, exposing how certain individuals within the department are prepared to exploit veterans' legacy and public resources for personal benefit. He further stated that the DA will contact Chiloane to seek clarification on how this clear inconsistency was ignored or tolerated. 'The DA will write to MEC Chiloane, urging him to clarify how such a blatant discrepancy went unnoticed or permitted to persist under his watch. We will also demand that he conduct an urgent investigation into those responsible for awarding these contracts and ensure that they face appropriate consequences. This process must be carried out transparently and without bias,' Chabalala added. Responding to the concerns, Mxolisi Mkhonza, spokesperson for the Department of Military Veterans, explained that serving members of the SANDF qualify as military veterans once they leave the armed forces and are registered on the South African National Military Veterans Database. This includes individuals who have completed the Military Skills Development System (MSDS), which annually recruits citizens into the SANDF. Mkhonza also noted that the department is considering amending the registration process. 'Therefore, there will be no need for an investigation as these are legitimate military veterans according to the Act in its current state. The DMV is, however, looking to begin the process of amending the Military Veterans Act in order to circumvent such gaps, which are being exploited by certain individuals.' He added that the application and verification process for recognition as a military veteran involves several requirements, beginning with proof of having served or trained as a soldier, details of which are available on the DMV website. Once approved, individuals are listed on the South African National Military Veterans Database and issued a confirmation letter. This letter enables them to apply for various benefits outlined in Section 5 of the Act, provided they meet the qualifying criteria. Mkhonza explained that the DMV can not comment on other departments' procedures but works with them across government to deliver benefits. 'As a coordinating department, we work with various other government departments at all spheres of government in rolling out benefits. Each department may then have its criteria on how to go about issuing benefits to individuals specifically earmarked as military veterans. The DMV cannot speak on processes followed by other departments, such as the SACR.' The Star's attempts to get a comment from SACR were unsuccessful. We had not received a response by publication time. The Star [email protected]
IOL News
10-08-2025
- Politics
- IOL News
Gauteng department faces scrutiny over R8. 4 million contracts to questionable 'military veterans'
Gauteng's Department of Sports, Arts, Culture, and Recreation faces criticism for awarding contracts to companies falsely claiming veteran ownership, raising serious concerns about misuse of public funds. The Gauteng Department of Sports, Arts, Culture, and Recreation (SACR) is slated after awarding over R8.4 million to companies claiming to be owned by 'military veterans,' despite records showing some directors were born in the 1990s. The Military Veterans Act of 2011 defines a military veteran as any South African citizen who falls into one of the following categories: Those who rendered military service to any of the military organisations involved on all sides of South Africa's liberation war from 1960 to 1994; Those who served in the Union Defence Force before 1961; and Those who became members of the South African National Defence Force (SANDF) after 1994 have completed their military training, no longer perform military duties, and have not been dishonourably discharged from the military. Following questions raised by the Democratic Alliance (DA) in the Gauteng Provincial Legislature (GPL), the party stated that Gauteng MEC for Sports, Arts, Culture, and Recreation, Matome Chiloane, confirmed that the department awarded contracts to 24 companies owned by military veterans over the past three financial years. Kingsol Chabalala, DA Gauteng Shadow MEC for Sports, Arts, Culture and Recreation, stated that the awarded companies have provided a range of services, including security at libraries such as Driezik and Kagiso, as well as managing events for wreath-laying ceremonies and celebrations for Human Rights and Heritage Day. He highlighted that the documents, in possession of The Star, exposed a troubling trend of false claims, pointing out that many companies on the list are directed by individuals born in the 1990s, which disqualifies them from being considered genuine military veterans. 'A closer inspection of the entities reveals a disturbing pattern of misrepresentation. Notably, several listed companies have directors who were born in the 1990s, making them far too young to be categorised as military veterans. For instance, the director of RE DLALA GAME TRADING, which received R459 156.46, was born in 1990; the director of Intellectditcom, backed with R147 700, was born in 1995; and the director of MATHABATSEME ENTERPRISE, which received R486 349.50, was born in 1996.' Chabalala further asserted that this represents a clear abuse of procurement processes to secure profitable contracts, exposing how certain individuals within the department are prepared to exploit veterans' legacy and public resources for personal benefit. He further stated that the DA will contact Chiloane to seek clarification on how this clear inconsistency was ignored or tolerated. 'The DA will write to MEC Chiloane, urging him to clarify how such a blatant discrepancy went unnoticed or permitted to persist under his watch. We will also demand that he conduct an urgent investigation into those responsible for awarding these contracts and ensure that they face appropriate consequences. This process must be carried out transparently and without bias,' Chabalala added. Responding to the concerns, Mxolisi Mkhonza, spokesperson for the Department of Military Veterans, explained that serving members of the SANDF qualify as military veterans once they leave the armed forces and are registered on the South African National Military Veterans Database. This includes individuals who have completed the Military Skills Development System (MSDS), which annually recruits citizens into the SANDF. Mkhonza also noted that the department is considering amending the registration process. 'Therefore, there will be no need for an investigation as these are legitimate military veterans according to the Act in its current state. The DMV is, however, looking to begin the process of amending the Military Veterans Act in order to circumvent such gaps, which are being exploited by certain individuals.' He added that the application and verification process for recognition as a military veteran involves several requirements, beginning with proof of having served or trained as a soldier, details of which are available on the DMV website. Once approved, individuals are listed on the South African National Military Veterans Database and issued a confirmation letter. This letter enables them to apply for various benefits outlined in Section 5 of the Act, provided they meet the qualifying criteria. Mkhonza explained that the DMV can not comment on other departments' procedures but works with them across government to deliver benefits. 'As a coordinating department, we work with various other government departments at all spheres of government in rolling out benefits. Each department may then have its criteria on how to go about issuing benefits to individuals specifically earmarked as military veterans. The DMV cannot speak on processes followed by other departments, such as the SACR.' The Star's attempts to get a comment from SACR were unsuccessful. We had not received a response by publication time. The Star
The Citizen
25-06-2025
- Business
- The Citizen
SIU recovers R6 billion through investigations but remains underfunded
The SIU clawed back R6.6 billion over the past six years while maintaining operational costs of R5.2 billion. The portfolio committee on justice and constitutional development has expressed serious concerns about the severe underfunding plaguing two of South Africa's most crucial law enforcement and legal assistance entities. It warned that budget constraints are undermining their ability to serve the public effectively. During Tuesday's parliamentary session, committee members received troubling briefings from both the Special Investigating Unit and Legal Aid SA regarding their annual performance plans and budgets for the 2025-26 financial year, revealing a funding crisis that threatens the very foundations of these institutions' operations. SIU faces mounting pressure despite strong recovery record The Special Investigating Unit (SIU) has been operating under increasingly strained circumstances, with demand for its anti-corruption services skyrocketing while resources remain stagnant. The committee, during the meeting, heard that over the past nine years, proclamations requiring SIU intervention surged by 52%. These figures are contradictory to the unit's staff complement, which grew by a mere 6.5% during the same period. However, the committee's media officer, Rajaa Azzakani said despite these constraints, the SIU has demonstrated effectiveness in recovering funds for the state. The unit informed the committee that it had clawed back R6.6 billion in the past six years while maintaining operational costs of R5.2 billion. However, this success story is overshadowed by declining grant funding that threatens future operations. 'SIU's grant income in 2025-26 is R459 860 000, with R481 157 000 estimated for 2026-27, less than R489 839 000 it received in 2023-24, despite the SIU having grown and recovered more funds for the government,' said Azzakani. This reduction comes at a time when the SIU has expanded its operations and increased its recovery rates for government coffers. Committee Chairperson Xola Nqola acknowledged the critical nature of the situation, stating: 'Both have suffered from underfunding or budget cuts. 'The committee will engage with all necessary to see how we better finance entities that are doing excellent and important work, but whose work is being hampered due to funding constraints.' ALSO READ: SIU blocks R3.3 million pension payout of former Gauteng HOD Outstanding debts hamper operations The SIU's financial challenges are compounded by a staggering R1.2 billion in outstanding invoices as of March 2025. Provincial government departments account for the largest portion of this debt, owing R358.3 million or 30% of the total. 'Meanwhile, public entities owed the SIU 29% or R358 200 000, while national government departments owe 23% or R275 817 000,' Azzakani added. To address this debt crisis, the SIU has launched Project Khokhela, a targeted debt recovery initiative, 'with the aim of instituting a targeted approach to debt recovery'. The unit issued formal demand letters to the top 20 state institutions with the longest outstanding debts, with ministers' offices assisting in the distribution process. It further stated that the SIU expressed optimism that settlements will be reached in the coming months. Expansion plans threatened by resource constraints The SIU's ambitious plans to expand its workforce to meet growing demands face significant obstacles due to funding limitations. The unit estimated that it needs at least 1 000 officials to handle incoming work from increased proclamations, with the Estimates of National Expenditure budgeting for 1,100 officials. However, without an additional R250 million annually, the SIU lacks the resources to fund this essential growth. The unit is also developing a permanent structure for lifestyle audits, including the procurement of comprehensive analytical tools aimed at enhancing fraud and corruption prevention and detection capabilities. This initiative represents a shift toward making lifestyle audits a cornerstone of risk management strategies. ALSO READ: 'War on Leaks' programme: SIU reveals R2.2bn budget balloons to over R4bn Funding model requires urgent overhaul SIU officials emphasised that the organisation's financial stability hinges on a complete revision of its funding model to accommodate the increasing number of proclamations. Securing additional funding from the national treasury and amending the SIU Act in consultation with the Minister of Finance have been identified as crucial steps for ensuring long-term sustainability. Nqola supported this position, declaring: 'To strengthen the SIU, we must solidify the SIU Act. We need to establish with the department how far is this process.' Legal Aid SA struggles with severe budget cuts Legal Aid SA faces its own funding nightmare, grappling with a devastating R239 million budget reduction for the 2025/26 financial year. The organisation's operational flexibility is severely limited, as salaries and related costs consume 80 percent of the budget, leaving cost containment measures to target only the remaining 20% allocated to operations. The organisation has been forced to implement staff rationalisation plans, including position freezes and delayed recruitment, to manage employee costs. However, these measures directly impact service delivery to clients and reduce operational capacity, ultimately limiting the number of people the entity can assist. ALSO READ: SIU and Transnet freeze R20 million in luxury assets amid fraud probe Rental costs add to financial pressure Legal Aid SA's financial woes are exacerbated by office accommodation leasing costs, where rental escalation rates consistently outpace the modest increases in budget allocations. This creates an unsustainable situation where fixed costs consume an ever-growing portion of the available budget. According to Legal Aid SA representatives, despite ongoing cost-cutting efforts, opportunities for additional savings have been largely exhausted. The organisation stressed the importance of aligning organisational targets with available resources to ensure it can meet service demands without overextending its capacity. Justice committee chair commits to advocacy Nqola emphasised the committee's recognition of Legal Aid SA's vital role in ensuring access to justice for vulnerable populations. 'Therefore, the committee should do everything in its power to ensure that they are better funded, as it speaks directly to the services they are able to render to those who cannot afford to pay for legal services,' he stated. WATCH: Justice Committee briefed by Legal Aid and SIU READ NEXT: Lottery corruption: SIU granted order against pension of former NLC official
