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The Citizen
5 days ago
- Business
- The Citizen
Household food basket shows food prices still increasing
While interest rates and fuel prices, as well as inflation, are lower, the picture for low-income consumers has not changed. The price of the household food basket for May shows that food prices for low-income consumers are still increasing despite the inflation rate slowing down. This means that low-income consumers can afford even less nutritious food. The household food basket is part of the Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group with the help of women who live in low-income communities where they shop at 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in Northern KwaZulu-Natal and Springbok in the Northern Cape. The average price of the household food basket, which contains 44 food items, was R5 466.59 in May and cost R46,29 (0.9%) more than in April and R136.29 (2.6%) more than in May 2024. A total of 33 of the food items cost more than a month ago, while the prices of the other 11 items deceased. Foods in the basket which increased in price in May 2025 by 5% or more, include: potatoes (7%), onions (23%), tea (5%), chicken feet (6%), carrots (8%), butternut (9%), spinach (5%), and peanut butter (5%). Food items that cost more were samp (2%), salt (2%), frozen chicken portions (2%), soup (2%), Maas (4%), beef liver (3%), beef (4%), wors (3%), fish (2%), cabbage (2%), Cremora (3%), bananas (2%), apples (2%), margarine (3%), polony (3%) and apricot jam (2%). The food items in the basket which decreased in price in May include rice (-5%), tomatoes (-9%), oranges (-23%), white sugar (-2%), full cream milk (-2%), green pepper (-2%) and tinned pilchards (-2%). ALSO READ: Steep increase in price of household food basket means more people will go hungry Household food basket cost more everywhere except in Springbok The average total price of the household food basket increased in Johannesburg (by R51), Durban (by R2.64), Cape Town (by R112.62), Pietermaritzburg (by R6.33) and Mtubatuba (by R87.51), while the price decreased in Springbok. The food basket decreased in price by R28.90. Statistics SA's latest Consumer Price Index for April 2025 shows that headline inflation was 2.8%, while food inflation was 3.3%, and the producer price index for March shows agriculture was at 2.4%. However, despite the lower inflation, low-income consumers are still struggling to afford enough food for their families. Workers who earn the National Minimum Wage of R28.79 per hour or R230.32 for an 8-hour day. In May, with 21 working days, the maximum wage for a general worker was R4 836.72. Black South African workers usually support four people on one wage, which means that, dispersed in a worker's family of four, the wage comes to R1 209.18 per person, far below the upper-bound poverty line of R1 634 per person per month. ALSO READ: Household food basket: prices drop, but not for core staple foods Low-income consumers cannot afford household food basket The average cost of a basic nutritional food basket for a family of four was R3 843.40 in May. Using Pietermaritzburg-based figures for electricity and transport and the average figure for a minimum nutritional basket of food for a family of four, the group calculates that electricity and transport (R2 722.97) take up 56.3% of a worker's wage. Mervyn Abrahams, programme coordinator for the group, points out that workers only buy food after setting aside money for transport and electricity, leaving R2 113.75 for food and everything else. 'This means that in May we calculate that workers' families underspent on food by a minimum of 45.0%, having R2 113.75 left over after paying for transport and electricity. And with food for the month costing R3 843.40, there is no possibility of a worker being able to afford enough nutritious food for her family. 'If she uses the entire R2 113.75 to buy food, it will provide R528.44 per person per month for a family of four, again far below the food poverty line of R796.' ALSO READ: Consumer Goods Council calls for urgent expansion of zero-rated foods No money for nutritious food for children in household food basket He says women and children are particularly vulnerable. In May, the average cost to feed a child a basic, nutritious diet was R979.66, with an increase of R6.41 (0.7%) from April and R25.07 (2.6%) compared to a year ago. In May, the Child Support Grant of R560 was 30% below the Food Poverty Line of R796 and 43% below the average cost to feed a child a basic, nutritious diet of R979.66. It is clear that there is simply no money to feed children in low-income communities a proper, nutritious diet.
Eyewitness News
13-05-2025
- Business
- Eyewitness News
AG concerned about NLC's handling of grant funding
CAPE TOWN - The auditor-general (AG) says it remains concerned about the way in which the National Lotteries Commission (NLC) handles grant funding, despite slight improvements in its audit outcome over 2024. On Tuesday, the office told Parliament's Standing Committee on Public Accounts (SCOPA) that grant beneficiaries had also been found wanting and unable to properly account for how they'd spent the money they'd received. The AG's office has flagged three material irregularities worth R46 million for this financial year. These include a failed sports complex project in Soweto and the incomplete construction of an old-age home in KwaZulu-Natal (KZN). The NLC has received two successive years of qualified audits. The AG's office said its own site visits had confirmed that the location of the intended Motheo sports complex in Soweto, for which the NLC paid out R6 million of a R9 million grant, was being used as a dumpsite. Senior audit manager, Aphendule Matiyane, said the commission was failing to conduct proper feasibility studies for projects that were applying for funding. "We also noted that the monitoring processes were haphazard and didn't cover the entire value chain and the processes." The AG's office has also found that the contractor for a R26 million old age home in KZN abandoned the partially constructed structure, which showed building defects. "In circumstances around infrastructure projects, they did not have the right skills and the capacity to be able to make those assessments." The projects are already under investigation by the Special Investigating Unit (SIU).
IOL News
09-05-2025
- Automotive
- IOL News
Is Nedbank guilty of reckless lending? A man's fight over a R484,000 car loan
A man who bought his car while he was employed on a short-term contract accused Motor Finance Corporation, a division of Nedbank Limited for reckless lending. A man who bought his car while he was employed on a short-term contract is accusing Motor Finance Corporation, a division of Nedbank Limited, for reckless lending. Milfort Maphuti Moloto bought a Hyundai H100 2.6D in March 2020 through Nedbank while he was employed on a 10-month contract. The collectable loan was over R484,000 and it was repayable in instalments over sixty months and had a balloon payment, which became payable immediately after the sixty months. The crux of Moloto's argument lies in the assertion that his financial situation at the time of the loan approval was not adequately considered by the bank. In his application, at the National Consumer Tribunal (NCT), Moloto alleged that since the overall collectable amount was over R484,000 and his total earnings for the 10 months were over R530,000; this left him with a net difference of at least R46,118. He further argued that the loan agreement was payable over seven years with a residual or balloon payment. From this, he said, it can be concluded that the granting of the loan amounted to reckless lending, particularly given his limited contractual employment duration.
IOL News
07-05-2025
- Business
- IOL News
Lucky Montana fights back against SARS's asset attachment claim
Former Prasa CEO and Member of Parliament Lucky Montana challenges SARS over R46 million tax claim. Image: David Ritchie/ Former Prasa CEO Lucky Montana has publicly challenged the SA Revenue Service's (SARS) application to attach his assets, claiming the tax claim against him is unfounded and politically motivated. The dispute revolves around an R46 million tax assessment SARS sought to recover from Montana. The tax authority's application, filed in the Pretoria High Court, also seeks to declare Montana insolvent. SARS alleges that Montana owes this amount in taxes, penalties, and interest from assessments dating back over a decade. The case is currently before the court, and the proceedings are expected to shed light on the validity of SARS's claims. Montana, the former CEO of the Passenger Rail Agency of SA (Prasa), vehemently denies owing money to SARS. In a detailed statement issued before Tuesday's court hearing, Montana described the case as a 'personal attack' aimed at humiliating him. 'I don't owe SARS,' Montana declared firmly. 'This matter is aimed at humiliating me and tarnishing my reputation just before the court hearing.' 'The truth is, this case goes back to 2018. The papers in this specific leg of the SARS application are from May 2023, but I want it to be clear—I owe no outstanding amounts to SARS, and I will not be paying SARS any money.' Montana recounts that in 2018, SARS initially contacted him regarding an outstanding tax amount of R1.6 million, which he agreed to pay. 'I informed SARS that I was in the middle of a property sale and would settle the amount once the transfer was complete. I later paid R1.49 million from the proceeds of that sale,' he said. Following this, he said SARS conducted a decade-long retrospective assessment (2009-2019), claiming Montana had undeclared income of R23 million. 'SARS claimed I owed roughly R8 million, but I have made it clear I do not owe them this,' Montana emphasised. 'I have objected to the assessment and believe their calculations are incorrect. I have evidence and legal advice to support my position.' Montana criticised SARS for 'vindictive' actions, including raising taxes on six vehicles financed through hire purchase, which he argues was inconsistent with tax principles. 'SARS said the funds to settle these vehicles did not originate from my account. But standard practice is that dealership settlements are routine, and my legal advisors say SARS's treatment of this is incorrect,' he stated. 'Some of my vehicles were financed and sold at a loss, which should not result in additional tax liabilities.' He also pointed out that SARS targeted him during periods when he was unemployed. 'I understand my tax obligations, and I pay taxes when legally required to,' he declared. 'But this case is not about tax; it's about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.' He firmly stated, 'I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.' Furthermore, he emphasised his commitment to lawful compliance. 'I understand my tax obligations, and I pay taxes when legally required to,' he declared. 'But this case is not about tax; it's about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.' He firmly stated, 'I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.' Cape Argus
IOL News
06-05-2025
- Business
- IOL News
Former Prasa CEO Lucky Montana defends against SARS asset attachment
Former Prasa CEO and Member of Parliament Lucky Montana challenges SARS over R46 million tax claim. Image: David Ritchie/ Former Prasa CEO Lucky Montana and Member of Parliament has publicly challenged the South African Revenue Service's (SARS) application to attach his assets, claiming the tax claim against him is unfounded and politically motivated. The dispute revolves around an R46 million tax assessment SARS sought to recover from Montana. The tax authority's application, filed in the Pretoria High Court, also seeks to declare Montana insolvent. SARS alleges that Montana owes this amount in taxes, penalties, and interest from assessments dating back over a decade. The case is currently before the court, and the proceedings are expected to shed light on the validity of SARS's claims. Montana's Defence and Public Statement Montana, who served as the CEO of the Passenger Rail Agency of South Africa (Prasa), vehemently denies that he owes SARS any money. In a detailed statement issued before Tuesday's court hearing, Montana described the case as a 'personal attack' aimed at humiliating him. 'I don't owe SARS,' Montana declared firmly. 'This matter is aimed at humiliating me and tarnishing my reputation just before the court hearing.' 'The truth is, this case goes back to 2018. The papers in this specific leg of the SARS application are from May 2023, but I want it to be clear—I owe no outstanding amounts to SARS, and I will not be paying SARS any money.' Key Points in Montana's Response Historical Context: Montana recounts that in 2018, SARS initially contacted him regarding an outstanding tax amount of R1.6 million, which he agreed to pay. 'I informed SARS that I was in the middle of a property sale and would settle the amount once the transfer was complete. I later paid R1.49 million from the proceeds of that sale,' he explained. Disputes Over Assessments: Following this, he stated that SARS conducted a decade-long retrospective assessment (2009-2019), claiming Montana had undeclared income of R23 million. 'SARS claimed I owed roughly R8 million, but I have made it clear I do not owe them this,' Montana emphasised. 'I have objected to the assessment and believe their calculations are incorrect. I have evidence and legal advice to support my position.' 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 ✕ Alleged SARS Overreach Montana criticised SARS for 'vindictive' actions, including raising taxes on six vehicles financed through hire purchase, which he argues was inconsistent with tax principles. 'SARS said the funds to settle these vehicles did not originate from my account. But standard practice is that dealership settlements are routine, and my legal advisors say SARS's treatment of this is incorrect,' he stated. 'Some of my vehicles were financed and sold at a loss, which should not result in additional tax liabilities.' He also pointed out that SARS targeted him during periods when he was unemployed. 'Between 2016 and 2024, I was not earning an income, yet SARS assessed me as if I was still earning at the CEO level. I told them this directly, both in writing and in meetings,' Montana asserted. Legal Actions and Court Proceedings Montana recounted that SARS obtained a default judgment of R46 million against him 'without properly serving me or giving me a fair chance to defend myself.' He said, 'I have consistently rejected this default judgment and reserved my rights to challenge it. How the judges of the Tax Court allowed such an injustice to pass is beyond me.' Montana questioned how SARS intends to recover the alleged R52 million. 'I do not have assets or funds to pay such an amount,' he said. 'The assets SARS is targeting do not even come close to covering what they claim I owe. This is more about humiliating me than recovering taxes.' Montana's Broader Perspective Montana emphasised his commitment to lawful compliance. 'I understand my tax obligations, and I pay taxes when legally required to,' he declared. 'But this case is not about tax; it's about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.' He firmly stated, 'I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.'
