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The Citizen
4 days ago
- The Citizen
Prisoners and ghosts claim overtime: meet SA's worst-run province
Among those claiming overtime are ghost workers and prisoners. The Free State has been named the worst-run province in South Africa by the auditor-general (AG) due to its underperforming 16 municipalities plagued by poor financial reporting, non-compliance with legislation and deteriorating infrastructure. The cooperative governance and traditional affairs (Cogta) portfolio committee heard that things are not improving in the province, but instead are worsening. The committee, led by Dr Zweli Mkhize, held an oversight visit in the province in late July, which revealed that urgent intervention by national and provincial authorities is needed. Municipalities in the province fail to give residents quality service delivery due to corruption, mismanagement and bloated staff. ALSO READ: Government intervention worsened Mangaung municipality crisis, but recovery underway — mayor Staff taking overtime The committee found maladministration includes irregular appointments, unpaid Eskom bills and deceased individuals claiming overtime. At the centre of staff claiming overtime is the Mangaung metro municipality, headquartered in Bloemfontein. Sello More, Mangaung city manager, revealed that the metro spent R39 million on overtime in the 2023/24 financial year. Some employees were found to have worked up to 120 hours overtime a month. Among those claiming overtime are ghost workers and prisoners. However, More said the metro has implemented a system that will cap or minimise overtime by staff. Internal investigation about overtime Gregory Nthatisi, Mangaung mayor, said investigations revealed that there were employees in the upper echelons of the municipality who approved people who were not even in the Free State, who were not employed by the municipality and some who were in jail to receive a salary, including overtime. He assured that disciplinary action had been taken against those implicated by the investigation. Nthatisi says he has faith the new system will work successfully to reduce overtime abuse, but there might be challenges with the system, as it is still new. The committee were told that staff issues, including employee shortages, equipment shortages and other problems significantly affect service delivery for the metro. However, R61 million has been set aside to fill vacant positions. ALSO READ: Municipalities: It's time to hold mayors to account – AG Issues in the province The AG's Consolidated General Report on Local Government Audit Outcomes for 2023/24 named Free State as the worst-run province, followed by Northern Cape and North West. Things have worsened in the province, as the AG noted that six municipalities failed to submit their financial statements for the 2023/2024 financial year, an increase from four in the previous year. However, not one of the municipalities in the province received a clean audit. Making matters worse, performance reports from 13 municipalities in the province were deemed unreliable. Eskom debt in the province decreased from R6.47 billion to R6.22 billion. However, the AG highlighted this was mainly due to Eskom's debt-relief programme. Recipe for disaster Professor Daniel Meyer, from the University of Johannesburg's School of Public Management, told Newzroom Afrika the report found that 16 municipalities in the province had unfunded budgets, meaning they budgeted without having the income to back it up. 'That is a recipe for overspending and deepening debt.' Commenting on the province's debt level, he believes Matjhabeng municipality will never recover from the more than R8 billion debt it is in. Meyer said that the root of the problem lies in the absence of accountability. 'There's overtime being paid well above what labour regulations allow. In Mafube, the municipality collects pension contributions but doesn't pay them out to workers who retire. That's financial misconduct on another level.' NOW READ: Mangaung municipality in spending crisis after exceeding budget
News24
18-07-2025
- News24
Suspected syndicate behind attacks on workers, says Eastern Cape transport department
Following a series of attacks on contractors fixing roads, the Eastern Cape Department of Transport suspects that a syndicate is targeting workers and taking their equipment. 'There seems to be a syndicate targeting the department's yellow fleet used by our in-house teams to maintain and repair mainly rural roads,' spokesperson Unathi Binqose said. He added that the attacks were 'making it difficult for the Eastern Cape Department of Transport to execute its mandate'. 'The most recent of these attacks occurred on the R61, where our team of road workers had to run for their lives as gunshots were fired at the crane truck they were travelling in. The team was driving to Komani after attending to some potholes on the R408 between Engcobo and Dutywa.' The team was forced to abandon the truck, which was damaged when a bullet hit one of its engine components, and flee to a nearby village. READ | Approximately 15 people murdered every day in Eastern Cape in 2024, crime statistics show The vehicle was later towed to the Cofimvaba police station. 'This is the third attempted hijack of the yellow fleet in just over a month,' he added. Earlier this week, a tipper truck was stolen. It was later recovered in Elliotdale in the Amathole district. News24 previously reported that a group of armed men robbed provincial transport department construction workers last month. The workers had been sent to repair a flood-damaged road in Cala in the Chris Hani district of the Eastern Cape. Transport MEC Xolile Nqatha said a bakkie driven by a group of armed balaclava-clad men approached the workers while they were working at a quarry. The men tied them up, demanded keys to their bakkie, and removed several tyres from their tipper truck. They loaded them onto the stolen bakkie, and both bakkies sped off, leaving the crew stranded but unharmed, Nqatha added. The incident occurred days after Gift of the Givers Foundation aid workers were intimidated while providing essential aid to flood victims in Mthatha. According to the OR Tambo District Municipality, the workers were threatened by people who demanded that they stop supporting hundreds of residents displaced by recent flooding in the province.
IOL News
02-07-2025
- Business
- IOL News
South Africa's agricultural sector shows resilience with 15. 8% growth in Q1 2025
South Africa's agricultural sector remains one of the few areas of the economy to consistently generate jobs and income. Image: Nicola Mawson In a time of economic uncertainty, South Africa's agricultural sector has emerged as a beacon of hope, recording a remarkable growth of 15.8% in the first quarter of 2025. This impressive performance has not only added 0.4 percentage points to the country's overall GDP growth but has also starkly contrasted with declines in critical sectors such as manufacturing, mining, electricity, and construction. The surge in agricultural output is primarily driven by increased activity in the horticulture and animal products sectors, underscoring the stabilising role agriculture plays during economic downturns. The National Agricultural Marketing Council (NAMC) said as the agricultural sector flourishes, South African agricultural exports have also seen a significant uplift, climbing by 6% from the previous quarter and an impressive 10% year-on-year, culminating in a value of US$3.35 billion (R61 billion). This growth has been significantly bolstered by the rising demand for horticultural and grain commodities, including grapes, maize, and apples. Notably, the international demand for South African animal products remains robust, with bovine meat exports soaring by 31% compared to the previous year, despite ongoing biosecurity challenges. The importance of this agricultural growth extends beyond mere statistics; it plays a critical role in poverty alleviation, particularly in low-income areas. Research indicates that growth in the agricultural sector can triple the potential reduction of poverty compared to growth in other sectors. In South Africa, agriculture supports approximately 956,000 jobs, with the broader agriculture and agro-processing industry employing an estimated 1.199 million people—surpassing the ambitious target set by the Agriculture and Agro-processing Master Plan (AAMP). 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 ✕ South Africa's agricultural sector has emerged as a beacon of hope, recording a remarkable growth of 15.8% in the first quarter of 2025. Image: Supplied However, this promising trajectory is not without its challenges. The recent hike in fuel levies, which increased petrol and diesel levies by 16 and 15 cents per litre respectively, poses a significant threat to the agricultural sector's growth. The government anticipates raising an additional R20 billion in tax revenue with this move, positioned as a strategic alternative to raising the value-added tax (VAT). Yet, for farmers, this hike represents increased input costs, particularly critical for an industry where fuel accounts for about 13% of variable costs in primary production and agri-logistics. The timing of the fuel levy increase, alongside soaring electricity tariffs, has stifled the benefits of concurrent global oil price reductions. Agricultural producers, heavily reliant on energy-intensive processes, are now grappling with rising costs that impact not only transportation and machinery operations but also the affordability of basic food items for consumers, particularly in lower-income households. However the NAMC, said the cascading effects of the fuel levy increase may lead producers to limit output or shift to less fuel-dependent practices, further exacerbating the food supply challenges faced by marginalised agrarian households. It said concerns are mounting that the rising prices will render staple food items less accessible for vulnerable populations, potentially reversing the gains made in poverty alleviation. "To counteract these adverse effects, several proactive measures are being suggested. First, enhancing the existing diesel fuel rebate scheme could ensure more inclusive access for smallholder and emerging farmers, leveraging their economic potential. Secondly, investments in rural transport infrastructure, alongside promoting alternative energy sources such as solar-powered irrigation and electric farming machinery, could fortify the sector's resilience against fuel price volatility. Finally, fostering collaborative efforts among the government, farmer organisations, and agribusiness stakeholders under the AAMP will be key in formulating adaptive policies that alleviate the inflationary challenges posed by the fuel levy. Such initiatives will not only secure food for low-income households but also advance the sustainability of the agricultural landscape in South Africa. While the agricultural sector in South Africa showcases remarkable growth and potential, it is imperative to address the challenges posed by rising costs and external pressures. By investing in infrastructure, supporting smallholder farmers, and fostering collaboration, South Africa can ensure that its agricultural sector continues to thrive, providing food security and economic stability for its citizens.
The South African
26-06-2025
- Business
- The South African
Here's the best financial news in 16 years for South Africa
South Africa has achieved its first consecutive primary budget surplus in over a decade and a half, underscoring a renewed national commitment to fiscal responsibility amidst global economic uncertainty. According to the South African Reserve Bank's latest Quarterly Bulletin, the country posted a primary surplus of R48.9 billion – or 0.7% of GDP – for the 2024/25 fiscal year, matching the National Treasury's May forecast. This marks a significant improvement from the R33 billion surplus recorded in the previous fiscal year. A primary surplus occurs when government revenue exceeds non-interest spending, and it is widely seen as a crucial indicator of fiscal health. The result falls short of an earlier R61 billion projection, but still represents meaningful progress in budget discipline. The primary surplus was driven by an R83.4 billion rise in total revenue, pushing collections to R1.8 trillion. According to the Reserve Bank, this was supported by strong performance across all major tax categories. 'This surplus is a testament to improved revenue collection and expenditure control,' the central bank noted. The National Treasury expects the primary surplus to continue growing over the next three years, with hopes that this will stabilise the debt-to-GDP ratio at 77.4% by 2025/26 – a higher level than previously forecast, largely due to slower growth stemming from global geopolitical pressures, including lingering impacts from US President Donald Trump's trade policies. Debt servicing costs remain high, consuming 22 cents of every rand, Treasury Director General Duncan Pieterse warned in a recent opinion piece. However, he noted that sustained surpluses could gradually reduce this burden and free up resources for essential services like education, health, and public safety. The news comes as a boost for South Africa's new Government of National Unity, which presented its first full-year budget after prolonged coalition negotiations. Investors are expected to respond positively, especially given that concerns over South Africa's debt trajectory have long kept local assets trading at a premium. 'This achievement strengthens our fiscal anchor and helps restore market confidence,' Treasury officials stated, pointing to the primary budget balance as the country's main fiscal guidepost since 2021. With another surplus under its belt, South Africa takes a cautious, but critical step forward in securing long-term economic stability. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
eNCA
11-06-2025
- Business
- eNCA
KZN municipal debt tops R61-billion
DURBAN - South Africa's local municipalities are in trouble and the numbers are staggering. READ: No threat of City Power debt cutoffs by Eskom The South African Local Government Association is sounding the alarm over ballooning municipal debt in KwaZulu-Natal, which has now surpassed R61 billion. With households, businesses, and even government departments failing to pay up, the very foundation of service delivery is under threat. Municipalities are being forced to borrow just to stay afloat a warning sign SALGA says cannot be ignored. Lerato Phasha from SALGA's Municipal Finance division discussed this with eNCA.
