Latest news with #R63bn
IOL News
6 days ago
- Business
- IOL News
Political stability essential for Durban's ambitious targets, says Mayor Xaba
eThekwini Mayor Cyril Xaba has called for political stability at an administrative level; otherwise, the city will not be able to achieve its targets. Image: Independent Media Archives eThekwini Mayor Cyril Xaba has called for political stability at an administrative level; otherwise, the city will not be able to achieve its targets Xaba was unpacking the budget for the 2025/2026 financial year at a business breakfast held in Durban on Wednesday. The municipality has a R70 billion budget, which is made up of an operating budget of R63bn and a capital budget of R7bn. Xaba also spoke of the water and sanitation turnaround strategy, which has been adopted by the council and approved by the National Treasury. He said the electricity unit is also undergoing the same process, and will be followed by the Cleansing and Solid Waste Unit (CSW). 'The ultimate goal of these reforms is to have self-contained utilities that are able to render these basic services in the most effective and efficient manner,' Xaba said. Xaba, who had outlined multimillion-rand investments in the city, called for a collective effort from all stakeholders for the city to reach its targets. Addressing the guests and municipal management, and looking towards city manager Musa Mbhele, Xaba said: 'The city will not be able to achieve all of these things under the administration you lead, city manager (Musa Mbhele), there are upheavals.' Looking towards Mbhele, Xaba added: 'We need your team to cooperate with you to deliver on these achievements, and for me as the political head, it is to ensure that there is political stability in the city.' Xaba went on to say that politics and business are two sides of the same coin. He then used the French expression "tête-à-tête" which means "head to head", but in English, it refers to a private conversation between two people. During the previous budget consultations, businesses raised concerns about the unaffordability of tariffs as they exceed inflation, which negatively impacts the cost of doing business in the city and service delivery. Xaba said the consultative process was not just a box-ticking exercise, but a genuine effort to deliver a budget for all eThekwini residents. The tariff increases for the 2025/2026 financial year are as follows: Domestic water tariff: +13%, Water tariff for business: +14%. The average property rates: +5.9%. Domestic and business refuse removal: +9% Electricity: +12.72% Bishop Vusi Dube, of eThekwini Community Church (ECC), said the interfaith structures can play a role in the city with moral regeneration, which also seeks to address drug abuse and homelessness. Other speakers were concerned about community health centres, crime, undocumented people in the inner city, and water issues. Xaba acknowledged that a great deal must be done to revive the city centre and briefed guests about the implementation of the inner city regeneration programme. 'Through this bold initiative, we want to improve public safety, address the challenge of homelessness – eradicating bad buildings, upgrading public realms, patching potholes, and ensuring that streetlights are on.'
Zawya
30-05-2025
- Business
- Zawya
South Africa's infrastructure crippled: Can ISO 37001 fight back against the construction mafia?
Criminal syndicates known as the construction mafia have crippled South Africa's infrastructure sector, hijacking more than 180 projects and inflicting an estimated R63bn in economic losses, according to the National Treasury. Operating under the guise of community forums, these groups use intimidation, extortion, and violence to secure a foothold in government tenders and construction contracts. While law enforcement has begun to respond, 745 extortion cases have been reported, and 240 arrests have been made since November 2024. Public Works and Infrastructure Minister Dean Macpherson admits that this is only the beginning. "We are turning the tide," he said recently, but warned that corruption remains deeply entrenched in procurement systems and local government supply chains. Against this backdrop, experts at WWISE (Worldwide Industrial and Systems Engineers) are calling for the widespread adoption of ISO 37001, a tool they believe could play a critical role in fortifying the sector from within. 'This may be South Africa's last line of defence if we want to build infrastructure without bribery or intimidation,' says Muhammad Ali, managing director at WWISE. 'ISO 37001 helps organisations embed ethical conduct into every stage of a project, from procurement to execution, making it harder for criminal networks to manipulate the system.' Global anti-bribery benchmark ISO 37001 is not just a policy; it's a globally recognised standard, or in other words, a formalised, best-practice framework developed by international experts to help organisations detect and prevent bribery. As a standard, ISO 37001 establishes a uniform, auditable benchmark for anti-bribery management across industries, enabling companies and governments to foster transparency, demonstrate accountability, and safeguard their reputations. 'The standard requires top-level leadership commitment, risk assessments, strict financial controls, and confidential reporting systems,' explains Ali. 'It doesn't just help companies avoid corruption, it actively reshapes their culture.' Corruption in the construction industry not only inflates costs but also endangers lives. Ali notes that criminal infiltration has led to shutdowns, missed milestones, and Service Level Agreement (SLA) penalties. 'We've seen cases where construction mafia threats delayed entire projects, with local authorities often turning a blind eye, or worse, getting a cut,' he says. Unchecked hiring hazards Van Zyl Krause, technical specialist at WWISE, warns that companies often feel forced to hire unqualified labour to avoid conflict. 'These so-called 'community contractors' are often unregistered, uninsured, and unsafe,' Krause says. 'That puts the principal contractor and everyone on site at risk, while forcing them to spend even more on private security.' ISO 37001 offers practical safeguards. It ensures that tender documents are traceable and auditable. It enforces ethical vetting of suppliers and enshrines whistleblower protection through encrypted systems. 'You can't bribe your way into a tender process governed by ISO 37001,' says Ali. Yet adoption of the standard remains frustratingly limited. 'Most construction companies in South Africa haven't implemented it,' Krause says. 'The only time we see ISO 37001 considered is when international investors require it.' Ali adds that public-sector resistance is particularly troubling. 'The fear is that ISO 37001 will expose misconduct,' he says. 'But that's the point. The excuses, 'too complex', 'too bureaucratic', don't hold water. This standard can be adapted to any organisation.' He points to a compelling case in Iraq, where a security company under attack from corrupt government officials used ISO 37001 to clear its name. 'The audits exposed the wrongdoing, and the officials were jailed. That's the power of a strong, standardised anti-bribery framework.' For smaller contractors, who are often the most vulnerable to extortion, ISO 37001 can provide an essential shield if supported by law enforcement. 'The problem may not be with the company,' Ali warns, 'but when it needs support, the authorities often fall short.' Standards drive reform WWISE urges companies to begin their journey with a Gap Assessment to identify risk areas, followed by a structured implementation process that includes internal training, documentation development, internal audits, and certification. 'This isn't a checkbox exercise,' says Ali. 'It's a roadmap to ethical business.' With billions at stake and a growing list of sabotaged projects, it's clear that arrests alone won't be enough. As Minister Macpherson rallies law enforcement, experts say South Africa must also rebuild its infrastructure sector from the inside out, with internationally recognised standards, such as ISO 37001, leading the way. 'If we don't change how we build,' says Ali, 'we'll keep rebuilding what criminals destroy.'
