Latest news with #RoadAccidentFund
TimesLIVE
5 days ago
- Business
- TimesLIVE
EFF takes fuel levy increase to court after budget 3.0
The EFF has launched a court challenge to the fuel levy increase introduced by the budget 3.0. In his third attempt at tabling the budget, finance minister Enoch Godongwana increased the fuel levy by 16 c/l and 15 c/l on petrol and diesel respectively. The levy is expected to kick in on June 4. The increase was seen by many as a replacement for the VAT hike that was rejected. However, experts have argued the fuel levy increase was meant to cover the more than R5bn intended for the Road Accident Fund which they say has not been receiving funding in the past three years. The EFF on Thursday said it was interdicting the fuel levy increase after attempts to get Godongwana to reconsider this were ineffective. 'We took this action after repeated efforts to caution the minister and appeals to his conscience failed. We wrote to the minister, urging him to consider the effect of this increase on the poor and working-class people, especially as the cost-of-living crisis is deepening,' the EFF said. 'We also reminded him that, like the VAT increase, raising the fuel levy without introducing a proper money bill is unlawful and undermines parliamentary oversight.'
The Citizen
5 days ago
- Business
- The Citizen
Special leave for Road Accident Fund CEO as SIU investigates
Road Accident Fund (RAF) CEO Collins Letsoalo has been placed on special leave with immediate effect. In a statement, the Department of Transport said Deputy Minister Mkhuleko Hlengwa, as the delegated shareholder representative, had been informed by the RAF board of Letsoalo's special leave. The decision was made at a special meeting on Tuesday. 'The CEO will be on special leave until the conclusion of the relevant investigations by the Special Investigations Unit, or such earlier date as the board may determine. The board has indicated that this is a precautionary measure and does not constitute disciplinary action or presumption of guilt,' said the department yesterday. According to the statement, the decision was taken solely in the interest of good governance and as a precautionary step to facilitate ongoing investigative processes. 'It does not imply any prejudgment or adverse finding against the CEO. In making this decision, it must be noted that the board exercised its fiduciary duties in terms of the Road Accident Fund Act 56 of 1996, the Public Finance Management Act 1 of 1999, and in alignment with the principles of good governance as set out in King IV.' Meanwhile, Phathutshedzo Lukhwareni will serve as the acting CEO to ensure continuity of operations. The deputy minister has directed that the matter be placed on the agenda for the board meeting he has called for June 9. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
5 days ago
- Business
- IOL News
Pray for entrepreneurs: the devil is in the details
Finance Minister Enoch Godongwana's Budget 3.0 may have spared us a VAT hike curse, but he unleashed a slow poison in the form of a 4% inflation-linked increase in the fuel levy, the writer says. Image: Picture: IOL Finance Minister Enoch Godongwana's Budget 3.0 may have spared us a VAT hike curse. Still, he did unleash a slow poison in the form of a 4% inflation-linked increase in the fuel levy, adding 16 cents per litre on petrol and 15 cents on diesel, effective from 4 June 2025. Small businesses that dodged the blue 'VAT devil' now face a red 'fuel-levy demon' pushing up transport and input costs, squeezing already razor-thin margins. Between a VAT hike that would have been a broad-based bite or a fuel levy that's a sneaky surcharge on every wheel that turns, entrepreneurs must decide which monster stings less—and learn to sidestep whichever serpent gets under their bonnets. The last time South Africans danced to 'the devil made me do it' was during the 2021 budget speech, cooked by the late Finance Minister, Tito Mboweni. On that fateful day, fuel levies were increased by 27 cents per litre- comprising 15 cents for the general fuel levy, 11 cents for the Road Accident Fund levy, and 1 cent for the carbon fuel levy. 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 I won't bore you with the political mixed reactions of that time, which amounted to nothing more than hot air- without even a hint of Nando's aroma. Even the term 'small business' appeared only once in a 23-page budget speech document, where it was noted that the Department of Small Business Development has allocated R4 billion over the medium term to township and rural enterprise development, including blended finance initiatives. Only the devil knows who bewitched South African small businesses to remain an invisible, tiny dot -in the corridors of power. Once again, if we take a step back to the 2020 budget speech crafted by the late Minister Tito Mboweni, the ghost of the fuel levy appeared mysteriously much like his famously unusual 'tin fish' cooking times. (R.I.P. Chef Tito, we miss you). In that 2020 budget speech, the fuel levy increased by 25 cents per litre, with 16 cents going to the general fuel levy and 9 cents to the Road Accident Fund levy. I'm not against the experts' sentiment that the scope of fuel primarily relates to transport-related costs, while VAT is broad-based, covering all goods and services. However, the Finance Ministers' budgets from 2020, 2021, and now in 2025 have been 'hacking' small business pockets with sneaky fuel levies. South Africa's small-business battleground is quietly becoming a tax buffet. For SMMEs that earn a living out of an already slim profit margin, these charges are like tiny termites taking a bite from every rand of hard-won revenue. What looks like a humble R0.16/L extra at the pump is a profit drain for township SMMEs. Every extra penny on fuel will be etched in every invoice that lands in the mailboxes of small businesses. Logistics companies, where fuel accounts for 40% of costs, could see operating expenses rise, further eroding their razor-thin margins. Retailers and service providers who depend on delivery services now face a choice: absorb the cost or pass it on to customers, risking churn in a price-sensitive market. Taxi commuters will also feel the pinch, as it is one of the few industries where fare discounts offer a rare sanctuary. The budget speech resembles a spiritual brawl in Bushiri's church arena, where the worshipers spared from the curse are those who hope and learn to pray, 'go deeper Papa,' because the devil is in the details of every budget tweak. To survive, savvy small business owners must incorporate these extra levies into their pricing, tighten logistics, embrace technology, and get creative on how to manage the levy vampire—at least until the next budget brawl. Bongani Ntombela is an executive: programmes at 22 On Sloane. Bongani Ntombela is the Programmes Director at 22 On Sloane, Africa's Largest Entrepreneurship Campus. Image: Supplied BUSINESS REPORT Visit:
The Herald
5 days ago
- Business
- The Herald
DA welcomes RAF CEO Collins Letsoalo's placement on special leave
The placement of Road Accident Fund CEO Collins Letsoalo on precautionary leave is a long-overdue but necessary step to ensure that the Special Investigating Unit (SIU) can conduct its preliminary investigation without interference or influence, the DA said on Wednesday. The transport department said the decision was in the interest of good governance and a precautionary step to facilitate ongoing investigative processes. 'It does not imply any prejudgment or adverse finding against the CEO.' The DA said Letsoalo's temporary removal from office must facilitate full transparency and accountability, particularly in light of serious allegations concerning the RAF's governance failures, financial mismanagement and possible misconduct. Briefing the standing committee on public accounts (Scopa) last month, the SIU said it had experienced a lack of co-operation from the RAF in its investigation into the affairs of the entity. 'There were instances where the SIU had to resort to opening a criminal case against a RAF executive for failure to adhere to a lawful subpoena issued by the SIU in terms of the SIU Act,' SIU head Any Mothibi said last month. The DA said the ministry of transport's support for the decision to place Letsoalo on leave must be followed by full co-operation with Scopa and law enforcement agencies. 'The precautionary suspension of the CEO is just the beginning. The DA will not rest until justice and good governance are restored at the RAF.' TimesLIVE
IOL News
5 days ago
- Business
- IOL News
Suspended Road Accident Fund boss tight-lipped over allegations of interference
Road Accident Fund CEO has been place on a special leave amid an ongoing investigation. Image: Sapa ALLEGATIONS of possible interference by executives and staff in an investigation into a controversial R79 million lease deal led to the suspension of Road Accident Fund's chief executive officer Collins Letsoalo, says the fund. Letsoalo, whose term expires in August, will still receive his salary and other benefits. The Special Investigations Unit (SIU) is currently investigating the RAF for alleged corruption and maladministration. Letsoalo has been implicated in several allegations of financial mismanagement and corruption, primarily centered around a controversial R79 million lease deal for the RAF's office in Johannesburg. The SIU preliminary report alleges that Letsoalo interfered with the procurement processes by overturning the bid committee's decision to favour property management company Mowana Properties, which ultimately secured the contract. The allegations were extended beyond the lease to include irregularities in other RAF contracts such as a R19m cleaning and security contract that was irregularly extended over six years, as well as R313m backlog project that was unlawfully awarded with inflated costs. Transport Deputy Minister Mkhuleko Hlengwa said the decision against Letsoalo was taken by the RAF board during a meeting. Hlengwa announced the suspension during a Standing Committee on Public Accounts meeting on Wednesday, where the RAF was expected to give an update on the SIU investigation. Hlengwa said this was a precautionary measure and did not constitute disciplinary action. He said the board exercised its fiduciary duties in terms of the Road Accident Fund Act, 56 of 1996, the Public Finance Management Act, 1 of 1999, and in alignment with the principles of good governance as set out in King IV. Hlengwa added that the decisions did not imply any prejudgement or adverse finding against Letsoalo. 'The special leave arrangement will remain in place until the conclusion of the relevant investigations by the SIU, or such earlier date as the board may determine. The board will review the situation on a monthly basis and communicate the updates,' said Hlongwa. He said that during this period, Phathutshdzu Lukhwareni will serve as acting CEO to ensure operational continuity. Hlengwa added that, as the shareholder, the Department of Transport Ministry supports the decision that the RAF board has taken and believes it was in the collective interests of the investigation, particularly as it is in the final stages. Scopa is in possession of the SIU's preliminary report. He said the Transport Ministry has not been briefed by the SIU on matters related to the investigation. 'We do not have the opportunity to engage the SIU either and therefore we do not have the benefits of the committee's perspective on matters related to the investigation, " said Hlengwa. RAF board chairperson, Zanele Francois, said alleged interference by executives and staff was the reason the board believes Letsoalo must be placed on special leave. 'The board is taking this very seriously, which is why we believe Mr Letsoalo must be distanced from the process while it runs its course,' she said. 'We felt it was necessary to give him time off to address personal conflicts related to this process, to reflect on his role, and to ensure the organisation is not brought into disrepute. The board also needs to show its support for parliamentary oversight structures,' she said, adding that the board was in communication with the SIU and would meet the unit in June as part of the ongoing investigation. Cape Times
