Latest news with #SuppliedBaneleGinidza
IOL News
09-07-2025
- Business
- IOL News
Government will fine-tune electrification programmes amidst R13bn budget
Minister for Electricity and Energy, Kgosientso Ramokgopa presented the department's Budget Vote in Parliament on Wednesday. Image: Supplied Banele Ginidza Minister for Electricity and Energy, Kgosientso Ramokgopa, has said that as only R13 billion had been allocated to the integrated national electrification programme over the medium term expenditure period, the allocation would be used as a de-risking instrument to crowd in developmental capital and concessional finance. Presenting the department's Budget Vote in Parliament on Wednesday, Ramokgopa said the department was working in close partnership with development finance institutions and the National Treasury in developing an infrastructure finance facility that will enable the frontloading of capital requirements through debt market instruments. "The aim is to mobilise balance sheet financing whilst preserving affordability and fiscal discipline. By using the public allocation as an anchor, the strategy allows for accelerated electricity rollout in high priority provinces and municipalities, greater geographic equity and predictable project pipeline attractive to institutional invetsors," he said. "The approach positions universal access as a bankable development investment with measurable returns in health, education and economic participation." 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 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. Next Stay Close ✕ Ramokgopa said as Eskom's ability to collect revenue for the services provided continued to decline and municipal debt - currently at just below R100bn after compounding by R3bn a quarter over the past year - the department hoped that the the Distribution Agency Agreement (DAA) being put in place would realise benefits for the sustainability of the entire distribution industry. Ramokgopa said the DAA would assist municipalities with their reticulation and distribution of electricity business, revenue collection and retail services. He said the DAA has dual potential to support municipalities to provide sustainable local services while contributing to the sustainability of Eskom. "Some of the benefits realised at these municipalities where these DAAs have been implemented include increased payment levels from 10% to 30% after meter audits and replacement, being assisted to resolve customer disputes with their customers, settle their current accounts with Eskom in full and improved turnaround times to faults," Ramokgopa said. Speaking on behalf of the South African Local Government Authority (Salga), Mayor of Tswelopele Local Municipality, Kenalemang Phukuntsi, said the role of municiplaities was increasingly becoming vague in the amended Electricity Regulations Amendment Act (ERA) of 2024 and Just Energy Transition (JET) programmes. Phukuntsi said while the department's emphasis on a central authority was understandable for coordination, Salga was concerned that the role of municipalities, especially in distribution and the new energy market, was increasingly unclear. She said even within the ERA, the principal place of municipalities as key actors in the future market was not defined in a way that assured of their continued constitutional mandate. Phukuntsi said the Act still introduced a definition for electricity reticulation that Salga deemed as reducing its mandate to just lower levels of customer and voltage. "We still see that as an unconstitutional definition. The minister must still do industry-wide consultation unlike when it was inserted in the Bill without proper consultation. We cannot have a JET if it sidelines the very sphere closer to the core of our communities," she said. Phukuntsi said the strategic plan in the medium term allocations made little reference to the urgent reform required in the electricity distribution industry while the sector was on the verge of collapse in many municipalities. "We urge the department to align its plans with support for real local government, not just technical but institutional and financial and legislative, to ensure municipal distributions are strengthened and capacitated," she said. "We request further urgent clarification on how the roadmap aligns with the JET implementation plan, the National Treasury Metro Trading Entity Reform, and the unresolved issue of municipal debt to Eskom." Phukuntsi said Salga noted that 71% of the R27bn of the medium term allocation was directed to the programmes and projects largely through transfers to Eskom and municipalities. "Salga appreciates the inclusion of municipalities but also calls for the equitable transparent allocation criteria, greater flexibility in grant conditions to prevent funds being sent back to the National Treasury, and therefore disadvantage the communities," she said.
IOL News
19-05-2025
- Business
- IOL News
Foskor's HR executive detained for firearm threats in boardroom incident
Foskor is a South African phosphate producer and fertilizer manufacturer. Image: Supplied Banele Ginidza The State-owned phosphate producer Foskor has confirmed that its vice president for human resources and corporate affairs, Vincent Matlala, has been arrested for threatening a colleague with a firearm at the company's head offices in Midrand. This alarming event, has ignited discussions surrounding the potential corruption undercurrents within the firm, especially in light of recent developments tied to an R800 million bonus employee share scheme. It also comes as Foskor is still trying to recover from shock after Sifiso Mncube, a senior procurement executive at Foskor in Richards Bay, was gunned down by unknown assailants in his car in the suburb of Meer-en-See in Richards Bay in February 2024. In this new case, sources within Foskor have suggested that the boardroom incident stemmed from a dispute over kickbacks, with Matlala reportedly embroiled in controversies involving procurement practices in his department. Matlala was arrested two weeks ago inside the group's boardroom, a place typically reserved for strategy and decision-making, after threatening a Rewards Specialist executive with a gun in an undisclosed dispute. 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 ✕ "Each department has its own procurement needs. Corporate Affairs has a massive budget of R10 million and even higher and it is quite known that Matlala gets kickbacks from the various suppliers that he deals with," a source said. "It was surprising though that he goes around threatening people with a gun. He was arrested right inside the boardroom. "This saga takes on a deeper significance given Matlala's role in revitalising the long-troubled Kopano Foskor Employee Share Ownership Plan (ESOP). The failed scheme, which left many employees disillusioned, was supposed to provide significant financial returns when the shares matured in March 2019. Following that disappointment, employees resorted to strikes, demanding payouts that were unmet, resulting in only a R7 000 "ex gratia" payment to settle the situation. With Foskor reportedly returning to profitability and settling its debts with the Industrial Development Corporation (IDC), there is burgeoning interest in a potential JSE listing. This revitalisation of the Kopano ESOP could lead to an employee share scheme reminiscent of MTN's acclaimed Zenzele Futhi programme. However, the uncertainty surrounding Matlala's alleged behaviour raises questions about fund management and ethical oversight. "There are questions about how money is spent and if allocated funds for projects he oversees are used effectively to benefit not only the company but the employees," another source said. "Matlala is responsible for designing and paying out employee benefits, which makes this incident all the more troubling. So, it's only reasonable to believe that the fight between the victim and Matlala is about how benefits are paid out and maybe redirected for personal gain. If this is proven to be true, it would not only undermine the trust staff have on the leadership but it can even affect the company's place to the IDC and even community's." The South African Police Service was yet to comment on Matlala's arrest and what charges he was facing or when the next hearing for his bail application would be. However, Foskor Group manager for corporate affairs, Vhontsia Ramashia, confirmed Matlala's arrest though she would not be drawn to comment on circumstances leading to the incident. "We are aware of the allegations involving Foskor VP of Human Capital and Corporate Affairs, Mr. Vincent Matlala. The matter was formally reported to us and is currently under police investigation. We are cooperating fully with the relevant authorities," Ramashia said. Ramashia said given the sensitive nature of the matter, Foskor would not be addressing individual queries at this stage. "Our decision not to respond to individual questions should not be interpreted as confirmation, denial, or admission of any," she said. Foskor is a South African phosphate producer and fertilizer manufacturer. It mines and beneficiates phosphate rock at Phalaborwa in Limpopo, from where it is carried by rail to the production facility in Richards Bay in KwaZulu-Natal. The IDC, which holds about more than 60% of Foskor, is working on floating the company on the JSE after the phosphate producer reported its first profit since 2012. In the IDC's financial year to 31 March 2023, Foskor made a R2.8bn profit, of which R1.5bn was a reversal of impairments made in the previous year. The IDC has been seeking an exit, or at least a dilution of its equity exposure, for many years. Late in its 2021/22 financial year, the IDC attempted a trade sale of Foskor, but was unable to conclude it. Visit:
