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Daily Maverick
9 hours ago
- Politics
- Daily Maverick
Two South African engineers released from Equatorial Guinea jail over two years after arrest
The long-awaited return of Frik Potgieter and Peter Huxham follows a presidential pardon, months of diplomatic negotiations and international calls for justice. South African Frik Potgieter and dual UK-South African citizen Peter Huxham, oil engineers who had been imprisoned for more than two years in Equatorial Guinea, have finally returned home – freed by a presidential pardon that ends a harrowing ordeal marked by anguish, uncertainty and relentless diplomatic effort. 'This brings an end to an ordeal of anguish, uncertainty and unwavering efforts by many to secure their freedom,' said family spokespersons Shaun Murphy and Francois Nigrini. According to a declaration by the United Nations, Potgieter and Huxham had been unlawfully and arbitrarily detained in the west African country since 9 February 2023, following their conviction and sentencing to 12 years in prison on drug trafficking charges. However, their families believe the true reason behind the arrests lies elsewhere. Just two days before their detention, the Western Cape Division of the High Court had ordered the seizure of a superyacht owned by Teodoro Obiang Mangue, the vice-president of Equatorial Guinea and son of the country's long-time president, Teodoro Obiang Nguema Mbasogo. That order followed an earlier court decision to seize two luxury villas in Cape Town also linked to Mangue. Both seizures were connected to a separate legal matter involving another South African citizen allegedly imprisoned unlawfully in Equatorial Guinea. 'Complex' negotiations In July 2024, the United Nations Working Group on Arbitrary Detention issued a formal opinion stating that the men's trial had been unfair and that their continued detention was 'arbitrary and illegal'. It called for their immediate release, a call that went unheeded by Equatorial Guinea's president, despite direct appeals from both the incumbent minister of international relations, Ronald Lamola, and his predecessor, Naledi Pandor. Their eventual release, announced on 21 June, followed clemency granted by the president of Equatorial Guinea after months of sustained diplomatic appeals led by the South African government. 'The Government of the Republic of South Africa welcomes the release,' the Department of International Relations and Cooperation said. It expressed 'sincere gratitude' to Equatorial Guinea for granting the pardon and enabling Potgieter and Huxham to reunite with their families. It also recognised the extensive and complex diplomatic work behind the scenes, acknowledging the 'sensitive legal and bilateral dimensions' of the case. Since the men's arrest, the South African government remained actively engaged through official diplomatic channels, regularly appealing for clemency on humanitarian grounds. Special envoys were dispatched, and ongoing engagement was maintained at ministerial level. The department also acknowledged the constructive diplomatic engagement maintained throughout the ordeal. It reaffirmed its commitment to strengthening bilateral ties with Equatorial Guinea, praising the cooperation that allowed consular access and facilitated ongoing dialogue, even amid considerable diplomatic strain. Families express relief and gratitude Since their detainment, the families of Potgieter and Huxham have undertaken extensive efforts to secure their release, including launching the 'Free Frik and Peter' campaign with a dedicated website and online petition to raise awareness and demand urgent government action. They had engaged the South African Parliament, which adopted a unanimous motion calling for their immediate release and condemned their unlawful imprisonment. The families also appealed to the Pan-African Parliament for intervention and sought support from international bodies including the United Nations Working Group on Arbitrary Detention, which declared their detention illegal and arbitrary. 'We are overwhelmed with relief and joy. The last two years and four months have been unimaginably painful for both our families. Today, we are finally able to say: Frik and Peter are safely back home,' said Murphy and Nigrini. The families extended heartfelt thanks to all who supported them during the long campaign for release, including SBM Offshore, the men's employer, the South African and UK governments, international diplomatic partners, parliamentarians, legal teams, Hostage International, civil society organisations and members of the media. They also specifically thanked Pandor and Lamola, both of whom travelled to Equatorial Guinea as special envoys on behalf of President Cyril Ramaphosa. 'Their return home is the result of collective efforts over many, many months, and we are deeply grateful to everyone who played a role in securing their freedom,' said the families. 'This has been a long and difficult journey. We want to thank every person who stood with us – your support carried us through our darkest moments.' As Potgieter and Huxham begin the process of recovery and healing, their families have asked for privacy. DM
IOL News
2 days ago
- IOL News
Stepfather plotted murder of disabled daughter for insurance payout - gets double life sentence
Nosipho Mafana, 23, was brutally murdered in her sleep by hitmen hired by her adoptive father in a calculated plot to claim over R600,000 in funeral. policy payouts. Image: Supplied A Western Cape stepfather who hired hitmen to kill his adopted daughter has been sentenced to life imprisonment. The High Court of South Africa: Western Cape Division sitting in Knysna convicted and sentenced Mboneleli Msila, who masterminded the plan to kill his disabled daughter so that he could benefit from three funeral policies amounting to R600,000. The victim, 23-year-old Nosipho Mafana, was shot 15 times in April 2022. She was adopted by Msila and his wife when she was 11 years old. Msila hired hitmen Mbulelo Jack, Monde Tshemese, and Lungisile Lucas to carry out the hit. The National Prosecuting Authority (NPA) said Msila received a double life sentence- one for murder and the other for conspiracy to commit murder. Tshemese, who carried out the hit, also received two life sentences, as well as five years for illegal possession of a firearm and unlawful possession of ammunition. Jack and Lucas were sentenced to 17 years' direct imprisonment for conspiracy to commit murder and a further 17 years for murder. The court ordered their sentences to run concurrently, meaning they will each serve 17 years effectively. National Prosecuting Authority spokesperson Eric Ntabazalila said the court found that the group had orchestrated a detailed plan, assigning specific roles to each man in a plot fuelled by greed and financial gain. "The well-orchestrated plan began in April 2021, when Mfana, under Msila's instruction, took out a R100,000 funeral policy with Standard Bank. The policy would pay out R200,000 in the event of an unnatural death. Msila was the beneficiary of this funeral policy," said Ntabazalila. In February 2022, another policy worth R200,000 was taken out with FNB, this time with Msila's sister-in-law listed as the beneficiary. A third policy with Capitec was also increased from R50,000 to R100,000 in March 2022, with his wife as the beneficiary. To execute the killing, Msila first approached his neighbour, offering him R40,000 and a firearm to commit the murder. When the neighbour declined, Msila turned to his nephew and three accomplices, Jack, Tshemese, and Lucas. 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 On the night of April 30, 2022, the men entered Msila's property at 15 Cuba Street, KwaNokuthula, Plettenberg Bay. Jack and Tshemese entered the lounge where Mafana was sleeping on a mattress next to two other young women. Jack identified Mafana, and Tshemese opened fire, shooting her 15 times. Lucas stood guard outside. "The plan fell apart when a tin collector observed the three men when they entered the yard. He saw Lucas standing guard in the yard, and the other two men entered the house. He knew the three men as they lived in the area. He saw flashes of light like firecrackers from the house," said Ntabazalila. "He also observed the men leaving the house after numerous shots were fired. He reported the shooting incident to the investigating officer, whom he knew. He identified Jack and Lucas through a photographic identification exercise. He also took the investigating officer to Tshemese's residence and pointed him out." Msila submitted a claim to Standard Bank following Mafana's death, but the payout was blocked pending an investigation. However, FNB and Capitec paid out R200,000 each to Msila's sister-in-law and wife. Western Cape Director of Public Prosecutions, Adv. Nicolette Bell commended the prosecution team and the police for their work, calling the crime 'barbaric.' 'The cruelty accused one showed in putting together the assassination plan, her funeral policy money, and the participants in that plan for their greedy benefit is indicative of the sick society we live in,' said Ntabazalila. 'Our responsibility is to live up to the challenge and ensure that we send each accused who is involved in such barbaric plans to prison for a long time.' IOL News
IOL News
16-05-2025
- IOL News
Is South Africa fast becoming the kidnapping capital?
The heart-wrenching case of six-year-old Joshlin Smith came to a head as the High Court's Western Cape Division officially convicted her own mother, Jacquen Rowhan Appollis for the trafficking and ultimate slavery of the young girl. Image: File OUR society is being consumed by a mounting and deeply unsettling crisis — one that is easy to overlook, until it reaches your doorstep. Every day, two people are kidnapped in our society. In the last year alone, more than 17 000 kidnapping cases were reported by Statista. This amounts to a harrowing 260% increase over the last decade. These astonishing figures do not even encapsulate the whole picture. Rather, they are part of a larger, far more disturbing trend: the rise of disappearances in our society. From the bravest of men to the most delicate children, women, professionals, and so many other ordinary citizens everywhere are being snatched from our streets, never to be seen again. From the eerie disappearance of Journalist Sibusiso Aserie Ndlovu and his partner Zodwa Mdhluli, to the action-packed abduction of US pastor Josh Sullivan, there seems to be vulnerability in our society that is being sorely exploited. Very recently, the kidnapping of a Gqeberha shop owner has not only spotlighted the brazenness with which ransom kidnappings are taking place, but also the recurrent threat that they represent to the growth of our economy. Not even a year ago, Gqeberha businessman Calvin Naidoo was abducted in the very same way. This disturbing trend seems to extend beyond ages and locations, with defenceless children being amongst the most affected. This past Tuesday, 11-year-old Jayden Lee's body was discovered on a staircase at his home. Concurrently, the heart-wrenching case of six-year-old Joshlin Smith came to a head as the High Court's Western Cape Division officially convicted her own mother, Jacquen Rowhan Appollis (alongside Steveno Dumaizio van Rhyn and Racquel Chantel Smith) for the trafficking and ultimate slavery of the young girl. 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 ✕ According to the South African Government, the Institute for Security Studies (ISS) revealed that kidnappings reported to the police in South Africa have almost quadrupled over the last decade, amounting to a whopping 260%. In fact, a concerning majority of kidnappings involved ransom and extortion tactics, showing an inclination to organised crime. These distressing statistics do not even consider many more of those who remain unreported. Over and above this, the rampant rate of disappearances in our society is not only attested to armed robberies and organised crime syndicates; it is exacerbated by extremely stringent economic conditions that perpetuate crimes such as these. Poverty, crime, joblessness, unequal access, unstable human rights, and many other factors directly perpetuate this disturbing plague in our society. This is even further compounded by cultural practices that worsen the vulnerability faced by men, women and children at various stages, and that seek to protect necromancers and malicious spiritual healers. Additionally, the role of culture and indigenous heritage was especially spotlighted during the Joshlin Smith trial, where the State's accused-turned-witness, Laurentia Lombard, detailed the horrific details in the hours leading up to the six-year-old's disappearance, admittedly selling the child to a sangoma for R20 000. Hers is not a unique story, as merely a year ago, sangoma Ntombentsha Limbo was apprehended during the kidnapping of a minor child from a mall in Thabong, Free State. Yet as recently as this past Wednesday, a son and mother were snatched from the street and promptly robbed in the Northmead community of Benoni, Gauteng province. Although our post-apartheid democratic society is plagued by rampant economic inequality, institutional instability, political corruptions, and so much more, the increasing precariousness of our society will only seek to cripple our already-fragile back. The increasing spate of disappearances of people from our society, of all ages and ranges, highlights a deplorable trend indeed. The disappearance of people from our society is indicative of an overarching problem of human trafficking and human smuggling. South Africa, facing an unprecedented crisis with its precarious borders, is especially susceptible to exploitation by human trafficking syndicates. This is an even greater concern for young children, many of whom travel extensive distances on a daily basis, and who cannot be tracked as easily as adults with digital footprints. What's worse is that human trafficking disproportionately affects women and young girls, at a rate of approximately 70%. In fact, a major factor driving human trafficking cases is the job market, where unemployed people everywhere are being lured in for job interviews and then being subsequently trafficked. Whether it is a young couple getting hijacked on a sunny Sunday afternoon, or a group of young school children crossing the park to their respective homes, our society is fast becoming a breeding ground for evil, nefarious deeds. The rate at which people are vanishing in our society is not just a chilling statistic; it is a sobering realisation that everywhere, our daughters, sons, sisters, and mothers' lives are being swallowed by a shadowy underworld thriving on exploitation and silence. This crisis cannot be tackled with reactive policing or short-term campaigns. It demands a serious, coordinated response rooted in swiftly effected justice and our constitutional human rights. We need proper mechanisms and training that will allow our law enforcement to effectively tackle missing persons cases seriously from the outset. We need a centralised, transparent, national database that tracks these past and ongoing cases, and uses the public as a resource to tackle these cases. This will require the collective efforts of all of our communities, schools, institutions, legislative bodies, and civil society. Tackling disappearances across our society will require us to prevent abductions before they occur, and to support the families who are left behind when they do. Above all, we need to confront the conditions that make people easy targets: poverty, inequality, lack of opportunity, and broken trust in public institutions. These are not abstract issues; they are the breeding ground for the crisis we now face. There is something fundamentally wrong when so many people can vanish in a democratic society. It points to a breakdown, not just in public safety, but in the basic fabric of trust and care that holds a nation together. We are watching a crisis unfold in real time, and the danger is not just to individuals or isolated communities. This is a national problem, one that threatens the shared future we've been trying to build since the dawn of democracy in 1994. South Africa is teetering on the edge of a crisis that's expanding at an alarming rate. Our democracy was born from Struggle, with the promise of dignity, safety, and equality for all. If we allow this crisis to continue in silence, we fail that promise. We must take this seriously before we become the kidnapping capital of the world. Because when disappearances become the norm, and when justice becomes rare, we lose more than individuals — we lose faith in the society we're trying to build. * Tswelopele Makoe is a gender and social justice activist and the editor at Global South Media Network. She is also an Andrew W Mellon scholar at the Desmond Tutu Centre for Religion and Social Justice, UWC. The views expressed are her own. ** The views expressed here do not reflect those of the Sunday Independent, Independent Media, or IOL.
Daily Maverick
08-05-2025
- Daily Maverick
Stellenbosch renter exploits legal system: A cautionary tale for landlords in South Africa
The Western Cape Division of the High Court and the Stellenbosch Regional Court have ordered a wayward Stellenbosch tenant to pay overdue rent to the value of almost R1-million to two landlords. Although his possessions were to be auctioned to pay off the debt, the landlords have yet to see the money owed to them. South Africa's rental housing landscape is at a crossroads. The country's legal framework — anchored by the Rental Housing Act — was crafted to shield vulnerable tenants from exploitation and arbitrary eviction, a constitutional imperative in a society still grappling with deep inequalities. Yet, as property owners in Stellenbosch and beyond are discovering, the pendulum may have swung too far, exposing landlords to a new set of risks. The rent-avoidance kingpin The case of Kevin Brown has become a cautionary tale in Stellenbosch following several rulings in the Stellenbosch Regional Court and the Western Cape Division of the High Court. Brown has reportedly exploited legal loopholes, moving from house to house, making only minimal rental payments and staying months and, in at least one case, several years without much consequence. A tenant from hell Pieter Wessels, one of four trustees of the PD Wessels Trust, which owns a Stellenbosch property, told Daily Maverick of the harrowing experience which saw his family home commandeered by Brown, far beyond the parameters of the agreed short-term lease. Brown initially responded to a Property24 listing for a six-week rental (19 July 2024 to 31 August 2024). Brown was unable to pay the full rent (R50,000 a month) up front and was only able to move in on 20 July once he had made payment. Since he only occupied the property for 13 days in July, his rent for that month was prorated to R20,967. Brown moved in with his four children after the rent was paid — albeit by a third party, which Wessels later clocked as an 'early red flag'. Brown later sought to extend the lease until November. Wessels agreed — but only if Brown paid R150,000 up front by August 2024 to cover September, October, and November. He didn't pay, so the lease ended on 31 August. Despite this, Brown continued to occupy the property without permission. Wessels stated that Brown used the Prevention of Illegal Eviction from an Unlawful Occupation of Land Act (PIE Act) to delay eviction proceedings, a tactic Wessels claims Brown has employed with other landlords. 'Kevin managed to stay in our property for seven-and-a-half months, paying for only two months,' Wessels said, detailing a financial haemorrhage compounded by cancelled bookings and court costs. The court found Brown had been unlawfully occupying the property, and ordered that he be evicted with effect from 28 February 2025. In the interim period between November and 28 February, the landlords (Wessels and other trustees) were ordered to return the Wi-Fi router and other items that they had removed from the property. The items, which had been included as part of the rental lease, had been confiscated by Wessels in frustration after Brown defaulted on rent payments. Brown was ordered to immediately pay R50,000 in rent once this was done. Brown was also ordered to cover 50% of the applicants' legal costs, rising to 100% if he breached the order. According to South African law, landlords cannot simply change locks or forcibly remove tenants; any eviction must go through a formal process, with proper notice and, if necessary, tribunal or court intervention. This process, while vital for protecting the truly vulnerable, can be weaponised by bad-faith actors, leaving landlords with mounting losses and little immediate recourse. However, this case was far from isolated. 'I wasn't the first one to get caught by Kevin,' Wessels emphasised, a claim corroborated by Daily Maverick's investigation. 'Man about town' façade Contact with Brown's previous landlord reveals a recurring pattern of occupation and legal evasion. Linda Schaefer, the owner of another Stellenbosch property Brown occupied shortly before moving to Wessels' property, described a four-year ordeal marked by similar tactics. Schaefer rented her property to Brown from 2020 to 2024 for R40,000 a month, during which he paid on time just nine times in 44 months. 'Most payments were late — a week, a month, even six weeks,' she told Daily Maverick. She took legal action against him three times, which eventually culminated in a 2024 eviction. She described Brown's modus operandi: leveraging delays in court processes while maintaining a façade of affluence. 'If you see him walking down the street in Stellenbosch Central… very well dressed in expensive label brand clothing, and he's the man about town,' Schaefer said. She said that when she confronted him, Brown dismissed her concerns, saying: 'What's your problem? You live in a house worth millions and drive a fancy car; why are you crying that I don't pay rent?' However, the financial fallout extended well beyond unpaid rent. As months of late or missed payments accumulated, another crisis quietly mounted: municipal service bills. Despite lease agreements making Brown responsible for utilities, the municipality couldn't transfer the account into the tenant's name because the property belonged to Schaefer. This meant that when Brown failed to pay for water, electricity, and rates, the arrears accrued in Shaefer's name. 'My good credit record was on the line, so I had to go see the municipality's legal department,' she told Daily Maverick. Desperate to force Brown's hand, she eventually stopped paying municipal bills altogether. Her hope was that by blocking the property's electricity meter — preventing Brown from buying prepaid power — he would be compelled to settle the outstanding amounts. Yet, even these extreme measures failed to yield results. Disappointed in the system, Schaefer complained that 'the law is not on the side of property owners'. According to Schaefer, Brown was recommended by the Anna Basson rental agency in Stellenbosch, and she expressed disappointment with the company for failing to conduct a proper background check. Deon Carstens, the managing director at Anna Basson Properties, said they conducted a Tenant Profile Network (TPN) credit check, and Brown's father had signed a suretyship (a guarantee where one party takes on the debt or obligations of another if they default) for the 2020 to 2021 lease. 'Self-employment carries risk, but we mitigated this with a guarantor (Brown's father),' said Carstens. Brown's employment details are unconfirmed — court documents list him as a business owner/landscaper. The suretyship covered defaults during the lease term, though Carstens acknowledged Brown's father only stepped in 'on one or two occasions'. Management of the lease was later transferred to Schaefer at her request. Carstens added that he was unaware of Brown's history pre-lease, but noted 'social media posts' about the case. Brown's rebuttal In response to Daily Maverick queries, Brown said he was offered a rental for the PD Wessels' trust property until 30 November, with emails confirming the arrangement. Brown attributes the conflict, besides the non-payment of rent, to Wessels' removal of items listed in the Property24 advert — including furniture, Wi-Fi routers, and pool equipment — which he says breached a court order requiring their return before Brown paid the outstanding rent. 'His lawyers' fees are self-inflicted,' Brown said, adding that he reported Wessels' attorneys to the Legal Practice Council for 'improper conduct'. 'The bottom line is (Wessels) was just being greedy as he refused to simply let me pay a monthly rental… his implication that I was trying to take advantage of the Prevention of Illegal Eviction (PIE) Act is completely unfounded,' Brown said. System manipulation While Brown maintains his innocence, his version directly conflicts with multiple accounts from landlords and personal associates. Sarah Schneider, Brown's ex-wife of 16 years, told Daily Maverick she witnessed Brown repeatedly fail to pay rent, as well as their children's school fees. She described patterns of abusive behaviour that, according to her, were consistent with the disputes Brown had with landlords, including unpaid financial obligations, disregard for court orders and withholding her belongings after taking them without permission. Landlords' frustration mounts Brown exemplifies the concerns raised by Wessels and Schaefer about the imbalance between tenant and landlord rights. Property owners argue that the current system, while well intentioned, is out of step with on-the-ground realities. They face: Lengthy delays in regaining possession of their properties. Legal costs that often outweigh the arrears owed. Difficulty screening tenants due to privacy protections and limited access to reliable rental histories. What this means for you For landlords, the case is a stark reminder that tenant screening should be less 'trust fall' and more 'CSI: credit check'. Verify financial stability as if your property depends on it (because it does), and draft lease agreements tighter than a Stellenbosch wine cork. Otherwise, South Africa's tenant protections might just turn your guest suite into a semi-permanent Airbnb — minus the five-star reviews. For tenants, the message is clear: the law is your safety net, not a trampoline. Bouncing on its goodwill risks turning your landlord into a reluctant long-term roommate. Play fair, pay promptly, and remember: the best tenant-landlord relationships end with keys returned, rather than court orders. Guidance for landlords and tenants Against this backdrop, the Western Cape Department of Infrastructure's responses to questions posed to the Rental Housing Tribunal offer critical guidance for landlords and tenants navigating South Africa's fraught rental market: Prevention: Landlords are urged to use rental screening agencies such as the TPN to verify a tenant's rental history, payment behaviour, and references before signing a lease. Comprehensive screening helps identify red flags — such as fraudulent references or payment defaults — and acts as a frontline defence against scams. PIE Act: The tribunal combats systemic misuse of the Rental Housing Act through proactive enforcement of court rulings, targeted education campaigns, and a streamlined complaints system. 'Unfair practices' — including unlawful evictions, illegal lockouts, and utility disconnections — are strictly defined and enforced to protect both landlords and legitimate tenants. Dispute resolution: Mediation remains central to the tribunal's process, with cases resolved through hearings or virtual sessions after investigations. Where mediation fails, rulings are issued and enforced as court orders, providing a legally binding resolution pathway without prohibitive costs. Balancing rights: The Rental Housing Act 50 of 1999 underpins the tribunal's mandate to balance landlord and tenant rights, ensuring fair access to housing while safeguarding income streams. Services are free, accessible, and designed to resolve most disputes within 90 days — a critical safeguard in a market increasingly strained by fraud and legal exploitation. DM
Daily Maverick
29-04-2025
- Business
- Daily Maverick
VAT hike reversal — what happens next in the Budget process?
Budget 3.0 is in the works — more than two months after Finance Minister Enoch Godongwana's first attempt at a Budget was supposed to have been tabled. The process of passing South Africa's Budget is beginning anew after the planned increase in value-added tax (VAT) was suspended last week through an order of court. What happened? On Sunday, 27 April, the Western Cape Division of the High Court ruled in favour of the DA and the EFF's application to suspend Finance Minister Enoch Godongwana's 0.5 percentage point VAT increase, announced in his Budget Speech on 12 March. The contentious VAT increase was due to be implemented on 1 May. This was after Godongwana withdrew his opposition to the application, saying in an affidavit filed on Sunday morning that he had done so after realising that he had no political support for a VAT increase, and after he received a letter from National Assembly Speaker Thoko Didiza asking him to table alternative revenue proposals by 2 May. The draft order was made by agreement between the parties, including the DA, the Speaker and the finance minister. In the order on Sunday evening, Western Cape Judge President Nolwazi Mabindla-Boqwana and judges Kate Savage and Andre le Grange suspended Godongwana's 12 March announcement adjusting the VAT rate, 'pending the passing of legislation regulating the VAT rate' or the final determination of the Part B of the court application, whichever comes first. Further, the judges ordered that the resolutions of both Houses of Parliament adopted on 2 April, to accept the report of Parliament's finance committees on the fiscal framework, be set aside. 'This enables the minister of finance to table the national Budget afresh,' said parliamentary spokesperson Moloto Mothapo in a statement on Tuesday. Why was a court order needed? The Finance Ministry announced the shock reversal of the VAT increase in a statement issued minutes after midnight on Thursday, 24 April. But for such a reversal to be 'legally effective and enforceable', Mothapo said it required a legal rescission of the resolution of both Houses taken on 2 April, by either passing a Rates and Money Amounts Bill in Parliament and its assent by the President before 1 May, or through a court order. 'Since the withdrawal of the VAT increase, the Minister tabled the Rates and Monetary Amounts and Amendment of Revenue Laws Bill to give legal effect to the decision to maintain the VAT rate at 15%. However, given the tight legislative timeframes, it was not practically possible for the Bill to be processed by both Houses of Parliament and signed into law before 1 May 2025,' he said. 'In addition, because the matter was already the subject of litigation, a court order became the only available mechanism to make the withdrawal legally enforceable and to remove the uncertainty. The court order thus ensured legal certainty and prevented the previously announced VAT increase from automatically taking effect on 1 May.' Godongwana has also withdrawn the Division of Revenue Bill, which outlines how funds will be divided between the national, provincial and local governments, and the Appropriation Bill, which allocates money to specific priorities like salaries and goods and services, after he had written to Didiza indicating that he would withdraw the Bills. As there is no Appropriation Bill before Parliament, according to Mothapo, there are no Budget votes currently scheduled. 'A new Appropriation Bill and revised Budget instruments will need to be introduced (through the Budget Speech), after which the Budget votes will be scheduled afresh in accordance with the legislative framework and parliamentary procedures,' he explained. The Finance Ministry said Godongwana expected to introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks. Does Parliament admit that its processes to pass the fiscal framework were flawed? No. While Parliament entered into an out-of-court settlement agreement regarding the VAT increase and the process of adopting the fiscal framework, Mothapo said Parliament 'did not admit to any procedural defect'. He said the processes followed by both Houses of Parliament in adopting the framework 'strictly complied' with both the Constitution and the Money Bills and Related Matters Act. 'Parliament had a strong case before the court. The decision to settle was driven by the recognition that subsequent developments — including the minister's withdrawal of the Division of Revenue Bill and the Appropriation Bill, and the introduction of a new Bill maintaining the VAT rate at 15% — had overtaken the original framework. This made a negotiated resolution necessary and in the national interest,' said Mothapo. When will Godongwana table a new Budget? It's unclear, but Mothapo said Parliament was 'actively engaging with the executive to finalise an appropriate date for the tabling of the revised national Budget. 'It is expected that the minister will table the new Budget instruments within the next few weeks,' he said. In terms of the Money Bills and Related Matters Act, Parliament must consider and adopt the Budget within four months after the start of the financial year. Given that the 2025/26 financial year began on 1 April, Mothapo clarified that the Budget must be finalised before 31 July. How will the government cover the R75bn shortfall in revenue? In a statement on Sunday, the National Treasury said the withdrawal of the VAT increase 'creates a medium-term revenue shortfall of approximately R75-billion, necessitating decreased government expenditure with likely impacts on service delivery'. Now that VAT has been scrapped, the National Treasury has to find R75-billion to plug the hole in the kitty over the medium term. Political parties inside and outside the Government of National Unity have made recommendations on how to generate the required revenue. At a press conference on Friday, the DA said it would be pushing for a review of government spending. 'The DA will now be pushing very hard for the necessary spending review,' DA Federal Council chairperson Helen Zille told reporters. 'We want to cut waste, and we want to cut corrupt and fruitless expenditure, and that is what our spending review seeks to achieve,' she said. DM
