Transnet will receive R94.8 billion from Transport Department over next 5 years to help manage mounting debt
The Department said the additional guarantees will cushion the impact of recent credit rating downgrades, to mitigate risks and ensure Transnet can meet its debt obligations.
This latest support follows a R51 billion guarantee approved earlier this year by Transport Minister Barbara Creecy and Finance Minister Enoch Godongwana.
Department spokesperson Collen Msibi said the new allocation will help stabilise the entity's financial position.
'On the 12th of June 2025, the Minister of Transport, Ms. Barbara Creecy, announced government has initiated a process to allocate additional guarantees to Transnet. As a result, government has, on 25 July 2025, approved an additional R48.6 billion guarantee for Transnet to ensure that all debt redemptions will be covered over the next five years. '
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Eyewitness News
3 hours ago
- Eyewitness News
Transnet will receive R94.8 billion from Transport Department over next 5 years to help manage mounting debt
JOHANNESBURG - Transnet will receive R94.8 billion in financial support from the Transport Department over the next five years to help manage its mounting debt. The Department said the additional guarantees will cushion the impact of recent credit rating downgrades, to mitigate risks and ensure Transnet can meet its debt obligations. This latest support follows a R51 billion guarantee approved earlier this year by Transport Minister Barbara Creecy and Finance Minister Enoch Godongwana. Department spokesperson Collen Msibi said the new allocation will help stabilise the entity's financial position. 'On the 12th of June 2025, the Minister of Transport, Ms. Barbara Creecy, announced government has initiated a process to allocate additional guarantees to Transnet. As a result, government has, on 25 July 2025, approved an additional R48.6 billion guarantee for Transnet to ensure that all debt redemptions will be covered over the next five years. '
IOL News
2 days ago
- IOL News
Demanding Answers: Is R2. 4bn in tourism funding delivering results?
Tourism Deputy Minister Maggie Sotyu said the Department had introduced safety forums in collaboration with the SAPS and had engaged the Deputy National Police Commissioner, with a joint meeting planned. Image: Supplied IN a fiery parliamentary session, Members of the Select Committee on Economic Development and Trade launched a blistering assault on the Department of Tourism (DT) and South African Tourism (SAT), demanding hard evidence that its R2.4 billion budget delivers tangible results, not just meetings, marketing campaigns, and bureaucratic bloat. The July 16 hearing, presided over by chairperson Sonja Boshoff from the DA, turned into a scathing interrogation of the Department's accountability, effectiveness, and strategic coherence, with one question echoing louder than the rest: 'How much of the 8.8 million international tourists can be directly attributed to the Department's efforts?' That question came from the DA's Nicolaas Pienaar, who refused to back down despite warnings over language and procedural objections. 'I pose a critical question: how much of this activity could be directly attributed to the Department's efforts?' Pienaar demanded, referencing Tourism's claim that 8.8 million international tourists generated R95bn in revenue. Pienaar challenged the Department to show evidence linking its work to the arrival of the 8 million international tourists. He asked for a study or proof demonstrating the Department's direct impact, and expressed strong doubt that the numbers could be credited to departmental efforts. 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 ✕ He further accused the Department of focusing more on internal processes than real-world outcomes: 'The Department seemed more focused on holding meetings than on delivering tangible results. He criticised government culture for equating success with the number of meetings held, rather than concrete outcomes.' His criticism was echoed across party lines. The ANC's Mpho Modise raised concerns over 'duplication of roles' between the Department of Tourism, South African Tourism, Brand South Africa, and Proudly South African. He pointed to nearly identical slides in both the DT and SAT presentations and asked: 'What is the purpose of maintaining separate entities with overlapping mandates? Suggestions should be given to consolidate these bodies,' Modise said, warning of 'inefficient use of public funds'. The chairperson also delivered a stinging rebuke. Boshoff expressed 'dissatisfaction with the DT based on past issues, including the attempted R1bn sponsorship deal with Tottenham Hotspur, which had occurred without proper consultation.' She cautioned against repeating such decisions. Boshoff also zeroed in on SAT's skewed priorities: 'I questioned how SAT planned to effectively manage and grow domestic tourism with such limited funding,' noting that of the R1.3bn allocated to SAT, only R20m was earmarked for domestic marketing, just 1.5%, compared with R1.28bn for international campaigns. Pienaar also brought to the fore the harsh global reality facing South African tourism: a damning US travel advisory warning visitors to 'exercise increased caution' due to crime, terrorism, unrest, and kidnapping — the second result on Google for 'Visiting South Africa'. 'This negative global perception was a serious barrier to tourism, and should be a major focus area for the Department,' he said. The ANC's Mapule Dhlamini pressed the Department on safety, asking: 'How would this be achieved, given the continued reports of serious crimes against tourists, including rape and murder? There are ongoing safety challenges that make South Africa feel unsafe, both for locals and visitors.' Deputy Minister Maggie Sotyu responded that the Department had introduced 'safety forums in collaboration with the SAPS' and had engaged the Deputy National Police Commissioner, with a joint meeting planned. But no comprehensive national safety strategy was presented. Governance concerns erupted over the SAT Board's operations. The chairperson revealed that in 2023, board members were paid about R900 per meeting, with 54 meetings held between March and September, costing about R900 000 out of a R1.44m board budget. 'What governance or oversight mechanisms existed to ensure the necessity and frequency of board meetings?' she asked, suggesting 'introducing a fixed retainer model or capped meeting allowances to control excessive costs'. Sotyu confirmed that three board positions remained vacant, though CVs had been reviewed and were awaiting Cabinet approval. She acknowledged that the Auditor-General had raised concerns and that the Minister had taken a direct role in oversight. Meanwhile, MPs from the Northern Cape demanded answers on untapped potential. The ANC's Patrick Mabilo noted that 'desert tourism was not mentioned in the report, despite the untapped potential of regions like the Kalahari'. He asked: 'How can we leverage our BRICS membership, which accounts for 40% of the global population?' He also cited the Big Hole in Kimberley as a 'rare, man-made attraction' but lamented that such sites were not being marketed aggressively. The FF+'s Hendrik van den Berg added: 'Why has the DT not disclosed the specific countries being targeted in Africa and Asia? I want to know the exact partners involved.' Dr Shamilla Chettiar, DDG of Destination Development, admitted that a 'targeted country list was in development' but had not yet been finalised. The long-delayed Vredefort Dome project, a Unesco World Heritage site, was also brought into the spotlight. Van den Berg asked if it would be completed by August this year. Sotyu's update was rather sobering: 'It would not be completed by August 2025, and likely not by August 2026 unless urgent funding became available.' She said while DT was managing implementation, the lead department was actually the Department of Forestry, Fisheries and the Environment (DFFE). Pienaar raised another red flag regarding the official-looking tourism website which ranks first on Google for 'Visiting South Africa'. He asked: 'Is this managed by DT or SAT?' No answer was given during the session. He also questioned why the Department, with a 'R400m salary budget', planned to spend an additional R10m annually on consultants. 'What skills are lacking internally that require external consultants at such a cost?' he wondered. When Pienaar insisted on answers to his two core questions — the direct impact formula and website ownership — the chairperson acknowledged: 'They fell within the mandate of SAT.' But with time running out, she ordered written responses within seven days. Then came the final blow. A planned evening session on the Tourism Equity Fund (TEF), which is meant to support small, medium- and micro-sized enterprises (SMMEs), had to be postponed because the Deputy Minister could not attend due to a prior commitment. Boshoff expressed her extreme dissatisfaction: 'The invitation was sent last Friday. The Minister indicated she would not attend but would send the Deputy Minister. The confusion likely stemmed from internal communication failures. The committee has resolved not to continue with the TEF meeting in the absence of the executive… It would not be fair to allow Small Enterprise Development Agency (Seda) and the Department of Small Business Development (DSBD) to proceed without representation from the DT.' The session ended not with resolution, but with unresolved tension, unanswered questions, and deep concerns about duplication, governance, safety, and value for money. The Department said it was aiming for 15 million international arrivals by 2030. But as Pienaar put it: 'Show me the formula. Show me the proof. Show me the return on R2.4bn.' Get the real story on the go: Follow the Sunday Independent on WhatsApp.
The Star
3 days ago
- The Star
Gogta under fire for defying court order
The Department of Cooperative Governance and Traditional Affairs (COGTA) is under fire for defying a court order to pay over R9 million to the Insika Foundation, one of its former implementing agents in the Community Work Programme (CWP).Legal experts now say that key department leaders — including Minister V.K. Hlabisa, Director-General Mbulelo Ntshangama, Deputy Director-General Pankie Matomela, and CWP Finance Authority Mawande Skenjana are complicit in contempt of court. Despite a binding High Court ruling and a failed appeal attempt, the Department has refused to pay the money owed, effectively collapsing the Insika Foundation and severely disrupting a programme that supports thousands of vulnerable South Africans. Court Victory, Government Defiance Insika Foundation approached the Gauteng Division of the High Court in 2024, seeking a 'mandamus' — a court order compelling COGTA to pay R9,291,633.42 for services delivered in April 2024. The Court granted the order on 12 July 2024. COGTA then tried to appeal but was dismissed with costs on 5 November 2024. The Court's ruling was clear: the Department must pay Insika with interest and attorney-client scale legal fees. Yet, the Department, led by DG Mbulelo Ntshangama, has refused to comply. Despite follow-ups and official correspondence to the Minister and his team, Insika has received no payment and no communication. This non-compliance puts COGTA in direct contempt of court, a serious legal offence that undermines the rule of law. Minister and Top Officials Now Complicit The blame now falls squarely on the leadership of the Department. Minister V.K. Hlabisa – Politically responsible and repeatedly warned about the Department's legal defiance. DG Mbulelo Ntshangama – The accounting officer, legally obligated to ensure compliance with court orders and fiscal responsibility, DDG Pankie Matomela – Head of the Community Work Programme, responsible for oversight and implementation and Mawande Skenjana** – CWP Finance Authority, tasked with ensuring payment processing and financial accountability. 'These officials are not just negligent — they are actively violating a court order,' said constitutional law analyst Adv. Thando Lekganyane. 'This opens them up to personal liability and possible criminal charges.' Collapse of Insika Foundation and CWP Fallout The Department's unlawful refusal to pay has financially destroyed the Insika Foundation, a non-profit that delivered critical community work services for COGTA. Unable to pay staff or continue operations, the organisation has shut down its work, leaving thousands of CWP participants unpaid, unsupported, and in crisis. 'We've followed the law. We won in court. Yet the government is treating us like criminals,' said Insika CEO Ziphozethu Busisiwe Matheniwa. 'Their refusal to pay has collapsed our business and left entire communities abandoned.' This isn't an isolated incident. Insika's experience reflects a broader pattern where small contractors and non-profits collapse after doing legitimate business with the government, only to be ignored or financially strangled when payment is due. CWP in Freefall: Chaos and Confusion Following the collapse of service providers like Insika, COGTA opted to 'insource' the CWP instead of renewing contracts. But internal documents show the Department was unprepared. Contracts with financial administrators and site management staff are set to expire in March 2025, with no clear plan for extension, recruitment, or budget allocation. Although the Department has requested contract extensions through DDG Matomela and Finance Authority Skenjana, delays and dysfunction persist. There is no operational clarity, and site-level staff have reported missed payments, poor communication, and a total lack of support. Legal Action Looms Insika has now signalled its intention to pursue further legal relief, including a Personal costs order for failure to comply with court rulings and a formal complaint to Parliament and the Public Protector. 'This isn't just about money anymore,' said Matheniwa. 'It's about the government's duty to respect the law — and the people who serve the country.' A Government Breaking Its Own Laws As communities go without support and legitimate service providers collapse, the silence from COGTA's leadership is deafening. For Insika Foundation and the thousands of CWP participants depending on this programme, the damage is already done. And unless the Department reverses course, the constitutional crisis may only deepen.
