Godongwana says his budget can't be faulted for not apportioning money to where it's most needed
Following a second successful attempt at passing the fiscal framework which underpins the national budget on Wednesday, Godongwana said that it was now up to MPs to ensure the money was spent correctly.
The budget allocates one trillion rand for infrastructure spending over the next three years.
"Is that money going to be used efficiently and effectively. That should be the concern of these members. But you can't fault the budget. If it's not spent properly, that's your duty as Parliament to do your oversight."
Parliament's finance committees will now get to work in scrutinising the money bills which allocate money to all spheres of government.
ALSO READ:
• Parliament gives Fiscal Framework and Revenue Proposals underpinning budget green light
• GNU parties support 2025 fiscal framework and budget, opposition parties call it anti-poor
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
a day ago
- IOL News
Ithala Bank's future uncertain despite ANC's claims of victory
Despite ANC's announcement, the future of Ithala Bank is yet to be confirmed, as the provincial government has not been informed that it has been saved from liquidation. Image: Doctor Ngcobo / Independent Newspapers The future of Ithala Bank still remains unclear as KwaZulu-Natal Premier Thami Ntuli says he was unaware of the developments announced by the ANC that it has successfully engaged with Finance Minister Enoch Godongwana, who agreed to save the bank from liquidation. Provincial Economic Development, Tourism and Environmental Affairs Portfolio Committee Mafika Mndebele also expressed uncertainty about the bank's survival as it remained unclear whether it would be granted an exemption to continue operating. The ANC created a sense of relief after its announcement that it had engaged with Godongwana, who agreed to intervene and save the bank from being wiped off through liquidation. However, Ntuli told the media in an interview this week that his office was not aware of the positive developments announced by the ANC. Ntuli and the ANC were among many who were concerned about the South African Reserve Bank (SARB)'s Prudential Authority (PA) suspending the operation of the bank and freezing depositors' money pending the final liquidation court order. 'One is not aware of the new developments except that we are in court with both the PA and Repayment Authority (RA), as you will recall that Judge Mncube of the High Court KZN issued a judgment saying the PA and RA have no authority in the affairs of Ithala. 'They (PA and RA) appealed, and we are looking forward to the Supreme Court of Appeal, and in July, we will be in the Pietermaritzburg High Court again in the liquidation matter. That is the only information we know,' said Ntuli. He said the provincial government was continuing to engage President Cyril Ramaphosa and Godongwana. 'We have done everything to ensure that the PA and RA's hands are off Ithala. 'We are not aware, therefore, of the development; however, we continue to engage for the interest of the depositors and the institution,' said Ntuli. Godongwana had previously announced that he had made R2 billion available to protect the interests of depositors whose savings would be wiped out by the liquidation. 'As the custodian of depositors, I have taken a view that I should protect particularly those who have made savings between R100,000 and lower, and I have made available an amount of about R2 billion to ensure that whatever happens, their savings are protected,' said previously to the media. The ANC provincial convener, Jeff Radebe, told the media last week that he and the party's provincial coordinator, Michael Mabuyakhulu, engaged with Godongwana and reached an agreement that the bank will not be liquidated and the minister would fully guarantee all depositors. 'Our intervention was firmly aligned with the ANC's developmental agenda and our responsibility to protect institutions that uplift the people. 'We are pleased to report that, following these engagements, a breakthrough was reached: Ithala Bank will not be liquidated,' said Radebe in a statement. Mndebele said Mabuyakhulu briefed him about at least three engagements between the ANC and Godongwana. 'He (Mabuyakhulu) has reported that there will be money set aside for depositors to be guaranteed about their money. 'But as things stand, whether that would save Ithala from liquidation or not is another debate because, besides the issue of guarantors, there are other things that have been key in putting Ithala in the situation that it is in right now,' said Mndebele. He said the committee understood that the main issue was that Ithala be granted a banking licence 'because without a banking licence, it cannot be a bank right now'. 'While applying for the banking licence, Ithala must be given an exemption by the minister so that it could be able to operate. 'The RA and PA must then withdraw the case for liquidation because the case is still on. 'Engagement with the minister is necessary as the minister can play a key role in addressing these challenges,' he said. Mndebele said Mabuyakhulu promised to have another engagement with him 'so that we will do everything we can to deal with the matter'. He said he would not rush to brief the provincial Parliament about what Mabuyakhulu told him until Godongwana makes a public announcement. He said the portfolio committee should be briefed by the Economic Development, Tourism and Environmental Affairs Department if there are any developments on the matter, 'because we play an oversight role over the department'. 'During our interaction with the department, the department furnished me with a report, which, when I look at it, suggests that Ithala is still in court fighting against its liquidation,' said Mndebele. Following the ANC's announcement, Cosatu expressed relief that the move, which the ANC announced, will save more than 400 jobs that were on the brink of being wiped off. 'It is critical that the Prudential Authority, Treasury, and the KZN provincial government work together to strengthen governance and internal controls, enhance compliance with banking regulations, and launch a turnaround strategy focused on accountability, transparency, and performance,' said the federation's national spokesperson, Zanele Sabela. 'The federation was also concerned about the impact the closure would have on Ithala's more than 257,000 depositors, who were workers and grant recipients,' said Sabela. [email protected]
IOL News
a day ago
- IOL News
African Development Bank approves R8. 4bn million for SA's green growth programme
Cooling towers at an Eskom coal-based power station in Duhva. The AfDB funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. Image: Mike Hutchings/Reuters The African Development Bank (AfDB) Group has approved a $474.6 million (around R8.4 billion) loan earmarked for South Africa's Infrastructure Governance and Green Growth Programme (IGGGP). This funding, designed to bolster the country's transition to a low-carbon economy, is a vital component of South Africa's ongoing efforts to enhance its energy landscape amidst pressing challenges. The IGGGP represents the second phase of the bank's strategic backing for a Just Energy Transition in South Africa, following the success of the earlier $300 million Energy Governance and Climate Resilience Programme, approved in 2023. This prior initiative succeeded in reinforcing financial stability whilst expanding renewable energy capacity throughout the nation. Structured around three crucial pillars—transforming energy security through power sector restructuring, promoting a low-carbon and just transition, and enhancing transport efficiency—the IGGGP is poised to catalyse South Africa's green transformation and drive inclusive, resilient growth. Finance Minister Enoch Godongwana heralded the bank's assistance, emphasising the critical nature of this partnership. 'Our country faces the significant challenge of energy shortages, leading to loadshedding, as well as significant transport bottlenecks, which have been detrimental to growing our economy and achieving our developmental aspirations,' Godongwana said. 'With your partnership, our government has committed itself to stay the course and implement these critical reforms in the energy and transport sectors, while endeavoring to achieve our international commitments on climate change and our JET objectives.' The IGGGP is not only about transforming the energy sector; it also focuses on fostering green industrialisation, creating jobs, and developing skills, specifically by supporting initiatives in electric vehicle manufacturing and green hydrogen production. According to recent International Monetary Fund estimates, South Africa's Just Energy Transition could enhance the country's GDP growth by between 0.2 and 0.4 percentage points annually from 2025 to 2030. 'This approval represents more than financing — it's a blueprint for Africa's energy future,' said Kennedy Mbekeani, AfDB's director general for Southern Africa. 'South Africa's success in building a just, green, and inclusive energy system demonstrates that sustainable development and economic growth can go hand in hand.' The financing package includes targeted grant components aimed at promoting energy efficiency initiatives and advancing rail sector reforms. Key priorities will focus on accelerating vertical separation and establishing an investment framework designed to revitalise South Africa's freight and logistics systems. This, in turn, is expected to enhance the transport sector's competitiveness and foster regional integration, which is critical for economic growth across the Southern African Development Community. As one of Africa's more advanced economies and a pivotal regional power, South Africa's triumph in its energy transition could inspire similar shifts continent-wide. Its experience in integrating renewable energy, modernising its grid, and implementing effective transition policies will prove invaluable for other African nations exploring sustainable development avenues. Moreover, the initiative includes comprehensive environmental and social safeguards, with a pronounced emphasis on gender and youth empowerment. Women are projected to constitute 70% of the beneficiaries of the expanded Social Employment Fund, while specialised youth skills programmes will prepare the younger generation for forthcoming opportunities in the burgeoning green economy. The success of the IGGGP aligns with multiple United Nations Sustainable Development Goals, including affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), industry, innovation, and infrastructure (SDG 9), and climate action (SDG 13). This landmark financing from the AfDB is part of a robust international financing package amounting to $2.78bn, which includes $1.5bn from the World Bank, €500 million from Germany's KfW, up to $200m from Japan's JICA, and an anticipated $150m from the OPEC Fund. Such coordinated funding exemplifies the global importance of South Africa's energy transition, particularly in light of its G20 presidency. The programme is in line with the nation's updated Nationally Determined Contributions under the Paris Agreement, which aim for greenhouse gas emissions reduction to between 398–510 million tons of CO₂ equivalent by 2025 and 350–420 million tons by 2030. BUSINESS REPORT
The Citizen
3 days ago
- The Citizen
Sassa payment dates for July: What you need to know
Sassa payment dates for July: What you need to know The South African Social Security Agency (Sassa) has announced the payment dates for grant recipients in July. Below are the payment dates for the Older Person's, Disability and Children's grants: Old Age Grant: July 2 Disability Grant: July 3 Child Support Grant: July 4 Pretoria Rekord reports that as Sassa grant payments are made on different days, depending on the type of grant you receive, it's important to go to your payment point or ATM only on your designated date. Arriving too early may result in your payment not reflecting. Always double-check your grant's scheduled payment date to avoid delays or disappointment. All social grants, barring the Social Relief of Distress (SRD) grant, increased in April. Delivering the 2025 Budget Speech in Parliament earlier this year, Finance Minister Enoch Godongwana said that the number of social grant beneficiaries – excluding those receiving the SRD grant – was expected to rise to around 19 million in 2025/26 and 19.3 million in 2027/28 due to a growing population of older persons. He said that for 2025/26, approximately R284.7b was allocated for social grants. 'As announced by the President in the State of the Nation Address, the SRD was to be used as a basis for the introduction of a sustainable form of income support for unemployed people. 'The future form and nature of the SRD [grant] would be informed by the outcome of the review of active labour market programmes, which was expected to be completed by September. 'The truth was that ours was one of the most comprehensive social safety nets among emerging economies. This reflected our commitment to addressing poverty and inequality, while keeping our spending sustainable,' he said. The grant increases that took effect in April were: War Veterans Grant: Increased from R2 205 to R2 335 Disability Grant: Increased from R2 185 to R2 315 Foster Care Grant: Increased from R1 180 to R1 250 Care Dependency Grant: Increased from R2 185 to R2 315 Child Support Grant: Increased from R530 to R560 Grant-in-aid: Increased from R530 to R560 In the Budget Review, National Treasury stated that the budget for social grants was increased by R8.2b over the medium term to account for higher living costs. 'An amount of R35.2b was allocated to extend the payment at the current SRD rate of R370 per month per beneficiary, including administration costs,' the department said. 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!
