Gauteng govt increases total projected revenue to R172bn in revised budget
The money will be reallocated to six provincial departments.
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Eyewitness News
4 hours ago
- Eyewitness News
Lesufi announces new HODs in administrative shake-up of Gauteng govt
JOHANNESBURG - Gauteng Premier Panyaza Lesufi has made some administrative changes to his government, with some heads of departments fired for underperformance and failing lifestyle audits. Lesufi announced the appointments of new HODs for a number of departments during a provincial legislature sitting on Thursday morning. The departments of e-gov, infrastructure, sports, health, social development and education now have new HODs. While three heads of department were fired and others resigned from the provincial government, some were moved to other portfolios. Thirty-seven percent of high-ranking officials in the Gauteng government failed their lifestyle audits, which were conducted by the Special Investigating Unit (SIU). Moreover, an internal assessment found that some heads of department were at the centre of mediocre service delivery and questionable payments The province's ethics advisory committee then recommended that Gauteng Premier Panyaza Lesufi crack the whip on incompetent senior officials. "In the last few months, we witnessed displeasing acts of under expenditures to the tune of R1.8 billion, senior members failing lifestyle audits, and underperformance by some departments. We taken a decision to reset government." Albert Chanee will now head the provincial education department, which a forensic report revealed had the highest number of employees accused of unethical conduct.
Daily Maverick
20 hours ago
- Daily Maverick
The Road Accident Fund is due for a robust clean-up
The recent suspension of Road Accident Fund (RAF) CEO, Collins Letsoalo, followed by Minister Barbara Creecy's decision to dissolve the RAF board this week, is a welcome move and a long overdue signal that serious intervention is finally under way at this embattled institution. While the RAF's rot certainly worsened under Letsoalo's leadership since 2019, its dysfunction long predates his tenure. The decline began as far back as 2008/09, not coincidentally, the same period when State Capture began to take root under former President Jacob Zuma. The RAF has since become a textbook case of how cadre deployment, poor governance and weak financial oversight give rise to the collapse of a state institution, which in turn leads to widespread failure to deliver on its mandate to the people and massive increases in costs to society. Consider this: in 2005/06, the RAF received just more than R5.5-billion in fuel levy income (then 37 cents a litre), ran a manageable claims book and even produced a surplus of R1.4-billion – thanks in part to a once-off Treasury grant of R2.5-billion. It was, at the time, still largely functional and able to fulfil its mandate, and a 5c increase in the RAF levy would have negated the Treasury bailout. However, within three years, by 2008/09, the RAF's operating expenses had ballooned more than 350% to R24-billion. To cover this growing shortfall, the fuel levy was pushed up to 47c per litre, which was a 27% increase in just three years that significantly outpaced inflation. The rot had taken hold, and opportunistic law firms and other specialist advisory services began feasting on the RAF's inability to manage claims effectively, many settling on courthouse steps at enormous cost to the fund. From 2009 onwards, this chaos spiralled. By 2020, operating expenses had doubled again to nearly R49-billion. However, this figure masked a growing backlog of unpaid claims, with the RAF simply stalling many settlements. Its actuarial liabilities had exploded to an estimated R322-billion, as referenced in its 2020 annual report. Fuel levy hikes In a deeply troubling move, Letsoalo and the RAF Board attempted in 2021 to manipulate the fund's finances by rewriting its accounting policies to reduce liabilities by R306-billion, effectively hiding the problem rather than fixing it. Thankfully, the Auditor-General rejected this cunning plan, and the matter was taken to court. During these loss-of-control years, the public paid a heavy price. Between 2009 and 2022, the RAF levy on the fuel price shot up 360%, from 47c to R2.18 per litre. These hikes inflated the cost of transport, food, and consumer goods for every South African. Instead of fixing the RAF's broken systems, the government simply passed the costs on to the public through excessive, above-inflation levy increases. Had the RAF levy increased only at the rate of inflation, it would have reached just 94c by 2022 – not R2.18. In real terms, the RAF received around R200-billion more than it would have under inflation-linked increases, which is essentially a hidden tax caused by incompetence, maladministration and poor political will. Minister Creecy's intervention must now be the start of a serious turnaround. The next step is critical: appointing a capable, independent and professional board with the skill and courage to fix this institution. That board must recruit qualified executives and people with experience in managing risk, claims, and fraud prevention. South Africa has many capable, retired insurance industry professionals with a deep understanding of complex claims environments and the controls needed to stop internal and external abuse. These are the people the RAF desperately needs. I would also urge the minister to send a strong and unambiguous message to the ANC's cadre deployment machinery – hands off the RAF. It's time to rebuild this institution based on merit, integrity and competence. Not politics. The pain inflicted on accident victims, the public purse, and our economy by a broken RAF is incalculable. Fixing it will take courage and resolve, but it must be done. The window for action is now open. Minister Creecy must not waste it. DM
IOL News
a day ago
- IOL News
How South Africans can pay less tax without risking SARS penalties
A simple guide that won't get you in trouble with the tax man Image: Pixabay South Africa has some of the highest tax rates in the world, but there are legal methods taxpayers can use to reduce their tax burden and retain more of their income. With personal income tax rates reaching as high as 45% for individuals earning above R1.8 million, and with the country's tax-to-GDP ratio expected to approach 25% in the coming years, many South Africans are feeling the pressure. However, in an interview with radio station Kaya 959, Roxanna Naidoo, Head of Global Strategy at Latita Africa, said there are other legal ways South Africans can use to pay less tax. "I'm a very strong advocate for tax avoidance and how to ensure that you're optimising your tax incentives legally. And there are quite a few ways," Naidoo said. Naidoo explained that many taxpayers miss out on important deductions simply because they don't fully understand what qualifies. "So, the tax system actually allows you to reduce your liability. And there are a few mechanisms there, but taxpayers aren't aware of that," she said. "We know the most common one is your retirement annuity contributions. They are deductible up to a certain limit. Then the second common one, again, is your medical contributions, but also out-of-pocket medical expenses. People forget about those". 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 She also stressed that out-of-pocket medical expenses can also qualify for tax credits, and business-related travel costs may be deductible. "That can also qualify for medical tax credits. Then, if you earn commission or you travel for work, you may also qualify to deduct business travel expenses. That's where keeping those receipts comes in as very important, keeping all of those records" Naidoo also warned taxpayers to be cautious with SARS auto-assessments, which are pre-filled tax returns based on third-party data like employer records and medical aid contributions. "If you accept the assessment without checking, you risk under-declaring income or even losing out on those deductions that you should be getting. "Also, if SARS audits you later, and they do this sometimes up to five years down the line, they'll ask you for that documentation. And if you don't have it, they can then reverse deductions and charge penalties and interest. So, always check your assessment before accepting it and keep those records of everything, just in case" IOL News Get your news on the go, click here to join the IOL News WhatsApp channel
