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IOL News
2 days ago
- Politics
- IOL News
Public Protector Kholeka Gcaleka probes Senzo Mchunu: Here's the focus of her investigation
The office of Public Protector Kholeka Gcaleka will probe the damning allegations against Police Minister Senzo Mchunu. Image: Jonisayi Maromo/IOL Public Protector Kholeka Gcaleka will investigate embattled Police Minister Senzo Mchunu after a complaint was launched by the African Transformation Movement (ATM), which described the police minister's actions as a 'flagrant episode of abuse of power'. Earlier this week, IOL reported that in a letter backed by WhatsApp messages, audio recordings, and financial documents, the ATM alleged that Mchunu colluded with businessman Brown Mogotsi and murder-accused businessman Vusimuzi 'Cat' Matlala to derail critical investigations in the South African Police Service (SAPS), and shield politically connected individuals from justice. At the heart of the scandal is the collapse of the elite KwaZulu-Natal political killings task team, a unit that had secured over 100 convictions and made breakthroughs linking firearms to a string of high-profile assassinations. The allegations that recently rocked the country were made by KwaZulu-Natal Police Commissioner Nhlanhla Mkhwanazi on Sunday. 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 Following ATM's complaint, IOL has seen a letter from the Public Protector's office, signed by Acting Chief Operations Officer, advocate Nelisiwe Nkabinde, confirming the probe sought by ATM Member of Parliament, Vuyo Zungula. In his complaint, the parliamentarian had urged the Public Protector to investigate Mchunu's conduct under the Executive Members Ethics Act (EMEA) of 1998. Zungula contended that Mchunu's actions breached the Executive Ethics Code, citing the collapse of the effective political killings task team of the SAPS, and alleged ties to criminal elements alleged by Kwazulu-Natal provincial police commissioner, Lieutenant General Nhlanhla Mkhwanazi, as evidence of misconduct. ATM Member of Parliament, Vuyo Zungula Image: Supplied In the Public Protector's response, the Chapter 9 institution stipulated that it would probe the following allegations, including whether Mchunu lied about his relationship with Brown Mogotsi, denying knowledge of the North West politician in a March 2025 parliamentary committee session. This week, Mchunu turned around, describing Mogotsi as 'just a comrade'. The Public Protector will investigate whether Mchunu disbanded the political killings task team of the SAPS. Another allegation is whether Mchunu unduly delayed and derailed the investigation of cases 'many of which are linked to politically sensitive investigations, with an intention to protect criminal syndicates. The Public Protector will also probe whether there was a conflict of interest in the awarding of a R360 million SAPS contract to Matlala. However, the Public Protector's office told Zungula that due to the several complaints raised by the parliamentarian, the extensive investigation will not be finalised within 30 days as prescribed by Section 3(2) of Executive Members Ethics Act (EMEA). Meanwhile, President Cyril Ramaphosa has called a family meeting on Sunday to address allegations that Mchunu and senior police leadership are linked to a criminal syndicate with ties to drug cartels. This comes as the DA, uMkhonto weSizwe party (MK), and the EFF on Thursday lodged criminal complaints against Mchunu, accusing him of misleading Parliament and being linked to individuals allegedly involved in the capture of the SAPS. IOL News
Mint
03-07-2025
- Business
- Mint
Toms River schools choose bankruptcy over crushing tax hikes and whopping $175 million aid cuts
Toms River schools, one of New Jersey's largest districts, voted to file for Chapter 9 bankruptcy after refusing to raise property taxes another 12.9%. This comes after last year's 9.3% increase, totaling a crushing 22% hike over two years for homeowners. State officials had ordered the district to either pass this tax-heavy budget or shut down all programs immediately. But, Superintendent Michael Citta declared summer classes would continue anyway, calling the state's demands 'illegal and immoral.' The bankruptcy filing pauses debts and lawsuits while the district reorganizes its finances. Over seven years, New Jersey's school funding changes slashed $175 million from Toms River's budget, forcing 250 teacher/staff layoffs, school sales, and packed classrooms. Though state aid rose slightly this year, the district still faces a $22 million deficit. Republican lawmakers blame Governor Murphy's "flawed and politically driven" funding formula, arguing it punishes Ocean County for voting Republican. Residents already pay some of America's highest property taxes, with schools consuming over 50% of local tax bills in many towns. Toms River's bankruptcy threat, extremely rare for a district with a good AA-credit rating, could rattle investors. Its bonds recently traded at high yields, signaling market worry. This isn't isolated: 9 New Jersey districts like Lakewood and Jackson also face desperate cuts after aid losses. Governor Murphy's new $58.8 billion state budget boasts record school funding overall, but offers Toms River no relief. The district now races to file Chapter 9 paperwork before potential state lawsuits, vowing: 'We won't abandon our students.'
Mint
25-06-2025
- Business
- Mint
Small City in Washington State Files Rare Bankruptcy Over Developer Dispute
(Bloomberg) -- A small city in Washington State filed a rare municipal bankruptcy after failing to reach an agreement with a developer over a $26 million court judgment. Cle Elum, a city of 2,200 about 80 miles east of Seattle, said it couldn't afford to pay the debt to developer City Heights Holdings LLC, and was insolvent. While there have been some high profile municipal Chapter 9 filings — like Detroit and Orange County, California — they are relatively unusual and the last local government to go bankrupt was Chester, Pennsylvania in November of 2022. Last year, an arbitrator ruled in favor of CHH in a long-running dispute with Cle Elum over a housing development. The developer accused the city of breaking an agreement for a planned community of about 960 homes. Cle Elum's Mayor Matthew Lundh wrote in a June 24 court filing that the city offered a payment plan to CHH, but the developer refused to counter. Three mediation sessions with a bankruptcy lawyer proved fruitless, he said. 'The city believes it has made its best offer given its limited resources and unwillingness to burden the city in a way that will require curtailing city services or raising taxes to a level that will drive residents and businesses out of the city,' Lundh wrote. Cle Elum has a budget of $4.5 million and about $4 million in long term bond debt as of Dec. 31, 2023, according to a financial statement. Cle Elum's bankruptcy filing reported assets and liabilities between $10 million and $50 million. As in any municipal bankruptcy, the court will have to determine whether the city is, in fact, insolvent. If it is, it will then enter negotiations to adjust its debt. A 2020 report from the Pew Charitable Trust found that 31 general purpose local governments had filed for bankruptcy since 2001. The US has almost 39,000 cities, towns, counties and villages. Cle Elum, which means 'swift water' in the language of the local Kittitas tribe, is on the Yakima River in the Cascade Mountains. The case is In re: City of Cle Elum number 25-01128, US Bankruptcy Court, Eastern District of Washington. More stories like this are available on
The Citizen
24-06-2025
- Business
- The Citizen
Scopa launches inquiry into RAF misconduct claims
Whistleblower claims, governance failures, and vacant executive posts prompt Scopa to launch full inquiry into RAF operations. The Standing Committee on Public Accounts (Scopa) will investigate serious allegations of mismanagement, governance failures and financial misconduct at the Road Accident Fund (RAF). Scopa announced on Tuesday that it has resolved to initiate a comprehensive inquiry into allegations of maladministration, financial mismanagement, wasteful and reckless expenditure, and related financial misconduct at the RAF. The committee said the decision comes after months of several unsuccessful attempts by Scopa to obtain truthful, complete information from the RAF Board and executive management. RAF board failed to cooperate and disclose key information – Scopa 'The committee cannot perform its work effectively if state entities do not provide it with complete and truthful information with adequate context and supporting information,' the chairperson said in a statement. Among the committee's concerns are insufficient background checks on executive and senior management appointments who are entrusted with access to and oversight of substantial public funds. ALSO READ: RAF and its comms head found to have defamed Sunshine Hospital This is despite having a troubling employment and disciplinary record that includes accusations of making careless financial management decisions. The committee is also concerned about the subsequent refusal by the RAF to disclose to them where such funds are kept and for what purpose. Scopa is additionally troubled by the prolonged failure to appoint essential officials, including a chief claims officer, head of claims operations, head of legal, chief corporate support officer, and head of people management. Prolonged failure to appoint essential officials This comes as the RAF faces significant financial losses—either due to action being taken when it shouldn't be, or inaction when action is needed. Some of the issues also include failures of governance with a direct impact on the rule of law and the authority and powers of parliament, as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people. ALSO READ: State capture allegations come back to haunt RAF acting CIO The committee also expressed concern over numerous whistleblower reports alleging supply chain irregularities involving more than R1 billion, noting that internal management appears to be failing to apply proper controls. The committee said these allegations point to failure by the RAF Board to properly oversee management's decisions and actions in line with its statutory mandate. The chairperson of Scopa, Songezo Zibi, said an inquiry will give everyone involved or implicated an opportunity to state their case under oath and receive a fair hearing before the committee draws its conclusion. Inquiry will take place after August recess 'The volume of complaints and related documentary disclosures to the committee about the RAF make it necessary to examine them thoroughly and make such recommendations as may be necessary to ensure that the institution does its work within legal and constitutional prescripts and serves the public interest as intended,' Zibi said. The committee will approve the terms of reference on 1 July 2025, and the inquiry will take place after the August recess. ALSO READ: Two law firms get lion's share of RAF's R103m legal services spend The Association for the Protection of Road Accident Victims (APRAV) has welcomed Scopa's decision to initiate a full parliamentary inquiry after 'years of concern' about systemic mismanagement, growing dysfunction, and serious questions regarding financial and ethical oversight at the fund. 'This is a massive victory — not just for APRAV, but for every victim who has suffered silently under a broken and unaccountable RAF system,' said Pieter de Bruyn, speaking on behalf of APRAV. 'It is a long-overdue reckoning with a system that has failed too many for too long.' 'This is a massive victory' – APRAV As the inquiry process begins, APRAV called on victims, legal practitioners, former RAF employees and whistleblowers to come forward and share their evidence and experiences. 'Let this be the beginning of a new chapter for the RAF — one rooted in truth, accountability, and the collective will to do better,' said de Bruyn. NOW READ: RAF 'deliberately withholding' information from Scopa
IOL News
24-06-2025
- Business
- IOL News
SCOPA launches inquiry into Road Accident Fund over mismanagement allegations
The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF Image: File The Standing Committee on Public Accounts (SCOPA) has launched a full-scale inquiry into the Road Accident Fund (RAF) following mounting allegations of financial mismanagement, wasteful spending, and governance failures. According to the committee, this decision "follows months of repeated attempts by the committee to obtain truthful, complete information from the RAF Board and executive management to little avail". SCOPA is expected to approve the terms of reference for the inquiry on July 1, 2025, with the investigation set to commence after the August recess. IOL previously reported the suspended CEO Collins Letsoalo also held the position of Chief Claims Officer while he was at the helm of the entity and received an increased bonus for the additional duties. The Committee also expressed its frustrations, stressing it cannot perform "its work effectively if state entities do not provide it with complete and truthful information, with adequate context and supporting information". 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 Among SCOPA's key concerns are: Failure to perform adequate background checks on senior management and executive appointments who nonetheless have access to and manage significant sums of public funds despite having a deeply concerning employment and disciplinary history involving allegations of reckless financial management decisions. Subsequent refusal by the RAF to disclose to the committee where such funds are kept and for what purpose. Failure to appoint critical officials such as a Chief Claims Officer, Head of Claims Operations, Head of Legal, Chief Corporate Support Officer, Head of People Management etc , for an unacceptably long time while decisions with a significant financial impact on the RAF are being taken, alternatively not being taken when they should. Apparent failures of governance with a direct impact on the rule of law, the authority and powers of Parliament, as well as Chapter 9 institutions tasked with performing oversight on behalf of the South African people. Numerous whistleblower accounts relating to supply chain irregularities involving more than R1 billion, while internal management controls appear not to be applied. "These allegations point to failure by the Board to properly oversee management's decisions and actions in line with their statutory mandate," Scopa said. SCOPA Chairperson Songezo Zibi said the scale and seriousness of the complaints necessitate a thorough investigation. 'The volume of complaints and related documentary disclosures to the committee about the RAF make it necessary to examine them thoroughly, and make such recommendations as may be necessary to ensure that the institution does its work within legal and constitutional prescripts, and serves the public interest as intended. "An inquiry will also give everyone involved or implicated the opportunity to state their case under oath, and receive a fair hearing before the committee draws its conclusions.' ActionSA said it supported the decision for a parliamentary enquiry into the governance and operations of the RAF. "ActionSA has taken decisive steps. We have formally written to the Minister of Transport, Barbara Creecy, calling for the immediate dismissal of the entire RAF Board. Furthermore, ActionSA has tabled a motion in Parliament calling for a full debate on the corruption, incompetence, and wasteful expenditure that has come to define the RAF,". the party said. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
