Latest news with #Creecy
The Citizen
4 days ago
- Business
- The Citizen
Transnet bailouts? Government bends with R94.8bn more in guarantees
It will ensure all the group's debt redemptions are covered for the next five years and mitigate the risk of credit downgrades on its existing debt, says the Transport Department. The further state support comes as international ratings agencies have in recent months either downgraded Transnet's credit rating or warned that it is running out of cash. Picture: Supplied Government has approved additional guarantee support of R94.8 billion for struggling state-run ports and rail group Transnet. On Friday the government approved an additional R48.6 billion guarantee for Transnet, to ensure that all debt redemptions will be covered over the next five years and the transport entity will maintain sufficient liquidity levels, according to the Department of Transport (DoT) on Sunday. This comes as international ratings agencies have either downgraded Transnet's credit rating or warned that it is running out of cash in recent months. The DoT added that the government had considered the impact of the credit downgrades on Transnet's existing debt and therefore also approved R46.2 billion for it to mitigate the risks of such ratings actions on its debt. This additional 'guarantee support' for Transnet follows government's approval of an allocation of R51 billion in guarantees to Transnet on 22 May 2025. That allocation comprised R41 billion for the funding requirements for the 2025/26 and 2026/27 financial years and R10 billion for liquidity management purposes. The latest additional guarantee support for Transnet follows Minister of Transport Barbara Creecy's announcement on 12 June 2025 that the government had initiated a process to allocate additional guarantees to Transnet. ALSO READ: S&P Global exposes Transnet's operational crisis as it fails to meet targets Creecy said at the time the government had initiated this process given Transnet's debt redemptions, over its five-year corporate plan period of R99.6 billion, and to at least cover the entire redemptions over the corporate plan period. She said this support from government will allow Transnet to ensure: That all debt redemptions will be covered over the next five years. The execution of its capital investment programme. Short-term liquidity risk is adequately mitigated. Creecy added that the government is determined to work with Transnet over the corporate plan period to focus on structural solutions to improve its capital structure to reduce its debt levels. She said the government will monitor Transnet's performance to ensure it provides adequate support as Transnet implements government's required reforms. The DoT said on Sunday the government will also continue to work with Transnet to ensure operational and financial improvements in the company and to accelerate implementation of reforms for the logistics sector, including private sector participation. ALSO READ: Creecy punts private sector investment for five rail and port corridors Creecy told the Southern African Transport Conference earlier this month that her department had just concluded a request for information (RFI) process to guide private sector investment in its five-priority rail and port corridors. She stressed that the limited availability of state resources to fund infrastructure development makes private sector investment critical. Speaking on the sidelines of the conference, Creecy said there had been 'an excellent response' to the RFI, with almost 163 submissions. 'We are now processing those submissions so that Transnet can begin the formal procurement process at the end of August 2025, through the issue of requests for proposals,' she said. Creecy said the DoT will at the end of this month release the second batch of the RFI, which will be focused on passenger rail initiatives. ALSO READ: R26 billion rescue from World Bank: Can the loan save Eskom and Transnet? Infrastructure funding She said funding sources for immediate rehabilitation of the five priority rail corridors include the current Transnet budget for rail and rolling stock maintenance and purchase of port equipment, submissions to the National Treasury's Budget Facility for Infrastructure, and private investment in refurbishing or expanding line capacity through existing customer agreements. Creecy said Transnet itself makes annual allocations for maintenance, but this is insufficient, and they have also put in an application to the Budget Facility for Infrastructure. Overall, it will be applying for more than R30 billion. 'This would allow us to do maintenance and to buy equipment for the rail corridors and also in the ports,' she said. The minister noted that there are two tranches: the July window application is already in, while they are still working hard on preparing the application for the October window. ALSO READ: Government delivers R51 billion support to Transnet. Will it last? 'We won't be able to do all of the ports and corridors all at once, but we will be doing so incrementally as we process the information. 'What we can look forward to is some major investment in our rail corridors and also in our ports. Obviously, it's going to take our infrastructure to a different level moving forward,' she said. Four of the six targets that Creecy highlighted in her Budget Vote speech in Parliament earlier this month are to: Ensure by 2029 that Transnet moves 250 million tons of freight on its network each year. Improve the speed at which ships are loaded and unloaded in South Africa's ports to the international benchmark of 30 gross crane movements per hour. Ensure the passenger rail system provides safe, reliable and affordable transport to workers and their families, with the aim of ensuring 600 million passenger journeys a year by 2030. Move 1.2 million tons of airfreight a year through the Airports Company of South Africa network of airports by the end of this political term. This article was republished from Moneyweb. Read the original here.
IOL News
7 days ago
- Politics
- IOL News
Fierce backlash against proposed Road Accident Benefit Scheme Bill following RAF board dissolution
Various organisations have raised significant concerns regarding the proposed finalisation of the Road Accident Benefit Scheme (RABS) Bill, especially following a crucial move by the Minister of Transport, Ms. Barbara Creecy, who has dissolved the Board of Directors of the Road Accident Fund (RAF). Various organisations have raised significant concerns regarding the proposed finalisation of the Road Accident Benefit Scheme (RABS) Bill, especially following a crucial move by the Minister of Transport, Ms. Barbara Creecy, who has dissolved the Board of Directors of the Road Accident Fund (RAF). The Department of Transport's move to revive the long-rejected Road Accident Benefit Scheme (RABS) Bill has sparked concerns, following Minister Barbara Creecy's announcement that she has dissolved the Road Accident Fund (RAF) Board due to ongoing governance and operational failures. Creecy, who recently took over the transport portfolio, said the dissolution was necessary to stabilise the RAF and restore its ability to fulfil its mandate. She also confirmed the department's intention to finalise the Road Accident Benefits Scheme (RABS) Bill, a move that various organisations say is both undemocratic and dangerous. The department explained that the RABS Bill seeks to replace the current fault-based compensation model with a no-fault system, removing the need for costly legal processes. Civil society organisations, legal experts, and advocacy groups, many of whom have fought against the bill for years, have condemned its reintroduction. Among them is the Association for the Protection of Road Accident Victims (APRAV), which warned that pushing the bill forward again is a direct affront to democracy. 'Parliament has rejected RABS three times already,' said APRAV Deputy Chairperson and spokesperson Ngoako Mohlaloga. 'The continued attempt to revive it is either deliberate ignorance or a strategic attempt to bypass the will of the people.' APRAV Chairperson Pieter de Bruyn said the bill was rejected not only by lawmakers but also by road accident victims, legal professionals, disability rights groups, and medical experts. 'RABS would have stripped victims of their right to legal recourse, capped compensation, and imposed rigid limitations,' he said. 'It was unworkable and unjust, and its continued reappearance shows this is about pushing a political agenda, not real reform.' APRAV also pointed out that it led a two-year national consultation process that resulted in a credible and workable alternative to RABS, one that would fix the RAF without violating constitutional rights or collapsing the public purse. Legal expert Kirstie Haslam, a personal injury attorney and partner at DSC Attorneys, told Independent Media that the RABS Bill fails to tackle the real problems at the RAF, namely, poor management, inefficiency, and lack of accountability. 'RABS replaces a broken system with another flawed one,' Haslam said. 'It doesn't fix the root causes of RAF's dysfunction, and worse, it strips victims of access to justice by capping payouts and removing the right to claim for general damages.' She also added that the bill's attempt to limit legal oversight raises serious constitutional concerns and could face court challenges if passed in its current form. Haslam further highlighted troubling trends in the RAF's finances, which, although improved, have come at a cost. The RAF's 2023/2024 annual report shows the deficit has dropped from R8.43 billion to R1.59 billion, but partly due to reduced medical and loss-of-earnings payouts. Despite the tightening of spending, courts continue to issue significant awards. She revealed a series of recent payouts, such as in April, when a woman received over R4.6 million following the death of her husband in a motorcycle accident. That same month, another claimant, Seronica Nathram, was awarded nearly R3.9 million for injuries sustained in a crash. Another case involving the Road Accident Fund that commanded attention involved 16-year-old Ashwell Bernard Jones, where the Western Cape High Court awarded Jones just under R4,979,832 for future loss of earnings. He was only eight years old when he sustained a serious brain injury after being hit by a vehicle while riding his bicycle in Lavender Hill in 2017. The court ordered the RAF to cover all legal costs, including expert fees, travel expenses, and the possible appointment of a curator to manage the funds. The RAF was given 180 days to make payment, or interest will begin to accrue. While many groups remain opposed to the revival of RABS, the Congress of South African Trade Unions (COSATU) has backed the minister, calling the RAF a 'disaster site' with liabilities exceeding R400 billion. 'The RAF has become dysfunctional and has failed working-class South Africans for too long,' COSATU said in a statement. 'It's time for bold reform.' Responding to questions, the RAF Head of Corporate Communications, McIntosh Polela, said the RABS Bill is being revisited to address longstanding issues in the current RAF Act. 'The RABS Bill aims to reduce litigation, cut high administrative costs, and accelerate claim finalisation,' the fund said. 'It is part of a broader strategy led by the Department of Transport to ease the pressure on the courts and better serve road accident victims.' Saturday Star
The Citizen
24-07-2025
- Politics
- The Citizen
Reintroduction of Road Accident Benefit Scheme Bill ‘ill-advised'
Just execute the Road Accident Fund Act properly, says non-profit. If successful, 'administrative staff will decide on the compensation, which will only be paid monthly, with no provision for significant initial expenses'. Picture: iStock The Association for the Protection of Road Accident Victims (Aprav) has appealed to Transport Minister Barbara Creecy to stop her plans to reintroduce the Road Accident Benefit Scheme (RABS) Bill. When Creecy recently announced the disbandment of the Road Accident Fund (RAF) board, she confirmed her plans to revive the bill to establish a no-fault, defined benefit scheme, which, she said, will 'make it easier for road accident victims to access the benefits without costly legal bills'. Aprav is a non-profit organisation of professionals acting on behalf of road accident victims. It was established in 2014 and has long been opposed to the RABS Bill, which has been introduced to parliament multiple times without success. ALSO READ: Creecy dissolves RAF board amid governance and operational failures A 'Sandton bill' During a media briefing hosted by the National Press Club in Pretoria, Aprav deputy chair Ngoako Mohlaloga characterised the RABS Bill as a 'Sandton bill'. He said the proposed scheme had been devised in offices in Sandton by people who do not understand the challenges of the majority of poor South Africans who live in rural areas without proper transport and easy access to health facilities. Mohlaloga said road accident victims are victimised twice – first by the accident itself and then by the RAF system. This will become even worse if the RABS is introduced, he said. The RAF is currently in turmoil. There is no board, the CEO has been suspended, and the Special Investigation Unit is looking into the fund regarding allegations of corruption, maladministration, and financial losses. A massive backlog of claims is clogging court rolls due to a low settlement rate. ALSO READ: Outa welcomes dissolving of RAF board and cancelling of license card tender 'Every accident is different' In terms of the proposed scheme, the compensation for each class of injury is predetermined, 'but every accident is different, and the circumstances of victims are not the same', said Mohlaloga. He added that under the no-fault system, liability is not considered and rehabilitation will rely on the National Health Insurance (NHI). 'For RABS to work, the NHI must be fully operational.' For various reasons, this is not expected to be the case for many years. Mohlaloga explained that people living in villages do not have access to ambulances and there are often very few cars – 'and those that are there don't have petrol'. Any delay in getting to hospital reduces the chance of successful rehabilitation. He said the RABS Bill had previously been rejected by the Parliamentary Portfolio Committee on Transport because it was unaffordable and unconstitutional. The committee asked government to reconsider its revival. In 2022, the portfolio committee asked for proposals to resolve the RAF's challenges – and Aprav made extensive submissions. The organisation believes the current system will work if the RAF 'gets its house in order' and properly implements the existing law. Mohlaloga added that government's contingent liability concerning the RAF will not disappear with the introduction of the proposed scheme but will increase by 60%. (The contingent liability amounts to R368 billion in the budget tabled for 2025/26.) ALSO READ: RAF needs a Settlement Hub for crash victims – expert Context Aprav chair Pieter de Bruyn said every aspect of the RAF system has already been tested in court, which means there is a high degree of legal certainty. He said the majority of South Africans are too poor to pay for legal representation to get compensation in court, which prompted government to step in and provide a compensation system through the RAF. However, the RAF was created 30 years ago under vastly different conditions. The Satchwell Commission made several proposals to improve it years ago, but politicians weren't interested in acting on them. Aprav has, however, proposed a 10-point plan for a turnaround at the RAF to parliament and is asking Creecy to look at it rather than embark on another campaign to establish the RABS. De Bruyn said the campaign would waste another three or four years, and eventually fail. ALSO READ: RAF notice that saw claimants 'excluded' declared unconstitutional Poor will be excluded He added that to submit a claim, victims will have to send an e-mail and then submit an eight-page form 'that I find difficult' electronically. They will get feedback via SMS, and if it is rejected, they can appeal to the same body that initially rejected it. He said poor people without smartphones and Wi-Fi access will simply be excluded. If successful, administrative staff will decide on the compensation, which will lapse after 15 years. Compensation will only be paid monthly, with no provision for significant initial expenses such as operations. The scheme's monthly payments will be exponentially more than those the RAF is currently making, which will be a huge administrative challenge. As Mohlaloga puts it: 'The bill offers less money, fewer rights, and no path to challenge the system when it fails you.' This article was republished from Moneyweb. Read the original here.
The Citizen
23-07-2025
- Politics
- The Citizen
Barbara Creecy's passion to serve
She's the 13th occupant of the hot seat in what's probably one of the most complex and burdensome portfolios in government. Minister of Transport Barbara Creecy's got a dry sense of humour. Picture Michele Bega /The Citizen Barbara Creecy has served in government since the dawn of democracy in South Africa. That's 30 years plus change, and presently she's Minister of Transport, a portfolio that some may say is a hand dealt that's guaranteed to fold before the flop. She's the 13th occupant of the hot seat in what's probably one of the most complex and burdensome portfolios in government. 'It's hopefully a lucky number for me,' Creecy said. The Minister is armed with a sardonic, dry wit that's as enjoyable as her warmth that nurtures familiarity. She's the kind of person, it seems, that holds a room not by force, but by intellect paired with affability. And there are no airs and graces. What you see is what you get. Creecy said her almost lifelong marriage to politics has been as demanding as it has been fulfilling. 'It's been fun, it's been difficult, I've learned an enormous amount,' she said. 'I have had a very interesting life.' 'I've had a very interesting life' Creecy is an alumnus of Johannesburg's Roedean School and has been a long-standing member of the ANC's National Executive and Working Committees. Her political career dates back to 1979, when she joined the ANC, then banned, while a student at the University of the Witwatersrand (Wits University). There she graduated with an Honours in political science before completing a Master's in public policy and management at the University of London. Creecy was a founding member of the United Democratic Front in 1983, and operated within the ANC underground, spending time in exile in 1988 in the then Soviet Union. She began her career in the post-1994 government in the Gauteng Provincial Legislature in 1994, where she was first elected as a Member of the Provincial Legislature in Gauteng. She spent ten years there, helping to shape what later became South Africa's national oversight framework. 'We developed a concept of parliamentary oversight that was different from the forms that exist elsewhere in the world,' she said. 'It included quarterly performance reviews of departments and entities, not just the budget.' A career of achievement During that period, she chaired both the Social Development and Education Committees. In 2004, she joined Premier Mbhazima Shilowa's provincial Cabinet as MEC for Sports, Arts and Culture, a role she held during the lead-up to the 2010 FIFA World Cup. In 2009, she moved to the education portfolio, focusing on performance improvements in township schools. 'We worked on turning around underperforming schools in Soweto and other communities,' she said. ALSO READ: Two South Africans, one laptop and a billion-rand travel company. By 2014, she was appointed MEC for Finance in Gauteng. Her team introduced the Gauteng Open Tender System and worked on initiatives to integrate township businesses into both public and private supply chains. 'We did a lot of work supporting Premier Makura on developing township enterprises,' she said. In 2019, Creecy moved to national government, taking up the Environmental, Forestry, and Fisheries portfolio. There, she worked on the Climate Act and international climate financing agreements. In 2024, she was appointed Minister of Transport. Here she oversees 16 entities and eight departmental branches. It includes problem children like Transnet, Prasa, SAA, and other industries that would be a headache to most. Creecy isn't fazed, but noted that a single term to get things done is not a long timeline. 'Five years is short. You must have an overarching vision so that you can move the system in a common direction,' she said. A vision with six targets Her vision is defined by six key targets: moving 250 million tons of freight onto Transnet's rail network, achieving 30 gross crane moves per hour at ports, 600 million Prasa passenger journeys by 2030, 42 million annual passengers through ACSA airports, 1.2 million tonnes of air freight, and halving road fatalities by 2030. Progress includes a 9-million-ton increase in Transnet freight, 48 000 more freight units through ports with cranes recommissioned, and 35 of 40 priority Prasa lines restored, enabling 77 million passenger journeys so far with a target of 116 million this year. Road accidents dropped 9% and fatalities 11%, attributed to coordinated enforcement at hotspots. Creecy said she does not intend to stay in public office beyond the current term. 'I think it will be time for me to retire,' she said. 'But I enjoy this portfolio now. It is intellectually stimulating and fast-paced.' Her daily routine is dominated by work, with time scheduled for exercise and healthy eating. 'I'm very health-conscious. Protein, vegetables, and a little fruit, definitely no carbs,' she said. Spare time is often reading time, particularly policy-related material. 'I've been reading books on rail reform,' she said, citing The Pig That Flew and Switchpoints, which detail the Canadian rail turnaround. 'They're not entirely synonymous with our challenges, but they are useful case studies.' The Minister has two children and is divorced. Her son is actively involved in nature conservation in Mpumalanga. She regrets nothing and is somewhat philosophical about the daily grind. 'I chose this work,' she said. 'Nobody forced me. I believe I can make a difference.' NOW READ: Husband and wife team rely on talent
The Citizen
21-07-2025
- Automotive
- The Citizen
Call to extend driver's license validity
South Africans have complained about the slow pace at which driver's license cards are being issued. The Organisation Undoing Tax Abuse (Outa) executive director advocate Stefanie Fick has written to Minister of Transport Barbara Creecy to consider extending the validity for all licence cards to 10 years and waive fines and temporary licences for those whose new licence cards are stuck in the backlog. This comes after the Department of Transport reported a backlog of 690 000 driving licence cards, arising from the breakdown earlier this year of the sole card-printing machine. Outa CEO Wayne Duvenhage said after months of delay, the department had finally filed papers in the High Court in Pretoria aimed at overturning the R898 million contracts awarded to Idemia South Africa to supply a new driving licence card machine. Duvenhage said the auditor-general took their concerns seriously: 'We commend Minister Creecy for acting on them. This is how civil society, oversight institutions and public representatives should work together to tackle maladministration.' He added: 'In early September last year, Outa exposed procurement irregularities in this contract and submitted a detailed report to Creecy, who passed it on to the auditor-general of South Africa and asked for further investigation. That request was accompanied by Outa's detailed report outlining allegations of procurement irregularities.' ALSO READ: 'Self-destructing' number plates for Gauteng? Here's what to know Duvenhage said the court papers outline multiple flaws in the contract, including a nearly R400 million cost escalation, from the original Cabinet-approved budget of R486.385 million to the signed contract of R898.597 million. Also contributing was the use of outdated pricing, omission of printing material costs, evaluation errors in scoring, machine assessments and bidder non-compliance and weak documentation. AfriForum also wanted Creecy's to issue temporary licences free of charge to motorists who renew their licences on time, amid the backlog in the issuing of driving licence cards. Spokesperson Louis Boshoff said the department had ignored workable solutions, such as extending the validity period of licence cards. – [email protected] NOW READ: RAF CEO placed on special leave with full pay, as MPs grill fund
