Latest news with #LGES
The Citizen
14-07-2025
- Business
- The Citizen
Almost 40 municipalities facing sanctions from Treasury over mismanagement
Water boards in four provinces are owed a combined R17.7 billion while municipalities have not been paying pension fund contributions. Municipalities with poor payment records are risking a backlash from National Treasury. A letter was recently sent to Minister of Cooperative Governance and Traditional Affairs (Cogta) Velenkosini Hlabisa, warning that vital payments to municipalities would be throttled should they not get their accounts in order. Almost 40 municipalities were flagged by Treasury for owing water boards billions, as well as not honouring pension fund and medical aid payments of staff. Defaulting municipalities Finance Minister Enoch Godongwana wrote to Hlabisa on 30 June, giving the Cogta minister seven days to acknowledge the treasury's demands. Godongwana threatened to invoke section 216(2) of the constitution, which would place restrictions on Local Government Equitable Share (LGES) grant payments. A total of 39 municipalities are in the finance minister's crosshairs, including eight that owe the South African Revenue Service (Sars) a combined R197.5 million. Those eight and a further 13 have unpaid third-party pension fund contributions amounting to R819.5 million. The worst offender is Kopanong Local Municipality with R330 million in unpaid pension contributions, followed by Mafube and Mohokare municipalities with R253.4 million and R147.9 million, respectively. All three fall under the Free State government, which has been accused of prioritising 'exorbitant' salaries over service delivery. 'Withholding funds from struggling municipalities is not enough. All three levels of government have a responsibility to ensure that residents' rights are protected,' stated the Freedom Front Plus' Armand Cloete. Over R17 billion owed for water Unpaid pension fund contributions were dwarfed by the amount owed by municipalities to water boards. Treasury singled out 18 municipalities from four water boards, which have a combined debt of R17.7 billion. Matjhabeng Local Municipality — also in the Free State — has amassed a bill of R8.1 billion, while Merafong and Emfuleni municipalities in Gauteng each have debts exceeding R1 billion. The municipalities must provide Godongwana with proof that the amounts will be settled or face receiving only partial LGES payments, which will be earmarked solely for the debts owed. The finance minister warned that should those conditions not be met, he would motivate to Parliament for the cessation of all LGES payments to these defaulting municipalities. Hlabisa's office did not respond to requests for additional information, but Cogta's Free State office did acknowledge questions sent by The Citizen, with that response still pending at the time of publication. NOW READ: When is the deadline to register for free basic electricity?
Business Times
07-07-2025
- Automotive
- Business Times
South Korea's LG Energy Solution says Q2 profit likely up 152% on year
[SEOUL] South Korea's LG Energy Solution (LGES), an electric car battery supplier for General Motors and Tesla, on Monday (Jul 7) estimated a 152 per cent rise in its quarterly operating profit. LGES said its operating profit was likely 492 billion won (S$461 million) for the April to June period. That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted towards analysts who are more consistently accurate. Analysts said LG Energy Solution's operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential US tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases. The South Korean battery maker said it expected an operating profit of 1.4 billion won in the second quarter, excluding tax credits under the US Inflation Reduction Act. LGES is expected to release detailed results in late July. REUTERS
Reuters
07-07-2025
- Automotive
- Reuters
South Korea's LG Energy Solution says Q2 profit likely up 152% on year
SEOUL, July 7 (Reuters) - South Korea's LG Energy Solution (LGES) ( opens new tab, an electric car battery supplier for General Motors (GM.N), opens new tab and Tesla (TSLA.O), opens new tab, on Monday estimated a 152% rise in its quarterly operating profit. LGES said its operating profit was likely 492 billion won ($360.94 million) for the April-June period. That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted toward analysts who are more consistently accurate. Analysts said LG Energy Solution's operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential U.S. tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases. The South Korean battery maker said it expected an operating profit of 1.4 billion won ($1.03 million) in the second quarter excluding tax credits under the U.S. Inflation Reduction Act. LGES is expected to release detailed results in late July. ($1 = 1,363.1000 won)
CNA
07-07-2025
- Automotive
- CNA
South Korea's LG Energy Solution says Q2 profit likely up 152% on year
SEOUL :South Korea's LG Energy Solution (LGES), an electric car battery supplier for General Motors and Tesla, on Monday estimated a 152 per cent rise in its quarterly operating profit. LGES said its operating profit was likely 492 billion won ($360.94 million) for the April-June period. That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted toward analysts who are more consistently accurate. Analysts said LG Energy Solution's operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential U.S. tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases. The South Korean battery maker said it expected an operating profit of 1.4 billion won ($1.03 million) in the second quarter excluding tax credits under the U.S. Inflation Reduction Act. LGES is expected to release detailed results in late July. ($1 = 1,363.1000 won)
Yahoo
07-07-2025
- Automotive
- Yahoo
South Korea's LG Energy Solution says Q2 profit likely up 152% on year
SEOUL (Reuters) -South Korea's LG Energy Solution (LGES), an electric car battery supplier for General Motors and Tesla, on Monday estimated a 152% rise in its quarterly operating profit. LGES said its operating profit was likely 492 billion won ($360.94 million) for the April-June period. That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted toward analysts who are more consistently accurate. Analysts said LG Energy Solution's operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential U.S. tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases. The South Korean battery maker said it expected an operating profit of 1.4 billion won ($1.03 million) in the second quarter excluding tax credits under the U.S. Inflation Reduction Act. LGES is expected to release detailed results in late July. ($1 = 1,363.1000 won)
