Latest news with #MTEF
IOL News
14-07-2025
- Business
- IOL News
R2. 5 billion bailout bonanza: SABC and Post Office get a lifeline
Communications and Digital Technologies Minister Solly Malatsi has announced that the SABC will receive over R700 million and the South African Post Office (SAPO) R1.8 billion Image: Solly Malatsi/X Communications and Digital Technologies Minister Solly Malatsi has announced that the SABC will receive over R700 million and the South African Post Office (SAPO) R1.8 billion over the Medium-Term Expenditure Framework (MTEF). Tabling the Department's 2025/26 Budget Vote in Parliament last week, Malatsi said the allocations were aimed at supporting the SABC's public broadcasting mandate and stabilising SAPO's declining services. "The SABC will receive R704 million over the MTEF. This includes R43 million for programme production, R464 million to support the core public broadcasting, R197 million for Channel Africa, which amplifies South Africa's voice across the continent," Malatsi said. Last month, IOL reported that SABC CEO Nomsa Chabeli raised concerns about the broadcaster's financial sustainability, highlighting that the cost of its public mandate remains unfunded and that the SABC depends heavily on commercial revenue to support these obligations. "It's important to note that when we have discussions about the SABC's financial sustainability, we remember the cost of the public mandate that is currently unfunded. The SABC, from a commercial perspective, takes commercial revenue to fund the public mandate that's our current model." Chabeli said. She also pointed out that less than 20% of households in South Africa are paying for TV licenses, a situation that has led to a steady decline in funding for the public broadcaster. 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 The funding announcements come amid growing concerns about the long-term sustainability of both the SABC and SAPO. Many South Africans have criticised repeated government bailouts, questioning whether money alone can fix deep-rooted issues such as outdated business models and competition from digital alternatives. "The South African Post Office is allocated R8 billion over the MTEF to fulfil its universal service obligations, improve service delivery. This funding will support SAPO's efforts to diversify revenue, rebuild trust, and stabilise operations through strategic partnerships and good governance". Malatsi said. Last month, SAPO also received a R381 million wage subsidy from the government, aimed at covering employee salaries for the next six months as part of the ongoing business rescue process. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel
The South African
09-07-2025
- Business
- The South African
SARS gets largest chunk of Treasury Budget to help collect YOUR money
South Africa's National Treasury has been allocated R91.835 billion over the medium-term expenditure framework (MTEF), with the South African Revenue Service (SARS) receiving the lion's share to boost revenue collection and system modernisation. Tabling the Treasury's Budget Vote in Parliament on Tuesday, Finance Minister Enoch Godongwana said the department's budget – excluding direct charges – is projected to grow at an average annual rate of 6.2% between 2024/25 and 2027/28. 'The largest component is for transfers to SARS, which is allocated R45.760 billion – 49.8% of the department's total budget,' the Minister noted. This allocation includes an R8 billion increase compared to the 2024 budget estimates, targeted at modernising tax collection systems, expanding staff capacity, enhancing debt collection, and implementing e-invoicing for VAT and instant payment infrastructure. R3.422 billion for compensation of employees for compensation of employees R6.983 billion for goods and services for goods and services R78.554 billion for transfers and subsidies for transfers and subsidies R89 million for capital asset payments for capital asset payments R2.786 billion for financial asset payments Godongwana outlined major review initiatives aimed at restoring fiscal sustainability and enhancing public sector efficiency: Audit of 'ghost workers' in the public service using linked financial and administrative databases. Infrastructure conditional grant review, focusing on reasons for underspending and poor project delivery at provincial and municipal levels. Review of executive remuneration in public entities to develop a consistent, mandate-based compensation framework across Schedule 3 entities. These reforms form part of the Treasury's broader 2025/26 Annual Performance Plan, which emphasises job creation, poverty reduction, and greater inclusion through more effective government spending. South Africa has completed all 22 recommended actions required by the Financial Action Task Force (FATF) to exit the grey list. An on-site assessment is now scheduled before the next FATF Plenary in October 2025, which could lead to South Africa's formal removal from the grey list. 'Our efforts to remove South Africa from the grey list are succeeding,' said Godongwana. In line with this, a General Laws Anti-Money Laundering and Combating Terrorism Financing Bill is being prepared for public comment and will be tabled in Parliament in Q3 2025. R4.8 billion in unpaid taxes recovered by SARS through State Capture-related investigations. by SARS through State Capture-related investigations. Professional disbarments issued by SAICA and other bodies. issued by SAICA and other bodies. The Enablers Project , launched by the Financial Intelligence Centre , is tracking illicit fund flows from the State Capture era. , launched by the , is tracking illicit fund flows from the State Capture era. A 10-year ban on Bain & Co has been imposed, pending litigation. on Bain & Co has been imposed, pending litigation. A central register is now operational to track dismissed or resigned officials who left during disciplinary processes – strengthening accountability across government. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Zawya
03-07-2025
- Business
- Zawya
South Africa: Select Committee on Public Infrastructure Welcomes the Department's Bold Reform Agenda for Infrastructure and Job Creation
The Select Committee on Public Infrastructure and Minister in the Presidency has welcomed the Department of Public Works and Infrastructure's strategic and annual performance plans for the 2025/26 financial year. The Chairperson of the committee, Mr Rikus Badenhorst, described the plans as a clear and credible turning point for infrastructure-led development in South Africa. He said: "This is not a mere tweak of the department, but a fundamental shift in how it understands and executes its core mandate. Minister Macpherson agenda marks a critical departure towards a department that is a catalyst for infrastructure-led growth, a partner in job creation, and a driver of economic recovery." Following a detailed presentation by the Minister of the department, Mr Dean Macpherson, the committee affirmed its support for the department's renewed vision to serve as a catalyst for economic recovery, job creation, and inclusive growth. The plans are strongly aligned to the National Development Plan and Medium-Term Strategic Framework, and reflect an earnest commitment to reform, delivery and measurable impact. At the centre of this renewed vision is the repositioning of the Expanded Public Works Programme (EPWP) from a temporary job relief measure to a structured, skills-based employment pipeline. With a R7.2 billion allocation over the MTEF period, this reform aims to transform the EPWP into a credible contributor to long-term, dignified employment. Mr Badenhorst said the shift from welfare to workforce is one of the most important interventions in restoring both human dignity and economic resilience, remarked. 'We will monitor its implementation with keen interest,' emphasised Mr Badenhorst. The committee also welcomed the department's strategic focus on urban regeneration, repurposing hijacked and underutilised buildings, and optimising state assets for greater public value, particularly within inner-city precincts. This renewed developmental posture is essential to reversing years of stagnation, inefficiency and fiscal wastage. Minister Macpherson was frank in his assessment of the department's historic shortcomings, including systemic inefficiencies, audit deficiencies, and skills shortages. The committee commended the Minister's openness, and noted the department's new risk management framework as a strong response, particularly its intention to clamping down on tender irregularities, tighten controls on lease agreements, and combat collusion in the supply chain. Committee members posed rigorous questions during the session, including queries about the R589 million allocation for infrastructure support, the need to strengthen capacity in the EPWP, and concerns about the alignment of budget allocations with strategic intent. Particular attention was given to the transition to digital systems and its impact on job security, as well as the Department's plans to reduce its lease portfolio and address the long-standing maintenance backlog across government buildings. In response, the department indicated its commitment to prudent asset management, exploring alternative ownership models, and ensuring that modernisation does not come at the expense of employment or service continuity. Mr Badenhorst said to Minister Macpherson: 'It is clear that you bring political will to the table. This committee will match it with rigorous oversight, constructive engagement, and institutional support. Together, we can turn this department, and indeed South Africa, into a construction site of progress.' The committee reaffirmed its commitment to supporting the department's reform trajectory, underscoring the centrality of infrastructure to the nation's economic and social recovery. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Eyewitness News
30-06-2025
- Business
- Eyewitness News
Gauteng govt says it is making progress in paying of its e-toll debt
JOHANNESBURG - The Gauteng government is making progress in paying off its e-toll debt, with a further payment of R3.3 billion expected to be made to the South African National Roads Agency (SANRAL) on Monday. Finance MEC Lebogang Maile announced at a media briefing on Sunday that this marked the department's second payment. ALSO READ: Gauteng govt set to make second payment of e-toll debt on Monday When the e-toll system was abolished, National Treasury agreed to cover 70% of the debt, leaving the province responsible for the remaining 30%. The province has now paid off nearly half of its R15.9 billion e-toll debt. Maile emphasised that the province remained committed to settling the debt. "We wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). "The second amount due on the 30th of June 2025, based on the memorandum of agreement, is R3.377 billion in terms historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution."
IOL News
30-06-2025
- Business
- IOL News
Gauteng commits to R3. 3 billion e-toll debt payment amid ongoing road upgrades
Finance MEC Lebogang Maile, is set to make a landmark payment of R3.3 billion on Monday, fulfilling the provincial government's commitment to cover 30% of the provincial e-toll debt. Image: Itumeleng English/independent Newspapers Finance MEC Lebogang Maile has committed the province to paying off its 30% portion towards servicing the e-toll debt with the provincial treasury expected to make the payment of R3.3 billion towards the debt on Monday. This comes more than six months since the province made the first payment of R3.8 billion in September last year following the scrapping of the e-toll system early in 2024 with the National Treasury having agreed to cover 70% of the debt as the province took responsibility for the remaining 30%. According to reports, the debt is set to be repaid in five annual installments. On Sunday, during a press briefing, Maile indicated that an amount of R5.76 billion will be paid on Monday for the e-toll debt while another portion will be paid towards SANRAL freeway upgrades. "We are committed to increasing efficiency and systems, cost effectiveness and eliminate leakages. Identifying potential new revenue collecting sources that have not been explored and the use of alternative funding and implementation models to achieve more value. We are confident that alongside other interventions such as implementation of advanced technology and digitisation of our supply chain management, we will be able to realise the objectives that we have set before ourselves with the revenue enhancement strategy," he said. Maile revealed that the provincial government has been making progress in paying off its e-toll debt. "To restate, the Gauteng Provincial Government will tomorrow, make a transfer total of R5.76 billion towards the e-toll debt and the contribution towards the Sanral Gauteng freeway improvement project. There is much more work that still needs to be done to unpack the financing model.... We wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). "The second amount due on the 30th of June 2025, based on the memorandum of agreement, is R3.377 billion in terms historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution," he added. Maile added that the province will be embarking on various alternative ways to fund road upgrades stating, "For the policy perspective and financial impact as well as practical solutions. Of the studies undertaken by Sanral, there exists institutional knowledge in terms of the new routes and upgrades on new routes.
