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The Citizen
2 days ago
- Business
- The Citizen
Gauteng can't pay its e-toll debt — turns to treasury, cap in hand
Is seeking changes to the payment terms, but until then 'will pay'. The fight might be over for motorists, but the debt remains. Picture: Jonathon Rees The Gauteng provincial government is involved in discussions with National Treasury about the payment terms of its R15.9 billion e-toll debt. However, Gauteng MEC of Finance and Economic Development Lebogang Maile stressed on Sunday that the province is committed to sticking to the current Memorandum of Agreement (MoA) arrangements to pay the province's 30% share of the e-toll debt amounting to R12.9 billion – plus interest of R3.3 billion – as it doesn't as yet have an agreement with Minister of Finance Enoch Godongwana about any changes to the terms of the MoA. Maile said the government is having discussions with Treasury on the payment terms to alleviate financial pressure on the province – 'and to give us some additional resources that we can use immediately to deal with immediate social challenges'. In terms of the MoA between the SA National Roads Agency (Sanral), the National Department of Transport, Treasury and the government announced by Godongwana during his 2022 Medium-Term Budget Policy Statement (MTBPS), Gauteng's e-toll debt contribution would be made in five equal annual instalments at government's five-year interest rate. ALSO READ: Gauteng pays R5.44 billion e-toll debt amid budget constraints Province to pay R5.47bn on Monday In addition to the settlement of this debt, the government also made a commitment to contribute a total of R4.1 billion towards the backlog maintenance on the Gauteng Freeway Improvement Project (GFIP). Maile said the province will on 30 June 2025 honour its obligation by paying the second instalment of its 30% portion of the e-toll historical debt. He added that the government made the first instalment amounting to R3.8 billion on 30 September 2024, which comprised R3.2 billion of historical debt and the GFIP maintenance backlog portion of R546 million. Maile said there is currently R3.559 billion outstanding from its commitment to pay Sanral R4.1 billion and that in addition to the e-toll debt payment, the government will on Monday also transfer an amount of R2.099 billion as part of the contribution towards the backlog of rehabilitation to restore the GFIP freeways to an acceptable condition before Sanral resumes its obligations for all future maintenance funded by the national fiscus. The total amount the provincial government will be transferring to Treasury on Monday is R5.47 billion. ALSO READ: Sanral claim for e-tolls doomed Repayments affect service delivery A pothole on a road in Atholl, Johannesburg. Image: Leon Sadiki/Bloomberg Maile said the province could have used that money to build additional schools, hospitals and roads and added if the province was not paying this R5.4 billion, it could for example be announcing that it is 'giving R2 billion to deal with all the potholes, R1 billion to deal with the robots'. 'In the budget, we only announced R300 million to deal with potholes on all provincial roads. It's not going to be enough,' he said. 'The repayment does have an impact on service delivery because it means we have limited resources. For instance, we need about 200 new schools in Gauteng. The money we have is for 18 schools. On average to build a school, is R200 million. 'If this R4.5 billion, or R20 billion over a period of time, was available it would mean we could increase the number of schools we can build … the number of clinics we can build, it means we can improve the quality of services.' ALSO READ: Right step to sort out e-toll debt mess Treasury paying 70% of e-toll debt Maile said there are some financial difficulties that put a strain on the province, which is why it is asking Treasury to help. 'National Treasury is committed to help, which is why it is paying 70% of the historical e-toll debt and the Gauteng provincial government is paying 30%,' he said. He added that the provincial government will over the next few years have to allocate a substantial amount of funds each year to service the repayment obligations for e-tolls – and that this will be happening in a constrained fiscal environment, details of which the province expressed in the initial Budget Speech and reiterated when it retabled its budget for the 2025/26 financial year. 'The reality of the situation is that the funding envelope is stretched by existing allocations, particularly in terms of keeping critical social programmes in health and education funded.' 'Nevertheless, we reaffirm our commitment to the residents of Gauteng that the servicing of the e-toll debt will not compromise our priorities, particularly in relation to social services such as health and education,' he said. ALSO READ: No refunds for those who paid for e-tolls, says Gauteng finance MEC Maile 'Measures and reforms' Maile said the provincial government is implementing various measures and reforms to ensure the sustainability of its fiscal environment. These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement. Maile said the province's revenue enhancement strategy has already been actualised, with provincial departments implementing various strategies to enhance revenue collection. He said this strategy is underpinned by five principles: Accelerating the completion of interventions that have already started; Optimising the existing revenue sources; Enhancing revenue collection processes and systems to increase efficiency, cost-effectiveness, and eliminate leakages; Identifying potential new revenue sources that have not been explored; and The use of alternative funding and implementation models to achieve more value. ALSO READ: E-tolls scrapped, but gantries will remain operational – Chikunga Maintenance, upgrades and capacity expansions projects In terms of the MoA, Maile said Sanral cannot use the funds it receives from the province for any other purpose than the nine projects that are financed by the province. He said the R4.1 billion will be used for the following maintenance, upgrades and capacity expansions projects on 185 kilometres on the N1, N3, N12, N14 and R21: 14th Avenue to Buccleuch Golden Highway to 14th Avenue Buccleuch to Brakfontein Brakfontein to Scientia Heidelberg Road to Geldenhuys Geldenhuys to Buccleuch Uncle Charlie's to Elands Gillooly's to Tom Jones, and Olifantsfontein to Hans Strydom. ALSO READ: E-tolls: Gauteng government to make first debt payment in September – Maile GFIP projects will be complete in four years These freeways are vital for facilitating efficient transportation and supporting economic activity by providing high-speed, controlled-access routes for vehicles in the broader Gauteng city region, Maile said. Gauteng deputy director-general for sustainable fiscal resources management Mncedisi Vilakazi noted that the estimated time to complete the nine projects is four years and that the amounts the province pays and contributes each year fluctuates in line with the readiness of these projects, which are at different stages. 'It will take four years to completely exhaust the nine projects, which will amount to about R4.1 billion,' said Vilakazi. Gauteng's freeways need an update. Image: Moneyweb This article was republished from Moneyweb. Read the original here.
Borneo Post
23-06-2025
- Business
- Borneo Post
Sarawak taps Affin Bank to manage EFS 2.0 for newborns
Fatimah (seated, fourth right) and other dignitaries in a photo-call, taken during the signing of the MoA. KUCHING (June 23): Affin Bank Berhad has been officially appointed to manage the Endowment Fund Sarawak (EFS) 2.0, a long-term savings initiative for newborns in the state. The appointment was finalised through a Memorandum of Agreement (MoA) signed between the Ministry of Women, Childhood and Community Wellbeing Development and Affin Bank during a ceremony here today. This five-year mandate, effective Jan 1, 2025 to Dec 31, 2029, reflects a shared commitment to inclusive economic participation and long-term community empowerment. 'EFS 2.0 enhances the state's pioneering endowment initiative by offering each eligible newborn with a structured savings package totalling RM1,000.00 ― comprising RM550 placed in the Affin Islamic Term Deposit-i (AITD-i) with an annual profit rate of 3.40 per cent, and RM450 placed in the Affin Emas Account-i, which offers an indicative average return of 8.98 per cent per annum. 'This structured approach supports sustainable wealth accumulation over 18 years, reinforcing long-term financial well-being and enhancing the financial preparedness of the next generation,' read the statement. In addition, each beneficiary will receive a complimentary Takaful Protection Plan, which provides RM10,000 coverage for one parent in the event of accidental death or permanent disability during the child's first year ― reflecting a holistic approach to family security and financial well-being. Minister of Women, Childhood and Community Wellbeing Development Dato Sri Fatimah Abdullah said EFS 2.0 reflects Sarawak's continued commitment to invest in the future of Sarawakians from the earliest stage of life. 'With the introduction of a revamped structure and enhanced features, Affin Bank has been appointed as the new strategic partner to manage this next phase of the programme. 'The benefits projects a total value of RM2,442.12 at maturity. With over 132,000 accounts opened since inception, this next chapter with Affin Bank strengthens our commitment to ensuring that every eligible child ― regardless of background ― has access to long-term financial opportunity and a fair start in life,' she said. Affin Group president and chief executive officer Datuk Wan Razly Abdullah said the bank is honoured to be entrusted by the Sarawak government to support EFS 2.0, a meaningful initiative that promotes financial resilience for future generations. 'This reinforces our role in advancing national priorities that promote digital empowerment, responsible finance and economic resilience. 'Guided by our Affin Axelerate 2028 Plan ― anchored on three strategic pillars of unrivalled customer service, digital leadership, and responsible banking with impact ― we aim to foster a savings culture and encourage financial literacy from an early age,' he said. 'With a growing network nationwide, including nine branches across Sarawak, we continue to expand our reach to communities. In all our efforts, we are committed to creating meaningful impact ― ensuring that whatever we touch is left in a better state than when we found it.' Affin Bank Endowment Fund Sarawak fatimah abdullah newborns
Hindustan Times
18-06-2025
- Business
- Hindustan Times
Pact inked, decks cleared for 2nd Sainik School in Punjab
With the Punjab government and the Centre finally signing the long-pending agreement for the existing Sainik School in Kapurthala, the path has now been cleared for setting up a second Sainik School in a border district of the state. The state had proposed a new school in Dalla Gorian village of Gurdaspur district nearly 15 years ago, but the plan remained in limbo due to a stalemate between the Union ministry of defence and the Punjab government over the Memorandum of Agreement (MoA) for Sainik School, Kapurthala. The defence ministry had made this agreement a prerequisite for approving any new schools in the state. Officials familiar with the matter said the agreement between the state government and the Sainik Schools Society under the ministry of defence was signed in March this year, outlining their roles, responsibilities, and financial commitments in establishing and running such schools. The announcement regarding the signing of the agreement, which had been pending since 2006, was made by Punjab's defence services welfare minister Mohinder Bhagat on May 27. As per the agreement, the state government will now provide financial assistance of approximately ₹6 crore for staff salaries, pensions, NPS contributions, etc. So far, the funds were being given by the Centre as a special grant. 'The signing of this agreement has paved the way for the new school in the Majha region. We have already taken up this matter with higher authorities,' said one of the officials quoted above. The Sainik School in Gurdaspur was proposed by the Punjab government in December 2009, which also identified a 40-acre plot of land for its establishment. In June 2017, the central ministry conducted a site survey and found the area suitable for opening the school with a student strength of 250. 'There was no progress for years thereafter, as the plan got stalled over the agreement for the school in Kapurthala. However, we are hopeful now,' said the official, who did not wish to be named. The Kapurthala Sainik School was established in 1961 as a feeder institution for the armed forces. The school has been a source of pride for the state government, with an impressive list of alumni. During the previous government, Manpreet Singh Badal, the then finance minister, had met Union defence minister Rajnath Singh in 2021 and requested him to approve a school in Bathinda as well along with the one already proposed in Gurdaspur by the state government. At present, there are 33 Sainik Schools managed by the Sainik Schools Society, the nodal organisation for establishing and managing these schools across the country, with eight states having two or more of these prestigious institutions. The central government has also decided to set up 100 new Sainik Schools across the country in partnership mode with NGOs, state government schools, trusts and private schools.
Malaysian Reserve
26-05-2025
- Business
- Malaysian Reserve
ASEAN Power Grid MoA to be signed in October
By FARAH SOLHI THE ASEAN Power Grid (APG) Memorandum of Agreement (MoA) is scheduled to be signed this October, after the successful conclusion on its enhanced MoA's negotiation at the 25th Asean Economic Community Council (AECC) meeting today. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told reporters that the APG, which would be signed at the 43rd Ministers on Energy Meeting (AMEM), is a strategic initiative in strengthening ASEAN's regional energy security, connectivity, and sustainability. 'In this context, we also welcomed ongoing work towards the establishment of the APG Financing Facility Framework, which will enhance cross-border flows of foreign direct investments (FDIs) and new funding opportunities for regional energy-related projects. 'The AEC Council also expressed full support for the convening of a joint meeting between ASEAN's Energy, Finance, and Economic Ministers in August,' he said. The enhanced APG MoA was among the 11 matters deliberated in the meeting, attended by ASEAN member states and Timor Leste today. Tengku Zafrul further highlighted several other matters raised during the meeting including Malaysia's success in completing two out of 18 Priority Economic Deliverables (PED) this year, which were the full conclusion of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Negotiations and the ASEAN Trade in Goods Agreement (ATIGA) upgrade. Both upgraded agreements are scheduled to be signed at the sidelines of the upcoming 47th ASEAN Leaders' Summit in October this year, he said. 'We remain confident that these milestones will serve as pivotal enablers for ASEAN's sustained growth and competitiveness. 'The successful conclusion of these negotiations is expected to enhance the region's economic integration and generate significant economic benefits for ASEAN, as we continue to navigate an increasingly volatile global economic landscape. 'In particular, ATIGA — long regarded as the cornerstone of ASEAN's economic integration — will now feature forward-looking and commercially meaningful provisions aimed at further boosting regional trade, enhancing supply chain resilience, and promoting deeper economic integration within ASEAN,' he said. Tengku Zafrul added that the council also welcomed the full completion of Laos' 2024 PEDs which marked the successful adoption of the Roadmap on Digital Trade Standards as this milestone reflects the continued commitment in advancing the ASEAN's digital economy agenda. He also highlighted the progress of AEC Blueprint 2025 progress, as it is in its final year of completion. 'The overall implementation rate stands at a commendable 97%, comprising 75% completed measures and 22% currently in progress, as of April. The Blueprint has played a pivotal role in shaping ASEAN's economic architecture over the past decade. 'It has served as the strategic roadmap for building a highly integrated and cohesive ASEAN economy, promoting inclusive and innovation-led growth, and deepening regional connectivity and competitiveness,' he said. He added that through the Blueprint, ASEAN has made significant strides in areas such as trade liberalisation, investment facilitation, micro, small and medium enterprise (MSME) development, digital transformation, and sustainable economic initiatives. 'This impressive 97% implementation rate not only demonstrates ASEAN's collective commitment to economic integration but also reinforces the region's ability to respond to global uncertainties in a cool, calm and calculated manner,' he added. The key learnings and progress under the AEC Blueprint 2025, he further said, will serve as a solid foundation for the development of the AEC Strategic Plan 2026–2030, which will chart the region's next phase of economic growth and transformation. Tengku Zafrul added that the bloc is prepared to launch the successor to the Blueprint, which is the AEC Strategic Plan 2026–2030, which will be launched as part of the Compendium with the overarching ASEAN Community Vision 2045 at the 46th ASEAN Summit on May 26. 'The AEC Council reaffirmed support and commitment to the effective implementation of the AEC Strategic Plan, which will guide ASEAN's post-2025 economic integration agenda. 'We also look forward to the Regional Socialisation of the AEC Strategic Plan, which will be held on June 12. This session will serve as a key multi-stakeholder platform to socialise and share the economic benefits of the AEC Strategic Plan,' he said.
Time of India
24-05-2025
- Politics
- Time of India
HC allows Arya Pratinidhi Sabha to appoint heads for Gurukul Kangri till 2028
Haridwar: Uttarakhand high court has allowed the Arya Pratinidhi Sabha (APS) units of Punjab, Haryana, and Delhi, regarded as the apex governing bodies of Gurukul Kangri (Deemed to be) University, to continue appointing the university's chancellor and vice-chancellor until the end of the 2027–28 financial year. Tired of too many ads? go ad free now It dismissed a petition by Dinanath Sharma, a retired official of the varsity, who had argued that the university must follow the 2023 UGC regulations, which had revoked APS's authority over key appointments. The court cited a March 3, 2025 letter from the central govt granting the university permission to function under the UGC (Institutions Deemed to be Universities) Regulations, 2019 until March 31, 2028. This exemption allows APS to retain appointment powers that were otherwise curtailed by the 2023 regulations. In its May 21 judgment, the court observed that "without considering provisions of the UGC Act, 1956, especially the interplay between Sections 20 and 26 of the said Act, the issues raised in the writ petition cannot be decided." Respondents' counsel Ajay Veer Pundir noted that with the dismissal of Sharma's appeal, the earlier stay on the central govt's letter had been lifted. He added that the exemption is conditional and if stipulated terms are not met, the university will be required to amend its Memorandum of Association (MoA) to align with the 2023 regulations after the 2027–28 financial year. The court had initially stayed the letter's operation on May 9, scheduled a hearing for May 16, and on May 20, a two-judge bench disposed of the case and referred it to a single bench, granting Sharma liberty to seek an expedited hearing. Faculty members expressed concern over the court's decision, fearing that administrative control reverting to APS would invite political interference. "The court verdict will mark the return of the university's bad days," a faculty member said on condition of anonymity, warning that appointments could be influenced by factional interests rather than merit. Tired of too many ads? go ad free now Reacting to the verdict, Shrawan Kumar Sharma, a retired English professor of the university, said, "The MoA will have to be amended in accordance with UGC Regulations 2023. Bringing down the university's funding to less than 50% within three years is not feasible. Since that's one of the conditions for the exemption, the university will eventually have to adopt the 2023 regulations." As of now, the university continues to function without a chancellor and under an officiating vice-chancellor, according to a university official.
