Latest news with #NationalTreasury
The Citizen
a day ago
- Business
- The Citizen
Cartoon of the day: 27 June 2025
A massive loan to fix SA's infrastructure will be ineffective if poor governance continues. South Africa has secured a $1.5 billion loan agreement with the World Bank. National Treasury said the purpose of the loan is to fix the country's transport and energy infrastructure, while also helping to boost economic growth. However, poor governance continues to plague South Africa, with the state-owned enterprises (SOEs) Eskom and Transnet serving as glaring examples of this. The unreliability of the power system in certain parts of the country has constrained GDP growth, while ongoing port and rail inefficiencies continue to hamper the performance of the mining and manufacturing sectors. NOW READ: Treasury confirms R27bn World Bank loan to fix infrastructure
The Citizen
a day ago
- Politics
- The Citizen
Holomisa slams Cabinet and Treasury for crippling SANDF funding
UDM leader Bantu Holomisa says the SANDF is underfunded and underprepared for foreign deployments and disaster response. A former defence minister once revealed that 85% of the SA Air Force's aircraft are out of action due to age, a lack of spares or budget constraints. Picture: Gallo Images/Sharon Seretlo Chronic underfunding or defunding of the South African National Defence Force (SANDF), the impact of state capture on defence and problematic SANDF deployments on foreign peacekeeping missions are a concern. This is the view of United Democratic Movement leader and Deputy Defence Minister Bantu Holomisa, who was reporting back to his party this week. Cabinet and Treasury accused of ignoring urgent funding needs Holomisa criticised the lack of parliament, Cabinet and National Treasury support to ensure adequate protection of the country. He said even President Cyril Ramaphosa's directive in 2023 to increase defence funding from 0.57% to 1.5% of the gross domestic product was not adhered to and the Cabinet 'reduced these urgent calls to mere rhetoric, and National Treasury failed to allocate the necessary funds'. 'Parliament and the government of national unity must establish a structured, accountable process to implement resolutions, especially those related to defence and oversight bodies such as Scopa [standing committee on public accounts],' he said. ALSO READ: 'We're bleeding but not finished': Motshekga defends struggling air force DRC deployment exposes faults in 'adequacy of planning processes' Holomisa said the Democratic Republic of Congo (DRC) debacle involving SANDF members, some of whom were killed in a battle with M23 rebels, was an incident that haunted the department. The problem raised concerns about the overall capacity, preparedness and logistical readiness of the force to effectively carry out its continental peacekeeping and combat obligations. 'It brought into question the adequacy of our planning processes, resource allocation and strategic command structures in high-risk deployments,' he said. 'The DRC episode served as a stark reminder of the urgent need to review and strengthen our defence capabilities.' Climate disasters highlight emergency response limitations Holomisa raised climate change as a hindrance to the SANDF's work as it tested its capacity to respond swiftly and effectively to disaster relief operations. ALSO READ: SANDF budget constraints: SAAF needs R414 million to refurbish Ramaphosa's presidential jet A case in point was the recent devastating floods in the Eastern Cape which claimed more than 100 lives. He said despite the scale of the disaster, only one Oryx helicopter was deployed to conduct rescue and relief efforts and that happened days after the disaster had occurred. This highlighted the severe limitations in the force's aerial response capabilities during emergencies. 'Urgent need to improve' 'This highlights the urgent need to improve SANDF's disaster response readiness in alignment with the growing frequency and intensity of climate-related events,' Holomisa said. He said the department also held strategic meetings with defence state-owned enterprises such as Armscor and Denel, the defence secretariat and compliance briefings by the auditor-general and oversight meetings with the portfolio committee on defence and military veterans. NOW READ: Dire state of SANDF 'old hat' – Holomisa
TimesLIVE
2 days ago
- Health
- TimesLIVE
Specialised TB wing at King Dinizulu Hospital on track after stalling in 2011
A specialist tuberculosis wing at Durban's King Dinizulu Hospital which stalled in 2011 because of financial setbacks is back on track and expected to treat patients in May 2026. The R154m outpatient wing will be the first facility dedicated to treat patients with multi-drug resistant TB (MDR-TB) and extensively drug-resistant TB (XDR) in KZN. Inspecting the project on Thursday, public works and infrastructure MEC Martin Meyer revealed that the project had stalled since 2011 but was revived in June last year as part of the department's push to unblock stalled projects and improve infrastructure delivery. 'The previous contractor in the TB wing went insolvent in 2011 and due to severe monetary constraints that brings, the project could be revived only last year,' he said. 'It's very unfortunate there had to be over a 10-year delay but I think it also shows how our department and the department of health are committed to unblocking these blocked projects and get them moving forward.' Dr Tumelo Mabesa said the hospital, which is the only facility to treat drug resistant TB, has taken space reserved for inpatients to treat TB outpatients, which limited its capacity. 'Even the pharmacy was using a space of the ward, so by taking that space means we are reducing the capacity of the wards. Once those services are moved to this new wing then those spaces will be freed and we will have an additional space. 'So in addition to the outpatients services for both MDR and XDR TB functionality, we will also be increasing the capacity of the hospital by 64 beds.' The project, however, has not been without challenges, mainly the disruption by locals demanding more community involvement at the beginning of the project in July last year. Meyer said they were limited by the specialised nature of the facility. 'It's a difficult project in that there's a lot of legislation and regulations and all those things that needs to be met which also means we can't have as many EPWP workers on site as we would like because it's such a technical job. It's very important that where we can give jobs to communities we do so, but in very technical jobs like this we also have to keep that in consideration,' he said. Contractor Mbuso Makhathini of Makhathini Projects said they tried to work with locals where they could. 'In the cases that we could, we have been engaging them as subcontractors, getting them involved, uplifting them in terms of their CIDB grading and assisting them on how to grow their businesses.' Meyer said those disruptions were quickly addressed when the department, the contractor and ward councillor met the community. There have been 23 job opportunities for locals so far in the project and the department said the number is going to increase. Meyer added that the long-standing challenge of the payment of contractors also hindered progress but they were working with the National Treasury and the health department of health to address it.
The South African
2 days ago
- Business
- The South African
Here's the best financial news in 16 years for South Africa
South Africa has achieved its first consecutive primary budget surplus in over a decade and a half, underscoring a renewed national commitment to fiscal responsibility amidst global economic uncertainty. According to the South African Reserve Bank's latest Quarterly Bulletin, the country posted a primary surplus of R48.9 billion – or 0.7% of GDP – for the 2024/25 fiscal year, matching the National Treasury's May forecast. This marks a significant improvement from the R33 billion surplus recorded in the previous fiscal year. A primary surplus occurs when government revenue exceeds non-interest spending, and it is widely seen as a crucial indicator of fiscal health. The result falls short of an earlier R61 billion projection, but still represents meaningful progress in budget discipline. The primary surplus was driven by an R83.4 billion rise in total revenue, pushing collections to R1.8 trillion. According to the Reserve Bank, this was supported by strong performance across all major tax categories. 'This surplus is a testament to improved revenue collection and expenditure control,' the central bank noted. The National Treasury expects the primary surplus to continue growing over the next three years, with hopes that this will stabilise the debt-to-GDP ratio at 77.4% by 2025/26 – a higher level than previously forecast, largely due to slower growth stemming from global geopolitical pressures, including lingering impacts from US President Donald Trump's trade policies. Debt servicing costs remain high, consuming 22 cents of every rand, Treasury Director General Duncan Pieterse warned in a recent opinion piece. However, he noted that sustained surpluses could gradually reduce this burden and free up resources for essential services like education, health, and public safety. The news comes as a boost for South Africa's new Government of National Unity, which presented its first full-year budget after prolonged coalition negotiations. Investors are expected to respond positively, especially given that concerns over South Africa's debt trajectory have long kept local assets trading at a premium. 'This achievement strengthens our fiscal anchor and helps restore market confidence,' Treasury officials stated, pointing to the primary budget balance as the country's main fiscal guidepost since 2021. With another surplus under its belt, South Africa takes a cautious, but critical step forward in securing long-term economic stability. 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.
IOL News
2 days ago
- Politics
- IOL News
Ramaphosa slams infrastructure budget underspending as 'treason' against South Africans
President Cyril Ramaphosa highlighted the impact of inadequate spending by provinces and municipalities. Image: Jairus Mmutle/ GCIS The failure by provinces and municipalities to spend infrastructure budgets has been described by President Cyril Ramaphosa as treason against South Africans. "The issue of underspending is quite an important issue, particularly when it comes to spending on infrastructure allocations such as housing, education, water, and roads. "I actually often characterise it as treason against the people of South Africa when monies that had been allocated are not spent and are returned to the National Treasury," Ramaphosa said. He was responding during a question-and-answer session in the National Council of Provinces in Cape Town, on Wednesday. ANC MP Kenny Mmoiemaang had enquired about whether the government has assessed the impact of inadequate spending by provinces and municipalities on their commitments to deliver quality and essential services to communities, particularly crucial infrastructure such as housing, schools, and roads. Mmoiemang also wanted to know whether the government has been engaging provinces and municipalities that continue to underspend and fail to adequately utilise their allocated service delivery budgets. In his response, Ramaphosa said inadequate or slow capital expenditure has, in many ways, hampered the delivery of services that are due to the people. "This results in delays in housing delivery, stalled infrastructure projects such as schools, water, as well as sanitation and waste management infrastructure projects." He blamed the inability of municipalities to spend their capital projects on poor management, poor planning, weak implementation capacity, and inadequate financial and supply chain management. Ramaphosa said there were interventions in place, such as the budget monitoring forums coordinated by the National Treasury to track in-year spending and detect low expenditure patterns at an early stage, and support programmes by the Cooperative Governance and Traditional Affairs (Cogta) Ministry. There were also capacity-building programmes that were organised by the Municipal Infrastructure Support Agency, and the Cabinet has appointed an inter-ministerial committee to support distressed municipalities. Ramaphosa added that Operation Vulindlela is implementing reforms to strengthen local government, and dedicated groups have been established in eThekwini and the City of Johannesburg to address challenges with water and electricity infrastructure. "This innovative initiative is going to see great changes being introduced. These measures will help address the root causes of underspending and ensure infrastructure is maintained and expanded to improve service delivery."
