Latest news with #OUTA
eNCA
30-06-2025
- eNCA
OUTA hopes case against former Transet executives 'watertight'
JOHANNESBURG - High-profile former Transnet executives implicated in a corruption scandal are expected to appear before the Palm Ridge magistrate's court. Brian Molefe and Siyabonga Gama have been taken into custody in the south of Johannesburg. They are linked to a dodgy R93-million locomotive tender. Reacting to this arrest, civil society watchdog, Organisation Undoing Tax Abuse and Accountability (OUTA) CEO, Wayne Duvenage, commended the arrest, saying it was long overdue. He argues that there are cases within this case, and this is another development. "This is long overdue. Hopefully, this time around with all the recent setbacks and cases being thrown out of court, we would expect that the investigative directorate has done their homework and have their ducks in a row and ensure that these cases are watertight," he said.
The South African
18-06-2025
- Automotive
- The South African
Government must suspend driver's licence fines in 2025
No driver's licence fines should be issued until the Department of Transport (DTC) gets its affairs in order and the printing backlog is overcome. This is the assertion of the Organisation for Undoing Tax Abuse (OUTA) amidst uncertainty over the delay. Previously, following yet another card-printing breakdown, the DTC said the backlog would take four months to clear. In May, Transport Minister Barbara Creecy confirmed that around 733 000 driver's licences sat in the queue. Nearly half of the 1.3-million backlog peak in 2022/2023. Although the DTC usually advises 14 days to process a licence application, this has risen to six weeks since the printer breakdown. To avoid driver's licence fines, authorities advise holding onto your expired license card, along with proof of a new application. The new card account and printing tender has stalled under Minister Creecy. Image: File Furthermore, the DTC said 269 000 back-logged cards had already been cleared. However, those numbers don't add up. At the current printing rate of 2 400 cards per day, it will take more than one year to clear the backlog, reports BusinessTech . As such, the Organisation for Undoing Tax Abuse (OUTA) is calling on Minister Creecy to suspend driver's licence fines. The non-profit initiative says government should waive fines and temporary licence process for those who have cards stuck in the system through no fault of their doing. OUTA believes it's unfair to fine motorists who are waiting for their card renewals. Likewise, in light of on-going printer breakdowns, OUTA argues the validity of all licence cards should be extended to 10 years. The civil action organisation has been highly involved in the license printing debacle. It was OUTA's independent investigation last year that uncovered significant irregularities in the tender procurement process. Driver's licence backlogs peaked in 2022/23 at more than 1.3 million. Image: Gallo/Jacques Stander In turn, the Transport Minister passed OUTA's report onto the Auditor-General of South Africa (AGSA). AGSA noted that while a new printing machine cost R486 million, a tender worth R898 million was irregularly awarded. Many believe this near doubling of cost was to facilitate new digital Driver's Licence Card Accounts (DLCAs). French company, Idemia, raised plenty of eyebrows when it won the massive tender. The firm is considered a leader in biometrics and smart technology and has associations with government all around the globe. There is still no clarity from the department on whether a new tender will be awarded. Or if driver's licence fines will be suspended in the meantime. 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
16-06-2025
- Business
- IOL News
A Tale of Two Forces: Fiscal vs Monetary Policy tug-of-war
The fuel levy makes up approximately 6% of the government's total revenue and is the fourth-largest revenue-generating item in the government budget, collecting R730 billion over the past decade. Image: File 'It was the best of days; it was the worst of days.' In recent weeks, South Africa has dominated international news concerning its US-South Africa relations, which nearly overshadowed the outcomes of Budget 3.0 delivered by Finance Minister Enoch Godongwana on May 21, 2025. The VAT increase proposed in Budget 2.0 was revoked and replaced with a fuel levy increase of 16 cents per litre for petrol and 15 cents for diesel. Although considered a necessary evil, the fuel levy increase affects the economy and households similarly to the scrapped VAT increase. This levy follows a 12.74% rise in electricity prices effective from April 1 and precedes a 25 basis-point repo rate cut on the 29th of May 2025, reducing the prime lending rate to 10.75%. Much appears to be occurring simultaneously or in brief bursts, affecting various economic agents in different ways. South Africa is a fuel-importing nation, relying on nearly 80% of its crude oil on imports, which constitutes a substantial part of the country's import bill. Although fuel prices are regulated in South Africa, they remain influenced by market forces, such as the exchange rate and the dollar oil price. While managing fluctuations in international fuel prices is beyond our fiscal control, levies and fees fall within our remit. 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 ✕ According to the Organisation Undoing Tax Abuse (OUTA), from 2009 to 2014, South Africa's Basic Fuel Price (BFP) was the largest component of domestic fuel prices, ranging between 51% and 58% before decreasing to 30% in 2020. However, taxes and levies have been increasing, accounting for almost 70% of the fuel price in 2020. The fuel levy makes up approximately 6% of the government's total revenue and is the fourth-largest revenue-generating item in the government budget, collecting R730 billion over the past decade. Although it is not the biggest source of government revenue, it generates more revenue than customs duties or alcohol and tobacco excise duties, which should have been the sacrificial lamb protecting the local market. As reported by the Department of Mineral Resources and Energy (DMRE), in December 2021, the price of inland 95-octane petrol stood at R20.29, comprising a basic fuel price of R9.74 (48%), taxes and levies of R6.67 (33%), retail and wholesale margins of R2.74 (14%), and storage and distribution costs of R1.14 (6%). The Road Accident Fund levy of R2.18 (1%) was not included. South Africa's fuel prices are heavily influenced by levies and taxes rather than by global market fluctuations. According to the Stats SA 2021 report, there are 13 different charges depending on the type of fuel and one's place of residence. Are we undermining our economy by self-sabotaging? The South African Petroleum Industry Association (Sapia) reports that fuel prices rose by 21% in 2017/2018, leading to cost-push inflation and economic growth falling below 1%. This latest levy increase is likely to have a similar impact in an already frail economic environment. Higher electricity and fuel prices raise production and operational costs, leading to a decrease in aggregate supply, as businesses rely on the transportation of goods for production and retail purposes. This ultimately results in lower output, which, in turn, affects employment, wages, and investment as firms implement cost-containment measures to remain productive. As businesses pass the burden onto consumers by charging higher prices for their products and services, this leads to cost-push inflation pressures that alter spending behaviour, as consumers make trade-offs between food, repaying debt, electricity, commutes, and other essential household expenses. Consequently, aggregate demand in the economy will dampen as disposable income is eroded, thereby hindering economic growth. Although businesses and consumers were cushioned by the R1.27 drop in the basic fuel price shortly after the increase in the fuel levy, in the long term, the higher levy undermines South Africa's economic growth. An additional financial relief for consumers was a 0.25% reduction in the prime rate from 11% to 10.75%. Although this interest rate reprieve was moderately welcomed by South Africans, if higher fuel levies drive inflation, the South African Reserve Bank (SARB) may hesitate to cut rates further, limiting growth stimulus. Additionally, a fuel levy hike raises costs immediately, while rate cuts have a lag effect, thus taking time to stimulate growth. Rate cuts benefit indebted middle-class borrowers, boost borrowing, encourage business expansion, and stimulate economic activity, but do not offset fuel inflation for the poor. The fuel levy increase risks hurting short-term growth and rising inequality, disproportionately affecting low-income earners and households. These two policy decisions have opposite impacts. The fuel levy hike increases inflation, thereby reducing economic activity, while an interest rate cut spurs growth. To counter this challenging balancing act, the economy must grow at a higher rate to increase tax revenues and productive government spending. A higher growth rate will create jobs, reducing the number of economically inactive workers who rely on social grants as they shift to personal taxpayers. Growth also signifies positive business performance. This will broaden the tax base as more individuals gain employment, diverting the government's spending from social grants to more growth-enhancing initiatives. Moreover, corporate taxes will also increase. Very little can be accomplished with the low growth rate of 0.6% recorded in 2024 and 0.1% during the first quarter of 2025. If growth continues on this downward trajectory, government revenue and public expenditure will remain constrained.
IOL News
07-06-2025
- Politics
- IOL News
Mashatile, Ministers under fire for R200 million travel bill, including R900,000 Japan stay
The Organisation Undoing Tax Abuse (OUTA) has thrown its support behind a new bill aimed at reining in unchecked benefits for ministers. Image: Supplied Ministers in the Government of National Unity (GNU) have spent more than R200 million in travel expenses since assuming office last year, ActionSA revealed. The party said this figure was compiled through its GNU Performance Tracker, following the latest replies to our parliamentary questions submitted to every Minister, including the President, Deputy President, and the Minister of Sport, Arts and Culture. This painted a damning picture of executive indulgence at a time of deep economic crisis, ActionSA said in a statement. This week, the party revealed that Deputy President Paul Mashatile and his staff have incurred over R2 million in travel-related expenses for transport and accommodation since last year This included spending over R900,000 on just four nights' accommodation in Japan. In a written reply, Mashatile said all these occurred due to his international trips: to Ireland, Botswana, Zimbabwe, and, recently, Japan. He stood in for President Cyril Ramaphosa on other trips. 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 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. Next Stay Close ✕ In addition to this, Sports Minister, Gayton McKenzie, and his department have spent about R6.6 million on international travel. Among the most shocking items is a R164,556 payment for a trip to Burkina Faso that never took place. 'Not only is this spending exorbitant, but it is riddled with red flags, gaps, and inconsistencies,' it added. ActionSA said the public paid for flights and accommodation for an event that was ultimately abandoned, a textbook case of wasteful expenditure, as defined by the Public Finance Management Act. Defending his ministry, McKenzie said it would not be right to expect ministers not to fly business class on long flights. In a statement, ActionSA MP Alan Beesley condemned these as wasteful expenditures, saying that it was enough to build a decent home for a family in need for each night they spent in luxury. 'South Africans deserve leadership that puts people before perks and not an R200 million travel spree by the world's largest cabinet,' Beesley said.
IOL News
30-04-2025
- Automotive
- IOL News
SIU to investigate OUTA's roadworthy certificate fraud claims
Motorists make their way through the Mariannhill toll plaza to return home after the Easter holidays in KwaZulu-Natal. The Special Investigating Unit is to investigate allegations related to fraudulent roadworthy certificates. Picture: Doctor Ngcobo Independent Newspapers Image: Doctor Ngcobo Independent Newspapers The Special Investigating Unit (SIU) will investigate widespread corruption in the issuing of fraudulent roadworthy certificates, following the release of a damning report by the Organisation Undoing Tax Abuse (OUTA). The report alleges that vehicles which failed inspections in Gauteng were mysteriously issued roadworthy certificates by vehicle testing stations in Limpopo and North West sometimes in as little as 30 minutes. OUTA has made the report public, citing overwhelming public interest. 'We cannot improve road safety while corruption at testing stations goes unchecked,' said Rudie Heyneke, OUTA's senior project manager. 'Issuing and accepting fraudulent roadworthy certificates is a criminal offence that has a direct impact on road deaths.' Minister of Transport Barbara Creecy has since referred the report to the SIU, where the findings will be included under the current investigation into the Department of Transport's affairs, as outlined in Proclamation 191 of 2024. Collen Msibi, spokesperson for the Minister, said provincial authorities must act. 'Provinces will have to take remedial action. These fall under their watch,' Msibi said. 'The National Department is a policy-making department. But we are working closely with the MECs and the police on this matter.' Msibi expressed confidence in the SIU's ability to deal with the matter decisively: 'We've seen results through the SIU investigations on fraudulent licenses in the past.' 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 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. Next Stay Close ✕
