Latest news with #R1.1
The Citizen
2 days ago
- Business
- The Citizen
Lesaka Thecnologies to buy Michael Jordaan's bank for R1.1 billion
Bank Zero was founded in 2018 by Michael Jordaan, a former CEO of FNB. Fintech group Lesaka Technologies announced that it will acquire Bank Zero for R1.1 billion pending regulatory approval. Bank Zero was founded in 2018 by Michael Jordaan, a former CEO of FNB. In the announcement made on Friday morning by Lesaka, the acquisition will be settled through a combination of newly issued shares, such that the shareholders of Bank Zero will own approximately 12% of Lesaka's fully diluted shares at the time of completion of the proposed transaction and up to R91 million ($5.1 million) in cash. 'The proposed transaction is subject to the satisfaction of customary closing conditions as well as regulatory approvals ordinarily required of a transaction of this nature, including approval from the Prudential Authority, a division of the South African Reserve Bank, Competition Commission approval and Exchange Control approval,' it said. Why Bank Zero The fintech group said this acquisition will mark another key milestone in its journey to build a vertically integrated fintech platform. Lesaka Technologies is listed on the Johannesburg Stock Exchange (JSE) and on Nasdaq. 'The combination of Bank Zero's digital banking infrastructure and its operational banking licence, together with Lesaka's fintech and distribution platform, is intended to transform the way Lesaka is able to conduct business in the future, offering key financial, strategic and regulatory benefits,' Lesaka said. Lesaka expects the transaction to support a more optimised balance sheet in the future, allowing the group to finance existing and continued growth in lending books through customer deposits, driving stronger lending unit economics. ALSO READ: FSCA finds banks do not handle consumer complaints properly Bank Zero's performance 'As at the end of April 2025, Bank Zero had a deposit base in excess of R400 million and more than 40 000 funded accounts across South Africa,' read the announcement. Lesaka expects the transaction to be accretive to its shareholders, with Bank Zero expected to be profitable in the fiscal year following completion of the transaction. 'Our belief in the combined platform's future is clear and we see strong symmetry in our vision. There is a strong international precedent for fintechs that have acquired banking capabilities to deliver more integrated, compliant and capital-efficient financial services,' Jordaan said. Board changes The announcement also includes changes to the Lesaka board. Jordaan will join the Lesaka board of directors, while Yatin Narsai will continue as CEO of Bank Zero. Narsai, CEO and co-founder of Bank Zero, spent more than 15 years at FNB, where he served as the CEO of FNB's retail bank. 'The broader Bank Zero leadership team will remain in their current roles, ensuring continuity and integration,' he said. NOW READ: Investing in JSE shares: What you need to know
The Citizen
2 days ago
- The Citizen
Reserve Force members allegedly defraud SANDF of R1.1 million
More than 90% of the SANDF's reserves do not have alternative employment and do not receive an income if they are not called up. Six South African Defence Force (SANDF) Reserve Force members appeared in the Pretoria Commercial Crimes Court on Thursday for fraud. According to NPA spokesperson Lumka Mahanjana, reserve force member Thandile Ndevu, 33, SANDF human resources clerk Khanya Ndevu, 29, Avuyile Ndzuta, 30, Thembisile Dlamini, 36, Thozamile Herbert Loni, 45, and Yonelisa Gova, 33, face 53 charges collectively for allegedly defrauding SANDF of R1.1 million. Thandile, Khanya and Avuyile are cousins, while Dlamini and Loni are married and Gova is said to be friends with Thandile. ALSO READ: Motshekga dismisses allegations of 'rampant ill-discipline' in SANDF Thandile is facing 53 counts of fraud or theft and 53 counts of money laundering. Khanya and Dlamini are each facing 11 counts of fraud or theft and 11 counts of money laundering. Ndzuta is facing 10 counts of fraud or theft, and 10 counts of money laundering. Gova is facing 21 counts fraud or theft and 21 counts of money laundering. Ghost workers Thandile's responsibilities as a reserve force member under the HR unit included calling reserve force employees for service, capturing on the system the On Strength reserve force members who report for duty, as well as capturing their banking details on the system. Between July 2018 and July 2019, while performing her duties, Thandile allegedly captured details of SANDF reserve force members as though they were called up (reported for duty) and replaced their banking details with those of her co-accused, where the payment for service was made. ALSO READ: Over 2 700 'old' SANDF personnel released, but new recruits will depend on funding 'This was discovered after one of the complainants in the matters whose details were used went to do her tax filing at the South African Revenue Service (Sars) and discovered that she had two IRP5 forms she needed to submit instead of the one she had brought. The complainant allegedly went back to the SANDF to enquire when the other four ghost workers were discovered,' said Mahanjana. 'The complainants then reported the matter to the Pretoria Central police station, and the matter was then transferred to the military police for investigation. After investigations by the military police, the six accused persons were summoned through J175 summons.' The case was postponed to 15 August 2025 for plea and trial. SANDF cash-strapped In March, the Reserve Force Council (RFC) briefed the parliamentary portfolio committee on defence and painted a grim picture of the Reserve Force's operations due to budgetary constraints. More than 90% of the SANDF's reserves do not have alternative employment and do not receive an income if they are not called up. ALSO READ: Defence budget cuts 'impact Reserve Force capability' 'In the past, when we did not have any budgetary constraints, this was not an issue because reserve force members were called up continuously and were guaranteed a salary,' said Brigadier-General Zoleka Niyabo-Mana at the time. The Reserve Force has also been struggling to keep up with the training of its members as required when they are deployed. 'You must always have combat-ready forces because when you have to deploy them, there is no time for training. However, we have been struggling with the continuation training required to ensure they remain combat-ready due to budgetary constraints,' said Niyabo-Mana. 'There are not sufficient funds for us to call up reserves at times, train them and utilise them. So the services are always balancing whether you call them up for training or to utilise them.' The committee heard that the reserves are also ageing, as no new members have been recruited in the past six years. READ NEXT: SANDF budget constraints: Not enough soldiers at the border, reserves getting older
The Citizen
6 days ago
- Business
- The Citizen
What does the future hold for the youth? Most 24-year-olds in debt
Nearly half of the credit-active youth have defaulted on their loans. It was the first democratic president of South Africa, Nelson Mandela, who said, 'The youth of today are the leaders of tomorrow.' However, in a period when most of the youth are battling with a high level of debt, unemployment, and limited asset ownership, does the idea that the youth will lead still stand? A report by Eighty20 has revealed that many individuals between the ages of 18 and 24 are defaulting on their credit repayments, while some are not credit-active at all. Eighty20's National Segmentation was published earlier this month. It utilises a combination of strategy, analytics, research, and development capabilities. ALSO READ: Most South Africans use personal loans to make ends meet Debt among the youth Andrew Fulton, Director at Eighty20, said those aged 24 and younger make up 44.5% of the population, which raises the question of whether this generation can break the cycle of financial exclusion that currently defines their prospects. Eighty20's National Segmentation showed that only one million of the 6.7 million youth aged 18-24 are credit active. This can be reasonable, given that most of these individuals are still in university or are still seeking employment. However, the alarming thing is that among the one million that are credit active, nearly half have defaulted on their loans. 'With an average monthly income of R3 400 (less than half the national average of R7 000) and a youth unemployment rate of 62.4%, financial strain is widespread in this age group.' The debt burden Fulton highlighted that 85% of the credit-active youth hold store accounts. This is followed by personal unsecured loans, with 17% of the youth and 9% holding credit cards. 'Youth represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. 'However, their credit performance is worse than the national average, with R1.1 billion, or 11% of their total debt, currently overdue. This elevated delinquency rate signals particular financial stress within this age segment.' ALSO READ: Tips on how to shape your credit score Credit score 'A credit score serves as the gateway not only to lending products and favourable terms, but to essential services across multiple sectors. 'A healthy credit profile enables access to cell phone contracts, rental agreements, and can even influence employment opportunities,' highlighted Fulton. He emphasised that expanding credit access among young adults represents both individual economic empowerment and broader development of the formal economy. A further challenge, however, lies in the performance of those with credit: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern highlights the urgent need for enhanced financial education and for individuals in distress to seek debt counselling early.' The side hustle economy Youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Most young people rely on side hustles to make ends meet. 'BrandMapp, a survey of South Africans in households earning more than R10 000 monthly, shows a notable shift: in 2021, 55% reported having no side activities that create extra income, but this dropped to 49% in their most recent survey.' The survey asks for details on these activities, and the percentage of people who say they are running small businesses as a side hustle, or taking second jobs in their primary field, has grown by 50%. NOW READ: Here's how South Africans can benefit from side hustles
IOL News
22-06-2025
- Sport
- IOL News
Over R1 million raised for charity at Oceans 8 swim event in Durban
Hundreds of swimmers descended on Durban for the highly-anticipated Oceans 8 Charity Swim. The camaraderie and community spirit resulted in over R1.1million raised for 14 local KZN charities. More than R1.1 million was raised for 14 local charities at this year's Oceans 8 Charity Swim, held over the Youth Day weekend on the Durban beachfront. Around 250 swimmers took to the ocean between June 14 and 16, participating in four swim distances, the 1, 4, 8, and the newly introduced 16-mile challenge with proceeds supporting organisations working in conservation, education, and community upliftment. Race organiser Hilary Bruss said the event was guided by a deep sense of community and purpose. 'The safety and wellbeing of our swimmers is always our top priority. With the north-easterly bringing in bluebottles early on Sunday, we are grateful to all participants and service teams for their flexibility and understanding in using the contingency day. It is a privilege to swim in the ocean, even when nature has other plans.' Bruss added: 'We're deeply grateful to everyone who played a part, from our safety crew and volunteers to every swimmer and supporter. Congratulations to all our top achievers and especially to those who took on their very first ocean swim.'
The Citizen
06-06-2025
- Business
- The Citizen
Pick n Pay CEO receives the highest salary in retail. Here's how much others get
The lowest-paid CEO in grocery retail is Marek Masojada, CEO of Boxer, with R5.6 million, while the highest-paid is Sean Summers (pictured), CEO of Pick n Pay, with R24.9 million. At the top of the corporate ladder, the CEO stands as the face of pressure and power, a single person trusted with steering a company through stormy seas of inflation, consumer hesitancy and relentless competition. Those at the helm of retail companies are paid handsomely due to several factors, including qualifications, experience and responsibilities. These are the people whose vision keeps customers walking through the doors despite the crushing cost of living. The lowest-paid CEO in grocery retail is Marek Masojada, CEO of Boxer, with R5.6 million, while the highest-paid is Sean Summers, CEO of Pick n Pay, with R24.9 million. How do grocery retailers pay? Those who are on the sales floors, in the stockrooms and behind the registers receive significantly less pay despite them being the people who grind through the chaos, carry out plans and turn PowerPoint strategies into tangible success. Is it truly fair that those who ensure the vision comes to life earn a fraction of what the visionary earns? The Companies Amendment Act, signed into law in July 2024, requires public and state-owned companies to disclose the earnings of their top and lowest employees. The Citizen attempted, with no success, to obtain the breakdown of how much the lowest-paid employee in each of six prominent grocery retailers in South Africa earns, as well as their positions. Enquiries were sent out earlier in the week. ALSO READ: Is Boxer taking over, or is trouble brewing? Lowest-paid CEO in grocery retail According to Boxer's financial results for the 53 weeks ended March 2025, its CEO, Marek Masojada, received a basic salary of R5.6 million. His total remuneration was R18.5 million. The total remuneration includes basic salary, retirement and medical contributions of R1.1 million, benefits of R300 000 and a short-term performance bonus of R11.5 million. The financial results outlined that Boxer has a total of 31 906 employees. The retailer spends nearly R3.1 billion paying these employees, representing a 19.1% increase from the R2.5 billion spent in the previous financial year. ALSO READ: Pick n Pay turnaround taking shape as it delivers on first year of recovery plan Highest paid with no benefits According to Pick n Pay's financial results for the 53 weeks ended 2 March 2025, the man responsible for restoring the retailer's glory, Sean Summers, received a basic salary of R24.9 million. Unlike other CEOs who receive benefits, retirement contributions and medical benefits, as well as short-term performance bonuses, Summers does not receive these. However, he got a whopping R40.1 million in long-term awards. Pick n Pay said that employee costs increased by 1.1% to R6.4 billion during the period, up from R6.3 billion in the previous financial year. ALSO READ: What does the future hold for Spar? Retailer's profits nosedive R16 million for Spar CEO Spar seems to include the remuneration of executives and staff in its annual financial results, which are released towards the end of the year. However, The Citizen reached out, with no success, to the retailer to get the figures for 2025. According to the retailer's annual financial statements for the financial year 2024, released on 28 November 2024, Spar's CEO, Angelo Swartz, got paid a basic salary of R9.5 million. During the period, he received a performance-related bonus of R4.3 million, retirement funding contributions of R1.1 million, and allowances and other benefits totalling R1 million, costing the retailer R16 million in remuneration. ALSO READ: How Shoprite made R20 million profit per day Shoprite and Checkers led by one man Shoprite and Checkers are led by one man under Shoprite Holdings. The Citizen was unable to get the remuneration report of the group for 2025. According to the financial statement for 2024, the group's CEO, Pieter Engelbrecht, received a salary of R18 million. Apart from the salary, he received retirement and medical benefits of R500 000, benefits worth R919 000, a short-term performance bonus worth R17 million and a long-term incentive bonus worth R14.3 million, making his total cost to the company of R52 million. ALSO READ: Is Woolworths in trouble? CEO said financial performance 'disappointing' Woolies CEO Woolworths' annual results for the year ended June 2024 show that the total remuneration for its CEO, Roy Bagattini, in 2024 was R65.29 million. The breakdown of his remuneration package includes the base salary of R19.39 million and benefits worth R2.5 million. Additionally, he received both short-term and long-term incentives. NOW READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay
