Latest news with #R1.35
IOL News
3 days ago
- Politics
- IOL News
Taxpayers to fund Mchunu's R2. 69 million salary during suspension
Taxpayers will continue to fund Police Minister Senzo Mchunu's full salary of R2.69 million while he is suspended amid a presidential inquiry into serious corruption allegations Taxpayers will face an increased financial burden as Police Minister Senzo Mchunu, currently on special leave, is set to continue receiving his full annual salary of R2.69 million. This decision comes in light of a presidential commission of inquiry announced by President Cyril Ramaphosa, which could take between three to six months to conclude. Despite being off duty, Mchunu will continue to earn his full annual salary of R2.69 million, which translates to approximately R224 166.67 per month. During the inquiry period, Professor Firoz Cachalia from Wits University has been appointed to act as the interim Minister of Police. While Cachalia's exact remuneration package has not been officially confirmed, it is expected that he will receive a ministerial-level salary during his acting term. If Cachalia serves as acting minister, he is expected to earn a monthly salary equivalent to that of a full Cabinet minister, approximately R224 166.67. This means he would receive around R672 500 over three months, and up to R1.35 million if the inquiry stretches to six months. This effectively means the Ministry of Police will cost the state nearly R1.35 million in salaries over three months, and up to R2.69 million if the inquiry extends to six months. A minister's total remuneration includes a basic salary component that is equal to 60% of the total package, which constitutes the pensionable salary. Each public servant is paid R120 000 per annum, including in their basic salary. The Presidency said that this amount is subject to the Income Tax Act. An employer's pension benefit contribution is equal to 22.5% of pensionable salary.
IOL News
3 days ago
- Politics
- IOL News
This is how much it's going to cost taxpayers
Police Minister Senzo Mchunu has been placed on special leave but will continue earning his full salary. South African taxpayers are set to bear a heavier financial burden following the announcement that Police Minister Senzo Mchunu, who has been placed on special leave, will continue to earn his full annual salary of R2.69 million. This decision comes in light of a presidential commission of inquiry announced by President Cyril Ramaphosa, which could take between three to six months to conclude. Despite being off duty, Mchunu will continue to earn his full annual salary of R2.69 million, which translates to approximately R224,166.67 per month. During the inquiry period, Professor Firoz Cachalia from Wits University has been appointed to act as the interim Minister of Police. While Cachalia's exact remuneration package has not been officially confirmed, it is expected that he will receive a ministerial-level salary during his acting term. If Cachalia serves as acting minister, he is expected to earn a monthly salary equivalent to that of a full Cabinet minister, approximately R224,166.67. This means he would receive around R672,500 over three months, and up to R1.35 million if the inquiry stretches to six months. This effectively means the Ministry of Police will cost the state nearly R1.35 million in salaries over three months, and up to R2.69 million if the inquiry extends to six months. It is currently not known how long Mchunu will be placed on leave, but he will be receiving his ministerial salary throughout this period. The Presidency last year gazetted a 2.5% salary increase for ministers, deputy ministers, members of parliament, and other public representatives, retroactive to 1 April 2024. Ministers in South Africa will now earn R2.69 million annually, up from their previous salary of R2.64 million, according to a report by IOL. A minister's total remuneration includes a basic salary component that is equal to 60% of the total package, which constitutes the pensionable salary. Each public servant is paid R120,000 per annum, including in their basic salary. The Presidency said that this amount is subject to the Income Tax Act. An employer's pension benefit contribution is equal to 22.5% of pensionable salary.
IOL News
4 days ago
- Politics
- IOL News
Mchunu on Leave, Acting Minister Appointed: Here's how much it will cost taxpayers
Police Minister Senzo Mchunu has been placed on special leave but will continue earning his full salary. South African taxpayers are set to bear a heavier financial burden following the announcement that Police Minister Senzo Mchunu, who has been placed on special leave, will continue to earn his full annual salary of R2.69 million. This decision comes in light of a presidential commission of inquiry announced by President Cyril Ramaphosa, which could take between three to six months to conclude. Despite being off duty, Mchunu will continue to earn his full annual salary of R2.69 million, which translates to approximately R224,166.67 per month. During the inquiry period, Professor Firoz Cachalia from Wits University has been appointed to act as the interim Minister of Police. While Cachalia's exact remuneration package has not been officially confirmed, it is expected that he will receive a ministerial-level salary during his acting term. If Cachalia serves as acting minister, he is expected to earn a monthly salary equivalent to that of a full Cabinet minister, approximately R224,166.67. This means he would receive around R672,500 over three months, and up to R1.35 million if the inquiry stretches to six months. This effectively means the Ministry of Police will cost the state nearly R1.35 million in salaries over three months, and up to R2.69 million if the inquiry extends to six months. It is currently not known how long Mchunu will be placed on leave, but he will be receiving his ministerial salary throughout this period. The Presidency last year gazetted a 2.5% salary increase for ministers, deputy ministers, members of parliament, and other public representatives, retroactive to 1 April 2024. Ministers in South Africa will now earn R2.69 million annually, up from their previous salary of R2.64 million, according to a report by IOL. A minister's total remuneration includes a basic salary component that is equal to 60% of the total package, which constitutes the pensionable salary. Each public servant is paid R120,000 per annum, including in their basic salary. The Presidency said that this amount is subject to the Income Tax Act. An employer's pension benefit contribution is equal to 22.5% of pensionable salary.
The Citizen
04-06-2025
- Business
- The Citizen
What does the future hold for Spar? Retailer's profits nosedive
The retailer's focus remains on continued margin improvement, operational execution in its core markets, a disciplined approach to capital allocation and delivering the remaining. One of South Africa's largest retailers, Spar, embarked on a turnaround strategy aimed at strengthening its balance sheet and recovering margins. However, months later, the strategy has yielded lower profits and an R4 billion loss. The financial results for the 26 weeks ended 28 March 2025, released on Wednesday, show exactly what the retailer anticipated in its announcement last week. According to the Johannesburg Stock Exchange (JSE) listings requirements, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by at least 20% from the financial results for the previous corresponding period. Retailer's profits nosedive The retailer last week warned shareholders that headline earnings per share could decline by 24% and 34%, resulting in a loss of R4.4 billion and lower profits. The financial results show that the retailer's operating profits nosedived by 5.7% to R1.35 billion, compared to R1.43 billion during the same period in 2024. 'Headline earnings per share from continuing operations were 450.1 cents, a marginal decrease of 0.4% from 451.9 cents in the prior comparable period,' reads the retailer. 'In line with the Group's capital allocation priorities and ongoing restructuring, no interim dividend for the 26 weeks ended 28 March 2025 has been declared. This decision will be reconsidered based on future macro-economic and operating conditions.' ALSO READ: Is Spar in trouble? Retailer closes stores as sales decrease Retailer's strategy Spar's European operations were the centre of the strategy. The retailer has discontinued its operations with Spar Switzerland and the Appleby Westward Group (AWG). 'These businesses recorded aggregate post-tax losses of R4.4 billion, including impairments of R4.2 billion.' The retailer has also concluded the disposal of Spar Poland in January 2025. Which was one of the five key focus areas for Spar. The second key focus area that has been achieved is the completion of the Group's debt restructuring in March 2025 and May 2025. The other key focus areas include completing a strategic review of European operations, further rolling out the SAP system, and improving the Southern Africa EBIT margin to 3% while achieving a leverage ratio of 1.5 to 2.0 times by the end of FY2026. It's not all bad news The retailer stated that it is in discussions with a UK-based company that is well-positioned to develop and grow AWG in South West England. In Switzerland, it has been in talks with parties with extensive business interests in the region and experience in European food retailing and distribution. It's not all bad; the Group's revenue from continuing operations remained steady at R66.1 billion, while gross profit increased to R7.1 billion. In Southern Africa, wholesale turnover increased by 1.7%. Combined grocery and liquor wholesale revenue rose by 1.1%, while retail revenue increased by 1.9%. They have attributed the performance to being affected predominantly by lower food inflation, post-election unrest in Mozambique, the timing of Easter falling in the second half of the current financial year, and store closures in Gauteng. ALSO READ: Spar Group agrees to end long-term exclusive leases in malls Balance sheet 'The Group made progress in strengthening its balance sheet, with a clear focus on improving gearing. Net borrowings for continuing operations stood at R6.6 billion. 'The successful refinancing in South Africa and Switzerland improved liquidity and balance sheet stability with an improved debt maturity profile.' Spar anticipates that the successful completion of the divestments of Spar Switzerland and AWG will materially deleverage and strengthen the balance sheet. Cash flow performance improved materially, driven by tighter working capital management and reduced capital expenditure. What the future holds for Spar Spar said its focus remains on continued margin improvement, operational execution in its core markets, a disciplined approach to capital allocation and delivering the remaining. Encouragingly, post-period trade has shown positive momentum across key regions. 'The intended divestments of Spar Switzerland and AWG are aligned with the Spar Group's broader portfolio optimisation objectives and represent a meaningful opportunity to unlock value by transitioning the businesses to owners with strong local knowledge and relevant experience in the European retail sector. 'While macro-economic challenges remain, including pressure on consumer wallets and uncertainty from global trade tensions, Spar remains focused on delivering the remaining key priorities, which include the further SAP roll-out, margin expansion and reducing debt.' NOW READ: Here's how much the CEOs of SA's largest retailers are paid
IOL News
25-04-2025
- Business
- IOL News
Santaco defends Covid-19 relief fund payments to taxi operators
The South African National Taxi Council (Santaco) has hit back at criticism following the Department of Transport's plans to allocate R408 million of its 2025-26 budget to the taxi industry. Responding to a Parliamentary question by Build One South Africa's Mmusi Maimane, Transport Minister Barbara Creecy said Cabinet had approved a once-off relief fund of R1.35 billion to the industry. Santaco's national spokesperson Mmatshikhidi Rebecca Phala said the organisation welcomes the continued efforts by the Department of Transport to process and pay outstanding relief funds to taxi operators, many of whom were among the hardest hit by the pandemic's economic impact. "It is important to note that tax compliance is a core requirement to access these funds. As such, claims that relief is being paid to a non-compliant taxi industry are false and misleading. "The distribution process has been governed by clear and regulated criteria. The criterion for qualifying operators is solely when they are, a South African citizen or permanent resident in the Republic and be in possession of a valid operating license, or receipt as proof of application for renewal of an operating license and must be registered for income tax with the South African Revenue Services," Phala said.
