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IOL News
11 hours ago
- Business
- IOL News
KZN Legislature's new initiatives for informal traders
The KZN Economic Development and Economic Development, Tourism and Environmental Affairs (EDTEA) awarded R900,000 to Impendle for the construction of 18 galvanised steel vendor stalls. Image: Supplied Informal trading infrastructure projects were the point of focus at the KwaZulu-Natal Legislature on Tuesday. The Economic Development and Planning Portfolio Committee met with the Impendle and Msunduzi municipalities for project updates. The KZN Economic Development and Economic Development, Tourism and Environmental Affairs (EDTEA) awarded R900,000 to Impendle Municipality for the construction of 18 galvanised steel vendor stalls. The project provided alternatives to containerised structures and provided dignified trade spaces. The municipality stated that the project improved the image of the CBD and brought some confidence in the recognition of informal trade. In its report, the Impendle Municipal Infrastructure for Informal Enterprises (MIE) had spent R877,000 to supply, deliver, and erect market stalls. The project closeout phase is expected to be completed on August 30, 2025. Satishrai Bhanprakash, IFP MPL, raised concerns about the long-term maintenance plans for the structures, which he feared would be open to theft. The municipality stated that it did have a maintenance plan and that the metal structures were galvanised and durable. The committee also called for better oversight and proper details on invoicing. Also discussed was the construction of 15 brick and mortar structures for the Inzinga\ KwaNxamalala Trading Units project, which received R2.1 million from EDTEA in the 2022/23 financial year. According to Impendle Municipality, the Inzinga settlement is mapped as a secondary node on Impendle's spatial development framework. The node already has schools, a sports field, a primary clinic, and a tribal court. The area is missing commercial service. "This application aims to close this gap. The implementation of this project will help in the strategic objective to bolster area area-based management plan. The idea is to provide options so that they don't have to travel to the Impendle CBD for minor day-to-day needs," the report stated. The implementation was delayed due to limited funding in 2024\2025 with a funding agreement concluded in December 2024. Work is expected to start in August 2025 subject to the finailisaton of a lease agreement with the Ingonyama trust. Shontel De Boer, a DA MPL, said she was not happy with the reports when the committee conducted an oversight in Impendle. 'The report lacked details. We asked alot of questions at the meeting and we were promised a detailed report to make a decision. This report is also too vague,' she said. Mafika Mndebele, the chairperson of the committee in the legislature, urged the municipalities to do all they can to ensure that the projects are implemented. Phindile Zondi, the Msunduzi Municipality manager of Economic Planning and Infrastructure, spoke of the redevelopment of the Ematsheni Development Services situated on Retief Street in the Pietermaritzburg CBD. They received R3 million from EDTEA while the municipality invested R1 million. Zondi said the site was previously developed as a beer hall, which further supports the proposal, which is to enhance informal traders and Small, Medium and Micro Enterprises (SMMEs). 'In 2017, the site was demolished and mobilised for funding. Vagrants moved onto the property and undertook illegal activities. With the funding, we changed the narrative. It is expected that a contractor will be appointed during August 2025 to commence with the implementation of Phase 1 of the project,' Zondi said. The site establishment is expected to commence in September 2025 for nine months. [email protected] The redevelopment of the Ematsheni Development Services situated on Retief Street in the Pietermaritzburg CBD. The project is estimated at R4 million. Image: Msunduzi Municipality
IOL News
4 days ago
- Business
- IOL News
Millions spent, jobs lost as Tourism Equity Fund scandal exposed
The meeting, led by Minister Patricia de Lille, exposed a web of implementation challenges, transparency failures, and accountability concerns that have plagued the fund since its inception. Image: Ayanda Ndamane/Independent Media IN a tense and revealing session recently, the Select Committee on Economic Development and Trade convened to hear testimony from the Department of Tourism regarding the beleaguered Tourism Equity Fund (TEF). The meeting, led by Minister Patricia de Lille, exposed a web of implementation challenges, transparency failures, and accountability concerns that have plagued the fund since its inception. The TEF, launched in 2021 with the aim of driving transformation and inclusive growth in South Africa's tourism sector, has been mired in legal battles, administrative delays, and allegations of mismanagement. A court challenge brought by AfriForum and Solidarity initially halted the fund, which was only revived after an out-of-court settlement in mid-2023. Despite this, the fund's rollout has continued to face serious hurdles — most notably, the refusal of the Small Enterprise Finance Agency (Sefa), now known as Sedfa, to release critical beneficiary information to the Department of Tourism. De Lille opened the meeting by acknowledging the complexity of the situation: 'We appreciate the opportunity to present on the TEF, and we request the Committee's support in helping us move the process forward.' 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 ✕ She explained how her predecessor had initially set the fund's black economic empowerment threshold at 51%, exceeding the legislated 30% requirement under the Broad-Based Black Economic Empowerment (B-BBEE) codes. This decision was challenged in court by AfriForum and Solidarity, and the government lost the case on jurisdictional grounds. Following her appointment in 2023, de Lille engaged directly with the litigants and brokered a settlement to unblock the R2.1 billion fund. She described the decision-making process in candid terms: 'I made a deliberate decision to set aside political pride to serve the interests of the sector and the country… I proposed a settlement in the spirit of recovery and collaboration, given the urgency of economic reconstruction following the pandemic.' The revised framework, approved by Cabinet in August 2023, allocates 80% of funding to existing SMMEs and 20% to new entrants, a policy shift that drew sharp criticism from several committee members. The Department outlined how Sefa, appointed as the implementing agent for the TEF, had failed to meet expectations: 'Due to ongoing challenges with Sefa's performance, the Department informed them in early 2025 of our decision to terminate the agreement,' De Lille said. Despite terminating the service-level agreement, the Department is still awaiting a full close-out report from Sefa. More troublingly, Sefa has refused to disclose details of beneficiaries, citing the Protection of Personal Information Act (Popia). 'They refuse to disclose the names of applicants who benefited from the TEF,' the Minister said. 'We disagree with their position and have sought legal opinion confirming that the Department is entitled to receive this information.' Legal advice obtained by the Department supports this view, reinforcing that Parliament, as an oversight body, also has a right to access such data. The legal opinion, circulated during the meeting, recommended including confidentiality clauses in future agreements to ensure Popia compliance while maintaining transparency. 'Parliament must be able to exercise its oversight function,' said Mmaditonki Setwaba, the deputy director-general of Tourism Sector Support Services. Committee members raised urgent questions about the cost per job created through the TEF. The DA's Nicolaas Pienaar expressed alarm: 'Based on the figures presented, nearly R1 million has been spent per job created. In my view, R1m should result in at least four jobs.' His sentiment was echoed by the FF+'s Hendrik van den Berg, who pointed to staggering disparities: 'In the Northern Cape, two jobs were created at a cost of R4.4m each. In the North West, ten jobs came at a cost of over R8m per job.' Setwaba responded that while some projects were capital-intensive, particularly in the accommodation and travel sectors, the Department was aware of the need for better value-for-money outcomes. 'We are learning from the rollout and working on enhanced pre-investment support and streamlined compliance processes,' she said. The lack of detailed breakdowns on the nature of these jobs — whether part-time, seasonal, or permanent — further deepened scepticism among members. The PA's Bino Farmer questioned the regional distribution of funds and the effectiveness of outreach campaigns in rural areas: 'How many applications came from the Western Cape? How many were rejected and why? If the fund is meant to drive transformation, why allocate 80% to existing businesses when new entrants are the ones most in need?' He highlighted the case of Lamberts Bay, where tourism remains racially exclusive and ownership opportunities for black entrepreneurs are limited. 'Communities like mine want to know how people are informed about such funding opportunities. Tourism is spoken about in terms of job creation, but not ownership.' The ANC's Patrick Mabilo lamented the minimal investment in his province despite its rich natural and cultural assets: 'Only one project received funding in the Northern Cape, valued at R8.8 million. Given the scenic richness of the province, including Unesco sites, why hasn't there been more meaningful participation?' He called for clarity on outreach efforts and asked whether the Department could quantify results in rural townships. The chairperson, Sonja Boshoff, from the DA, acknowledged the severity of the situation: 'This is not just about administration, it affects the lives of ordinary South Africans. We cannot allow SEFA to hold the Department or Parliament to ransom.' The Committee resolved to summon Sefa before Parliament, even if it required convening outside normal hours. It also agreed to send a letter to the Minister of Small Business Development, Stella Ndabeni-Abrahams, requesting her urgent engagement with Sefa ahead of their scheduled meeting the following week. 'We expect feedback from her then so that we can determine how best to support the Department going forward,' said the chairperson. The ANC's Mpho Modise supported the idea of a joint session involving both Ministers and Sefa: 'All relevant stakeholders need to be in the same room so we can ask direct questions and get comprehensive answers.' The Minister welcomed the suggestion: 'I welcome the Committee's oversight and support any parliamentary investigation into the administration and outcomes of the Fund.' De Lille did not shy away from the legal and reputational risks involved: 'As the accounting authority, I am fully aware of the possibility of personal liability. But I remain committed to preserving my integrity and resolving this matter as quickly as possible.' Director-general Victor Vele confirmed that no fruitless or wasteful expenditure had yet been recorded, though he admitted that the full financial picture would only emerge once SEFA released its complete records. 'From the perspective of an accounting officer, there is currently no record of fruitless or wasteful expenditure associated with the Fund,' he said. Meanwhile, the Department has identified the Public Investment Corporation (PIC) as the new implementing agent, aligning with the TEF's objective of promoting transformation in the tourism sector. 'We are working on a formal handover process to a new implementing agency, which will be announced following legal and operational finalisation,' said Setwaba. The TEF was conceived as a vehicle for economic transformation and inclusion. Yet five years after its launch, it stands as a cautionary tale of poor governance, legal entanglements, and institutional dysfunction. With Sefa refusing to share basic information, the Department hamstrung by outdated contracts, and Parliament demanding accountability, the TEF has become emblematic of the broader crisis in public administration. Unless swift and decisive action is taken — including full disclosure of beneficiaries, independent auditing, and reform of implementation frameworks — the TEF may well go down as another failed attempt at redress in post-apartheid South Africa. For now, all eyes are on the upcoming joint meeting between the Departments of Tourism and Small Business Development, and on whether SEFA will finally answer the call for transparency. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
The Citizen
29-05-2025
- Business
- The Citizen
Tough budget for Ekurhuleni
Ekurhuleni's total expenditure budget of R64.8 budget would be subjected to non-negotiable conditions Ekurhuleni MMC for Finance, Strategy and Corporate Planning, Jongizizwe Dlabathi, on Thursday tabled a R65.5 billion budget. According to Dlabathi, tough economic realities, lack of optimal collection, revenue leakages, weak liquidity position, ineffective expenditure management and the assumption that 90% of municipal revenue should be generated internally, were among key factors in the budget. Bullish about improving alignment and effectiveness of existing revenue collection systems, Dlabathi projected an additional estimated R2.1 billion gross revenue in the current financial year. 'Given that we intend not to borrow over the medium-term, all departments that are involved in the revenue generation value chain will have to pull together to ensure the achievement of our revenue goals in the medium and long-term. 'This will be spearheaded at the level of the Revenue Enhancement Committee that has since been put in place by Executive Mayor Nkosindiphile Xhakaza. 'The budget posture is guided by the directive to ensure a responsive city, working with agility to restore service delivery to communities. 'This directive demands that we focus on the core basics – providing quality, equitable and sustainable services to all in a manner that ensures the ideal quality of life,' said Dlabathi. Non-negotiables He said Ekurhuleni's total expenditure budget of R64.8 budget would be subjected to non-negotiable conditions, which would include: Spending within the allocated budget. Linking spending to the provision of essential services and goods. Fostering economic procurement and realisation of value for money. Strengthening internal capacity to reduce over-reliance on contracted services. ALSO READ: Joburg budget hanging by a thread: ANC fights to get their way as partners gun for them Key expenditure breakdown allocations include: Water and sanitation repairs will receive and maintenance R550 million,mainly to ensure resilient infrastructure that secures a sustainable supply of water and sanitation services—stretching to fixing water and sewer leakages. From the total of R20.7 million earmarked for human settlements, R7.5 million will be channelled towards basic repairs and maintenance work for selected hostels—with the rest covering the maintenance of rental units, including Ekurhuleni Housing Company. The Energy Department will receive R1.4 billion towards infrastructure and equipment maintenance related to substations, network enhancement, with R103 million allocated to the repairing of street and traffic lights, under the Operation Khanyisa Mhali. Additional R254 million has been allocated to the protection of energy infrastructure. Through the ' Siyakhuculula Manje and Clean Kasi ' programme, a total of R226 million has been allocated to environmental resources, waste management repairs, maintenance materials and supplies to support internal capacity to cut grass, maintain cemeteries, remove weeds, prune trees, and maintain landfill sites, wetlands, lakes, and dams. A total of R946 million has been allocated for roads and transport management, with road rehabilitation and pothole patching done under the auspices of the Hlasela Amapotholes project. A total of R41.3 million will be used for repairing and maintaining traffic signals. While more funds are still required, R54 million will go towards addressing sinkholes. Capital expenditure has been allocated R3.1 billion. An employee budget will be R13.4 billion – towards annual salary increments and the recruitment of additional workforce. Dlabathi said the budget will implement the recruitment of 700 permanent cleaners and 290 permanent EMPD (Ekurhuleni Municipal Police Department) officers to maintain strategic offices and buildings. 'A budget of R303 million will be allocated over the medium-term to equip the staff with essential tools of trade necessary to optimise performance. Time provision must prioritise departments that are providing essential services. 'The long-term trajectory is that of implementing the 70/30 ratio for service delivery, wherein 70% of the services are rendered in-house, with 30% contracted. 'As we implement the capital budget, we must not be found wanting with our supply chain management, planning, organising and as well as overseeing the completion of capital projects within time, scope and quality,' added Dlabathi. NOW READ: How Joburg plans to spend R89 billion
The Citizen
08-05-2025
- Business
- The Citizen
FSCA fines Ninety One Fund Managers R3 million for Fica non-compliance
Fica aims to combat money laundering and terrorism financing and other related criminal activities. All accountable institutions must comply. The FSCA has fined Ninety One Fund Managers R3 million for Fica non-compliance and directed the company to fix the identified contraventions and also warned it against future breaches. The Financial Sector Conduct Authority (FSCA) decided to take administrative action against Ninety One Fund Managers, a registered manager of collective investment schemes in terms of the Collective Investment Schemes Control Act and an accountable institution under the Financial Intelligence Centre Act (Fica) after an inspection. The FSCA is responsible for supervising and enforcing compliance with Fica by managers of collective investment schemes. ALSO READ: FSCA fines 3 financial services providers R1.2 million for Fica non-compliance FSCA inspection at Ninety One showed Fica non-compliance The FSCA conducted an inspection of Ninety One in terms of section 45B of Fica in September 2023 as part of its ongoing supervisory activities and found that Ninety One was in breach of sections 42(1) and (2) of Fica. This section requires accountable institutions to develop, document, maintain and implement a Risk Management and Compliance Programme to identify, assess and mitigate money laundering and terrorist financing risks. The FSCA says while Ninety One had developed a programme, it failed to implement it effectively, particularly regarding the risk rating of its clients. The programme was also technically deficient and did not adequately address these issues: Performing customer due diligence under sections 21, 21A, 21B and 21C when suspicious or unusual activity is identified (section 42(2)(j)); and determining whether a transaction is reportable as related to terrorist financing (section 42(2)(o)). According to these sections, accountable institutions must develop, document, maintain and implement a risk management and compliance programme for anti-money laundering, counter-terrorist financing and proliferation financing. The programme must outline how an accountable institution will mitigate its anti-money laundering, counter-terrorist financing and proliferation financing risks and ensure compliance with Fica. ALSO READ: FSCA dishes out fines for R2.1 million, R1.6 million and R200 000 FSCA inspection also found Ninety One did not verify and identify clients In addition, the FSCA found that Ninety One also did not comply with the provisions of section 21, 21B and 21C that require accountable institutions to identify and verify the identity of clients and beneficial owners and conduct ongoing customer due diligence. Fica requires accountable institutions to conduct customer due diligence, which includes identifying and verifying clients, obtaining information on business relationships, conducting ongoing due diligence, and establishing whether the clients are politically exposed persons. At the time of inspection, the FSCA says Ninety One did not adequately identify or verify some clients and their beneficial owners, nor conducted the required ongoing due diligence. Ninety One then lodged an appeal with the Fica Appeal Board after the FSCA imposed the administrative sanction of R3 million in November 2024. The FSCA says Ninety One disputed the findings relating to customer due diligence. 'However, after further constructive engagements between the FSCA and Ninety One, the company agreed to settle the matter, which was confirmed as an order of the Appeal Board in terms of section 45D(7) of FICA in April 2025. The appeal has since been withdrawn.' ALSO READ: FSCA fines Mika Finansiële Dienste R1.1 million for FICA non-compliance FSCA agreed to suspend part of Ninety One's fine Due to Ninety One's remedial actions, the FSCA agreed to suspend R500 000 of the R3 million financial penalty for a period of three years, conditional upon full remediation and sustained compliance with relevant provisions of Fica during the suspension period. The FSCA says it views the breaches identified at Ninety One as serious, especially considering the size, complexity and risk exposure of its business as well as its position and impact in the South African market. 'An effective a Risk Management and Compliance Programme is essential not only for protecting institutions from financial crime, but also for safeguarding the integrity of the broader South African financial system. 'Proper due diligence of all clients is crucial to help identify and mitigate against suspicious and criminal elements from infiltrating the financial system. Financial institutions operating within large, international financial services groups are expected to demonstrate a heightened level of vigilance in this regard,' the FSCA says in a statement. 'This sanction serves as a reminder that the FSCA will not tolerate non-compliance with Fica. All accountable institutions are urged to continually review and enhance their anti-money laundering and terrorist financing controls at the highest levels and conduct thorough risk assessments on a regular basis. Failure to do so will result in firm regulatory action.' ALSO READ: FSCA's Regulatory Actions Report shows impressive numbers of enforcement Fica and the Financial Action Task Force The Financial Action Task Force (FATF) greylisted South Africa in February 2023 due to its failure to comply with FATF standards and measures to combat illicit financial flows, terrorist funding and potential threats to the integrity of the global financial system. FATF is an intergovernmental body established in 1989 by the ministers of its member jurisdictions to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security.
The Citizen
06-05-2025
- Business
- The Citizen
SA's film success faces a Trump-sized threat
A 100% US tax on foreign films could endanger local productions and wipe out SA's competitive edge in global cinema. An area of the South African economy which has defied the prophets of doom – and has burnished the country's reputation – is the film production industry. Apart from stunning locations, South Africa has a wealth of local cinematic talent, from actors to behind-the-cameras techs… and, from the point of view of foreign film-makers, our rand's weakness means this country is hugely enticing as an affordable movie location. But that may all change drastically. We say may because we – and billions across the world – are hanging on the whims of the White House in Washington. President Donald Trump's latest foray in his campaign to 'Make America Great Again' has been to lash out at the apparent imbalance in cinema production by slapping 100% tax on imported movies. Never mind that the US really is the proverbial 500-pound gorilla in the movie-making business, exporting films valued at more than $120 billion (about R2.1 trillion) annually, a fraction of what it imports from other countries. The SA production industry is worried, though. If implemented, Trump's tariff would apply to locally made films, potentially even productions filmed here, and series sold into the US. ALSO READ: Brenda Ngxoli stars in new rom-com: 'A Scam Called Love' That market remains one of the most lucrative globally for international distribution, especially for English-language content. They have a reason to be worried, because Trump says the levy would apply to 'any and all Movies coming into our Country that are produced in Foreign Lands'. That could discount the currency advantage we have and make it prohibitively expensive for foreign companies to come here to shoot. It goes without saying that thousands of jobs in the movie production sector itself – and the ancillary businesses which rely on it – will be at risk. Let's hope that Trump has another rush of blood to the head and changes his mind again.
