Latest news with #R200-million
The Citizen
2 days ago
- Sport
- The Citizen
WATCH: Exciting opening of revamped uMhlathuze soccer stadium
City of uMhlathuze Mayor Cllr Xolani Ngewzi this morning officially opened the upgraded uMhlathuze Stadium, in the presence of councillors, officials and a host of KZN and local media and football dignitaries. ALSO READ: WATCH: PSL officials inspect uMhlathuze stadium Emphasis was on the tangible benefits the R200-million investment will bring to the city and district, beginning this weekend when the KZN Premier's Cup will be hosted at the stadium. Excited football fanatic Innocent Khanyile is among the many who can't wait for visiting teams to enter 'The Slaughterhouse'. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
27-06-2025
- Business
- Daily Maverick
It's time to clean house at the Setas — the future of our workforce depends on it
South Africa's Sectoral Education and Training Authorities (Setas) were established to address the country's critical skills gaps and to drive workplace training in support of economic development. Instead, many have become breeding grounds for corruption, cadre patronage and unchecked maladministration. For years, the Organisation Undoing Tax Abuse (Outa) has investigated and reported on serious governance failures within the Setas, with substantial work done in collaboration with many whistle-blowers at the following three entities: the Services Seta, the Insurance Sector Education and Training Authority (Inseta) and the Construction, Education and Training Authority (Ceta). Numerous red flags have been raised and reported about procurement irregularities, staff victimisation, board dysfunction, lack of transparency and poor financial oversight. Time and again, we've seen evidence of power abused by executives and board members who appear to operate with impunity. We have reported on several highly dubious and grossly inflated multimillion-rand contracts at Inseta, awarded to companies with little to no experience in the supposed work they were contracted to do. We've witnessed how employees who have raised their concerns or got in the way of irregular procurement practices have been suspended or fired on trumped-up charges. Despite the board being made aware of these serious concerns with evidence provided to them, they chose to look away and do nothing to hold the executive managers to account. Inseta also faces a business damages claim of more than R200-million from the Graduate Institute of Financial Sciences (Gifs), which exposed ghost learners and other maladministration issues. Instead of embracing Gifs for pointing out these problems, Inseta's CEO, Gugu Mkhize, chose to use a dubious report that gave Gifs no right of reply, and to strike it off Inseta's accreditation list, causing catastrophic damage to the company. For years, Outa and whistle-blowers have exposed the rot at Services Seta, exposing highly inflated tender awards under Andile Nongogo's tenure as its CEO between 2016 and 2019. Nongogo surfaced shortly thereafter as the CEO of the National Student Finance Aid Scheme (NSFAS) in December 2020, and we were not surprised to see a number of his Service Seta suppliers surface in highly irregular contracts awarded at NSFAS. It took relentless reports of irregularities by Outa and the media to eventually have Nongogo fired from his position at NSFAS in 2023. To this day, the acting CEO and the board at Service Seta have done almost nothing to implement the recommendations of a Werkmans' forensic report that highlighted the irregularities and fraudulent contracts awarded by Service Seta's management. This, in turn, raises questions about their lack of oversight and possible support in covering up the rot by the board of Services Seta. In the case of Ceta, multiple reports have been presented to the board and the minister about the abuse of power by top management and the widespread fear among staff, some of who have been suspended or fired because they either knew too much or got in the way of irregular conduct by Malusi Shezi, the CEO. Shezi, who is also in a business relationship with Nongogo, entered into several dubious contracts with the same suppliers that were implicated in the Werksmans report on irregularities at Service Seta. It doesn't end there. The rot spreads across multiple Setas. The Media, Information and Communication Technologies Seta has made headlines for questionable procurement deals, spending irregularities and high fees paid to its board members. The Wholesale and Retail Seta has also featured in media reports for serious irregularities and audit concerns. This is a systemic issue that points to a culture of exploitation and political shielding across the Seta environment, including numerous universities, TVET colleges and the National Skills Fund, while Blade Nzimande was at the helm of the Higher Education ministry. Which brings us to the present. The new minister of higher education, Dr Nobuhle Nkabane, has held the power and the responsibility for the past year, tasked with trying to fix this cesspool of corruption and a poorly administered department that has long been broken. Pivotal moment With the appointment of new Seta board chairpersons currently under way, the minister has a pivotal moment to chart a different path, one that could see the introduction of good governance and robust oversight, which is a role that many previous boards have failed or refused to fulfil. To do so, the minister must ensure that individuals of impeccable integrity and proven governance track records are appointed to these oversight roles. These appointments should not be compromised or prone to political expediency in any way whatsoever. The new Seta boards must be empowered not just to look forward but to cast a critical eye on the past conduct of executive managers by investigating historical wrongdoing and holding executive directors to account. They should also ensure the recovery of funds lost to corruption and the laying of criminal charges against perpetrators. Seta executives who have presided over years of qualified audits and reputational damage should not be allowed to continue in their posts. Accountability and transparency should never be optional. Many are mindful of the political minefield the new minister has to navigate. Her recent appearance before Parliament to explain the secrecy surrounding the original list of proposed Seta board chairs has raised serious concerns. Many, as do I, believe that list was influenced by the ANC's Cadre Deployment Committee, an unelected structure that has long eroded good governance in the public sector. Nkabane now finds herself in a precarious position, having been accused of misleading Parliament while most likely trying to protect the ANC from an embarrassing exposé. Nkabane's reality as an ANC-appointed Cabinet member is shared with others who are finding it extremely difficult to seek reform within various departments that are entangled in networks of patronage and power preservation. But these dynamics cannot be allowed to override the urgent need for credibility, competence and clean governance at institutions tasked with acting in the best interest of advancing South Africa's skills base. Fortunately, we have seen how effectively this work can be done, following Nkabane's appointment of no-nonsense people such as Waseem Carrim (CEO) and Dr Karen Stander (chairperson) at NSFAS, who are cleaning up and taking a stand by undoing the rot and cancelling dubious contracts undertaken by their predecessors. The Setas must be rescued from capture. This is not just about appointments, it is about restoring public trust, protecting whistle-blowers and ensuring that the billions of rands allocated to workplace training are used for their intended purpose. The time for the polite tolerance of dysfunction is over. We urge Nkabane and the political powers in play to act decisively and to stand firm against the inevitable resistance from vested interests. The future of our workforce depends on it. DM
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Retail giants step in with millions of rands to help entrepreneurs on their way up
South Africa's small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don't make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths' corporate social justice director, Zinzi Mgolodela, said: 'Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. 'Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety, giving children the opportunity to thrive in safe, supportive environments.' The Land Bank's CEO, Themba Rikhotso, said: 'This initiative aligns directly with Land Bank's mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country's long-term food security.' Fishing for hustlers under 35 Meanwhile, Mr Price's Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer's efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. 'The country has no shortage of young minds with bright ideas and business know-how,' said the foundation. 'So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.' The closing date to apply to the Mr Price Foundation is 30 June. Credit desert According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa's SMME ecosystem. DM
Daily Maverick
09-06-2025
- Business
- Daily Maverick
‘Real people drawing fraudulent salaries' — crackdown looms on public sector ghost employees
It's time to end this 'orchestrated form of systemic corruption' draining state resources, says the chairperson of Parliament's Portfolio Committee on Public Service and Administration. Parliament's Portfolio Committee on Public Service and Administration says public sector workers should report in person to prove they're not ghost employees. 'A data audit alone is not enough. We are calling on this process to begin with physical in-person human verification audits for all government employees underpinned by biometric identification. Every person drawing a public salary must appear in person and be verified,' said committee chairperson Jan de Villiers (Democratic Alliance) in a governance cluster press conference in Parliament on Monday. 'The public has the right to know the names on the payroll correspond to individuals who really exist and who serve the public.' Read more: Ghost employees who haunt payrolls are a major occupational fraud hazard Finance Minister Enoch Godongwana, in his Budget tabled last month, announced sweeping expenditure reviews of more than R300-billion in government spending since 2013, 'with the aim of identifying duplications, waste and inefficiencies'. Godongwana said the data-driven initiative would cross-reference administrative datasets to 'identify ghost workers and other anomalies across government departments'. De Villiers said the portfolio committee, following Godongwana's announcement in his Budget, had convened on 28 May to interrogate the 'persistent and deeply corrosive problem' of ghost workers in the public sector. He said the National Treasury could not tackle this challenge alone — it required a joint, coordinated strategy, which was now under way between the Treasury and the Department of Public Service and Administration (DPSA). 'We will reconvene with the Department of Public Service and Administration and the National Treasury in the third quarter of 2025 to receive a full progress report on the implementation of the joint ghost worker audit strategy. This should include details on the scope of these audits, preliminary findings and proposed enforcement measures,' said De Villiers. 'Orchestrated form of systemic corruption' Ghost employee fraud is among South Africa's most persistent public sector challenges. However, the total number of ghost workers — individuals who are fraudulently added to an organisation's payroll but do not actually work there — is unclear. In 2021, the government launched Project Ziveze to investigate and verify all Passenger Rail Agency of South Africa (Prasa) employees after material irregularities were uncovered within Prasa's ICT and payroll systems, indicating that there could be about 3,000 phantom workers. A preliminary report in November 2022 revealed that 1,480 employees could not be verified, while 1,000 others had resigned, Daily Maverick's Suné Payne reported. The agency is estimated to have saved about R200-million through the verification project. Last year, the Auditor-General of South Africa uncovered R6.4-million being paid to 'deceased and terminated' employees. The Public Servants Association (PSA) described this as a 'shocking misuse of public funds' and a 'gross violation of financial accountability'. And in May 2025, the Sunday Times reported that the Gauteng Department of Health had frozen the salaries of 230 employees who could not be verified. These are a handful of the reported cases of ghost employees. 'These are not invisible names on paper. Real people are drawing fraudulent salaries, and fraudulent money is being siphoned into the pockets of corrupt criminals,' said De Villiers. He said the department had disclosed that inserting a ghost employee into the payroll system 'requires collusion because at least three officials need to work together to create a ghost worker. This means that we are dealing not with random lapses in judgment, but with embedded criminal syndicates operating in our public institutions.' He added that the issue of ghost workers was 'not merely a payroll anomaly. It is a deliberate and orchestrated form of systemic corruption. It is organised crime within the state. And as a portfolio committee, tasked with oversight in the public service, the time for half-measures and talk shops is over. 'Let us be clear, the phenomenon of ghost workers is not an issue of administrative error. There are real people creating these ghost workers, reaping the benefits of siphoning taxpayer money into their coffers. 'Every ghost worker represents a post that could've been filled by a qualified graduate, a dedicated nurse, a teacher at a rural school or a social worker supporting the vulnerable. Every fraudulent salary paid is a step backwards in the fight for a professional, ethical and responsive state.' Widespread phenomenon De Villiers did not know how many ghost workers there were in the public service, but suggested, when looking at the known instances of ghost employees, 'that there are thousands'. He said the DPSA had confirmed before Parliament that ghost workers were present across all three spheres of government, including national, provincial and local governments, as well as government agencies and state-owned enterprises. 'The reality is every single department, state agency, level of government and state-owned enterprise that we have, probably has ghost workers on their payroll.' PSA spokesperson Reuben Maleka told Daily Maverick on Monday that the organisation supported a physical audit of ghost workers who 'rob' the public sector of its capacity to provide services to the public. 'The problem is widespread throughout the public sector — government departments, municipalities [and] government entities. The cleaning must happen across the sector,' said Maleka. In addition to calling for a physical audit, De Villiers said the committee would 'push for disciplinary and criminal action to follow every detection of ghost workers. 'We don't know how many ghost workers there are, we don't know who's involved, and not enough people have been arrested so far, to be quite frank. 'I am not aware, as committee chairperson, of a single person who has been arrested thus far in terms of the creation of ghost workers,' he said. De Villiers added that South Africa's ghost worker phenomenon was not only made possible by fraud, but by 'outdated and fragmented administrative processes and systems'. Daily Maverick contacted the National Treasury and the DPSA with queries. Comment will be added once received. DM
eNCA
07-06-2025
- Business
- eNCA
Atlantis solar plant edges closer to completion
CAPE TOWN - Cape Town leaders have underscored that a solar plant being built outside Atlantis is aimed at driving down the price of electricity. The R200-million project is set to be the first City-owned solar plant supplying renewable energy to the grid. Officials have visited the site to inspect progress made since construction began in October last year. Construction on the seven-to-ten megawatt Atlantis solar photovoltaic plant is taking shape. A total of 2,400 solar panels are already in place. The first power from this plant is expected to be delivered near the end of this year.
