Latest news with #R254
IOL News
05-07-2025
- IOL News
Point of view: PFA orders pension fund to reassess death benefit allocation due to inadequate investigation
The Office of the Pension Funds Adjudicator has ordered a pension fund to reassess its death benefit allocation after finding it failed to properly investigate the financial dependency of the claimant and her children on the deceased. Image: File The Office of the Pension Funds Adjudicator (PFA) has set aside the allocation of a death benefit by a pension fund after finding it failed to adequately investigate the financial dependency of a claimant and her children on the deceased. The Adjudicator, Muvhango Lukhaimane, ordered the Private Security Sector Provident Fund to reassess the matter and make a fair allocation based on dependency. The dispute arose after the complainant, who claimed to be the life partner of the deceased, challenged the distribution of a R254,609.51 death benefit following his passing. The deceased was a member of the provident fund through his employer, Night Guard CC. The fund had distributed the benefit as follows: 10% to the life partner (unemployed) 23% to the deceased's employed adult son 25% to his minor daughter (a scholar) 14% each to three stepchildren, including two toddlers and one scholar The complainant objected to this distribution, asserting that the deceased had named her as the 100% beneficiary of his fund benefit and claimed to have documentary evidence. She also questioned the payment to the deceased's 24-year-old employed son, who, she argued, was not financially dependent on his father at the time of death. She further explained that she currently receives only R2,800 per month from the beneficiary fund, a sum that merely covers school fees, and that the deceased had supported her and her four children, intensifying her financial distress after his death. In response, the fund acknowledged that the deceased had been living with the complainant and her children and had indeed supported them as his own. The fund said it had based its allocation on legal and/or factual dependency at the time of death. However, in her ruling, Lukhaimane stressed that: 'The fact that a person qualifies as a legal or factual dependant does not automatically give them the right to receive a portion of a death benefit. The deciding factor is financial dependency," she says. She confirmed that the deceased had been cohabiting with the complainant and her four children and had provided for them, giving them a legitimate right to be considered for the benefit. 'The deceased and the complainant were living together as husband and wife, and the deceased looked after her four children. There was no dispute that she was the deceased's life partner at the time of his death. Thus, the complainant qualified as a factual dependant," she says. Despite this, Lukhaimane pointed out that financial dependency still needed to be proven. She noted that the couple had previously divorced and had not remarried, and that the complainant was married to someone else at the time of the deceased's death. Though separated from her legal husband, with whom she had three children, she had moved back in with the deceased. Lukhaimane underlined the board's obligation to conduct a thorough investigation before distributing death benefits: According to Lukhaimane, in the present matter, the marital circumstances of the complainant are not clear. It is not clear how long the deceased had been living with the complainant prior to his death. Since the complainant was still married to someone else, he would ordinarily be responsible for her maintenance and the maintenance of their children together. 'Without proof of the extent of her and her children's dependency on the deceased, the fund must err on the side of caution and assume that those with the legal responsibility to maintain the complainant and her children are taking care of that and not necessarily the deceased.
The Citizen
11-06-2025
- Business
- The Citizen
‘Sad situation': Eskom warns growing municipal debt seriously risks its sustainability
Municipal debt currently stands at R94.6 billion. Eskom has warned Parliament that growing municipal debt continues to pose a serious risk to the entity's long-term sustainability. Officials from the power utility appeared before the Standing Committee on Appropriations on Tuesday to brief MPs on the Eskom Debt Relief Amendment Bill. The bill, introduced in 2023, provides R254 billion to support Eskom's debt servicing obligations over a three-year period. One of the key conditions attached to the relief is that Eskom is not permitted to take on additional borrowing. Eskom strategic goals During the committee meeting, Eskom's Chief Financial Officer (CFO) Calib Cassim outlined several of the utility's strategic priorities, including efforts to recover and maintain a 70% Energy Availability Factor (EAF) in the long term, in order to meet South Africa's electricity needs. 'We know currently it's sitting around 57% and we really need to increase that over the remainder of the year to get this average of 66%,' Cassim said. He also highlighted the need for innovative strategies to tackle municipal arrear debt and reduce energy losses. 'One of our challenges is that how do we deal with the issue around municipalities, including metros, from a finance perspective; the importance of collecting what Eskom does supply in terms of the product that contributes towards our financial sustainability and liquidity,' he explained. ALSO READ: Eskom ready to start borrowing again Cassim added that Eskom is also focused on cost optimisation, revenue enhancement, leadership stability, and employee development. The entity's revenue rose by 16% to R264.60 billion in the third quarter of the 2024/2025 financial year. This was largely due to a 12.74% electricity tariff increase approved by the National Energy Regulator of South Africa (Nersa). Eskom also reported 'significant savings' of R16.3 billion in diesel costs. Regarding the debt relief, Cassim noted that Eskom had received R8 billion of the allocated R64 billion in the 2024/2025 financial year. 'The remaining R56 billion was drawn down by the end of March 2025,' he said. Debt securities and borrowings have since decreased to R409 billion. Eskom's municipal debt remains a serious concern While the debt relief programme has improved Eskom's cash flow, Cassim stressed that municipal debt continues to pose a substantial challenge. The debt, the Eskom CFO said, has been increasing despite interventions by the National Treasury. 'We need to arrest these arrears because if we don't do that it's going to neutral the benefit we do anticipate to receive from the overall debt relief.' In the current financial year, Eskom is set to receive R40 billion in debt relief. Rajen Naidoo, Eskom's General Manager for Finance in the distribution division, reported that municipal debt currently stands at R94.6 billion. READ MORE: R100 billion debt: only 10 municipalities honouring their accounts He attributed the persistent non-payment issue to deep-rooted structural and systemic problems within municipalities. 'Municipal debt is a key risk to Eskom business and our liquidity. 'As you know that distribution collects the money but then pays that onto transmission and generation, so the problem is not just a distribution problem but an Eskom problem on the whole,' Naidoo told the committee. He explained that many municipalities are unable to pay current bills or reduce existing debt. 'The municipalities are also plagued with high energy losses in the sense that energy is either being stolen through illegal connections, meter tampering or inaccurate billing.' Watch the meeting below: Naidoo added that a decline in electricity demand was further reducing revenue, while weak financial management practices continue to exacerbate the situation. Of the 71 municipalities enrolled in the Eskom debt relief programme, 62 have been unable to meet the necessary conditions to qualify for debt write-offs. At least R55 billion in debt could have been written off had these municipalities complied. 'We have seen a rapid growth and much faster growth in terms of municipalities defaulting.' Among the top 10 non-compliant municipalities are Mbombela (Mpumalanga), Maluti A Phofung (Free State), Govan Mbeki (Eastern Cape), Emfuleni (Gauteng), and Msunduzi (KwaZulu-Natal). Collectively, they account for R50 billion of the municipal debt. 'The sad situation we find ourselves in is that even municipalities that were approved did not even honour their current bill, some of them from month one of the programme.' Metros contributing to rising Eskom's municipal debt From March 2023 to April this year, municipal debt increased by R15 billion. Metropolitan municipalities are also showing a debt rising trend at R11 billion. The City of Tshwane and City of Johannesburg accounted for R10 billion of the total. 'Initially, we did not have an issues with metros in terms of payment. Yes, there was some debt outstanding, but they would generally pay us late and would catch up. 'But from March 2023, you can see that the debt has grown from R1.7 billion to R11.1 billion,' Naidoo explained. He said Tshwane has a five-year payment plan with Eskom. A four-year similar deal was signed with Coty of Joburg recently. NOW READ: How Eskom and National Treasury saved taxpayers more than R20bn
IOL News
09-06-2025
- Automotive
- IOL News
New Honda Amaze versus Suzuki Dzire: which is the best compact sedan on the block?
The Honda Amaze (left) and Suzuki Dzire are both fresh from comprehensive redesigns. Image: Jason Woosey Sedans have gone from being the go-to body style a few decades back to a relatively small niche in today's SUV-obsessed motoring landscape. Buyers have for the most part given the boot, the boot. Yet the two latest small sedans on the market, the recently launched Suzuki Dzire and Honda Amaze, are still selling in reasonably good numbers, with the latter being Honda's most popular vehicle at the moment. Ok, we know what you're thinking - surely these two purely exist for the ride-hailing market? Granted, they are really popular in that space, but dealers tell us there is also a demand for them among buyers with small families and pensioners. The two Japanese-branded sedans that we see here are rather similar in concept. Both are built in India, and measure a shade under four metres in length to take advantage of a tax break in that country. The pair are also powered by 1.2-litre normally aspirated engines. They're among the most affordable sedans on the market, with the Suzuki priced from R224,900 to R266,900 and the Honda costing between R254,900 and R294,900. But keep in mind that the Honda is available with higher spec levels, so to keep things as fair and equal as possible, we compared the Suzuki Dzire 1.2 GL+, which is the flagship manual version at R246,900, with Honda's base-spec 1.2 Trend manual, which costs R254,900. Dimensions and Design Both cars were recently redesigned, with the Suzuki being an all-new model and the Honda being a comprehensive facelift that bears little resemblance to its predecessor. Styling is a subjective thing, but we'd say both are successful restyles that inject some much-needed attitude into what were rather bland designs in the past. The design updates make both cars appear more purposeful than before. Image: Jason Woosey 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 ✕ Honda's large honeycomb grille makes quite a statement and its new taillights, taking inspiration from the Ballade and Civic, are elegant and give a car a more upmarket appearance. The Suzuki is also very easy on the eye, with its new slim headlights and grille bar, and wide, tapering lower grille, but the back end is perhaps a bit forgettable. Interior design and practicality When it comes to practicality, these sedans are on a fairly equal footing. Rear legroom is surprisingly generous given their small dimensions. Sitting behind my driving position - I'm average-sized - there was room to stretch in both vehicles, with perhaps a smidgen more in the Suzuki. But rear headroom is really tight, with my head touching the ceiling in both cases if I leaned all the way back to the headrests. Their boots are similar in size, at 378 litres for the Honda and 416 litres in the Suzuki's case. Keep in mind that the boot apertures are relatively small, making it difficult to load bulkier items, and the rear seats don't fold in either of these vehicles. This does bring a security advantage, though, for what it's worth. Honda Amaze Image: Jason Woosey When it comes to interior design, we have to hand a solid win to the Honda. With a cockpit layout inspired by the latest Civic, it looks classy, and the materials appear to be of good quality. The 7.0-inch TFT digital instrument display is also a surprising addition at this end. Build quality is impressive, and the black cloth seat trim feels like it's made for life, with its dark colour scheme well suited to South African tastes. The Suzuki loses points here for its beige seat trim, which not only looks like it belongs in your Grandma's lounge, but it's sure to show dirt and grime very quickly. Suzuki Dzire. Image: Jason Woosey It's a popular colour scheme in India, but not so much in our market, and you'll certainly have to invest in seat covers for this vehicle. The Suzuki's 7.0-inch touchscreen is also smaller than its binnacle, which looks odd. User friendliness and features Neither of these vehicles disappoints when it comes to interior functionality, offering separate digital controls for the climate control systems and rather straightforward touchscreen infotainment systems - though the Honda's is bigger at 8.0 inches versus Suzuki's 7.0. Wireless Apple CarPlay and Android Auto are also standard in the two cars. Rear passengers have their own aircon vents in both cars, although the Suzuki scores extra points for having USB ports (both A and C type) positioned at the back of the centre console where both front and rear passengers can access them easily. It also has an additional USB A port upfront, while the Honda has two A-ports in this location. Both vehicles ship standard with electric windows and mirrors, multi-function steering wheels and rear park distance control with reverse cameras. But the Suzuki is the only one here with cruise control, while the Honda hits back with additional features over the Suzuki, such as automatic climate control, push-button start and LED headlights. When it comes to safety, both have stability control and ABS, but the Suzuki's airbag count of six (front, side and curtain) is a big win over Honda's two frontal crash bags. What they're like to drive As mentioned, they both have 1.2-litre normally aspirated engines and five-speed manual gearboxes, with CVT transmissions optionally available, although in the Honda's case you have to upgrade to the top-spec variant for that. The Suzuki comes with a new three-cylinder engine that delivers 60kW and 112Nm, while the Honda retains its trusty four-cylinder VTEC unit, offering 66kW and 110Nm. Their kerb weights are very similar, with the Suzuki tipping the scales at 940kg and the Honda at 963kg. Small 1.2-litre engines are the norm here. Image: Jason Woosey
The Citizen
29-05-2025
- Business
- The Citizen
Repo rate cut offers no shelter from Budget 3.0 fallout for consumers
Thursday's repo rate cut is unlikely to bring much relief to cash-strapped consumers, as any savings will be offset by the rising fuel levy eating into their income. Although the Reserve Bank's decision to cut the repo rate by 25 basis points on Thursday is good news for economists, it will not shield South Africans from the burden of the fuel and sin tax levies introduced by Budget 3.0. Neil Roets, CEO of Debt Rescue, warns that increased taxing of the workforce is not the answer and will put further financial strain on households, driving them to new depths of despair at a time when they are buckling under the weight of multiple unsustainable inflation-related living costs. 'The reality is that the finance minister's decision to impose new tax measures will hurt lower-income families most, as they will bear a proportionally higher burden, forcing them to make impossible lifestyle choices with the little disposable income they have left.' Before the South African Reserve Bank (Sarb) governor, Lesetja Kganyago, announced the repo rate cut this afternoon, economists polled by Reuters accurately predicted that the Bank would restart its repo rate cutting cycle this month, trimming the repo rate by 25 basis points to bring down the interest rate to 7.25% as the latest inflation data strengthens the case for monetary easing. ALSO READ: Reserve Bank cuts repo rate thanks to lower inflation, stronger rand Repo rate cut too small to matter for consumers 'While any cut in the repo rate benefits consumers, the change is simply not big enough to make any real difference in their lives, or to encourage growth in the economy. The impact on consumers will be minimal, as the 25 basis points cut will mean a tiny saving of R254 per month on a R1.5 million home loan and around R65 on a R500 000 car loan. 'Ultimately, a growing economy is the only solution that will slowly lift the weight of unsustainably high living costs from the shoulders of South Africans,' Roets says. Inflation currently remains outside the Sarb's target range of 3% to 6%, with the most recent data showing that consumer inflation was 2.8% in April, just slightly above March's 2.7%. However, Roets points out, inflation on food and non-alcoholic beverages was 4.0%, the highest it has been since September 2024. 'Overall, inflation is still considered low, which would have been a strong incentive to cut the current repo rate. The exchange rate of the rand also remains a key factor in economic stability and would have influenced the MPC's decision.' ALSO READ: Reserve Bank could cut repo rate on Thursday, but will it decide to? Move to lower inflation target will affect repo rate Kganyago is a longstanding advocate of shifting to a lower inflation target, arguing this would ensure South Africa is better placed to compete with its trading partners. He said earlier that a single-point target of 3% would be in line with South Africa's peers and lead to lower interest rates in the long term. However, his critics worry that reaching a lower inflation target will require tighter monetary policy that will impede growth and employment in a country with one of the highest jobless and poverty rates in the world. On Thursday, Kganyago reiterated his view, saying that the Monetary Policy Committee (MPC) believes that the 3% scenario is more attractive than the 4.5% baseline and would like to see inflation expectations move lower, towards the bottom end of their target range. He also said the MPC will consider scenarios with a 3% objective at future meetings. However, Annabel Bishop, chief economist at Investec, warns that a lower inflation target risks scuppering further interest rate cuts this year too. 'With a change to the inflation target reportedly occurring soon this year, the Sarb has chosen to cut interest rates this month to avoid the limitation of doing so in the future but then could easily be at risk of needing to reverse the cut.' ALSO READ: Salaries decreased by 2% in April, but higher than a year ago Slow pace of repo rate cuts perpetuates debt trap Roets says the reality is that the slow pace of the country's repo rate reductions is perpetuating the debt trap that millions of ordinary South Africans find themselves in, leaving millions with no option but to survive on credit. 'This scenario has been escalating since the prolonged tightening cycle began towards the end of 2021, when the MPC raised the repo rate by a cumulative 4.75% between November 2021 and May 2023, taking it from 3.50% to 8.25%, the highest level since 2014. ' Against this backdrop, the latest Statistics SA General Household Survey, released on Tuesday this week, reveals shocking statistics about hunger in the country. According to the survey results, almost a quarter of South African households did not have enough food to eat last year. This means that around 14 million people out of South Africa's population of 63 million went hungry. Of those polled, 22.2% of households considered access to food inadequate or severely inadequate. 'South Africans need real financial relief. This is a glaring red flag that should be at the top of the list of concerns for government. Sadly, this means more and more South Africans are relying on their credit and store cards to put food on the table and keep the lights on. 'The likelihood is that they will default on debt and fall into an even deeper trap, as the cost of credit increases due to existing debt. This is most evident with big purchases like home and car loans.'
IOL News
21-05-2025
- Automotive
- IOL News
DRIVEN: New Honda Amaze arrives with better looks, high-value price tag
The new Honda Amaze is now available in South Africa. Image: Supplied Notwithstanding the somewhat ambitious name, the Honda Amaze has proven itself, through two generations, to be a somewhat solid and dependable entry-level product for that small segment of the market still seeking a saloon. Admittedly this little Honda has never been much to look at, yet judging by the reaction to the third-generation model launched in South Africa this week, that is all set to change. With its large honeycomb grille, standard dual-LED headlights and a tail section that strongly resembles the latest Ballade, the new Amaze drew many admiring glances at its launch event, held in Cape Town. Also quite head-turning is the price tag, which starts just R1,000 north of the previous version, despite more features being fitted, and an upgraded service plan. 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 ✕ As before, the new sedan measures just under four metres in length. Image: Supplied The line-up remains identical to the previous model, with the 1.2 Trend manual kicking things off at R254,900 and the 1.2 Comfort offering a few extra features for R274,000 as a manual and R294,900 in CVT guise. 15-inch alloy wheels feature as standard, with a silver finish on the Trend and a dual-tone colour scheme on the Comfort, which also gains LED front fog lights and a painted black grille. With the Amaze retaining its familiar dimensions at just under four metres in length, and a 2,470mm wheelbase, cabin length remains as before, but the vehicle is now 38mm wider. Boot space is listed at 416 litres, which is impressive for a compact sedan. The cockpit area has received a complete makeover, with smarter materials and a horizontal bar that stretches across the dashboard to resemble a full-length air outlet panel. It blatantly mimics the latest Civic's cockpit, albeit with a more basic material mix. Both versions are fitted with a new 8.0-inch infotainment screen that juts above the dashboard, as well as a new 7.0-inch TFT driver display. Buyers can also look forward to wireless Apple CarPlay and Android Auto connectivity, as well as automatic climate control, keyless entry and a four-speaker audio system. The redesigned cabin looks smarter and gains a new touchscreen and TFT driver display. Image: Supplied In addition, the Comfort variant gains a 15W wireless smartphone charger, six-speaker audio system, push-button start, automatic headlight activation and steering wheel paddle shifters on the CVT. However, cruise control is not fitted to either of the models, nor are any of the ADAS driver assist features that are available on overseas models. Vehicle Stability Assist is standard, however. Speaking of safety, the Trend is fitted with dual front airbags and the Comfort gains side and curtain crash bags. What's it like to drive? The Honda Amaze retains its predecessor's 1.2-litre normally aspirated i-VTEC petrol engine, which delivers 66kW and 110Nm. Honda claims a combined fuel consumption figure of 5.5 litres per 100km for the new model. Being an entry-level car, a bit of patience is required, and even on our coastal launch route the vehicle felt somewhat sluggish. That said, I did enjoy my time behind the wheel of the five-speed manual model with its slick-shifting action and well-spaced ratios. The CVT version has received a few software upgrades, with seven programmed 'steps' designed to mimic gear changes, but these were hardly discernible in the vehicle we sampled .That noisy drone that is characteristic of continuously variable gearboxes was very much apparent in this vehicle, sometimes to the point of irritation while attempting to keep up with fast-paced traffic. The manual, in my opinion, is a better drive, but with urban traffic seemingly denser by the day, it's understandable why more and more people would gravitate towards the auto version. The suspension, being designed for Indian road conditions, is comfortable and compliant, as far as we could discern on the Western Cape launch route, which took us around the Peninsula towards Hout Bay. Conditions were wet and miserable, but the Amaze felt stable and offered sufficient grip even on the twistiest of sections. VERDICT Like its predecessor, the new Honda Amaze is a simple, solid and honest package, but the redesign makes it a lot nicer to look at, both inside and out, and the vehicle has also gained some modern new features. As a further bonus, the service plan has been extended to four-years or 60,000km worth of coverage, up from two-years/30,000km. The new Honda sedan is well worth a test drive, but will inevitably face stiff competition from Suzuki's new Dzire.
