Latest news with #R27bn
The Citizen
27-06-2025
- Business
- The Citizen
Cartoon of the day: 27 June 2025
A massive loan to fix SA's infrastructure will be ineffective if poor governance continues. South Africa has secured a $1.5 billion loan agreement with the World Bank. National Treasury said the purpose of the loan is to fix the country's transport and energy infrastructure, while also helping to boost economic growth. However, poor governance continues to plague South Africa, with the state-owned enterprises (SOEs) Eskom and Transnet serving as glaring examples of this. The unreliability of the power system in certain parts of the country has constrained GDP growth, while ongoing port and rail inefficiencies continue to hamper the performance of the mining and manufacturing sectors. NOW READ: Treasury confirms R27bn World Bank loan to fix infrastructure
IOL News
24-06-2025
- Business
- IOL News
Deputy finance minister defends US$1. 5bn World Bank loan amid EFF concerns
Deputy Finance Minister Dr David Masondo has defended the government's decision to borrow US$1.5 billion (about R27bn) from the World Bank. Image: Timothy Bernard / Independent Newspapers The government's decision to borrow US$1.5 billion (about R27bn) from the World Bank will help grow the economy and not undermine South Africa's sovereignty. Deputy Finance Minister Dr David Masondo on Tuesday defended the loan, assuring the country that borrowing in itself is not bad. 'The question is, what are you borrowing for? (We are) Borrowing for infrastructure to grow the economy. The second issue is whether you will be able to service your debt,' he said. On Monday, the National Treasury announced that the loan will help unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors, and also enable inclusive economic growth and foster job creation. 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 ✕ The EFF expressed serious concerns that the National Treasury has borrowed billions in the name of economic reform and stability but failed to ensure that this debt translates into jobs, industrial growth, or public infrastructure benefits. The party complained about the rising trend of foreign-denominated loans, particularly when there is sufficient liquidity in the domestic financial market and alternative monetary policy interventions that remain unexplored. 'These loans appear politically motivated and are designed to entrench long-term conditions that will bind future governments and constrain sovereign policy space,' the EFF stated. However, Masondo maintained that the loan sought from the World Bank is consistent with the government's intention to grow the economy and there is nothing in the agreement that undermines the country's sovereignty. 'We have always said, and that is what the RDP (Reconstruction and Development Programme) said, which is the founding policy document of the ANC and the (tripartite) alliance as a whole, which said that go and borrow money anywhere in the world as long as it's cheap, does not undermine our national sovereignty,' he explained. Masondo added that if the government borrows to aid economic growth, that is sustainable borrowing and debt. Addressing fears that the Iran-Israel conflict could adversely affect the South African economy through increases in fuel prices, Masondo said the government was observing the events with serious concern. 'If there is going to be, as we have already seen, disruption of supply chains, the supply of oil, it will definitely reduce the amount of oil that is required by the world, including South Africa,' he explained. Masondo said the government was very worried about the impact of the war that is going on in the Middle East and its consequence and impact on the supply chains. 'We know the laws of economics, where there is poor supply, under supply and the demand is high you will have the tendency of prices going up,' he said. Masondo was speaking on the sidelines of the Supreme Audit Institutions Summit of G20 member states at Melrose Arch, Johannesburg. He described the G20 as a crucial platform. 'If you have observed a number of decisions that are taken by the G20 become world decisions. They become decisions of the World Bank, IMF (International Monetary Fund) and other international institutions,' he said. According to Masondo, if the country does not participate in such platforms it could mean being governed through policies and decisions in which it played no part in formulating. 'So our participation in the G20 provides a great opportunity for Africa, global south and developing countries to shape how we are governed in the world in order to avoid powerful countries dictating what Africa and other developing countries should do,' he added. Masondo insisted that Africa and developing countries' voices were very critical.
IOL News
16-05-2025
- Business
- IOL News
Court dismisses R27 billion damages claim against Department of Science and Innovation
Durban High Court dismisses man on R27 billion claim against Department of Science and Innovation Image: File The Durban High Court has dismissed a man who is demanding R27 billion in damages from the Department of Science and Innovation. The man represented himself and used jargon and acronyms that the court found difficult to comprehend. Melusi Christopher Ntuli applied for a summary of judgement in this court against the department. A summary judgement is issued by the court without going to trial. His particulars comprised four separate claims and when totaled together they amounted to R27bn. Additionally, the court said his claim for judgement summary was some 921 pages. It also said Ntuli's claim appeared to revolve around two devices: a chargeless electric engine and a PSDC motor. 'The claims are based on the unconstitutionality, illegality, marketing, and infringement of the intellectual property rights (IPRs) due to the respondents' (the department) Grassroots Innovation Programme (GIP),' Ntuli said in his affidavit. Ntuli claims that his intellectual property rights have suffered reputational damages. He said the IPRs have a damaged reputation and has suffered the sum of R5bn. The other claim is that the department had no legal grounds for using the IPRs and therefore it has suffered a loss and damaged reputation of R2bn. Ntuli also said the department was not entitled to promote the electric engine through GIP and said the IPRs have suffered R10bn on damaged reputation. Another claim is R10bn for infringed rights of intellectual property. 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 ✕ 'From this whistle-stop tour through the plaintiff's claim, it is clear that he seeks unliquidated damages from the defendant,' Judge Robin Mossop said. He said a claim is liquidated if it is fixed either by agreement or by an order of court, or is capable of swift and easy computation. 'There is no such agreement in this instance on the amounts claimed by the plaintiff, nor have the amounts been determined by a court. It is impossible to calculate how the amounts claimed have been calculated,' Judge Mossop added. Judge Mossop said that if he understood the papers drafted by Ntuli correctly about his claims, it appears that he invented the devices. He said it appeared that Ntuli held intellectual property rights to the devices and that the department had accepted the use of these devices into its programme called GIP. Judge Mossop said he did not understand what a PSDC motor is and what GIP is for, as neither of these was explained. Mossop said the department raised its defences properly. Janse van Rensburg, a State attorney, said Ntuli's claim was not liquidated and said this court lacked jurisdiction to deal with this matter, as Ntuli stated that the department was based in Pretoria. Moreover, Judge Mossop advised Ntuli to seek legal assistance. 'It seems to me that it would be beneficial for him (Ntuli) if he acquires legal advice to help him deal with the difficulties that he is inevitably going to face. If he cannot afford such assistance, I have arranged for my registrar to provide him with the local address of Legal Aid South Africa,' Judge Mossop said. Ntuli was given leave to defend the action, and Judge Mossop said costs were reserved for decision by the trial court.
