Latest news with #R564
IOL News
5 days ago
- Business
- IOL News
Budget cuts expose SA's public service crisis
While the government touts nominal increases in budget allocations, the harsh truth reveals a significant erosion of real-term funding. Image: Rawpixel/Freepik AS South Africa grapples with deepening inequalities and a faltering public service, the recently adopted Budget Vote Reports for 2025 expose a troubling reality: while the government touts nominal increases in budget allocations, the harsh truth reveals a significant erosion of real-term funding. The Department of Public Service and Administration (DPSA), Public Service Commission (PSC), and National School of Governance (NSG) all face budget cuts that threaten to undermine service delivery and exacerbate existing disparities. In a virtual meeting this week, the Portfolio Committee on Public Service and Administration, chaired by the DA's Jan Naudé De Villiers, confronted these critical issues head-on. The reports presented revealed a complex interplay between budget allocations and the pressing needs of public service delivery. Julius Ngoepe, the committee content advisor, noted that the overall budget allocation for the DPSA for 2025/26 stood at R564 million, reflecting a nominal increase of 4.67% from R539m in 2024/25. He pointed out: 'This amount represents a decrease of 0.03% in real terms,' highlighting the painful reality of inflation outpacing budgetary growth. 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 ✕ Ad Loading The DPSA's budget over the Medium-Term Expenditure Framework (MTEF) period is projected at R1.8 billion, with a staggering 54.4%, or R966m, earmarked for the compensation of employees (COE). This allocation raised critical questions about the sustainability of service delivery, particularly as spending on transfers and subsidies accounts for only 10.2%, or R178m, with R158m designated for the Centre for Public Service Innovation (CPSI). During the meeting, members voiced their concerns regarding the budget's failure to address systemic inequalities within the public service. The EFF's Sixolisa Gcilishe, lamented the budget's failure to address systemic inequalities: 'The budget failed to address systematic inequalities in the public service as reflected in the wage disparities between top and lower management.' She further highlighted the inadequacy of the R300m allocated for administration in Programme 1, saying: 'Frontline workers remain underpaid,' and questioned the effectiveness of the budget cuts on service delivery. The chairperson acknowledged the gravity of these concerns, saying: 'This was an internal meeting to consider and adopt the DPSA, PSC, and NSG Budget Vote Reports.' He emphasised the importance of documenting these discussions, urging members to reflect their views in the report. Gcilishe insisted that 'the comments should be reflected in the report because the government would not be aware if they were only made in speeches and not documented'. The meeting also saw a significant push for changes in the funding model for the Thusong service centres. The DA's Leah Potgieter proposed: 'The funding should be split among the various departments that were making use of the centres,' leading to an amendment in the recommendation. National and provincial departments providing services in the Thusong service centres should co-fund the centres to ensure their long-term sustainability.' As the discussion progressed, the committee grappled with the implications of budget cuts on service delivery. The committee secretary, Masixole Zibeko, advised that some comments should be added to the report while others should be reserved for the Budget Debate. He cautioned members against introducing new recommendations at this stage, saying: 'Members had opportunities on two previous occasions to do so.' The sentiment of dissatisfaction with budget cuts was echoed by Ngoepe, who said: 'Every sector had expressed dissatisfaction with budget cuts.' This sentiment was further reinforced by the MK Party's Japhta Malinga, who warned that adding new issues at this stage was 'not doing justice to the process'. The chairperson agreed, saying: 'The DPSA had a role to play, but solving youth unemployment was not the sole responsibility of the Department.' The NSG's budget allocation for 2025/26 was also scrutinised, with Ngoepe presenting a budget of R228m, a nominal increase of 4.5% from R218m in 2024/25. Potgieter raised concerns about the allocation of more than 51% of the budget for administration rather than training programmes, saying the bloated administration and minimal training should be highlighted in the report. The chairperson acknowledged this as a valid concern, noting: 'This is a general concern in almost every department across government.' In the PSC report, the overall budget allocation for 2025/26 is R302m, which represents an increase of 4.68% in nominal terms but a decrease of 0.02% in real terms. Langa emphasised the need for security measures for PSC commissioners, saying the critical role of the PSC commissioners and the need for protection against threats at all times should be reflected in the report.
Zawya
21-04-2025
- Business
- Zawya
South Africa: MTN Group nets $30mln from sale of 1.5bn shares in Ugandan subsidiary
South Africa's MTN Group Ltd made a net gain of R564 million ($29.76 million) from the sale of its 1.57 billion shares in the Ugandan subsidiary despite offering the stake at a substantial discount in a bid to comply with a requirement to offload a minimum stake of 20 percent to minority investors. Latest disclosures through the company's audited financial statements (2024) show that the proceeds generated from the sale of the shares (net of taxes and transaction costs) amounted to R1.03 billion ($54.67 million) resulting in a net gain of R564 million ($29.76 million).'Proceeds generated from the sale of shares, (net of taxes and transaction costs) amounted to Ush214 billion (R1 036 million). This resulted in a net gain of R564 million recognised in equity as a transaction with non-controlling interests,' the group says. The group disposed of 7.03 percent stake equivalent to 1. 57 billion shares in MTN Uganda as part of its localisation plan that reduced its shareholding in the subsidiary to 76.02 percent from 83.05 percent. The transaction which was completed in June last year (2024) came after the group managed to sell a 12.97 percent stake in MTN Uganda in November 2021 through an initial public offering (IPO) that was priced at Ush200 ($0.05). The share sale in the secondary market aimed to help MTN comply with Uganda's local ownership rule that requires foreign telcos operating in the country to cede at least 20 percent shareholding to the public through the stock market. The offer which ran between May and June 10, 2024, was priced at discount of Ush170 ($0.04) per share compared to the original IPO price of Ush200 ($0.05) per share. The company also offered 30 free shares for every 140 shares allocated with the incentive shares amounting to a significant discount and making the secondary offer more generous than the IPO. Consequently, the sale of the additional shares was oversubscribed by 2.3 times, receiving subscription of three billion shares, reflecting the impact of the incentives that included free shares. In 2019 the Ugandan government directed foreign-owned telecoms operating in the country to list at least 20 percent of their shares on the local bourse within two years to boost Ugandan ownership in the sectorThe policy shift put pressure on multinationals operating in the country such as MTN, Airtel and Lycamobile to sell shares to the public. President Yoweri Museveni complained that the country was draining its scarce foreign exchange reserves through foreign-owned telecoms repatriating their profits abroad. Last year Airtel Africa Plc disclosed that it will also sell additional shares amounting to a 9.11 percent stake in its Ugandan subsidiary through a secondary offer to comply with Kampala's listing requirements. The multinational in November 2023 managed to sell 4.35 billion shares equivalent to a 10.89 percent stake in Airtel Uganda's initial public offering (IPO) and failed to meet the ownership rule. Airtel Africa said it had received a regulatory extension to sell the balance of 3.64 billion shares by November 2026, a move that will see it replicate MTN group which successfully offloaded a 20 percent stake in MTN Uganda in two transactions including a secondary offer conclude in June 2024Airtel Africa sold its shares at a price of Ush100 ($0.02) per share in the IPO that also offered incentive shares on a band subscription volume to attract investors. Retail investors who applied for more than 2,500 shares, for instance, received 10 free shares for each 100 shares allocated while institutional investors who applied for at least 1.85 billion shares were offered 112 free shares for each 100 shares allocated. MTN group's operations in the continent have faced several challenges including the conflict in Sudan's capital Khartoum which started on April 15, 2023, between Sudanese Armed Forces and the Rapid Support Forces leading to the destruction of state-owned infrastructure in the city. The ongoing conflict in Khartoum has resulted in loss of revenue and earnings for MTN's subsidiary due to prolonged hyperinflationary environment leading to an impairment of R11. 72 billion ($618.66 million) relating to MTN Sudan's non-current assets.'Accordingly, the future economic benefits that can be derived from MTN Sudan's operations have declined,' the group says. Last year (2024) the group gained R1.3 billion ($68.61 million) from the sale of subsidiaries in Afghanistan and Guinea-Bissau and a loss of R1.9 billion ($100.27 million) on the sale of a subsidiary in Guinea-Conakry. The sale of MTN Guinea-Bissau and MTN Guinea-Conakry was concluded on August 1, 2024, and December 30, 2024, respectivelyThe group also disposed of 686 million shares in MTN Ghana to Ghanaian citizens as part of the Group's localisation strategy reducing the group's shareholding to 73.99 percent from 81.04 percent. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. ( James Anyanzwa
