Latest news with #R6.6
The Citizen
25-06-2025
- Business
- The Citizen
SIU recovers R6 billion through investigations but remains underfunded
The SIU clawed back R6.6 billion over the past six years while maintaining operational costs of R5.2 billion. The portfolio committee on justice and constitutional development has expressed serious concerns about the severe underfunding plaguing two of South Africa's most crucial law enforcement and legal assistance entities. It warned that budget constraints are undermining their ability to serve the public effectively. During Tuesday's parliamentary session, committee members received troubling briefings from both the Special Investigating Unit and Legal Aid SA regarding their annual performance plans and budgets for the 2025-26 financial year, revealing a funding crisis that threatens the very foundations of these institutions' operations. SIU faces mounting pressure despite strong recovery record The Special Investigating Unit (SIU) has been operating under increasingly strained circumstances, with demand for its anti-corruption services skyrocketing while resources remain stagnant. The committee, during the meeting, heard that over the past nine years, proclamations requiring SIU intervention surged by 52%. These figures are contradictory to the unit's staff complement, which grew by a mere 6.5% during the same period. However, the committee's media officer, Rajaa Azzakani said despite these constraints, the SIU has demonstrated effectiveness in recovering funds for the state. The unit informed the committee that it had clawed back R6.6 billion in the past six years while maintaining operational costs of R5.2 billion. However, this success story is overshadowed by declining grant funding that threatens future operations. 'SIU's grant income in 2025-26 is R459 860 000, with R481 157 000 estimated for 2026-27, less than R489 839 000 it received in 2023-24, despite the SIU having grown and recovered more funds for the government,' said Azzakani. This reduction comes at a time when the SIU has expanded its operations and increased its recovery rates for government coffers. Committee Chairperson Xola Nqola acknowledged the critical nature of the situation, stating: 'Both have suffered from underfunding or budget cuts. 'The committee will engage with all necessary to see how we better finance entities that are doing excellent and important work, but whose work is being hampered due to funding constraints.' ALSO READ: SIU blocks R3.3 million pension payout of former Gauteng HOD Outstanding debts hamper operations The SIU's financial challenges are compounded by a staggering R1.2 billion in outstanding invoices as of March 2025. Provincial government departments account for the largest portion of this debt, owing R358.3 million or 30% of the total. 'Meanwhile, public entities owed the SIU 29% or R358 200 000, while national government departments owe 23% or R275 817 000,' Azzakani added. To address this debt crisis, the SIU has launched Project Khokhela, a targeted debt recovery initiative, 'with the aim of instituting a targeted approach to debt recovery'. The unit issued formal demand letters to the top 20 state institutions with the longest outstanding debts, with ministers' offices assisting in the distribution process. It further stated that the SIU expressed optimism that settlements will be reached in the coming months. Expansion plans threatened by resource constraints The SIU's ambitious plans to expand its workforce to meet growing demands face significant obstacles due to funding limitations. The unit estimated that it needs at least 1 000 officials to handle incoming work from increased proclamations, with the Estimates of National Expenditure budgeting for 1,100 officials. However, without an additional R250 million annually, the SIU lacks the resources to fund this essential growth. The unit is also developing a permanent structure for lifestyle audits, including the procurement of comprehensive analytical tools aimed at enhancing fraud and corruption prevention and detection capabilities. This initiative represents a shift toward making lifestyle audits a cornerstone of risk management strategies. ALSO READ: 'War on Leaks' programme: SIU reveals R2.2bn budget balloons to over R4bn Funding model requires urgent overhaul SIU officials emphasised that the organisation's financial stability hinges on a complete revision of its funding model to accommodate the increasing number of proclamations. Securing additional funding from the national treasury and amending the SIU Act in consultation with the Minister of Finance have been identified as crucial steps for ensuring long-term sustainability. Nqola supported this position, declaring: 'To strengthen the SIU, we must solidify the SIU Act. We need to establish with the department how far is this process.' Legal Aid SA struggles with severe budget cuts Legal Aid SA faces its own funding nightmare, grappling with a devastating R239 million budget reduction for the 2025/26 financial year. The organisation's operational flexibility is severely limited, as salaries and related costs consume 80 percent of the budget, leaving cost containment measures to target only the remaining 20% allocated to operations. The organisation has been forced to implement staff rationalisation plans, including position freezes and delayed recruitment, to manage employee costs. However, these measures directly impact service delivery to clients and reduce operational capacity, ultimately limiting the number of people the entity can assist. ALSO READ: SIU and Transnet freeze R20 million in luxury assets amid fraud probe Rental costs add to financial pressure Legal Aid SA's financial woes are exacerbated by office accommodation leasing costs, where rental escalation rates consistently outpace the modest increases in budget allocations. This creates an unsustainable situation where fixed costs consume an ever-growing portion of the available budget. According to Legal Aid SA representatives, despite ongoing cost-cutting efforts, opportunities for additional savings have been largely exhausted. The organisation stressed the importance of aligning organisational targets with available resources to ensure it can meet service demands without overextending its capacity. Justice committee chair commits to advocacy Nqola emphasised the committee's recognition of Legal Aid SA's vital role in ensuring access to justice for vulnerable populations. 'Therefore, the committee should do everything in its power to ensure that they are better funded, as it speaks directly to the services they are able to render to those who cannot afford to pay for legal services,' he stated. WATCH: Justice Committee briefed by Legal Aid and SIU READ NEXT: Lottery corruption: SIU granted order against pension of former NLC official
The Citizen
23-06-2025
- Business
- The Citizen
Momentum Life pays out R6.6 billion in claims in 2024
The latest claims statistics from Momentum Life Insurance shows that an insured event can happen at any time in your life. Momentum Life Insurance paid out R6.6 billion in 2024, with suicides again being one of the main reasons for unnatural death. Since launching its Myriad product in 2002, Momentum Life Insurance has paid out R77.9 billion in claims. Joretha Bothma, head of product development, underwriting and claims at Momentum Life Insurance, says the 2024 claims report reveals a 99.8% payout rate on valid life cover claims. Death claims at Momentum Life Insurance were consistently driven by health trends, she says. Cancer and cardiovascular disease remained the leading causes of death claims in 2024, accounting for nearly 60% of all life cover payouts. 'These trends reflect broader health patterns in South Africa and reinforce the importance of maintaining comprehensive cover well into later life.' For critical illness claims, cancer was the leading cause of claims at 45%, with cardiovascular, nervous system and musculoskeletal conditions rounding out the top four claims' causes. Bothma says, interestingly, women tend to claim at younger ages than males. 'They tend to claim critical illness benefits during their prime working years, often when they are juggling significant family responsibilities and careers.' 'This highlights the importance of financial protection during this life stage, as a critical illness can have a substantial impact on family finances. The financial support from a critical illness payout can help alleviate some of the burden, allowing families to focus on recovery rather than worrying about financial stability.' ALSO READ: Sanlam pays out R6.62 billion in death and disease claims Youngest and oldest claimants at Momentum Life According to the claims statistics, the youngest claimant was just 18, a sobering reminder that serious illness can strike at any age. Many claims were also paid to older clients, reinforcing the value of keeping critical illness cover intact later in life. The death claim paid out to the oldest member was for a man who died at 92 from a stroke. 'The importance of early uptake and long-term retention of critical illness cover cannot be overstated, especially as conditions such as cancer and cardiovascular disease continue to dominate claim causes,' Bothma says. The top four causes for payouts between lump sum disability and income protection are consistent across benefit types, with musculoskeletal conditions topping the list, followed by nervous system, cancer and psychiatric or mental-related conditions. Nafeesa Gaida, head of claims at Momentum Life Insurance, says the youngest claimant for both lump sum disability and income protection was just 18, a survivor of a motor vehicle accident that left him paralysed. 'This case underscores how life-altering events can happen without warning, even at a young age, highlighting the importance of securing cover early.' The oldest claimant was an 84-year-old client who receives monthly payments for prostate-related disability on his income impairment benefit. Gaida says this again highlights the long-term nature of financial protection and the importance of sustaining it throughout life. ALSO READ: Why trust is so important when it comes to life insurance Claims for terminal illness and unnatural death The youngest person to receive a payout for terminal illness was a woman of 33 who suffered from squamous cell carcinoma, and the payment for the oldest claimant was for a man of 79 who had liver cancer. For child critical illness, 33% of the claims paid out were for endocrine or metabolic system illness, while 15% were for cancer and 13% for congenital conditions. 'Disability and income protection benefits extend far beyond essential monetary payouts. They provide a vital financial breathing space, allowing clients to focus entirely on their recovery.' Claims for unnatural death were topped by accidents (39%), suicide (28%), surgery (16%) and murder (15%). A total of 81% of the claims for unnatural death were for men and only 19% for women. The largest death claims since 2010 were for a man of 49 who died due to surgery in 2010 with a claim paid out for R101 million, a man of 36 who died in an accident in 2013 with a payout of R36 million and a man of 72 who died from a gunshot in 2023, with a payout of R117.2 million.
IOL News
21-05-2025
- Business
- IOL News
Strong performance doubles Southern Sun's dividend and occupancy reverts to normal levels
Southern Sun Elangeni & Maharani A view from the Southern Sun Elangeni & Maharani in eThekwini. Lower event activity in the Durban International Conference Centre negatively impacted the occupancy of the group's hotels in the city in the year to March 31. Image: Supplied Southern Sun doubled its dividend after lifting adjusted headline earnings per share a sturdy 34% to 75.6 cents for the year to March 31, following strong growth in the Western Cape and in Gauteng. Income was up by 9% to R6.6 billion. Occupancy increased by 2.2 percentage points to 60.8%. Net debt reduced to R266 million. A 25 cents a share dividend was declared. The refurbishments of Southern Sun Cullinan and Sandton Towers – reopened in July 2024 and December 2024, respectively – along with upgrades to the restaurant and rooms at Southern Sun Rosebank and Southern Sun Sandton, were well received by the market, directors said. These improvements contributed to increased occupancy and rate growth in Cape Town and Gauteng during the latter half of the financial year. The 12% increase in operating profits, with finance cost savings, resulted in a 30% increase in adjusted headline earnings for the year to R1bn. 'The cost restructuring in 2021 enabled the group to deliver 14% EBITDAR (earnings before interest, tax, depreciation, amortisation, and restructuring), from 9% income growth,' the group directors said. 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 Total income comprised room revenue growth of 10% to R4.4bn, supported by average room rate growth of 5% and the increase in occupancy. Food and beverage revenue increased 6% to R1.6bn in line with occupancy growth, property rental income has grown by 19% to R272m, while other revenue has increased by 7% to R330m. The recovery of occupancies to the group's long-term average, especially in regions that had underperformed in the current year, presents an opportunity in the medium term, directors said. However, some regions hindered overall performance in the past year, particularly KwaZulu-Natal and Mozambique. In South Africa, corporate and leisure bookings rebounded after the May 2024 elections, but government demand outside of G20-related events was slower to recover. There were signs of improvement in the third quarter, but activity slowed again in the last quarter due to the uncertainty surrounding the approval of the national budget. Additionally, reduced event activity at Durban International Convention Centre negatively impacted the group's hotels in Durban, although trading in Umhlanga remained stable. In Mozambique, political unrest and rioting in Maputo since November 2024 significantly affected demand at the Southern Sun and StayEasy hotels. Although this situation stabilised after the inauguration of the president in January, 2025, and supported by the fact that the hotels are in a secure zone surrounded by embassies and security forces, occupancy levels continued to lag. 'The group intends to maintain the dividend payout ratio, and in the absence of major expansion capex, will continue to apply available cash resources towards share buybacks when appropriate,' the directors said. A 3% reduction in the weighted average number of shares reflected the impact of the share buyback implemented in 2024. Visit:
