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IOL News
26-06-2025
- Politics
- IOL News
Motshekga defends Defence budget amid SANDF crisis
Minister of Defence and Military Veterans, Angie Motshekga grilled over budgets. Image: Phill Magakoe / AFP The Department of Defence and Military Veterans was not overspending on golf days as it was classified fundraising, Minister Angie Motshekga said during a Parliamentary question and answer session this week. This, after the DA's National Council of Provinces member on security and justice, Nicholas Gotsell, said there is a R7.7 billion Air Force shortfall and unfunded maintenance. Gotsell said the DA is seeking urgent clarity from Motshekga on the three-month deadline to present a plan for reprioritising defence spending and halting the SANDF's collapse. He said the DA will oversee the implementation to prevent another "empty promise", while Motshekga's recent statements showed a detachment from the SANDF's dire state. The DA is proposing cost-cutting, like ending lifetime medical benefits for retired VIPs, given the deterioration of 1 Military Hospital. Gostell also questioned Motshekga about international trips and golf days. 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 ✕ 'We have seen the department hosting golf days, purchasing luxury vehicles for generals, and spending money on bloated trips like your recent visit to a military parade in Russia, all while the SANDF is in crisis, your own words," he said. 'My question is, what tangible undertakings and timelines can you give this house today to show that you are indeed to the defence review?' Motshekga answered: 'Within our limited resources, we will make sure that we are able to do what we must do. But in the meantime we want to look at trips that the defence force is taking, I can assure the members that since I came, I requested that the department to minimise travelling but we cannot minimise it where people have to do joint training and exercises. My understanding is that those golf days are fundraising activities, run by the different generals and I can assure the public and member Gotsell that we have constantly requested the planners within the department , lets raid every budget and see where we can make savings so that we are able to employ more young soldiers and to make sure we have the necessary capabilities.' Gotsell added that recent revelations by Armscor confirm the SANDF's operational collapse, including: A R7.7 billion shortfall for the Air Force over three years; unfunded maintenance for the President's jet and the Falcon fleet; pilot training at risk due to underfunding of critical aircraft; delays, obsolescence and vendor disengagement across air and naval platforms; and failure to spend nearly R2 billion ring-fenced for critical fleet refurbishment. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
The Citizen
15-06-2025
- Business
- The Citizen
SAAF needs R414 million to refurbish Ramaphosa's presidential jet
The interior update will not occur in this contracting period due to a lack of funds. An airplane carrying President Cyril Ramaphosa arrives at Beijing Capital International Airport, ahead of the 2024 Summit of the Forum on China-Africa Cooperation yesterday. Picture: AFP Parliament continues to hear troubling reports about the impact of the South African National Defence Force's (SANDF) budget constraints, with the latest report affecting President Cyril Ramaphosa and his deputy, Paul Mashatile. The Joint Standing Committee on Defence received an update from Armscor on the status of the South African Air Force (SAAF) and South African Navy maintenance and acquisition contracts on Friday, and the outlook appears grim. Selekane Folo from Armscor informed the committee that there is a R7.7 billion shortfall to fund support contracts for the SAAF over a three-year period, amounting to a R2.56 billion shortfall per year. ALSO READ: Defence budget cuts 'impact Reserve Force capability' 'The lack of funding has been ongoing for a long period of time, and it has its consequences,' said Selekane. These include reduced fleet availability, with only the bare minimum of maintenance being done; essential upgrades are postponed; higher maintenance costs are incurred due to supporting obsolete subsystems; and a large recovery cost is required to catch up on maintenance. Maintenance of Ramaphosa's jet This has also affected the VVIP fleet, which has been unable to undergo maintenance due to a lack of funds. The contract for the maintenance and support of Ramaphosa's Boeing 737 Aircraft, contracted to Jet Aviation AG in Switzerland (the design authority for the aircraft's interior), costs R440 million and was placed from July 1, 2023, to June 30, 2026. The contract for local support for maintenance, contracted to Dentec, costs R60 million and was placed on 1 December 2024 and ends 30 June 2026. ALSO READ: Over 2 700 'old' SANDF personnel released, but new recruits will depend on funding 'What we need as a requirement to maintain the Boeing Business Jet (BBJ) is about R500 million, and currently, we are sitting with a shortfall of R414.9 million,' Selekane told the committee. 'There is an upcoming four-year maintenance that happens for about three months, but we can confirm as Armscor that the Air Force and we are trying to source funds to make sure that the check is well-funded. 'The major four-year maintenance is due in October 2025. This requires good planning and a scope of work from SAAF at least six months in advance. The scope of work is still to be finalised.' SAAF: No interior maintenance The interior update will also not occur in this contracting period due to a lack of funds. 'The BBJ is not fully funded as there are insufficient funds to conduct various refurbishments and upgrades in the aircraft, e.g Cabin refurbishment. Funds are only utilised for the C-Check and normal day-to-day maintenance.' The Falcon fleet used by the deputy resident has not been spared either. The contract for the maintenance and support of the Falcon fleet, as well as its associated ground support and test equipment, is with Execujet MRO Services and was in effect from 1 March 2023, to 28 February 2026. The value of the contract is R252.4 million, but the SAAF needs R142.1 million to maintain the fleet. READ NEXT: SANDF budget constraints: Not enough soldiers at the border, reserves getting older
The Citizen
30-05-2025
- Business
- The Citizen
The actual cost of non-compliance with Fica
'Any accountable institution, whether in property, legal, crypto or lending, is at risk if compliance lapses occur.' In the past 18 months, institutions in banking, legal, and financial services have faced steep penalties for non-compliance with the Financial Intelligence Centre Act (Fica). Some South African commercial banks have been sanctioned with fines ranging from R7.7 million to more than R50 million. These are not outliers, they reflect a clear regulatory shift toward stricter enforcement. Sameer Kumandan, MD of SearchWorks360, said that while much has been said about Fica obligations, less attention is paid to what happens when businesses fall short. 'The penalties are not limited to financial institutions. Any accountable institution, whether in property, legal, crypto or lending, is at risk if compliance lapses occur.' ALSO READ: FSCA fines 3 financial services providers R1.2 million for Fica non-compliance How Fica penalties are determined He said the type of punishment depends on the severity of the violation. Regulators apply a structured framework that considers both mandatory and discretionary factors. 'These include the nature, duration, seriousness and extent of the contravention, as well as whether the conduct was intentional, reckless or negligent. 'The regulator will also assess whether the entity gained any financial or commercial benefit from the non-compliance and if there was any remedial action taken once the issue was identified.' A business's compliance history matters too. Institutions with prior contraventions or those seen as repeat offenders can expect harsher sanctions, as can those found to have obstructed investigations or withheld key information. Fica sanctions Kumandan said sanctions range from a written caution or public reprimand to a remediation directive, restriction or suspension of business activities, and administrative fines of up to R10 million for individuals and R50 million for companies. For more serious breaches, particularly those involving an element of intent, criminal charges may be brought, with potential fines of up to R100 million or imprisonment up to 15 years. Senior managers, directors and employees involved in the breach may be held personally liable. ALSO READ: Prudential authority fines Absa R10 million for FICA non-compliance Common non-compliance issues 'Most Fica penalties stem from recurring failures such as inadequate or generic risk management and compliance programmes (RMCPs), poor customer due diligence, incomplete recordkeeping, failure to submit reports like cash threshold reports and insufficient training,' said Kumandan. 'These are not technicalities – they are central to the act and form the basis of most enforcement actions. In one case, a legal firm was fined R7.7 million for failing to implement an RMCP or train its staff. 'A financial services provider was penalised for failing to report suspicious transactions in a timely manner. These are the kinds of 'basic' oversights that now carry serious consequences.' The pressure is industry-wide He added that the uptick in enforcement isn't limited to large financial institutions. In recent months, law firms, insurers, financial advisers and crypto platforms have all faced enforcement actions. 'Fica applies across sectors and smaller firms are not immune. If you deal with money, you are accountable.' Avoiding penalties requires more than good intentions Fortunately, regulated entities have access to automated compliance platforms that facilitate the prevention of fraud, money laundering and regulatory breaches. He said these tools reduce manual oversight, simplify regulatory reporting and ensure Popia-compliant data handling. They also automate Know Your Customer (KYC)/Know Your Business (KYB) verification processes and can generate suspicious transaction and compliance reports as requested by regulators. 'One of the big selling points of automating Fica compliance is ongoing monitoring. Often, a business will conduct its due diligence at the start of a relationship with a client, only for that client to engage in illicit and illegal activities down the line. 'Ongoing monitoring helps accountable institutions to assess and manage risks continuously, during the onboarding process and throughout the business relationship. 'By tracking client profiles daily, accountable organisations keep tabs on all transactions as they happen and they are alerted to any changes that might indicate a compliance risk.' NOW READ: The risks of doing business with politically exposed persons
