Latest news with #R95bn
IOL News
5 days ago
- Business
- IOL News
Demanding Answers: Is R2. 4bn in tourism funding delivering results?
Tourism Deputy Minister Maggie Sotyu said the Department had introduced safety forums in collaboration with the SAPS and had engaged the Deputy National Police Commissioner, with a joint meeting planned. Image: Supplied IN a fiery parliamentary session, Members of the Select Committee on Economic Development and Trade launched a blistering assault on the Department of Tourism (DT) and South African Tourism (SAT), demanding hard evidence that its R2.4 billion budget delivers tangible results, not just meetings, marketing campaigns, and bureaucratic bloat. The July 16 hearing, presided over by chairperson Sonja Boshoff from the DA, turned into a scathing interrogation of the Department's accountability, effectiveness, and strategic coherence, with one question echoing louder than the rest: 'How much of the 8.8 million international tourists can be directly attributed to the Department's efforts?' That question came from the DA's Nicolaas Pienaar, who refused to back down despite warnings over language and procedural objections. 'I pose a critical question: how much of this activity could be directly attributed to the Department's efforts?' Pienaar demanded, referencing Tourism's claim that 8.8 million international tourists generated R95bn in revenue. Pienaar challenged the Department to show evidence linking its work to the arrival of the 8 million international tourists. He asked for a study or proof demonstrating the Department's direct impact, and expressed strong doubt that the numbers could be credited to departmental efforts. 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 ✕ He further accused the Department of focusing more on internal processes than real-world outcomes: 'The Department seemed more focused on holding meetings than on delivering tangible results. He criticised government culture for equating success with the number of meetings held, rather than concrete outcomes.' His criticism was echoed across party lines. The ANC's Mpho Modise raised concerns over 'duplication of roles' between the Department of Tourism, South African Tourism, Brand South Africa, and Proudly South African. He pointed to nearly identical slides in both the DT and SAT presentations and asked: 'What is the purpose of maintaining separate entities with overlapping mandates? Suggestions should be given to consolidate these bodies,' Modise said, warning of 'inefficient use of public funds'. The chairperson also delivered a stinging rebuke. Boshoff expressed 'dissatisfaction with the DT based on past issues, including the attempted R1bn sponsorship deal with Tottenham Hotspur, which had occurred without proper consultation.' She cautioned against repeating such decisions. Boshoff also zeroed in on SAT's skewed priorities: 'I questioned how SAT planned to effectively manage and grow domestic tourism with such limited funding,' noting that of the R1.3bn allocated to SAT, only R20m was earmarked for domestic marketing, just 1.5%, compared with R1.28bn for international campaigns. Pienaar also brought to the fore the harsh global reality facing South African tourism: a damning US travel advisory warning visitors to 'exercise increased caution' due to crime, terrorism, unrest, and kidnapping — the second result on Google for 'Visiting South Africa'. 'This negative global perception was a serious barrier to tourism, and should be a major focus area for the Department,' he said. The ANC's Mapule Dhlamini pressed the Department on safety, asking: 'How would this be achieved, given the continued reports of serious crimes against tourists, including rape and murder? There are ongoing safety challenges that make South Africa feel unsafe, both for locals and visitors.' Deputy Minister Maggie Sotyu responded that the Department had introduced 'safety forums in collaboration with the SAPS' and had engaged the Deputy National Police Commissioner, with a joint meeting planned. But no comprehensive national safety strategy was presented. Governance concerns erupted over the SAT Board's operations. The chairperson revealed that in 2023, board members were paid about R900 per meeting, with 54 meetings held between March and September, costing about R900 000 out of a R1.44m board budget. 'What governance or oversight mechanisms existed to ensure the necessity and frequency of board meetings?' she asked, suggesting 'introducing a fixed retainer model or capped meeting allowances to control excessive costs'. Sotyu confirmed that three board positions remained vacant, though CVs had been reviewed and were awaiting Cabinet approval. She acknowledged that the Auditor-General had raised concerns and that the Minister had taken a direct role in oversight. Meanwhile, MPs from the Northern Cape demanded answers on untapped potential. The ANC's Patrick Mabilo noted that 'desert tourism was not mentioned in the report, despite the untapped potential of regions like the Kalahari'. He asked: 'How can we leverage our BRICS membership, which accounts for 40% of the global population?' He also cited the Big Hole in Kimberley as a 'rare, man-made attraction' but lamented that such sites were not being marketed aggressively. The FF+'s Hendrik van den Berg added: 'Why has the DT not disclosed the specific countries being targeted in Africa and Asia? I want to know the exact partners involved.' Dr Shamilla Chettiar, DDG of Destination Development, admitted that a 'targeted country list was in development' but had not yet been finalised. The long-delayed Vredefort Dome project, a Unesco World Heritage site, was also brought into the spotlight. Van den Berg asked if it would be completed by August this year. Sotyu's update was rather sobering: 'It would not be completed by August 2025, and likely not by August 2026 unless urgent funding became available.' She said while DT was managing implementation, the lead department was actually the Department of Forestry, Fisheries and the Environment (DFFE). Pienaar raised another red flag regarding the official-looking tourism website which ranks first on Google for 'Visiting South Africa'. He asked: 'Is this managed by DT or SAT?' No answer was given during the session. He also questioned why the Department, with a 'R400m salary budget', planned to spend an additional R10m annually on consultants. 'What skills are lacking internally that require external consultants at such a cost?' he wondered. When Pienaar insisted on answers to his two core questions — the direct impact formula and website ownership — the chairperson acknowledged: 'They fell within the mandate of SAT.' But with time running out, she ordered written responses within seven days. Then came the final blow. A planned evening session on the Tourism Equity Fund (TEF), which is meant to support small, medium- and micro-sized enterprises (SMMEs), had to be postponed because the Deputy Minister could not attend due to a prior commitment. Boshoff expressed her extreme dissatisfaction: 'The invitation was sent last Friday. The Minister indicated she would not attend but would send the Deputy Minister. The confusion likely stemmed from internal communication failures. The committee has resolved not to continue with the TEF meeting in the absence of the executive… It would not be fair to allow Small Enterprise Development Agency (Seda) and the Department of Small Business Development (DSBD) to proceed without representation from the DT.' The session ended not with resolution, but with unresolved tension, unanswered questions, and deep concerns about duplication, governance, safety, and value for money. The Department said it was aiming for 15 million international arrivals by 2030. But as Pienaar put it: 'Show me the formula. Show me the proof. Show me the return on R2.4bn.' Get the real story on the go: Follow the Sunday Independent on WhatsApp.
TimesLIVE
21-05-2025
- Business
- TimesLIVE
Sars gets R4bn to hire army of debt collectors
Finance minister Enoch Godongwana has allocated R4bn to the South African Revenue Service (Sars) in the current financial year to help it strengthen its capacity to collect more tax revenue. The tax authority will immediately use the money to hire more than 1,000 debt collectors to claw back up to R50bn per year in revenue owed to Sars. Godongwana made the announcement when he tabled the 2025/2026 budget in parliament on Wednesday, his third attempt since February. The two previous budget proposals, the first on February 19 and the second on March 12, were rejected by some ANC ministers, parties in the government of national unity (GNU) including the DA and the Freedom Front Plus, and those outside the GNU including the EFF and MK Party. They had clashed over Godongwana's proposals to raise VAT, since dumped after the DA and the EFF challenged the matter in court. Godongwana's latest budget documents show Sars collected R95bn during the previous financial year of 2024/2025. 'Over the medium term expenditure framework (MTEF) period [of three years], the agency will receive an additional R7.5bn relative to the baseline. Part of the allocation is expected to increase debt collection by R20bn to R50bn per year. 'The potential revenue is not included in the revenue estimates. However, the performance of Sars will be monitored by assessing the change in the amount of cash collected, which will be published monthly.' Godongwana had previously allocated R3.5bn to Sars during the medium budget policy statement in November last year. The allocations will also see Sars investing in new technology, data science and artificial intelligence to beef up its capacity to collect more money. Sars commissioner Edward Kieswetter has previously called on National Treasury to allocate it more resources for it to go after tax dodgers. At a pre-budget briefing, Kieswetter said he would hire up to 1,700 debt collectors to chase billions owed to Sars. 'In April we hired 500. We've used April to train and upskill them. From June 1 we'll bring a further 250 and that takes us to about 750,' Kieswetter said. Sars was aiming to collect at least R120bn in total tax debt in the MTEF period. Less for early retirement spending and defence amid DRC withdrawal Godongwana has reduced allocations to the government's early retirement programme. The early retirement plan is aimed at reducing the number of public servants by encouraging government employees aged 55 and above to retire early without incurring early withdrawal penalties. The early retirement package has been cut from R11bn to R5.5bn from this year up to 2027. 'Discussions with organised labour on the process are under way in the Public Service Co-ordinating Bargaining Council (PSCBC). The allocation will be revisited on the conclusion of the consultations as part of the next budget process, though functions that are not parties to the PSCBC process, such as the department of defence, can proceed with implementation.' Allocations to the department of defence have been cut by R2bn due to the 'expedited schedule for withdrawal' of SANDF troops from the Democratic Republic of the Congo.
