Latest news with #Sakeliga
The Citizen
18 hours ago
- Business
- The Citizen
Blow for state over BEE requirement for estate agents
Ministers will no longer oppose the matter brought before court by Sakeliga. Lobby group Sakeliga has struck an arguably decisive blow in its legal challenge to moves by the Property Practitioners Regulatory Authority (PPRA) to no longer issue fidelity fund certificates to non-Black Economic Empowerment (BEE) compliant businesses. It announced on Tuesday that Minister of Trade, Industry and Competition Parks Tau 'has withdrawn his opposition' to its case. This ministry is responsible for driving government's BEE agenda through legislation, codes, policies and sector charters. Sakeliga originally filed papers in the North Gauteng High Court against the PPRA and the ministers of human settlements; water and sanitation; and trade, industry and competition. It made these papers public in January. The Minister of Human Settlements, Water and Sanitation (Thembi Simelane, since December 2024) had already indicated that the department would abide by the decision of the court, effectively not opposing the matter. The PPRA falls under the ambit of this department. ALSO READ: Real estate agents warned of licensing risks over BEE compliance Sakeliga brought the papers following decisions by the PPRA last year to deny operating licences, in the form of fidelity fund certificates (FFCs), to property businesses that did not meet the regulator's stipulated minimum BEE score. It argues that this was a 'brazen effort to put people out of business unless they comply' and that the case is needed to 'resist further overreach'. The first formal warning from the PPRA came in March 2024, when it warned practitioners in the property sector that failure to comply with BEE legislation 'may result in the inability to obtain or renew' a FFC. Property practitioners, including estate agents, need these certificates to operate. This followed a webinar in March, during which the PPRA's legal manager and acting transformation manager, Deli Nkambule, made it clear that the regulator 'will not issue an FFC unless a compliant BEE certificate accompanies the application. The accepted level of compliance is 40 points or more (BEE level 8). You will not be issued a BEE certificate if you score below 40 (making your BEE certificate non-compliant).' After sustained pushback from the sector, the PPRA quietly made an about-turn in August, with its chair sending a letter to estate agent industry grouping Real Estate Business Owners of South Africa (Rebosa) stating that the PPRA had sought legal advice and would no longer be requiring level 8 broad-based black economic empowerment (B-BBEE) certificates with new FFC applications. Sakeliga described this at the time as a 'tactical retreat'. ALSO READ: State sued over estate agent BEE plan It argues that the mandatory requirement for a 'valid' B-BBEE certificate for the issuing of an FFC 'serves no legitimate government purpose'. It says, 'there is no relationship between fulfilling the requirements for a fidelity fund certificate and having a B-BBEE certificate.' Currently there are around 40 000 FFCs issued, mostly to estate agents operating in the country. It highlights that the 'certificate requirement extends even to those thousands of businesses that do not participate in BEE (due to falling below certain turnover thresholds), bizarrely requiring them to fork out in the region of R10 000 every year just to buy and submit a 'valid' yet 'non-compliant' B-BBEE certificate.' Through the case, it is also seeking to roll back the expanded definition of property practitioner, which it says was 'unnecessarily expanded by the PPRA' to 12 new categories. Sakeliga says this includes developers, property administrators, landlords, homeowners' associations, auctioneers, bond originators and even property marketing companies, which 'improperly expands the reach of the PPRA over thousands of businesses and hundreds of billions of rand in turnover'. Achieving both outcomes would be seen as a success by the group. It is finalising its replying affidavit and, after filing it, will await a date for the matter to be heard. This article was republished from Moneyweb. Read the original here.
IOL News
10-07-2025
- Business
- IOL News
NEASA and Sakeliga file urgent court bid to halt employment equity quotas
The National Employers Association of South Africa (NEASA) and Sakeliga have filed an urgent application in the Gauteng High Court In a joint statement issued to the media late on Thursday, the two groups argued that the quotas were introduced without proper consultation and failed to comply with legal and constitutional requirements. IOL previously reported that the government plans to introduce new employment equity targets under the amended Employment Equity Act (EEAA). These targets apply to 18 key sectors and require certain employers, particularly in senior roles, to align their workforce with the country's racial and gender demographics. The National Employers Association of South Africa (NEASA) and Sakeliga have filed an urgent application in the Gauteng High Court seeking to interdict the implementation of the Employment Equity sectoral quotas. "The Minister did not act in accordance with the Promotion of Administrative Justice Act (PAJA), as she failed to adhere to the prescriptions of Section 15A of the EEA prior to the setting and publishing of the 2025 sectoral numerical quotas. This renders her actions unlawful and invalid". Earlier this year IOL also reported Minister of Employment and Labour, Nkosazana Meth, defended the sectoral quotas and criticised opposition to the reforms. She also accused the Democratic Alliance (DA), which has also launched a court challenge against the quotas, of seeking to maintain the status quo. "The DA's challenge seeks to disrupt efforts aimed at achieving equitable representation and maintaining the inherently unfair status quo. By opposing these amendments, the DA is actively sabotaging the transformation goals that have been pursued since the end of the apartheid era". NEASA and Sakeliga further argued that the quotas were 'irrational and arbitrary,' failing to consider the diverse circumstances across sectors, including differences in skills availability and regional demographics. The two groups also pointed out that the final quotas 'differ drastically' from earlier drafts published in 2023 and 2024 but were never republished for renewed public comment as required by law. "The quotas disregard South Africa's constitutional stipulations on non-racialism, equality before the law, and administrative justice". IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
IOL News
10-07-2025
- Business
- IOL News
NEASA and Sakeliga file urgent court bid to halt employment equity quotas
The National Employers Association of South Africa (NEASA) and Sakeliga have filed an urgent application in the Gauteng High Court In a joint statement issued to the media late on Thursday, the two groups argued that the quotas were introduced without proper consultation and failed to comply with legal and constitutional requirements. IOL previously reported that the government plans to introduce new employment equity targets under the amended Employment Equity Act (EEAA). These targets apply to 18 key sectors and require certain employers, particularly in senior roles, to align their workforce with the country's racial and gender demographics. The National Employers Association of South Africa (NEASA) and Sakeliga have filed an urgent application in the Gauteng High Court seeking to interdict the implementation of the Employment Equity sectoral quotas. "The Minister did not act in accordance with the Promotion of Administrative Justice Act (PAJA), as she failed to adhere to the prescriptions of Section 15A of the EEA prior to the setting and publishing of the 2025 sectoral numerical quotas. This renders her actions unlawful and invalid". Earlier this year IOL also reported Minister of Employment and Labour, Nkosazana Meth, defended the sectoral quotas and criticised opposition to the reforms. She also accused the Democratic Alliance (DA), which has also launched a court challenge against the quotas, of seeking to maintain the status quo. "The DA's challenge seeks to disrupt efforts aimed at achieving equitable representation and maintaining the inherently unfair status quo. By opposing these amendments, the DA is actively sabotaging the transformation goals that have been pursued since the end of the apartheid era". NEASA and Sakeliga further argued that the quotas were 'irrational and arbitrary,' failing to consider the diverse circumstances across sectors, including differences in skills availability and regional demographics. The two groups also pointed out that the final quotas 'differ drastically' from earlier drafts published in 2023 and 2024 but were never republished for renewed public comment as required by law. "The quotas disregard South Africa's constitutional stipulations on non-racialism, equality before the law, and administrative justice". IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
IOL News
10-07-2025
- Business
- IOL News
Neasa and Sakeliga mount legal challenge against employment regulations
The National Employers' Association of South Africa (Neasa) and Sakeliga have jointly filed an urgent application for an interdict against the implementation of the 2025 Employment Equity sectoral numerical quotas. The National Employers' Association of South Africa (Neasa) and Sakeliga have jointly filed an urgent application for an interdict against the implementation of the 2025 Employment Equity sectoral numerical quotas and accompanying administrative regulations, as well as calling for the judicial review and setting aside thereof. The Minister of Employment and Labour, Dr Nomakhosazana Meth published the employment equity regulations of April 15. These quotas require employers with 50 or more employees to restructure their entire workforce to reflect national gender and racial demographics of the country. The application challenges the legality and constitutionality of the newly introduced employment equity framework. The legal challenge firstly aims for a judicial review of the procedural acts of the Minister in setting the quotas, which the organisations alledge were fraught with irregularities and inadequacies in process. Secondly, the challenge also entails a constitutional challenge of the substance of relevant sections in the Employment Equity Act (EEA), which allow for and facilitate the setting and enforcement of these quotas. In the founding affidavit, Neasa and Sakeliga argue that the Minister did not act in accordance with the Promotion of Administrative Justice Act, as she failed to adhere to the prescriptions of Section 15A of the EEA prior to the setting and publishing of the 2025 sectoral numerical quotas. They claim this renders Meth's actions unlawful and invalid. The court papers, filed in the Gauteng Division of the High Court, also contend the Minister failed to properly identify, and gazette for public comment, the 18 national economic sectors for purposes of setting quotas, as required by Section 15A(4). Neasa and Sakeliga also argue that there was not proper consultation. Instead, they say stakeholders across numerous sectors were either not invited or not given adequate notice of virtual 'consultations', all of which were limited to only 1 000 attendees. "Some stakeholders were given the final quotas only hours before these so-called consultations, with most consultations allowing less than 15 minutes for feedback and discussions. The Minister completely neglected to consult with employees in the economic sectors who will be severely affected by the quotas. Consultation in this manner is woefully inadequate for the Minister to have come to a reasonable, non-arbitrary decision in respect of the quotas," they said. Neasa and Sakeliga also say the final 2025 quotas differ drastically from the earlier draft quotas published in 2023 and 2024 respectively. Despite this, they were never published for renewed public comment as required by section 15A(4) of the Act. This is a legal requirement and failure to adhere to it renders the quotas invalid. They also argue that the quotas are arbitary and do not take into account the nature, circumstances and challenges of each sector. "The Minister failed to obtain and consider a comprehensive socio-economic impact study on the consequences of introducing sectoral quotas... This cannot be rationally introduced as a legal requirement without a proper assessment of its socio-economic impacts," the legal challenge maintains. The second leg of the legal challenge questions the constitutionality and legality of the concept of forced ministerial quotas, which will be comprehensively argued at a later stage. "Unless the Court intervenes and grants the interim relief sought, every employer that employs 50 employees or more, in every sector of the economy, will be required by legislation to prepare and implement employment equity plans to make their workforce conform to the 2025 quotas," they said. "This filing marks the next important step in preventing these impossible, irrational, and harmful employment quotas for the benefit of employers, employees, and all communities across the country." Attempts to get comment from the Department of Employment and Labour by the time of going to print were unsuccessful. BUSINESS REPORT
The Citizen
20-05-2025
- Business
- The Citizen
NW court showdown could change the face of local government
Business organisation Sakeliga wants national government to take over the province's collapsed Ditsobotla Local Municipality. The case has much wider implications for local government in SA. Ditsobotla achieved 1% in service delivery in the province's latest report; water shortages have led to civil unrest; a 'horror show' said President Ramaphosa while there in 2022 to implore residents to return the ANC to power. Picture: Supplied Ditsobotla, about three hours west of Joburg, achieved fleeting national fame in 2021 when Clover announced it was pulling its cheese factory out of the area due to what it politely called 'poor service delivery'. It has since relocated to Queensburgh in Durban, despite threats of protest from trade unions and supplications from the North West provincial government. 'The [Clover] Lichtenburg factory has been experiencing water and power outages for years, and the municipality has not maintained the surrounding infrastructure,' the company said. 'Despite numerous efforts to engage the municipality on these matters, the issues have not been resolved.' Ditsobotla again achieved notoriety in 2022 when President Cyril Ramaphosa described it as a 'horror show' that had been taken over by gangsterism. He was there on the election trail facing angry residents, whom he implored to return the ANC to power – only this time with better councillors. In the 2021 local elections, the ANC won a 50% majority with the DA and EFF winning about 14% each of the vote. We know from the Auditor-General that the worst municipalities in SA are splattered across the Northern Cape, North West and Free State. These municipalities have the same telltale signs of looting and neglect: electricity if you're lucky, Eskom bills unpaid, taps running dry, poor water quality, and refuse collection a faint memory of a sunnier past. Read more WATCH: Diepkloof protest turns deadly [VIDEOS] That pretty much sums up the state of Ditsobotla, which comprises Lichtenburg, Coligny, and Ga-Raphalane, home to over 200 000 residents. It failed to submit financial statements for the 2023 financial year and has been repeatedly flagged by the Auditor-General for financial mismanagement, audit failures and collapsing basic services. ALSO READ: North West residents still waiting for basic services after years of begging the government Enough This collapse of services and governance prompted business organisation Sakeliga to ask the North West High Court to declare national government responsible for the decay at Ditsobotla and assume responsibility for it, as required under Section 139 of the Constitution. This is not the first time the municipality has been bypassed. In 2023, North West province took over and drafted a recovery plan, but even that hasn't worked, says Sakeliga. More than a year has passed since the recovery plan was formulated, and it still hasn't been adopted. That plan called for a six-year implementation, which is 'unreasonable and unjustifiable' and ignores the urgency of the situation. ALSO READ: Emfuleni municipality: Fears that workers won't be paid and service delivery will completely collapse How bad is bad? The court papers detail the extent of the crisis at Ditsobotla: No municipal manager or senior managers; Understaffed internal audit function; Kidnapping of provincial staff from the province by municipal employees due to non-payment of salaries; An under-funded budget with no prospect of improvement; Not enough funds to publish a recruitment advertisement for a municipal manager, prompting it to approach the province for the funds; Unpaid contractors holding the municipality to ransom over unpaid invoices; Electricity infrastructure obsolete; Roads are in a dire state, with insufficient staff and funds to maintain them; and Criminals have vandalised or sabotaged water and electricity infrastructure. One of the reasons given by the province for non-implementation of the recovery plan is the frequent vandalism and theft of water and electrical infrastructure, leading to extended service outages in parts of Lichtenburg, Coligny and Blydeville. There's also a lack of skills, employees refusing to work, and a lack of funds to purchase needed equipment and pay salaries. ALSO READ: North West municipality's years-old water woes blamed on blackouts Worse than just bad … Reading through the court papers, it doesn't get much better. The provincial managers sent in to clean up the mess noticed a pattern of possible organised crime and sabotage. This became evident when certain outside service providers were found to be receiving huge unauthorised and fruitless expenditure payments. These outside contractors were appointed on an emergency basis due to theft, overcharged for their services, and demanded upfront payment. This has apparently become a 'thing' in SA – destroy municipal infrastructure so you can outsource services to your buddies and gouge local residents. Various reports identifying the state of Ditsobotla have been prepared by North West province, the latest showing woeful under-achievement in virtually all key activities. Of the 95 key activities to be implemented in the finance pillar, just 21% have been achieved or partly achieved in 15 months. It gets worse from there – only 4% of key activities have been achieved in the institutional and human resources pillar, 15% in governance, and 1% in service delivery, a situation that remains almost unchanged in more than a year. Most residents in the area live below the poverty line, so recovering funds through service fees makes it almost impossible to invest in infrastructure. Illegal electrical connections are on the rise, and civil unrest has accompanied water shortages on several occasions. Despite a 2023 order from the North West High Court to supply sufficient potable water to residents as a matter of urgency, this has not happened. One attempt to address the water issue involved the delivery of water tankers, which were to have been connected to the water mains. This never happened. The site has since been vandalised and is standing idle. ALSO READ: Way to make cities work properly Worrying trend of de-urbanisation What's happening at Disobotla is part of a worrying trend of de-urbanisation, says Sakeliga. 'Across South Africa, cities and towns are met with an influx of people from the rural areas generally attracted to economic opportunities and the provision of greater and/or better basic services, such as water, electricity and health care, due to the centralisation of services in urban areas.' Yet the opposite is happening in the Ngaka Modiri Molema District Municipality, which Ditsobotla is part of. Sakeliga says this due to the collapse of Ditsobotla and its local economy. In other words, people are leaving the town for rural areas. ALSO READ: Stats SA claims most South Africans have access to water and electricity, but is service delivery up to standard? Attempts to appoint a new municipal manager in July 2024 ended up in the Labour Court after the acting manager applied to have the appointment set aside. This created further delays in addressing the municipality's well-documented crises. The Klipveld Water Supply Scheme, which supplies three local towns, has 17 boreholes – but only 15 are operational. The boreholes can supply 15 million litres of water a day, well below the 20-million-litres-a-day demand. The situation is worsened by vandalism and illegal water connections. Residents of Boikhutso, a village in Ventersdorp, spend hours each day queuing for water, which unscrupulous members of the community have seized for their own profit. 'Waste and refuse removal [have] ceased since 4 March 2024, with the accumulation of waste across Ditsobotla posing a serious hygiene and health risk to residents,' says Sakeliga's court papers. ALSO READ: High court orders North West government to resolve crisis-plagued Ditsobotla Illegal waste dumps have proliferated, and raw sewage flows through several large streets. Municipal billing has either collapsed – or, where it does occur, is based on estimates. This resulted in unlawful intimidation by municipal staff to coerce payment for inaccurate or disputed bills. Roads and signage have deteriorated. Yet the municipal manager set aside R180 000 to send a team to Bloemfontein for a sports event, illustrating the municipality's completely skewed priorities. In 2024, Eskom said it was owed R1.2 billion by Ditsobotla. Lichtenburg residents report that water is available for two or three hours a day, and those who can afford it pay for private refuse removal. Clover may have been the first large business to vacate the area, but it won't be the last. ALSO READ: Ditsobotla municipality: 'A humanitarian, constitutional crisis' – Sakeliga The provincial executive has failed to restore basic services to Ditsobotla and it's time for national government to step in and restore order, says Sakeliga. Instead of acting to avert a deepening crisis, the government chose inaction. The outcome of this case could be a watershed for the country's accelerating descent into municipal chaos. While the courts have on occasion sided with residents and businesses against failing municipalities, these have also been reversed (as in the case of Kgetlengrivier, also in North West). The view from Sakeliga is that the situation is now so dire that the courts, and national government, can no longer look the other way. This article was republished from Moneyweb. Read the original here.
