TOP REPORT - NLC REPARATIONS

New Lotteries Commission boss says sorry and promises huge clean-up as well as reparations

GroundUp reports that the board of the National Lotteries Commission (NLC) has approved a reparation process that will lead to apologies and, in some cases, financial reparation, to former staff who were punished or driven out of their jobs for blowing the whistle on corruption. The NLC will use a reparation model similar to the one used by the SA Revenue Services, which apologised and paid reparation to staff who were forced out during the capture and hollowing-out of the organisation during Jacob Zuma’s administration. The new commissioner, Jodi Scholtz, explained: “The idea is to say sorry in a way that is meaningful and for everyone. My original proposal was for staff only. But communities have also been affected. They have been hurt. We cannot just say it is business as usual.” With regard to projects that collapsed when grants were looted, the NLC has asked the Industrial Development Corporation to provide engineers to investigate abandoned or unfinished projects "to see what could be done to make them useful for the communities where these facilities are situated". Since last year a clean-up at the NLC has led to the replacement of the entire NLC board and much of the senior executive, as well as the resignations of the previous Commissioner, Thabang Mampane, and the former chief operating officer, Phillemon Letwaba. Several other senior staff are currently on suspension pending disciplinary inquiries.   Scholtz also confirmed that the NLC planned to introduce lifestyle audits and integrity testing for all staff "starting from the top … me, the executive and the NLC board". One idea being considered was to fund reparation awards from money raised by selling off assets such as seized luxury houses and properties and cars bought with looted lottery funds, Scholtz said.   The Special Tribunal has already issued preservation orders running into hundreds of millions of rands on properties and other assets, involving multiple individuals, companies and non-profit companies. Scholtz has been meeting staff and labour unions as part of an organisation-wide clean-up.

Read the full original of the extensive report in the above regard by Raymond Joseph at News24

GAUTRAIN WAGE NEGOTIATIONS

Bombela and Numsa to hold further talks on Friday in bid to avert wage strike

TimesLIVE reports that the Bombela Operating Company (BOC), which operates the Gautrain, advised on Tuesday that although it had agreed with the National Union of Metalworkers of SA (Numsa) to hold three wage-negotiation sittings, the union abandoned the negotiations after the second sitting. “The third sitting has since been agreed for Friday, and the company remains committed to engage with Numsa in good faith to find an amicable solution to the impasse,” Gautrain spokesperson Kesagee Nayager indicated. The company was responding to a statement issued by Numsa on Friday, which said a strike was looming at Gautrain. The union said the parties could not agree on the union's demands, including an 8% across-the-board increase, a night shift allowance of R38 per hour, a housing allowance of R1,750 and an increase in the transport allowance from R100 to R125 per shift or R2,100 per month for all shift workers whether they worked or not. Numsa said it had been issued with a strike certificate and would be balloting its members in preparation for the strike. In response, the BOC admitted the parties had not reached agreement on the wage negotiations and that the CCMA had issued a certificate of non-resolution. However, it added that Numsa had in principle agreed to a number of proposals, inclusive of a housing allowance, which contradicted the statement by the union that the company sought to “abolish the housing allowance”.

Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE

MEDICAL ‘CERTIFICATE OF NEED’

Health Minister to get his day in court to defend ‘certificate of need’ to determine where doctors work

BL Premium reports that the High Court in Pretoria has rescinded a far-reaching judgment that scuppered the Health Minister’s plans for determining where doctors work, saying he should be given an opportunity to have his day in court. The case centres on the “certificate of need” provisions in the National Health Act and is important because these measures are an integral part of the government’s plans for National Health Insurance (NHI). Under NHI, the health department intends to manage the distribution of health services by requiring doctors and health facilities to obtain a certificate of need before they can establish or expand a practice. Acting judge Thembi Bokako last June upheld an application by trade union Solidarity and six other parties challenging the constitutionality of the Act’s certificate of need provisions. The matter was not opposed by the minister and the judge only heard arguments from the applicants. Bokako ruled in a default judgment that sections 36-40 of the Act were unconstitutional and invalid and should be set aside. But, in a ruling handed down on 14 June, Judge Brenda Neukircher agreed with the department’s argument that the minister of health had not been properly informed of the legal proceedings. When the sheriff of the court attempted to serve notice of motion on the minister and was told by the receptionist at the minister’s office that no-one in the legal department was available, the sheriff left without serving the papers on anyone. The emails sent by the applicants’ attorneys to the respondents did not constitute service for initiating proceedings in terms of the uniform rules of court, Neukircher said. She gave the health department 30 days to file its responding affidavit to the issues raised by Solidarity and its co-applicants. Solidarity spokesperson Perriu Marx said the organisation’s position remained unchanged, and it had no further argument to make to the court.

Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)

NO TOOLS OF THE TRADE

Gauteng metro cops crippled by lack of bulletproof vests, protective gear and armoured cars

News24 reports that a lack of fleet vehicles, shortage of bulletproof vests and protective gear, and problems with training dogs and their handlers are some of the challenges crippling metro police departments in Gauteng. The administrative heads of the Johannesburg Metro Police Department (JMPD), Tshwane Metro Police Department (TMPD) and Ekurhuleni Metro Police Department (EMPD) revealed this on Tuesday during a meeting with the provincial legislature's Portfolio Committee on Community Safety. EMPD deputy chief Goodman Mzolo acknowledged serious challenges in the metro, including fuel restrictions, insufficient fleet vehicles and a poor service turnaround time at workshops. He reported that the department had a shortage of armoured vehicles, bulletproof vests and protective gear, as well as insufficient storage facilities for impounds. He also said the province faced a serious problem regarding weighbridges which were not functional. TMPD's Sean Bolhuis said the number of fleet vehicles available at the department did not "look too good". He said the department only had 447 functional vehicles, while 311 vehicles were out of service due to breakdowns, accidents and non-payment of services. Meanwhile, JMPD's Angie Mokasi said they faced challenges with purchasing ammunition.   She added that the department’s K9 unit lacked dog handlers and dogs.

Read the full original of the report in the above regard by Iavan Pijoos at News24

Health Minister blames ageing equipment and lack of skilled staff on SA’s decade-long backlog of toxicology reports

IOL reports that Health Minister Dr Joe Phaahla has blamed the country's backlog of toxicology reports on ageing equipment, delays in procurement and a shortage of skilled staff. He was responding to a parliamentary question on the backlog of toxicological reports at laboratories currently. Phaahla advised the total number of backlogs at forensic labs stood at 35,776 at labs in Cape Town, Johannesburg and Pretoria. Phaahla said there are 2,555 cases older than 10 years while there are 1,749 cases older than nine years, 2,158 older than eight years, 3,391 cases older than five years and 11,948 cases older than a year. He explained that the backlogs were caused by old laboratory equipment that constantly broke down, insufficient goods and services, delays in procurement and a shortage of skilled staff. "The laboratories have now been transferred from the NDOH (National Department of Health) to the NHLS (National Health Laboratory Service), given the efficiency of the NHLS as a specialised laboratory service. NHLS is leveraging its resources and expertise to turn things around and strives to address the backlog,” Phaahla reported.   The NHLS will explore the possibility of a public private partnership. In 2021, the FF+ raised concerns over the country's toxicology backlog. It pointed out that the large number of outstanding reports meant that there was a real possibility that many drunk drivers would get away without being prosecuted, such as those whose reports have still not been issued for a decade or more.

Read the full original of the report in the above regard by Se-Anne Rall at IOL

DE RUYTER’S ‘SPEEDY’ DEPARTURE

Eskom head of legal disagreed with ‘speedy termination’ of De Ruyter’s contract

BL Premium reports that Eskom’s departing head of legal and compliance, Mel Govender, doesn’t believe the state-owned utility’s former CEO brought the organisation into disrepute with the comments he made during a controversial TV interview in February. The interview led to Andre De Ruyter’s swift departure instead of him serving an extended notice period until end-March. He had resigned in December 2022. Govender, who will be leaving at the end of June, disagreed with the speedy “termination” of De Ruyter’s contract and questioned whether due process had been followed. She also advised against legal action against De Ruyter, which is under consideration by Eskom, for the revelations he made in his book Truth to Power, which was published last month. Govender said this in answer to questions from members of parliament’s standing committee on public accounts during a meeting at Eskom’s head office at Megawatt Park on Tuesday. Govender reported that she had conveyed her discomfort about the termination of De Ruyter’s contract with the executive team the day after it happened. But, at the end of Tuesday’s proceedings, Eskom's acting chairperson Fathima Gany said the board rejected Govender’s view that De Ruyter's contract had been terminated. De Ruyter had offered to serve out his notice until end-February, which he did at home, and that was accepted by the board, she claimed.

Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)

SABC EXECUTIVE CHANGES

SABC CEO Madoda Mxakwe calls it a day after completing rare full term

BL Premium reports that Madoda Mxakwe, CEO of the SABC, will not renew his contract when it expires at the end of the month, becoming the first boss to complete a full five-year term at the troubled organisation in 15 years. Mxakwe took over the helm at the SABC in 2018 after the controversial stewardship of the broadcaster by COO Hlaudi Motsoeneng. Mxakwe’s exit comes two months after Ramaphosa appointed a new board for the public broadcaster. He leaves behind an organisation that has yet to make any money, and in an environment where businesses are reining in costs such as advertising to ride out an economic downturn caused by persistently high inflation and aggressive interest rate hikes. Still, the SABC has narrowed losses by almost three-quarters under Mxakwe’s tenure.   This was largely thanks to a punishing cost-cutting strategy that included slashing jobs to reduce the public broadcaster’s wage bill. Mxakwe, a former executive at Nestle, will leave the organisation in the hands of Nada Wotshela, head of the SABC’s radio division.

Read the full original of the report in the above regard by Tiisetso Motsoeneng at BusinessLive (subscriber access only). Lees ook, Waarnemende groepshoof by SAUK aangestel, by Maroela Media

NO PROBE INTO QUALIFICATIONS

Eastern Cape premier Oscar Mabuyane successfully interdicts SIU from probing his qualifications

TimesLIVE Premium reports that Eastern Cape premier Oscar Mabuyane has successfully interdicted the Special Investigating Unit (SIU) from probing his University of Fort Hare (UFH) qualifications in part A of a court application. However, part B, in which he seeks to have the process reviewed, declared unconstitutional and set aside, has not been heard. In 2022 President Cyril Ramaphosa signed a proclamation authorising the SIU to investigate corruption and maladministration at UFH. The unit is also investigating allegations of corruption involving four UFH tenders. In a ruling on Tuesday, Eastern Cape High Court judge Thandi Norman ruled that the proclamation was not consistent with the investigation and that the complaint by Mabuyane was justified. In terms of the proclamation, the SIU was authorised to probe maladministration in the university’s faculty of public administration regarding the awarding of honours degrees, the management of funds and sourcing of public servants for study in various faculty programmes by an individual for personal gain. The SIU was investigating Mabuyane's allegedly fraudulent submission of a research proposal for a master’s degree in public administration, with the “help” of former faculty dean Prof Edwin Ijeoma. But, the proclamation relates to honours, not master’s degrees, the court found.

Read the full original of the report in the above regard at TimesLIVE Premium (subscriber access only)

TWO-POT RETIREMENT SYSTEM

Old Mutual expects 1 million clients to cash out up to R25 000 each in once-off pension withdrawals

Fin24 reports that fund managers expect a wave of cash-strapped South Africans to withdraw up to R25,000 each from their pension savings when the new two-pot retirement system comes into effect next year.   Michelle Acton of Old Mutual says the group anticipates more than one million members within all the Old Mutual retirement funds coming forward to claim. "We have done market testing and when speaking to members, the majority of middle and lower-income members confirmed they would come forward and claim," said Acton. Millions of households are finding themselves with their backs against the wall, battling to make ends meet amid soaring inflation, higher interest rates and an economy on the brink of recession. They are expected to take advantage of new regulations to cash in when the current 1 March 2024 deadline arrives for the new two-pot system.   The new system means South Africans will be able to access one-third of their retirement savings throughout their career, while two-thirds will only become accessible on retirement.   The reform is meant to deter South Africans from cashing out their retirement savings when they resign, and is also aimed at preventing workers from resigning to access their retirement funds. From March 2024, members of retirement and provident funds, as well as retirement annuities, will be able to withdraw a once-off R25,000 or 10% (whichever is lesser) of their existing savings. Allan Gray director Richard Carter expects many South Africans will go for this option.   But, he does not expect the mass withdrawals will cause a liquidity problem as they will most probably amount to less than 1% of total pension fund assets in SA.

Read the full original of the report in the above regard by Nick Wilson at Fin24. Read too, Race against time for ‘two-pot’ pensions, at Financial Mail (subscriber access only)

DISPUTED CITY MANAGER APPOINTMENT

DA awaits Gauteng court outcome on its bid to oust Joburg city manager

TimesLIVE reports that the Democratic Alliance (DA) has gone to court in a bid to oust Johannesburg city manager Floyd Brink.   The matter was heard on an urgent basis last week. Caucus leader Belinda Echeozonjoku said the party presented its argument on the procedural irregularities surrounding the tabling of a report that ultimately paved the way Brink’s reinstatement. The row involves an investigation into noncompliance after Brink allegedly approved two transactions, of more than R300m and R20m respectively, to buy CCTV equipment and hand-held devices. Brink was later cleared by a forensic report. The uproar and subsequent court action follows speaker Colleen Makhubele’s tabled recommendations regarding how Brink was booted out of the job and put on special leave. The DA previously alleged the council decision to appoint Brink, the second preferred candidate, instead of Johan Mettler, the first preferred candidate, was “done to placate the EFF, who played a key role in the ANC staying in power in Joburg”. Mettler later recused himself from the race. The DA then recommended Bryne Maduka for the post. In its court heads of argument, the DA said it did not recommend Brink because he did not meet the minimum requirements and qualifications for the post of city manager and did not pass the city’s group forensic investigation services screening check. The party further alleged that Makhubele blocked the tabling of the report before council recommending the appointment of Maduka, adding that she then tabled her own “false and misleading report” at a council meeting to reverse the council’s decision to re-advertise the position of city manager.

Read the full original of the report in the above regard by Sisanda Mbolekwa at TimesLIVE

TMPD MISCONDUCT

Two Tshwane metro cops arrested for operating outside jurisdiction as city cleans up TMPD

TimesLIVE reports that two Tshwane metro police department (TMPD) officers were arrested by their counterparts over the weekend in Diepsloot, Johannesburg, for operating outside their assigned area using a private vehicle. The City of Tshwane said the two officers had no permission to operate outside their jurisdiction. “Considering the recent spate of allegations against some TMPD members, the actions by the two officers were indeed questionable and very odd,” said Tshwane mayor Cilliers Brink. He went on to report that the TMPD integrity unit was also investigating seven officers for using illegal breathalysers in two separate incidents over the long weekend. “In the first incident, five officers were also found to be operating outside their assigned area, where a member of the public was later found to have allegedly been extorted and robbed, likely by this same group,” Brink indicated. A criminal investigation has since been launched. In the second incident, two TMPD members were found using an unofficial breathalyser on a member of the public on the N1 South near Lynnwood Road. That matter is also being investigated. The cleanup of the TMPD follows a directive issued last week by acting police chief Basil Nkhwashu.

Read the full original of the report in the above regard by Shonisani Tshikalange at SowetanLive. Lees ook, Korrupsie by Tshwane-metropolisie sal nie geduld word nie, by Maroela Media

ALLEGED CORRUPTION / FRAUD

Four justice department staffers in hot water over millions stolen from Guardian’s Fund

The Citizen reports that four Department of Justice and Correctional Services employees face suspensions after millions of rand were stolen from the Guardian’s Fund. According to a news report, around R18 million was stolen through a cyber-attack two months ago. Insiders say an investigation identified the alleged thieves who syphoned money from the fund. “A probe was launched after the hacking incident was found a few weeks ago.   Investigators discovered fraudulent transactions. Their (the officials’) suspension is looming,” said a source. The Guardian’s Fund administers monies for beneficiaries who cannot manage their finances such as minors, unborn heirs, and missing or absent persons. The Master of the High Court manages the fund at six master’s offices in Cape Town, Pretoria, Bloemfontein, Kimberley, Pietermaritzburg and Grahamstown. The money in the Guardian’s Fund is invested in the Public Investment Corporation (PIC) and is audited annually. It was reported last week that payments were stopped following the theft in April, leaving beneficiaries stranded. Justice Minister Ronald Lamola’s spokesperson Chrispin Phiri confirmed that an investigation pointed to four employees.   “The department wasn’t hacked; it was fraud. A case was opened, and the police investigation continues,” he said.

Read the full original of the report in the above regard by Getrude Makhafola at The Citizen

Ex-Lepelle Northern Water official has R10.2m pension frozen by Special Tribunal

SowetanLive reports that the Special Tribunal has granted the Special Investigating Unit (SIU) a preservation order to freeze R10.2m in pension benefits of a former Lepelle Northern Water (LNW) official linked to the Giyani Water Project. The pension of former general manager of operations at LNW, Carel Schmahl, will be frozen pending finalisation of a civil action brought by the SIU.   Schmahl, who was fired in December last year, is accused of tampering with the resolutions of a task team meeting.   He is alleged to have used cost estimates of another company to motivate for the appointment of LTE Consulting for a project to provide clean water to villages in Giyani, Limpopo, as an intervention by the department of water and sanitation. The project started in 2014 and was intended to supply water to 55 villages. According to the SIU, LTE Consulting was appointed to build wastewater and water infrastructure to supply the villages with clean water to the value of R90.9m.   But the contract ballooned to R2.2bn in 30 days without following supply chain processes governing public procurement. SIU investigations have revealed that Schmahl's conduct was inconsistent with the National Treasury practice note on supply chain management in that he did not perform his duties with integrity and was not fair and impartial.   "The [Special Tribunal] order interdicted and restrained Bidvest Umbrella Pension Fund, Bidvest Wealth & Employee Benefits, and Alexander Forbes Financial Services T/A Alexander Forbes Retirement Fund from paying out pension benefits due to Schmahl," the unit's spokesperson Kaizer Kganyago advised.

Read the full original of the report in the above regard by Jeanette Chabalala at SowetanLive