In our roundup of weekend and recent reports,
see summaries of our selection of recent
South African labour-related articles.
Provisional list contains 13 SOEs for inclusion in proposed new holding company BL Premium reports that a provisional list of 13 state-owned companies has been identified by the department of planning, monitoring & evaluation for inclusion under a centralised, state-owned enterprise (SOE) holding company. The company, to be called the State Asset Management Society Ltd (Samsoc), will be wholly owned by the state. The SOEs concerned include the Air Traffic and Navigation Services Company, Airports Company, Broadband Infraco, Central Energy Fund, Denel, Eskom, Sentech, SAA, SA Forestry Company, Sanral, SA Nuclear Energy Corporation and Transnet. Surprisingly, the list includes the SA Post Office, which is in business rescue. This was not an exhaustive list and may be expanded, deputy director-general for state-owned companies, governance assurance and performance Melanchton Makobe told MPs during a presentation on the National State Enterprises Bill on Friday. SOEs not included under the holding company will fall under the different line ministries while they are being prepared for inclusion. Due diligence by Samsoc will be undertaken to see if SOEs are fit for inclusion. The bill provides for the establishment of Samsoc, the role of which will be to ensure that the underlying SOE subsidiaries are profitable, sustainable and operationally efficient. Samsoc will also pursue developmental objectives. The president will be the shareholder representative of Samsoc but the shareholder powers can be transferred to a cabinet minister. An independent panel chaired by a retired judge and including representatives of business and organised labour will oversee the selection of board members of Samsoc. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only) State-owned companies to be freed from Public Finance Management Act and will be run like commercial enterprises Fin24 reports that state-owned enterprises (SOEs) housed within the proposed state-owned holding company will not be regulated by the Public Finance Management Act (PFMA). The proposal is expected to be a game-changer for state-owned companies (SOCs), which have been encumbered with onerous procurement policies unsuited to a commercial company. In the present arrangement, SOCs are governed by both the PFMA and the Companies Act. Melanchton Makobe, deputy director-general in the Department of Policy, Planning and Evaluation in the Presidency, briefed MPs on Friday on the National State Enterprises Bill. The State Asset Management SOC (Samsoc) is envisaged to house SOCs with a commercial mandate. It is hoped that the structure will facilitate company competition. The introduction of private participation in the network industries, which is a key goal of President Cyril Ramaphosa's economic reforms, will introduce competition into areas that previously were state monopolies. Makobe said that the centralised shareholder model would establish governance arrangements that would separate the state's ownership function from its policymaking and regulatory functions. Most SOCs were previously overseen by the Department of Public Enterprises, with the minister as the shareholder representative. In the new administration, SOCs have been migrated to their policy departments after much dissatisfaction over their performance while under DPE. Once the Samsoc is up and running and due diligence is completed, the SOCs will be shifted to the holding company. The model is borrowed from Singapore, China and Malaysia, where similar arrangements exist. Read the full original of the report in the above regard by Carol Paton at Fin24 (trial registration required) Unions hail court decision to halt Transnet's plan to grant R11bn tender to operate Durban container terminal to Philippines firm Business Times reports that two of the biggest unions representing workers at Transnet have welcomed a court ruling putting the brakes on the parastatal’s plans to outsource the management and operations of SA’s largest container terminal to Philippines-based International Container Terminal Services Inc. (ICTSI). The Durban High Court last week granted losing bidder AP Moller Terminals (APMT) an urgent interdict preventing Transnet from naming ICTSI as the winning bidder for a 25-year concession to run Durban Container Terminal Pier 2 (DCT2) pending the outcome of a review application. The United National Transport Union (UNTU) said the court ruling meant that its fight against private sector participation at DCT2 was correct in that the union had raised serious concerns about the tender process from the outset. The union is now demanding that transport minister Barbara Creecy conduct a forensic investigation into all private sector participation deals concluded by Transnet. The SA Transport and Allied Workers’ Union (Satawu) commented: "There was no transparency at all as to how the entity came to the decision to go into partnership with this particular company that is not even a South African company. From there we knew there were loopholes and corruption. Until today we do not know the processes that were followed. This is an embarrassment for the government, and it shows that our concerns were and still are valid." Responding to the ruling, Transnet said it respected judicial processes and was evaluating its options. The partial privatisation of DCT2, which handles 46% of all container traffic, is a key economic reform for President Cyril Ramaphosa's administration and marks the first step in the government’s vision to break Transnet's monopoly over ports and rail, where underperformance has been choking the economy. Read the full original of the report in the above regard by Dineo Faku at Business Times (subscriber access only) Other internet posting(s) in this news category
Sophiatown policeman kills himself inside police station, blames ‘bullying by bosses’ in suicide note TimesLIVE reports that a 23-year-old police constable killed himself inside the Sophiatown police station in Johannesburg on Thursday. Rivar Swartz allegedly shot himself with a service firearm and apparently left a letter saying he committed suicide after experiencing “bullying” from his superiors. Gauteng police spokesperson Lt-Col Mavela Masondo said an inquest docket had been opened into the officer's death. “The 23-year-old police officer was rushed to the nearest medical care centre where he was certified dead on arrival. I cannot confirm or deny whether there was a note left by the deceased, but that will form part of the investigation,” he indicated. Swartz apparently named the officers he accused of bullying him in the letter. Read the original of the short report in the above regard by Sinesipho Schrieber at TimesLIVE. Read too, ‘Bully’ teachers still at school pending investigation after grade 12 pupil took his own life, at TimesLIVE Standard Bank employee falls to her death from sixth floor at bank’s Rosebank office in Joburg The Citizen reports that a Standard Bank employee fell to her death from the sixth floor of the company’s Johannesburg head office on Baker Street in Rosebank, last Monday afternoon. According to reports, the employee had allegedly complained about her mental health status a couple of weeks before the tragic incident. Standard Bank confirmed the tragedy in a statement, expressing deep sadness, as well as extending heartfelt condolences to the family and colleagues. The Gauteng police are reportedly investigating an inquest docket, with Standard Bank’s participation. While the deceased’ identity remains concealed, the bank said it was “committed to supporting those affected”. This tragic incident happened in the same week as World Mental Health Day, which was observed globally on 10 October. The day aimed to raise awareness about mental health issues, reduce stigma, and promote support for those struggling. The incident served as a poignant reminder of the importance of prioritising mental wellbeing, particularly in the workplace. The World Health Organisation (WHO) recommended that action to address mental health at work should involve the meaningful participation of workers, their representatives and those with lived experience of mental health conditions. Read the full original of the report in the above regard by Enkosi Selane at The Citizen Confusion and anger over Parliament ordering staff to undergo health tests, with Nehawu telling its members not to consent The Citizen reports that an eminent labour lawyer and the National Education, Health & Allied Workers’ Union (Nehawu) have criticised Parliament for telling its staff they have to undergo a series of medical examinations. The tests include urine analysis, gastrointestinal tract inspections and lung-function checks. Staff have also been told to provide a list of all the medication they use and submit a doctor’s report if they have a medical condition or disability. Speaking to the Sunday Times, labour law expert Prof Halton Cheadle said the tests for parliamentary staff were unnecessary because such tests were only needed for employees who worked in dangerous conditions, such as mines and factories. Nehawu also voiced its concern about the tests, calling them “intrusive and unnecessary”. Nehawu’s Sthembiso Tembe asked why the tests weren’t done when Parliament’s staff were employed. “I might have been employed with such a disease and it has never affected my performance, (now) all of a sudden you will be told that you are not medically fit,” he told the publication. The union has told its members not to consent to the health tests. Parliament’s spokesperson Moloto Mothapo, however, said the union was consulted about the tests. He also claimed the tests were needed for staff, particularly those “identified as high risk or exposed to potential hazards”. Parliament’s memo said the health tests were important for its staff that worked in certain departments, such as catering, printing, protection services, artworks and restoration, audiovisual and broadcasting, ICT, transport, the interpreting unit, and the National Assembly desk that advises presiding officers. Mothapo stressed that the tests were meant to help staff, not punish them. Read the full original of the report in the above regard by Gareth Cotterell at The Citizen. Read too, Parliament orders shock health tests for staff, at Sunday Times (subscriber access only) Other internet posting(s) in this news category
Cast and crew of Queendom down tools over non-payment City Press reports that daily drama Queendom won’t be catching a break when it comes to its financial woes. The show returned to screens on 23 September after filming had been paused for a month following the nonpayment of the cast and crew for two months. Filming resumed on 26 August, only for tools to be downed again on 2 October – for the same reason. Speaking last week, a crew member said the cast and crew were not happy with Clive Morris Productions (CMP) because payment promises were made, but not fulfilled. The member said the crew’s WhatsApp group chat was ablaze because of people’s unhappiness. The source said: “We are not going to work, we are still not paid, but they said they would pay us tomorrow (Friday). If we get paid, we will resume work on Monday if the actors are available. This is the second week of not going to work. It’s not looking good. People are not happy in the group because they said funds would be released, but there’s still nothing.” A person close to the situation said the production had “fooled” people by paying them to resume work, only to not pay them once they were back. The show premiered in April and boasts award-winning stars. A crew member said they could only hope that people would not leave forever after this, because some crew members had not come back in August following the first halt. The founder of CMP, Clive Morris, sent a message to the crew saying funds were not released by the funder because the show had not met the required milestones. Speaking to City Press on Friday, Morris claimed people were being paid as he was speaking to the publication, and everyone would be back at work on Monday. Read the full original of the report in the above regard by Nompumelelo Magagula at City Press (subscriber access only)
Safety-slack mines face tougher fines for deaths and injuries Business Times reports that the Department of Mineral & Petroleum Resources is proposing hefty penalties – including fines of up to 10% of annual turnover – for mines that are found to be negligent when workers die or are injured on duty. The Mine Health and Safety Amendment Bill, which seeks to amend the Mine Health and Safety Act (MHSA) of 1996, sets down harsher penalties for negligent practices in mines that result in the death and injury of workers. There has been a 12% regression in mine safety performance in the country, with 55 fatalities recorded in 2023, up from 49 in 2022. At an Impala Platinum (Implats) mine in Rustenburg in November 2023, a conveyancing belt snapped, sending an elevator carrying underground miners 200m down, killing 13 and injuring 73 others. Section 92 of the MHSA imposes a maximum fine of R3m on mines found to be liable for the death or injury of employees under unsafe working conditions. But the amendment bill provides that an employer who is convicted of an offence related to section 86A of the Act, which imposes criminal liability on owners or managers of mines for dangerous working environments that may lead to injury or death, may be sentenced to a fine not exceeding 10% of annual turnover, imprisonment on criminal conviction, or both. Last week, some of the survivors of the Implats accident at 11 shaft said they were living with trauma and wanted Implats to compensate them for their injuries as some may never be able to work again. Most employees have successfully returned to work after receiving medical and psychological care. “Some elected to return to their original jobs and some have been placed in different jobs. While the physical scars have mostly healed, Implats is still providing medical and psychological support to all of them. A few remain under medical treatment and functional rehabilitation. Read the full original of the report in the above regard by Dineo Faku at Business Times (subscriber access only) Other general posting(s) relating to mining
Lekau Sehoana’s lavish lifestyle and fancy cars sunk Drip Footwear City Press reports that the demise of popular local sneaker brand Drip Footwear can be attributed to its founder, Lekau Sehoana (36), using the profits of the business to fund his lavish lifestyle and sports vehicles. Last week, the brand was placed under liquidation and its doors were closed nationwide, following a ruling by the Johannesburg High Court awarding a sequestration order to advertising agency Wideopen Platform for unpaid services worth R20 million. Other creditors, including vehicle financier BMW, apparently brought similar court actions. Sehoana allegedly failed to pay monthly instalments for a luxury X5 and subsequently owes more than R6.3 million. This was among several blows he has suffered, including his children’s clothing shop, Kiddies Republic in Polokwane, closing down in June last year after almost a year in operation. Added to his financial woes is a bitter divorce dispute with his estranged wife Lebohang, who is the cofounder of Drip and who is demanding a 50% stake of all his assets. According to a former staffer, who worked with Sehoana in the business finance department, his failure to pay the company’s debts and its subsequent liquidation could be a deliberate attempt on his part to ensure that Lebohang did not receive 50% of the business in their divorce settlement. The former staffer alleged that Sehoana had been working on ways to hide certain assets from his estranged wife. “Some of the money from the business has been hidden in international accounts. He planned the liquidation of the current business so that he can recover [financially] and form a new one,” claimed the informant. Read the full original of the report in the above regard by Mduduzi Nonyane at City Press (subscriber access only) Other internet posting(s) in this news category
Some 1.1m applicants draw R21.4bn in two-pot feast BL Premium reports that the SA Revenue Service (SARS) has so far approved 1.1-million applications for tax directives for withdrawals under the two-pot system of retirement which took effect on 1 September. SARS also announced in a statement on Friday that a total gross lump sum of R21.4bn had been paid out to date, but did not disclose the tax revenue generated on this payout. Estimates of total withdrawals for this year range from R20bn-R100bn, which is expected to give a boost to economic growth as well as tax revenue. Of the total number of 1,213,646 applications received so far 1,148,729 tax directives were approved by SARS for funds to be released. The remainder were declined for a variety of reasons, including incorrect identity numbers and incorrect tax numbers. Tax on a withdrawal is imposed at a marginal tax rate of 18%-45%, depending on the salary scale of each recipient but SARS said despite this public information, there were taxpayers who were “wilfully understating their incomes”. A successful tax directive from SARS informs the retirement fund management how much tax to deduct from a withdrawal. Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before a payout is made to the member. If a person has a debt arrangement with SARS, the withdrawal will not be affected. Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
Inquiry to probe allegations against Mpumalanga police commissioner halted by Pretoria High Court TimesLIVE reports that the Pretoria High Court has interdicted the Minister of Police from conducting a board of inquiry into allegations of misconduct levelled against Mpumalanga police commissioner Lt-Gen Daphney Manamela. The board of inquiry was set to begin on Monday. The interdict will be in force pending the determination of an appeal process by Manamela before the Supreme Court of Appeal. The court on Friday also ordered that Manamela's suspension on 14 June be lifted pending the hearing and determination of a review of the decision of the minister to bring additional charges against her. The minister suspended Manamela on 14 June and the notice of set-down of the board of inquiry was served on Manamela on 6 September. In arguments before Judge Nomonde Mngqibisa-Thusi, the minister submitted that Manamela's application was not urgent in that she could still be afforded substantial redress in due course. But, Mngqibisa-Thusi ruled that the application was urgent in light of the fact that a board of inquiry was scheduled to sit on 14 October. Read the full original of the report in the above regard by Ernest Mabuza at TimesLIVE
Mabuyane places head of Eastern Cape government department on leave amid sexual harassment allegations News24 reports that the head of an Eastern Cape government department, who is accused of sexual harassment, has been placed on leave pending investigation. Premier Oscar Mabuyane announced on Friday that he had placed the HOD on leave while a panel he had appointed probed the allegations. The government official is accused of making sexual advances on a former female colleague. The woman had been employed in an administrative support function at the department from 1 July 2019 until 30 May 2021. She claims she was forced to resign due to the sexual harassment she faced allegedly at the hands of her boss. Mabuyane said he had taken note of the seriousness of the allegations, as well as the position held by the official, and had considered options available to him in line with the applicable public service prescripts. "I am convinced that placing him on leave will best serve the provincial government," he indicated. "Additionally, I have appointed prominent persons to constitute an investigating panel that will take a deep dive into these matters,” he advised. Read the full original of the report in the above regard by Noxolo Sibiya at News24 (trial registration required) Other internet posting(s) in this news category
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