Governance & Politics - 19 February 2024

19 Feb 2024

GOVERNANCE & POLITICS

• State Owned Enterprises. A report released by the Treasury on Wednesday shows that state-owned companies in South Africa are racking up significant financial losses, casting a shadow over the nation's long-term fiscal sustainability. Eskom, Land Bank, South African Airways, Transnet, and Denel have all reported substantial deficits, despite receiving massive bailouts from the government. Eskom's projected loss has now ballooned to R7.5 billion, while Transnet faces the challenge of repaying R14 billion in maturing debt over the next three months. SAA and its subsidiary, SAA Technical, have reported losses of R771 million and R51 million, respectively. The South African Post Office and Denel are also in dire straits, with both companies facing substantial losses. (Source)

• Crime Statistics. Police Minister Bheki Cele said, during the release of the third quarter crime statistics on Friday, that between October and December last year, 7 710 people were murdered – an increase of 155 from the same period in the previous year. During the briefing, Cele said that there had been an overall decline in sexual offences crimes. (Source)

• The International Court of Justice rejected a South African request to impose urgent measures to safeguard Rafah in the Gaza Strip. Despite the rejection, they stressed that Israel must respect earlier measures imposed late last month at a preliminary stage in a landmark genocide case. The ICJ said in a statement that the "perilous situation" in Rafah and the rest of the Gaza Strip "demands immediate and effective implementation" of the provisional measures indicted by its court order on Jan. 26, but does not demand the "indication of additional provisional measures." (Source)

• Poultry industry inquiry. The Competition Commission has announced that it will embark on a market inquiry targeting the poultry industry value chain. Three of the country’s major poultry producers – Astral Foods, Quantum and RCL – reported losses for the year, caused by the outbreaks of bird flu and the costs associated with culling, plus rolling blackouts. The commission’s chief economist, James Hodge, said that its market inquiry was aimed at improving the competitiveness of the industry to the benefit of consumers and smaller participants – particularly previously disadvantaged producers. (Source) 

• DA lays criminal charges against deputy president. The DA laid criminal complaints against deputy president Paul Mashatile at Cape Town’s central police station. The DA leader John Steenhuisen opened a case against Mashatile for alleged corruption and wrongdoing and for failure to disclose registrable interests or for wilfully or negligently providing the registrar with incorrect or misleading details. Mashatile also faces allegations of having misled parliament by failing to declare his use of various properties. (Source)

• MK party could upset ANC in KZN. A survey by public policy think-tank Social Research Foundation, which interviewed 820 people in KwaZulu-Natal between 31 January and 7 February, shows the uMkhonto weSizwe party could attract half of the ANC’s support in one of its biggest provinces. According to the poll, in the case of a 66% turnout, the MK party could win 24% of votes in KwaZulu-Natal, while the ANC is projected to garner 25%, the DA 15%, the IFP 24%, the EFF 5% and others 6%. The study has a 5% margin of error. (Source)

• Gauteng jobs scam. The Gauteng High Court has ordered Gauteng consultancy Amahlo to pay back R52 million  after it walked away with millions of rand in profit after promising the provincial government it would create 75 000 internships for unemployed youths in the province over three years, but ended up creating just 142 such opportunities. The contract, awarded without a tender process, was part of the Gauteng government’s Vuthela project, meant to create employment and entrepreneurship opportunities for unemployed youth. (Source)

• ANC must provide cadre deployment records. The Constitutional Court dismissed with costs the ANC’s application to appeal an earlier High Court ruling that it must release records of cadre deployment committee meetings to the DA, and a subsequent Supreme Court of Appeal denial of appeal. Initially, DA MP Leon Schreiber asked the courts to compel the ANC to make public all records relating to the party’s records of appointing loyalists to key public sector posts, and his litigation succeeded in effecting the release 58 pages of committee meetings between 2018 and 2020. The Constitutional Court ruling on Monday now means that the ANC has exhausted its legal avenues and must provide the records by the end of this week. (Source)

• EFF eyes sovereign wealth fund. EFF leader Julius Malema says his party wants to set up a R100 billion sovereign wealth fund within the next year as a means of creating jobs and combating illicit financial flows, tax avoidance and base erosion. The fund would be established in partnership with ‘foreign direct investors’, through a special appropriations bill in the 2025/26 budget, according to the party’s election manifesto. The fund will mainly be capitalised through the allocation of key shares of South Africa’s mineral and petroleum resources. (Source)