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Today — May 14th 2021Your RSS feeds

Magashule serves papers on ANC on step-aside rule

May 14th 2021 at 00:21

Suspended ANC secretary-general Ace Magashule has served papers on the ANC, arguing the rule forcing him to step aside from his position is unconstitutional.

News24 has reliably learnt the papers were served on Thursday and are set to be lodged in court on Friday on a semi-urgent basis, and that advocate Dali Mpofu is acting on his behalf.

In the papers, Magashule argued the party’s Rule 25.70 in its constitution, that those who have been charged with serious crimes in a court of law should step aside, undermined the constitutional principle of innocent until proven guilty.

ALSO READ: Hmmm … Ace Magashule’s little chess picture made the game all too clear

Rule 25.70 reads, “Where a public representative, office bearer or member has been indicted to appear in a court of law on any charge, the secretary-general or provincial secretary, acting on the authority of the NEC, the NWC, the PEC or the PWC, if satisfied that the temporary suspension of such public representative, office-bearer or member would be in the best interest of the organisation, may suspend such public representative, elected office bearer or member and impose terms and conditions to regulate their participation and conduct during the suspension.”

It is believed that Magashule, in his court papers, argued the rule was specifically added to target him.

He also argued President Cyril Ramaphosa’s letter last August, in which he drew a line in the sand on corruption in the ANC, was written to target him because Ramaphosa allegedly knew the National Prosecuting Authority would charge him in November with fraud and corruption.

WATCH: Ace Magashule is in a fighting mood

Integrity Magashule was ordered at the end of March to step aside by the party’s national executive committee (NEC) after the integrity commission in December recommended this, but when he failed to do so within the 30-day-deadline he was given, he was suspended. Sources close to Magashule told News24 late on Thursday he was expected to apologise for the “letter of suspension” he wrote to Ramaphosa,

but there would be conditions attached. One of Magashule’s allies, Carl Niehaus, who is also the spokesperson for the Umkhonto weSizwe Military Veterans Association, told TimesLive a number of NEC members were set to join Magashule in his court action.

The case is expected to be heard before the end of the month with a judgment expected in early June.

ANC divided on e-tolls ahead of local elections

May 13th 2021 at 23:00

The Cabinet is under pressure from within the ANC to scrap the Gauteng e-tolls in light of the upcoming local elections – and the precarious financial position of the party.

Some senior members of the governing party are pushing for the user-pay system to be scrapped as a way to entice voters. But National Treasury and some government officials fear the negative impact of such a move on future mega projects and the accompanying investments.

An ANC leader speaking on condition of anonymity said there was no better decision than to cancel e-tolls.

“We have no money to campaign as the party, we have to do something for our people. These e-tolls are burdening our people who vote for us,” he said.

ALSO READ: ‘Look ahead for it’, says Mbalula about e-tolls

The ANC is facing bankruptcy after funders withdrew when the Political Party’s Funding Act became effective on 1 April. The Act requires party donors to reveal themselves publicly.

The ANC’s acting secretary-general, Jessie Duarte, this week said funders did not see funding the party as being good for business.

Some suggested there should be a fresh start by cancelling the historic debt owed by motorists and ensuring strict payment enforcement thereafter.

Transport Minister Fikile Mbalula gave an indication that some good news was on the way for Gauteng motorists after promising that a big decision was expected.

Mbalula, who was expected to announced a government decision at the end of March, has once more extended the pronouncement by a fortnight.

This forced the National Council of Provinces (NCOP) to cancel its debate scheduled for yesterday on the matter to await the executive decision – which some hope is to stop the project on its tracks.

Mbalula promised to revert to the NCOP after his engagement with the National Treasury.

“We expect that in the next two weeks it should be back to Cabinet,” he said.

“Before we take on our budget vote speech we should have come to you (NCOP) and the public to announce the Cabinet decision on the e-tolls.”

The national government long ago received a report about the future of the e-tolls from a task team comprising Mbalula, Finance Minister Tito Mboweni and Gauteng premier David Makhura.

The decision on e-tolls had been awaited since 2019 after the team submitted its report. A senior Gauteng government official, who asked to remain anonymous, said while the province campaigns for the scrapping of e-tolls, it did not wish to completely do away with the user-pay system.

“We cannot build anything in future if we messed up on this one. We need to say to the national government, ‘can you relieve the burden from the poor and let the wealthy and corporates pay’.”

The payment of e-tolls was boycotted by the majority of motorists resulting in losses running into billions of rands since its implementation in December 2013.

Gauteng government spokesman Thabo Masebe declined to comment, saying the matter was in the hands of the national government.

“Remember, they have to decide and tell us, we will wait to hear from them. We made our stand loud and clear on this issue,” he said.

ericn@citizen.co.za

Municipal Billing Woes Latest: KZN municipality in shambles

May 13th 2021 at 17:30

The Democratic Alliance (DA) has written to KwaZulu-Natal (KZN) CoGTA MEC, Sipho Hlomuka to request that his Department intervene in the uMgungundlovu District municipal billing woes, with an urgent emphasis on the fair treatment of those who are paying their bills.

The move comes after an oversight inspection by the DA to the Richmond Municipality last week, during which residents and civic bodies were consulted about the challenges facing their respective communities.

DA KZN Spokesperson on CoGTA, Chris Pappas, said the visit had formed part of an ongoing probe into the real state of local government in the province and followed the recent finding that municipal billing in is in a dismal state, with many municipalities regularly providing inaccurate bills or failing to provide good customer services to residents.

“Amongst the myriad of problems found within the Richmond Municipality was the issue of water bills from the uMgungundlovu District Municipality, with many residents and civic bodies describing endless problems with the billing system,” Pappas said.

“Incorrect bills, untrained meter readers, infrequent reading of meters, over-estimations in terms of consumption and the non-delivery of bills were just some of the problems highlighted by Richmond residents. This trend is confirmed by the DA’s province-wide survey,” he said.

In addition to the billing issues, the District Municipality had closed its local customer service centre. This means that residents with issues must either call the call centre, which is a problem in itself, or travel an hour to Pietermaritzburg to get help.

“The uMgungundlovu District has been plagued by challenges for a number of years. The billing issue is just another layer added to an already struggling district and yet another challenge for already frustrated residents,” Pappas said.

“The DA is concerned that there is neither the technical expertise or the political will to get the basics right within this district. This as years of hollowing out of skilled officials and the deployment of cadres has left the district – and many of the local councils within the district – with a severe lack of capacity,” he said.

He said the party was also concerned that the ANC was determined to implement the District Development Model (DDM) which will see greater power shifted to regional bodies with power being taken away from communities.

Champions League final: Manchester City v Chelsea clash moved to Portugal

May 13th 2021 at 10:57
By: AFP

UEFA announced on Thursday that the Champions League final between Manchester City and Chelsea has been moved from Istanbul to Porto.

WATCH | BERNARD PARKER LOSES HIS TEMPER WITH TEAM-MATE SAMIR NURKOVIC

The match on May 29 has been switched to the Estadio do Dragao to allow English spectators to attend. The UK government placed Turkey on a coronavirus travel red list last week.

Earlier, European football’s governing body announced up to 6 000 supporters from each club will be able to attend.

GALLERY | SAMIR NURKOVIC IS IN LOVE! SHARES PICTURE OF MODEL BAE

“We accept that the decision of the British Government to place Turkey on the red list for travel was taken in good faith and in the best interests of protecting its citizens from the spread of the virus but it also presented us with a major challenge in staging a final featuring two English teams,” UEFA president Aleksander Ceferin said in a statement.

“After the year that fans have endured, it is not right that they don’t have the chance to watch their teams in the biggest game of the season.”

WATCH | KAIZER CHIEFS V SWALLOWS: FREE DSTV PREMIERSHIP HIGHLIGHTS – 12 MAY 2021

UK citizens returning from red list countries are required to quarantine at a government-approved hotel for 10 days.

Earlier this week, newspaper reports claimed the match would be played at Wembley Stadium.

Chelsea and Manchester City supporters groups had requested the game be moved to England.

UK transport secretary Grant Shapps said he would have welcomed the fixture being played in London.

WATCH | SAMIR NURKOVIC WINS GOAL OF THE MONTH AWARD

“The difficulties of moving the final are great and the FA and the authorities made every effort to try to stage the match in England and I would like to thank them for their work in trying to make it happen,” Ceferin said.

UEFA said coronavirus rules in the UK made it difficult to hold the fixture in the English capital.

“UEFA discussed moving the match to England but, despite exhaustive efforts on the part of the Football Association and the authorities, it was not possible to achieve the necessary exemptions from UK quarantine arrangements,” it said.

Manchester City coach Pep Guardiola said he would have preferred Turkey as the venue for midfielder Ilkay Gundogan, whose grandfather comes from Balikesir, south of Istanbul.

“I have had the pleasure to go to Istanbul but since my period as a football player in Barcelona, I never had the opportunity to go there again, not even in the Champions League,” he said at a press conference.

“For Ilkay Gundogan I wanted to go there. Unfortunately, UEFA decided to go to Portugal, but there’s no problem there.”

The final capacity for the match is still to be decided.

Last season’s Champions League matches from the quarter-finals onwards were also held in Portugal, but in Lisbon.

“Once again we have turned to our friends in Portugal to help both UEFA and the Champions League and I am, as always, very grateful to the FPF (Portuguese Football Association) and the Portuguese government for agreeing to stage the match at such short notice,” Ceferin said.

The last round of matches in the country’s top-flight Primeira Liga will see spectators return to stadia on May 19, with a limited number of people permitted, the league said on Wednesday.

Yesterday — May 13th 2021Your RSS feeds

WATCH: Ace Magashule is in a fighting mood

May 13th 2021 at 10:06

In a video circulating on Thursday afternoon, suspended ANC secretary-general Ace Magashule can be seen in a boxing gym punching a bag.

WATCH: Principal thrown out of school, Lesufi threatens ‘drastic steps’

While this may not mean much to anyone out context, it could well be interpreted as a message of defiance from Magashule, who was given a 48-hour deadline to apologise to the ANC leadership after he unilaterally decided to un-suspend himself from his party position and suspend ANC president Cyril Ramaphosa last week.

Ramaphosa later said he had not been authorised or mandated to do so. He described Magashule’s suspension of him earlier this week as “completely unacceptable and a flagrant violation of the rules, the norms and the values of the African National Congress”.

The deadline for the apology passed yesterday.

Last week, Magashule also raised eyebrows when he shared a picture of himself playing chess as a clear message that he was strategising against his opponents in the ANC.

ALSO READ: Hmmm … Ace Magashule’s little chess picture made the game all too clear

Many analysts have suggested that Magashule risks expulsion from the ANC if he chooses not to apologise, as he is likely to be taken to a disciplinary hearing for his actions.

Few people expected Magashule to apologise, and the “boxer video”, if it is a recent clip, would suggest that he’s not about to either.

On Facebook, where the video below was shared, some users wondered if Magashule was picturing Ramaphosa as the bag.

It’s understood that Magashule is considering his options, including a possible court challenge of his suspension.

Russian chess legend Garry Kasparov had many in stitches when he pointed out that Magashule’s staged chess picture showed that he was making an illegal move.

It remains to be seen whether any boxers will have any criticism of Magashule’s boxing skills, though his mostly gentle taps on the bag are also unlikely to worry the likes of Floyd Mayweather.

Watch the video below:

Orlando Pirates players’ minds were on Casablanca match – Zinnbauer

May 13th 2021 at 08:46

Orlando Pirates coach Josef Zinnbauer believes his charges were more concerned about their Caf Confederation Cup last eight clash against Raja Casablanca, than to focus on the league clash against Stellenbosch FC.

ALSO READ: Orlando Pirates keeper Sandilands calls for consistency in the last few games

This comes after Bucs drew 0-0 with Stellies in the DStv Premiership at the Danie Craven Stadium last Tuesday.

It wasn’t the best of games, nor performance for the Buccaneers, with the Cape side taking full advantage of the situation, but were unfortunate not to have found the back of the net.

Pirates are preparing to take Casablanca in the quarter-finals of the Caf Confed Cup at the Orlando Stadium over the weekend, their most important so far as they look to register their second trophy of the season after winning the domestic MTN8 Cup earlier this campaign.

“We have a big game on Sunday and maybe the players heads were also on the Sunday game. But that’s not the right way, we are supposed to first play this game and then concentrate on the Sunday game,” said the German born coach.

Ahead of this important fixture for the club, the Bucs coach is hoping to see some of his players who have been injured making their way back into full fitness.

“First we have to see for the next game who is available for us. We have a lot of injured players and we hope they come back and we have more competition.”

Meanwhile, Phakaaathi has already reported that Bucs will at least have their goalkeeper Richard Ofori back into the team after the Ghanaian for injured in March.

Experienced defender and club captain Happy Jele has missed the team’s last couple of games due an injury. Other players who are nursing injuries at the team include Thabang Monare, Tshegofatso Mabasa, Collins Makgaka, Terrence Dzukamanja to mention a few.

With a couple of days to go to the match, the Bucs coach will certainly be crossing his fingers to have a strong squad that will go up against the North Africans.

Casablanca are one of the big clubs in Africa with a rich history in continental football with three Caf Champions League trophies under their belt and one Confederation Cup among their trophies in the continent.

Clash of the Reds at Old Trafford

May 13th 2021 at 04:43

 

Manchester United and Liverpool try for a second time to get onto the field at Old Trafford in what has become a hectic end-of-season schedule for both clubs. More details at www.soccer6.co.za

SOCCER 10 POOL OF THE DAY

Thursday 13 May

S10 V1

M1 Aston Villa vs Everton: Villa won at Goodson Park at the start of the month and now they meet again 12 days later. Everton are chasing a spot in the Europa League with Sunday’s away win at West Ham boosting their chances.

M2 Real Valladolid vs Villarreal: Nine matches without any success has Valladolid in danger of relegation. Villarreal conceded four goals at home at the weekend.

M3 Eibar vs Real Betis: Eibar have won their last two games as they battle to get off the foot of La Liga. Betis are on a run of six successive draws.

M4 Rosenborg vs Viking Stavanger: Rosenborg began the new season in Norway with a draw on the opening weekend of action while Viking got off to a winning start by beating Brann Bergen.

M5 RB Leipzig vs Borussia Dortmund: Dortmund won at Leipzig in the Bundesliga at the weekend and now the club meet again in Berlin in the German Cup final.

M6 Breidablik UBK vs Keflavik IF: Breidablik have won their past seven clashes against Keflavik, including a 6-1 triumph in pre-season cup competition in January.

M7 Manchester United vs Liverpool: This re-arranged match is a second in as many days for Man Utd. Liverpool need the win if they are to qualify for next season’s Champions League.

M8 Crotone vs Hellas Verona: Crotone are already relegated and have conceded seven goals in their past two Serie A outings. Verona have picked up a paltry two points from their past five fixtures.

M9 UMF Stjarnan vs Vikingur Reykjavik: Stjarnan are unbeaten in their past eight clashes against Vikingur.

M10 Granada vs Real Madrid: Granada have lost 14 of their 15 past meetings against Real. Their only success was a home triumph in 2013.

Suggested permutation:

R4.00 3 x 3 x 1 x 1 x 3 x 1 x 2,3 x 3 x 1 x 3

Ex-Man City and Barca star Yaya Toure interested in coaching in South Africa

May 13th 2021 at 04:24

Former Manchester City and FC Barcelona midfielder, Yaya Toure is said to be interested in starting his coaching career in South Africa when he gets his badges.

ALSO READ: AmaZulu could still lose Benni at the end of the season

A source has revealed that South Africa is Toure’s favoured place to begin his career on the touchline because of the competitiveness of the league and how local teams are starting to show their mettle in continental football.

“He is currently doing courses and he knows it will not be easy to crack it in Europe before he has had some experience and he sees South Africa as the ideal country to sharpen his skills and will be open should any team need him,” said the source.

Meanwhile, as reported earlier, AmaZulu FC may have been successful in warding off Safa’s interest in their coach Benni McCarthy but they may still lose him, if what Phakaaathi sources say is anything to go by.

It has been brought into our attention that a European club has been monitoring McCarthy’s progress at Usuthu and are planning to make a move for him next season.

“I don’t know the name of the team but I’ve heard they are very interested and may have already spoken to his manager about it. They will allow him to finish the season at AmaZulu before they make an official move,” said the source.

Climate Change Latest: New council launched in KZN

May 12th 2021 at 14:01

Citizen involvement will be key to the bottom-up approach to fight the climate change emergency Premier Sihle Zikalala said at the inaugural meeting of the newly formed KwaZulu-Natal Council on Climate Change & Sustainable Development in Durban.

Zikalala, addressing council members, government and business leaders on Wednesday at the Durban International Convention Centre (ICC), under the theme “Working Together to Achieve Green and Climate Smart Economic Recovery,” said that the council must serve to unite the province to implement “a programme of action that will help save the earth, heal it, and preserve it for future generations”.

“We are still reeling from the devastating effects of the Covid-19 pandemic. This is pandemic that has devastated lives and livelihoods on an unimaginable scale. It has left many more despondent and without means to eke out a living,” Zikala said.

The sitting of the new council, which comprises government leaders, scientists and business representatives,  is the realisation of resolutions taken during the KwaZulu-Natal Climate Change & Sustainable Development Summit that was held in Durban in August 2019. The summit had emphasised the importance of a synchronised approach across multi-stakeholders to respond to the impact of climate change. 

“We believe that this council should lead social partners and stakeholders in coordinating activities that are geared towards effective and timeous management of climate change impacts and to ensure sustainable development in the province of KwaZulu-Natal,” Zikalala said.

The council met to agree on the terms of reference for its work and to adopt an implementation plan. 

“Our plans and strategies must have resonance with what is happening internationally, nationally, all the way to the local sphere of government,” Zikalala said.

Zikalala said the provinces envisaged economic recovery must be done with the utmost regard for the wellbeing of the environment. 

“We are clear that in what we term the “new normal”, it can no longer be business as usual. We are therefore in full support of the Africa Climate Policy Centre as well as our national government that post Covid-19, we cannot be seen to be reverting to the pre-Covid era whose hallmark is business at all costs and environmental degradation,” Zikalala said.

“We pray that this Council will be seen as a keen climate activist. It should be the voice that supports carbon-neutral industries in the recovery plans of our province, not just the traditional fossil fuel industries. The climate emergency demands that in all that we do, we must produce, trade, and conduct business and our lives in a manner that protects and nourishes the environment,” Zikalala said.

“Our generation has the historic task of building climate resilient communities, reducing the carbon footprint, deploying environmentally friendly green technologies, and ensuring a just transition to a low carbon and sustainable development trajectory. Part of the just transition means that the support of new, green industries must be accompanied by the development of new skills and the re-skilling of the work force.”

Addressing

Zikalala said he had highlighted that the world currently faces two emergencies – The climate emergency and the Covid-19 emergency when he spoke at Climate Week in New York in September 2020 in his capacity as Co-Chair of the Under 2 Coalition,

“While the developed world is the main culprit whose harmful actions have mostly led to global warming, tragically it is the poor nations and the developing world that remain vulnerable to the threat and the crisis of climate change,” he said.

At the height of the pandemic, on 17 December 2020, President Cyril Ramaphosa appointed the Presidential Climate Change Coordinating Commission, a statutory body mandated to coordinate and oversee “the just transition” towards a low-carbon, inclusive, climate change-resilient economy and society. 

“Five months later, as the KwaZulu-Natal government, we are resuscitating this council that was established to enhance climate resilience in the province through a stakeholder dialogue accompanied by sector adaptation and mitigation actions,” he said.

The Council will oversee and provide direction regarding adaptation actions across eight of the province’s most vulnerable sectors.

Before yesterdayYour RSS feeds

400-film backlog: French cinemas prepare to reopen

May 12th 2021 at 13:20

Paris – France’s love affair with cinema threatens to be an overwhelming experience next week, when theatres finally reopen – the scheduling nightmare of a massive backlog of 400 films.

On the outskirts of Paris, cinema owner Stephane Goudet is poring over the long list of options, trying to figure out how to gives as many films as possible their shot at succeed.

“It’s like a giant Tetris!” he told AFP.

Some had just been released and were scoring well when the second lockdown in October stopped them in their tracks.

ALSO READ: Huge cash injection to ‘revive’ local film industry

Among them were French film “DNA”, by award-winning director Maiwenn. And also doing well when the curtains fell was Thomas Vinterberg’s “Another Round”, starring Mads Mikkelsen, which picked up this year’s foreign film Oscar.

No less than 45 films are slated for release when cinemas reopen on May 19 after six months of pandemic-induced closure – two to three times the usual number.

The authorities have encouraged cinemas to play multiple films in each screening room, so Goudet crams in 18 movies across his six screens for the opening week.

Local and international

Audiences at France’s 2000-plus cinemas enjoy both international hits and the products of its own prolific film industry.

There are the Oscar winners to catch up with, including best picture winner “Nomadland” and local success “The Father” from French writer-director Florian Zeller, for which Anthony Hopkins won his second best actor award. It also picked up best adapted screenplay.

Long-delayed Hollywood blockbusters will also soon start taking up space, including superhero slugfests “Black Widow” and “The Suicide Squad”, from the Marvel and DC stables respectively.

And the Cannes Film Festival, pushed back this year to July from its usual slot in May, also will also unleash a barrage of new releases.

ALSO READ: SA’s black romcom revolution

The big cinema chains have abandoned attempts to coordinate a calendar.

But France’s independent theatres and distributors are still determined to find some agreement to keep smaller films from being lost in the deluge.

“What we want to avoid is a situation where 40 to 60 films a week are looking for screens, especially if distributors rush to release films before Cannes takes place,” Etienne Ollagnier, of distributor Jour2Fete and the Syndicate of Independent Distributors (SDI), told Screen Daily last month.

‘Terrific diversity’

Despite the logistical headaches, which also include added health protocols and a 35-percent capacity limit in the first weeks, there’s a festive spirit in the air.

And while many cinemas in the US have gone bust in the past year, that is less of a threat in France, said Elisha Karmitz, co-head of France’s renowned production house and cinema chain MK2.

“We have a different model that isn’t so dependent on blockbusters,” Karmitz told AFP. “It’s that diversity that preserves the French film industry in its entirety.”

And of course, the backlog is also a film buff’s dream.

“We’re going to be able to offer something for every type of cinema-goer, with a terrific diversity,” said Aurelie Delage, who runs the Megarama cinema in Angouleme in southwest France.

Francois Becker

Man Utd’s fixture pile-up a ‘crime’, says Liverpool boss Klopp

May 12th 2021 at 13:07

Liverpool manager Jurgen Klopp said forcing Manchester United to play three Premier League matches in five days was a “crime” ahead of Thursday’s rearranged fixture between the two sides.

United boss Ole Gunnar Solskjaer made 10 changes ahead of his side’s 2-1 home defeat by Leicester on Tuesday, which confirmed Manchester City as champions.

But the result also gave Leicester, now in third, a nine-point advantage over deposed champions Liverpool, who are scrambling to qualify for next season’s Champions League.

Klopp’s side, who have two games in hand over Leicester, are seven points adrift of fourth-placed Chelsea, having played a game fewer.

“I said it 500 times that with all the things that happened, and the protests at Manchester, to play Sunday-Tuesday-Thursday is a crime,” Klopp said on Wednesday.

“It is. But it is not the fault of Ole Gunnar Solskjaer and the players. My question to myself was: ‘Would I have done the same?’ Yes. You have to. You have to.”

Klopp said Premier League bosses had failed in their objective following the postponement of the United-Liverpool clash earlier this month as a result of protests at Old Trafford against US owners the Glazers.

“The explanation from the Premier League was that no other team should suffer because of the things (protests) that happened in Manchester,” he said.

“Let me say it like this — that didn’t work out pretty well. A little bit West Ham (in fifth place), a little bit Liverpool (suffered).

“But if we don’t qualify for the Champions League it is not the fault of Ole Gunnar Solskjaer and his team selection or the Premier League, it is our fault.”

Klopp was fulsome in his praise of Pep Guardiola’s achievement in winning the league title for the third time in four seasons, hailing him as the “best manager in the world”.

It is a ninth European league title as a manager for Guardiola, who won three La Liga crowns with Barcelona and the Bundesliga three times with Bayern Munich.

“A great achievement, congratulations,” said Klopp. “I texted Pep last night and Ilkay (Gundogan, a player Klopp managed at Borussia Dortmund).

“It was a very difficult year for the whole world, for football teams as well, and what they achieved so far this year is exceptional.”

Another growing threat for taxes in South Africa: SARS

May 12th 2021 at 10:46
The South African Revenue Service (SARS) has flagged the country's high youth unemployment rate as a potential future problem for the country's taxes.

Magashule allies reportedly plotting to make country ungovernable

May 12th 2021 at 10:38

On the eve of his deadline to apologise for a letter he wrote suspending ANC president Cyril Ramaphosa, an ANC faction aligned to Ace Magashule is reportedly lobbying support in provinces revolting against the party’s national executive committee (NEC).

Suspended ANC secretary-general Magashule’s foot soldiers and die-hard supporters in Limpopo, KwaZulu-Natal, North West and Free-State have reportedly embarked on an aggressive recruitment drive in ANC branches, regions and party provincial executive committees (PECs) to bring the country to a total standstill if the NEC, the ANC’s highest decision making body between conferences resolved to expel him for a failure to heed its demands.

A senior politician in Limpopo, who spoke on condition of anonymity for fear of reprisal, confirmed that several politicians, speaking the same political language as he, were in the province lobbying support for Magashule.

Magashule was given 48 hours on Tuesday to apologise in public for the letter he wrote suspending Ramaphosa from the ANC. On Monday the ANC NEC questioned the authenticity of the letter, claiming the SG was out of order and that his conduct had the ability to bring the name of the organisation into disrepute.

“The NEC has discussed the so-called suspension letter and agreed in principle that Magashule had no authority or mandate from any structure of the organisation to write such a letter. The NEC has also agreed that such conduct was totally unacceptable and a fragrant violation of the rules, norms and values of the ANC,” Ramaphosa said.

Despite having been ordered to tender a public apology, on Wednesday afternoon the defiant Magashule had not yet done so. Instead, his comrades were working the ground trying to garner support for his defence.

One of Magashule’s supporters said they would not shy away from making the country ungovernable if he is suspended.

“Yes, we believe Magashule is just a victim of the ongoing political squabbles in the ANC. I think the SG is worthy of our sympathy and support. If shown the door, this country will resemble the aftermath of the Boipatong Massacre,” the source said.

Another source, also a leader of the ANC in Limpopo from one of the province’s five regions said: “You know what they say – when days are dark, friends are few. The same is now happening with Magashule. But true comrades like me will always rally behind him even when days are dark.”

ANC Sekhukhune deputy regional chairperson Julia Mathebe, however, sees things differently.

“According to ANC policy, once an elective conference announces its leadership, we forget about factions, bury our hatchets and rally behind the elected collective. In this instance I rally behind Ramaphosa and the entire collective because he is my president,” Mathebe said.

“I want to further warn those who come to divide our province for their own personal and selfish interests that we are watching them like a hawk.”

Independent political analyst Elvis Masoga said Magashule was getting his just desserts, after months of taunting “this elephant” which is the ANC.

“And consequently, the giant elephant is now charging at him with ferocious power and punitive retribution. Magashule’s most fatal error of judgment was to believe that the ANC is totally afraid of him and his sycophantic brigade of loyalists,” Masoga said.

“Given his recent theatrics of public defiance and demagogic belligerence, he is likely to refuse to apologise to the ANC. Resultantly and certainly, the ANC will throw him into the freezing dungeons of political wilderness (expulsion). In the ANC, any display of open rebellion is always met with swift suspension or absolute expulsion.”

news@citizen.co.za

 

A third of South Africa’s middle-class set to be wiped out: lender

May 12th 2021 at 08:19
Financial services company Transaction Capital has published its results for the six months ended 31 March 2021, with the group warning that the Covid-19 pandemic and weaker economy has placed significant strain on middle-class South Africans.

Some municipalities are not charging what they should for water and electricity in South Africa: Mboweni

May 12th 2021 at 05:59
Finance minister Tito Mboweni says that a number of municipalities across South Africa do not have 'cost reflective' tariffs in place, which has negatively impacted the sustainability of municipal services.

Man City fans gather to celebrate title glory

May 12th 2021 at 04:57

Jubilant Manchester City fans gathered outside the Etihad Stadium to celebrate the team’s Premier League title triumph after arch rivals Manchester United were beaten 2-1 by Leicester on Tuesday.

Several hundred City supporters descended on the Etihad to start their title party following the result across Manchester at Old Trafford.

Pep Guardiola’s side wrapped up their third Premier League title in four seasons with three games to spare.

Fans are not allowed into Premier League games at present due to the coronavirus restrictions — a rule which will change next week, in time for around 10,000 City supporters to see the trophy presented at the home game against Everton on May 23.

But in the meantime, the City faithful took to the streets round the Etihad to celebrate, with flares and banners creating a colourful backdrop to the joyous chanting.

“It feels amazing, the greatest feeling is winning the Premier League. Better than any other in football. Love it!” City fan Graham Warner told AFP.

“We may have a few drinks tonight. Definitely. And a few more drinks if we win the Champions League. Or when we win the Champions League!”

Referencing City’s Blue Moon anthem, overjoyed fan Shane Graham said: “Amazing, out of this world. You can say we are in the blue moon!”

City joined the celebrations by unveiling a giant sky blue banner on the outside of the stadium once the final whistle blew in the United game.

It had the slogan: “CHAMPIONS” above a picture of the team celebrating.

Guardiola paid tribute to the City fans for their backing in such a difficult period as the country deals with the Covid-19 fall-out.

“It is so important to say a huge thank you to all our fans. In our toughest moments, we couldn’t hear the crowd get behind us as usual, but we know they are with us everywhere we go and that has lifted us,” he said.

“I promise them we sense their love, we appreciate it and we could not have done what we have done without it. I hope we can all celebrate together one day not too far away.”

City had already won the League Cup in April and can cap a memorable campaign by winning their first Champions League crown later this month.

They face Chelsea in the final on May 29, with the venue set to be switched from Istanbul to either Portugal or England, ensuring at least some City fans will be able to attend.

“Pep Guardiola is the greatest manager in the history of English football. And hopefully we’re going to cap it all in a couple of weeks with the big one,” City supporter Charlie Hibber said.

‘Relentless’: Pep hails City after fifth Premier League in nine years

May 12th 2021 at 04:19

 

Manager Pep Guardiola hailed “relentless” Manchester City after they clinched the “hardest” of his three Premier League titles on Tuesday, sparking wild celebrations among supporters who had gathered outside the Etihad Stadium.

City were handed the title when arch-rivals and nearest challengers Manchester United lost 2-1 at home to Leicester, leaving Guardiola’s side 10 points clear with three games remaining.

“This has been a season and a Premier League title like no other. This was the hardest one,” said Guardiola after City became English champions for the seventh time — five titles coming in the past nine years.

City missed a chance to celebrate on the pitch at the weekend, losing 2-1 at home to Chelsea with United keeping them waiting by winning at Aston Villa.

But two days later they were able to savour a title triumph that is all the sweeter given the obstacles they have overcome in a coronavirus-condensed campaign played mostly without fans.

“We will always remember this season for the way we won. I am so proud to be the manager here and of this group of players,” said Guardiola.

It was City’s second trophy in a little over two weeks after beating Tottenham in the League Cup final.

“They are so special. To come through this season, with all the restrictions and difficulties we’ve faced, and show the consistency we have is remarkable. It is relentless.”

– ‘It feels amazing’ –

With coronavirus restrictions to be eased next week, there will be up to 10,000 fans in the Etihad Stadium to see City lift the trophy after their final home game with Everton on May 23.

In the meantime, hundreds celebrated in the streets outside City’s stadium, letting off blue flares, waving banners and joyously chanting.

“It feels amazing, the greatest feeling is winning the Premier League. Better than any other in football. Love it!” City fan Graham Warner told AFP.

The club joined the celebrations by unveiling a giant sky blue banner on the outside of the stadium with the slogan “CHAMPIONS” above a picture of the team celebrating.

Since being taken over by the Abu Dhabi Group in September 2008, City have become the dominant force in English football, winning five Premier League titles, two FA Cups and six League Cups.

This is the third time City have clinched a Premier League and League Cup double, and they also won a domestic treble in 2018/19 by adding the FA Cup.

They can secure another treble later this month, having reached their first Champions League final by beating Paris Saint-Germain in the semi-final last week.

They will face Chelsea on May 29, with the venue likely to be switched from Istanbul to either Portugal or England so some fans can attend.

“Pep Guardiola is the greatest manager in the history of English football. And hopefully we’re going to cap it all in a couple of weeks with the big one,” City supporter Charlie Hibber said.

– ‘Proud of this team!’ –

Manchester City captain Fernandinho is now targeting being crowned European champions for the first time.

“We will enjoy this moment and we hope the fans do too,” said the Brazilian midfielder.

“Rest assured we will continue to do everything we can to bring the Champions League home this season.”

Fernandinho’s City team-mates took to social media to celebrate their title triumph.

Alongside a picture of him celebrating with team-mate Rodri, Aymeric Laporte wrote on Twitter: “CHAMPIONNNNES CHAMPIONNNNES OLE OLE OLE.”

Kevin De Bruyne posted: “Another One”, while Raheem Sterling tweeted: “What’s that smell?” before following with: “IT’S THE CHAMPIONS BABYYYY.”

Prolific Argentina forward Sergio Aguero, who is leaving at the end of the season after 10 years at the club, wrote: “Champions! Proud of this team! Five #PremierLeague titles with #ManCity.”

Leicester and United has been locked 1-1 at Old Trafford until Caglar Soyuncu’s towering second-half header ensured City could pop the champagne with three games to spare after an uncharacteristically slow start because of the lack of a proper pre-season.

City won just five of their opening 12 Premier League games but Guardiola masterminded such a superb recovery that the title race became a procession, giving him three Premier League crowns to go with three La Liga trophies with Barcelona and three at Bayern Munich in the Bundesliga.

“At the start of every season, the Premier League is the most important title for us. This is the one where you have to be there every three days, playing all your rivals home and away,” Guardiola said.

“Only by being the very best, week in week out, can you win this competition. It is a huge success.”

Ofori boost for Orlando Pirates ahead of Confed Cup tie against Casablanca

May 12th 2021 at 04:10

Josef Zinnbauer’s goalkeeping crisis at Orlando Pirates seems to be over with Richard Ofori set to return to the match-day squad ahead of the team’s Caf Confederation Cup quarter-final clash with Raja Casablanca, according to an insider at the club.

ALSO READ: Orlando Pirates already seeking Zinnbauer replacement

The Buccaneers host the Moroccans at the Orlando Stadium on Sunday.

Ofori has missed Bucs last 12 games in all competitions since he got injured during the team’s goalless draw in their opening match of the group stages of the Caf tournament against ES Setif.

The shot-stopper’s injury was followed by another Bucs keeper Siyabonga Mpontshane, who is also out due to an injury.

The injuries to the goalkeepers left Pirates with only one fit goalkeeper – Wayne Sandilands – and they were forced to go on and promote young keeper Elson Sithole from the reserve team.

But, the youngster couldn’t sit on the bench in the last group game against Enyimba FC with the registration period over and he could only back-up Sandilands in the DStv Premiership games.

“Sure, Ofori is back to full training at the moment. He has been ready for some time now after working very hard to make sure that he gets back to playing. There are two important games coming up in the Caf competition and the coach needs every player to be fit. Unfortunately there is still a few players who are still nursing injuries. You know, that’s been the story of the team this season, one injury after another,” said the source.

“But what’s important now is that at least we have Ofori back. To be honest with you, everyone was worried that we are going to the quarter-finals with only one goalkeeper. Mpontshane is also on his way back, he has been doing some light training and he could also be available for the match. We just have to hear from the medical team this week.”

The return leg of this clash is expected to be played on May 23 in Morocco.

DA wants ECD centres in Emfuleni to be urgently attended to

May 12th 2021 at 03:52

The DA has called for the speedy completion of early childhood development (ECD) centres in the Emfuleni local municipality.

The party said that four ECD centres built in Emfuleni in the past 10 years are yet to be completed and remain non-operational.

“There have been unnecessary delays in completing the following ECD centres in Boipatong, Bophelong, Evaton and Sharpeville,” the DA’s Kingsol Chabalala said.

“This greatly concerns the DA, as children in these areas are denied opportunities to learn and develop at a younger age. ECD centres, particularly in the townships, play a crucial role to serve children from families who are socially, physically and economically segregated.”

ALSO READ: Problems facing ECD centres – report

“I conducted oversight inspection to the Bophelong ECD, the Boipatong ECD and the Sharpeville ECD, where I found that these ECDs are in a terrible state and lack proper regular maintenance. The pavements are full of weeds and big trees needing urgent removal.

“The building structure is deteriorating and the ceiling is starting to fall in. The taps, geysers and electrical cables have been stolen at the Sharpeville ECD, yet there is a security company hired to safeguard the premises,” Chabalala said.

The party said that it would be putting pressure on Gauteng MEC for cooperative governance and traditional affairs Lebogang Maile and Gauteng MEC for social development Morakane Mosupyoe.

Ratings agency sends wage warning to South Africa

May 12th 2021 at 03:36
Fitch Ratings says that government is unlikely to meet its goal of freezing public-sector wages over the next three years.

Champions! 5 key moments that won Manchester City the Premier League

May 12th 2021 at 01:22
By: AFP

Manchester City are Premier League champions for the fifth time in 10 seasons – underlining their status as the dominant side in English football.

READ | HUGO BROOS WANTS BAFANA BAFANA TO PLAY ‘FANCY FOOTBALL’

A third league title of Pep Guardiola’s reign was anything but a foregone conclusion in the early months of a season like no other, played out almost entirely in empty stadiums because of the coronavirus pandemic.

Manchester City stumbled in the early weeks of the campaign but found their groove in mid-December to streak clear of the chasing pack and wrap up the title with three games to spare.

READ | DOES HUGO BROOS’ APPOINTMENT SPELL THE END OF ITUMELENG KHUNE?

Below, a look at FIVE defining moments that swung the title race Manchester City’s way:

Ruben to the rescue

After a 5-2 thrashing by Leicester in their first home league game of the season, it was hard to imagine Manchester City would go on to boast by far the best defensive record in the Premier League.

However, within 48 hours of the Foxes running amok at the Etihad, Ruben Dias arrived for £62 million to end Guardiola’s defensive woes.

The Portugal centre-back not only brought his own mix of physical power and poise on the ball, but brought out the best in a revitalised John Stones as they formed a solid partnership.

In the 10 Premier League games they started together between December and February, City conceded just two inconsequential goals in taking a maximum 30 points to seize control of the title race.

West Brom crisis meeting

“I didn’t like what I saw,” said Guardiola after Manchester City dropped points for the seventh time in their opening 12 Premier League games in a 1-1 draw at home to West Brom.  

“I felt this is not the team I can recognise myself.”

The Catalan went back to the drawing board with his staff, while captain Fernandinho called a crisis meeting among the squad.

“We had to come back to our game, move the ball quicker, do more passes, stay in position, run less with the ball, do it together. We don’t have a specific player to win games, we have to do it together,” Guardiola later added.

A 21-game winning run followed to not only build a huge lead in the title race, but keep City on track for a treble.

Chelsea defeated despite Covid outbreak

Manchester City’s final game of 2020 at Everton was postponed just hours before kick-off due to a coronavirus outbreak among the squad that shut down the club’s training ground.

Less than a week later, Guardiola’s men travelled to Chelsea with just 15 senior players available due to positive cases.

Despite the adversity, City produced to that point their best performance of the season, sweeping the Blues aside with three goals in the first 34 minutes.

Fortress Anfield falls

Victory at Anfield was one of the few Premier League feats that had not been achieved by Manchester City since their Abu Dhabi takeover in 2008.

Liverpool’s title defence was already crumbling – after a 68-game unbeaten at home in the league stretching back nearly four years, Brighton and Burnley both won at Anfield prior to City’s visit.

City did not just end an 18-year wait for a league victory at Liverpool but did so emphatically with a 4-1 win thanks to a combination of sumptuous attacking play and two huge errors from Reds’ goalkeeper Alisson Becker.

Manchester United feel the pressure

Liverpool’s capitulation left Manchester United as the only other contenders to stop Manchester City, but Ole Gunnar Solskjaer’s men felt the pressure as soon as they became title contenders.

A 2-1 win at Fulham on January 20 took the Red Devils top of the table, although City had a game in hand to overturn a two-point deficit.

In United’s next league match, rock-bottom Sheffield United won at Old Trafford, kicking off a run of two wins in eight games that ended any realistic hope Solskjaer’s side had of ending an eight-year wait to win the title.

MUST READ | FOUR THINGS THAT COST BENNI MCCARTHY THE BAFANA BAFANA JOB

Watch: What is the Dakiwe Challenge? New dance craze takes SA by storm

May 11th 2021 at 10:28

Pearl Thusi, Lasizwe, and even Norma Mngoma have given the Dakiwe Challenge a good go this week – sparking an explosion of copycat videos in the process. The new dance craze has taken off big time in South Africa, thanks largely to its celebrity endorsements and an instant approval from TikTok users.

How do you do the Dakiwe Challenge?

We’ve had a few new viral dances to get used to in the past year or so. Who can forget the basic steps to Jerusalema, or the moves for a good John Vuli’ Gate? However, the Dakiwe Challenge comes from a DJ whose star is already on the rise. DBN Gogo, a 29-year-old hitmaker from KwaZulu-Natal, has created a phenomenon with her new groove…

It’s a pretty basic concept, but not everyone gets it right: You’re just meant to stand on the spot, and move your body upwards from your hips in a deliberate circular motion. You get extra points for nodding your head, too. Look, none of you should take advice from us on how to perform cool dance moves – just watch the professionals do it instead, yeah?

Watch: The unofficial Dakiwe Challenge tutorial!

@DBNGOGO O boss Girl 🙌💃💃 pic.twitter.com/nfHB2MbzJ5

— Kgadi Ngoepe (@ngoepe_kgadi) May 8, 2021

DBN Gogo gets South Africans, including Pearl Thusi, moving!

The amapiano-inspired trend was initially picked up by DBN Gogo in Daveyton last year. But in the past week or so, the artist performed the move during a live show – and things ‘blew up from there’.

Part of the Dakiwe Challenge is to make the video as interesting as possible – whether that’s by featuring a famous name, or by doing something creative with your friends. Participants can indeed put their own twists on it, and everyone from Hollywood actresses to politician’s ex-wives are getting in on the act! We’ll leave you with the best of the bunch:

Mood: DBN Gogo with the Dakiwe challenge 🚀. pic.twitter.com/kGOWwq6F0o

— Lugz (@mwanzo_k) May 9, 2021

A challenge! pic.twitter.com/eDimtayLuC

— Sandile Mahlangu (@SandileM_) May 8, 2021

We did the #DakiweChallenge with the audience…best audience ever! pic.twitter.com/G1h7p8vkqm

— Tsitsi Chiumya (@TsitsiChiumya) May 10, 2021

Financial Instruments Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Financial Instruments Explained for Dummies

Financial Instruments Explained

Financial Instruments Explained

What is a financial instrument?

A financial instrument is a contract whose value is measured and expressed in cash as a monetary asset or a monetary liability and that can be either created, traded, settled for, or modified as per the requirements of the parties involved.

A financial instrument can be a virtual or real document, representing a legal contract that holds any kind of monetary value.

Financial instruments are contracts, considered binding between the parties involved, representing an asset to the one party (the buyer) and a liability to the other party (the seller).

IAS 32 of the International Accounting Standards (IAS) describes a financial instrument as follows: ‘A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.’

A financial instrument constitutes a contractual right to buy or sell an asset in the future or a right to a future cash flow.

 

Types of financial instruments

Basically, financial instruments comprise two different types: cash instruments and derivative instruments.

Cash instruments

Cash instruments, also referred to as non-complex financial instruments, have, inter alia, the following features:

  • They can be transferred easily in the financial markets.
  • Their values are directly affected and determined by the markets.
  • They can be traded without broad specialist knowledge.

Typically, cash instruments are categorised into securities and deposits, and loans.

  • Securities

Securities include equity securities and debt securities.

Equity securities refer to shares in companies, representing ownership of a part of a publicly-traded company on a stock exchange.

The investor that buys the shares of an entity acquires a financial asset (an investment), while the entity that issues the shares in order to raise capital, has to account for an equity instrument.

IAS 32 defines an equity instrument as ‘any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.’

Debt securities comprise, inter alia, bonds (government and corporate), and mortgages.

  • Deposits and loans

Deposits and loans are also considered cash instruments, representing monetary assets and liabilities agreed upon by borrowers and lenders.

Some analysts also include certain types of investment funds, such as hedge funds and mutual funds, under cash instruments. Investment funds enable investors to pool their money in a fund that is managed by a fund manager. The fund manager acts on behalf of the investors, buying and selling securities. Each investor maintains control and retains ownership of his or her own shares.

 

Derivative instruments

Derivative instruments, also called derivatives, and considered complex financial instruments, have, inter alia, the following characteristics as financial instruments:

  • Their value is based on the underlying cash instruments (underlying assets), such as shares (stocks), currencies, bonds, interest rates, and stock exchange indices, among others.
  • Successful trading in derivatives requires in-depth knowledge from traders.
  • Their value is affected by the terms of the contract involved in their trading.

IAS 32 refers to derivatives in the following way:

  • Regarding a financial asset and a financial liability:

A derivative is described as any financial asset or financial liability that is ‘a contract that will or may be settled in the entity’s own equity instruments and is:

… a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.’ (Accentuations in the quotation is by the article writer.)

Common examples of derivative instruments are:

  • Futures contract: An agreement that enables the exchange of derivatives at a predetermined price at a specified future date.
  • Forward contract: A customised contract between two parties to purchase or sell customisable derivatives at a predefined price on a specified date at the end of the contract.
  • Options contract: A contract between the buyer and seller in which the buyer is granted the right to buy or sell a specific number of derivatives at a specified price for a specific period of time.
  • Interest rate swap: A type of forwarding derivative contract in which one stream of future interest payments is exchanged for another, based on a defined principal amount. Typically, an interest rate swap includes the exchange of a fixed interest rate for a floating interest rate.

In addition, a swap can also involve the exchange of two floating interest rates, which is referred to as a basis rate swap or base swap. The goal of a basis rate swap is for an entity to limit its interest rate risk, arising from having different borrowing and lending interest rates.

  • Contract for Difference (CFD): A financial derivative contract that enables traders to speculate on short-term price movements, paying the differences in the settlement price between the entry and closing prices.

For instance, if the closing price of the specific trade is higher than the entry price, the seller is obliged to pay the buyer the difference, resulting in a profit for the buyer. On the contrary, if the closing price of the particular asset is lower than its opening price, the seller, instead of the buyer, will benefit from the transaction.

CFDs are used by traders for hedging.

 

Financial instruments categorised into asset classes

Besides the two types of financial instruments described above, financial instruments can also be categorised into two asset classes, namely debt-based financial instruments, and equity-based financial instruments.

Debt-based financial instruments

Debt-based financial instruments are means that an entity can utilise to increase the amount of capital in the business for various reasons, such as expanding business operations.

Short-term debt-based financial instruments are used for periods less than a year. Examples are commercial paper, certificates of deposit (CDs), and short-term interest rate futures.

Long-term debt-based financial instruments last for periods of a year and longer. Examples are bonds, mortgages, and long-term loans.

Equity-based financial instruments

Equity-based financial instruments are instruments that allow a company to acquire capital and enable investors to share in the ownership of a company.

This asset class includes, among others, shares (ordinary and preference), equity futures, and convertible debentures.

 

Financial Instruments Explained

Holding Company Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Holding Company Explained for Dummies

Holding Company Explained

Holding Company Explained

What is a holding company?

Simply put, a holding company is a type of company that owns a controlling interest in another company or companies, controlling their management policies and decisions.

Mostly, a holding company does not conduct any day-to-day operations or activities such as producing goods or providing services.

Besides the majority of shares of the company or companies that are controlled by the holding company, a holding company can also own various other types of assets, such as bonds, real estate, shares in public traded companies, and intangible assets like patents, brand names, copyrights, and trademarks.

 

Companies owned by a holding company

Companies that are owned by a holding company are called subsidiaries. The relationship between a holding company and its subsidiaries is called a parent-subsidiary relationship and the holding company is referred to as the parent company.

Companies owned by the same parent company are called sister companies. Sister companies operate separately and may have no association other than sharing the same parent company.

Basically, there are two types of subsidiaries:

  • Wholly owned subsidiary

A company 100% controlled and owned by a holding company, is called a wholly-owned subsidiary.

  • Partly owned subsidiary

When a holding company owns 51% to 99% of another company, then the company is a partly owned subsidiary, also referred to as a regular subsidiary. The holding company has only partial control over the subsidiary.

A holding company is allowed to have more than one subsidiary, but a subsidiary can only be owned and controlled by one other company, the holding company. However, a subsidiary can have one or more of its own subsidiaries.

 

Types of holding companies

Holding companies can be defined in different ways:

  • Pure holding company: A company that was established primarily to own shares in other companies. The main activity of such a company is to own and control one or more other companies.
  • Mixed holding company: A company that runs its own operations and also controls its subsidiaries. It is also known as a holding-operating company.

 

Holding companies are referred to as conglomerates when their activities and operations are completely different from those of their subsidiaries.

  • Intermediate holding company: A company that is both a holding company of a subsidiary and a subsidiary of another holding company. Simply put, it is a company between a subsidiary and another holding company.
  • Ultimate holding company (UHC): A company that has control over a group of subsidiaries in which some of the subsidiaries are themselves immediate holding companies of their own groups.

 

An ultimate holding company cannot be a subsidiary of another company.

  • Immediate holding company: A company that maintains the controlling interest in a different company, despite the fact that the company itself is already controlled by another company.

 

Benefits of holding companies

  • Limitation of risk

Holding companies can take risks through their subsidiaries, limiting the risk only to the subsidiaries and protecting the holding company against the risks. For example, the holding company would not be liable for the debts of a subsidiary, if it had not guaranteed the debts of the subsidiary.

A holding company is protected against losses incurred by a subsidiary. If a subsidiary fails and goes bankrupt, the holding company is not affected by the consequences. In other words, the holding company cannot be legally pursued by the lenders and creditors of the subsidiary for compensation.

However, a holding company may suffer a capital loss and a decline in net worth when a subsidiary fails.

Regarding legal issues, subsidiaries are considered independent legal entities. This implies that if a subsidiary were to face a lawsuit, the plaintiffs are not entitled to claim the assets of the holding company or the assets of any other subsidiary of the holding company.

 

  • Less is more

The phrase less is more can also be applied to holding companies, meaning a holding company can gain control of another company without having to invest much. Hence, less capital is more control. Put differently, a holding company is allowed to control more companies with smaller amounts of capital.

When a company acquires 51% or more of the ownership of another company, it automatically obtains control of the acquired company, becoming its holding company. Therefore, a company is not required to purchase 100% of another company to control the company.

 

  • Pooled resources

Financial resources

The financial resources of the holding company and its subsidiaries can be pooled together, enabling the company to undertake large-scale projects in order to increase its profitability and improve its net worth.

The combined financial power of the holding company and its subsidiaries can be used as bargaining power, negotiating favourable credit terms and quantity discounts with suppliers.

In addition, the combined financial resources of the group may be used to negotiate favourable financing terms regarding loans.

Human resources

A holding company and its subsidiaries may have managers and employees with different skills and know-how that could be used to the benefit of the holding company and its subsidiaries, increasing the value of all the companies involved.

 

  • Tax benefits

Holding companies and their subsidiaries are subjected to the tax laws of the countries in which they are registered. The tax benefits for holding companies and subsidiaries differ from country to country.

 

Disadvantages of holding companies

Holding companies can also have disadvantages. Here are some of the disadvantages concerning holding companies:

  • Over capitalisation

Pooling the capital of a holding company and its subsidiaries together may lead to overcapitalisation, affecting the returns of investors on their invested capital.

  • Misuse of financial power

The financial power of a holding company may lead to irregularities, irresponsibility, and misuse of financial power.

  • Exploitation of subsidiaries

There is a risk that a holding company can exploit its subsidiaries. For example, the subsidiaries may be forced to sell their goods and/or services to the holding company at exceptionally low prices. Conversely, the subsidiaries may be required to purchase products from the holding company at high prices.

 

Holding Company Explained

Capital in Business Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Capital in Business Explained for Dummies

Capital in Business Explained

Capital in Business Explained

What is capital?

In a business context, capital refers to all the financial resources or capital assets held by a business that enables the business to produce goods and/or to deliver services, generating revenue and increasing value.

Put differently, capital in a business is anything that leverages growth and enhances financial stability.

A business’s capital assets are reported on its balance sheet and can comprise cash, materials, equipment, and buildings.

In addition, employees, patents, trademarks, and investments, are also included in a business’s capital resources.

 

The difference between capital and money

Generally, the terms money and capital may come across as the same thing. However, they are certainly not.

Capital is a much broader term than money, describing all the resources available to a business to generate revenue and to build wealth. Capital includes money.

Money, the currency of a particular country, is a medium of exchange that is used for the purchase or sale of services and goods.

 

Types of business capital

Business capital can be categorised into three broad categories, namely financial capital, human capital, and natural capital.

 

Financial capital

Financial capital refers to anything that is owned by a business and that has monetary value and is utilised to generate future revenue.

Financial capital includes, inter alia, the following types of capital: equity capital, debt capital, working capital, and trading capital.

 

Equity capital

Equity capital[1], also called share capital, is raised by a company when it issues shares to investors (individuals and entities). Put differently, when an investor buys shares of a company, he or she is providing equity capital to a company and owns a portion of the company.

Public traded companies raise equity capital via listings on stock exchanges, while private companies obtain equity capital from private investors (shareholders).

Some small businesses make use of angel financing, an investment model wherein ‘business angels’, also called ‘angel investors’ or ‘private investors’, provide capital for small businesses in exchange for equity in the company.

Equity capital is also referred to as residual capital, meaning shareholders have last entitlement to the assets of a company when it is sold or wound down.

Contrary to debt capital, there are no interest expenses or repayments involved in equity capital.

 

Debt capital

Debt capital refers to money borrowed by businesses from different capital resources.

Typically, big and established companies borrow from financial institutions, such as banks. Often, small businesses experience difficulties to borrow from financial institutions, compelling them to borrow from family, friends, or individuals who have an inclination to support small promising businesses.

Contrary to equity capital, there are repayments and cost of money (interest) involved in debt capital.

Borrowing money in order to purchase assets or to expand operations is called financial leverage, leverage, or debt leverage. The purpose is to use the borrowed capital to pay for an investment or project in the future and to increase the potential returns from a project or investment.

However, if the investment or project does not work out as expected or planned, the leverage will also increase the downside risk of a potential loss if the investment or project is a failure.

When a company is described as ‘highly leveraged’, it means that the company has more debt than equity.

Therefore, it is important that the management of a business and its investors take note of a company’s debt-to-capital ratio in order to avoid borrowing too much money.

The debt-to-capital ratio is a liquidity ratio used in accounting to measure a company’s financial leverage by comparing its total debt obligations (debt capital) to its total equity capital.

The formula for the debt-to-capital ratio is:

Debt-to-capital ratio = Total debt/Total debt + Shareholders’ equity

Where:

  • Total debt comprises all of a company’s short-term and long-term liabilities. (Short-term liabilities are repayable within a time frame of one year or less, while borrowers of long-term debt obligations are allowed a year and longer to repay their debt.)
  • Shareholders’ equity includes, inter alia, ordinary shares, and preference shares.

Normally, the higher the debt-to-capital ratio, the more a company utilises debt capital than equity capital, putting the company at risk of default[2] on its debt.

 

Working capital

Working capital, also called net working capital (NWC), refers to the capital that is available to a business for performing its daily operations.

NWC is an indication of a company’s operational effectivity and short-term financial health, representing the company’s short-term liquidity – the ability to serve all its short-term debt obligations also referred to as current liabilities.

Working capital is calculated by deducting current liabilities from current assets.

Where:

  • Current assets include assets such as cash and cash equivalents, prepaid expenses, inventory, and accounts receivable.
  • Current liabilities comprise short-term debt obligations like accounts payable, short-term bank loans, and taxes payable.

 

Trading capital

In the trading of securities and forex, trading capital refers to the amount of money made available to buy and sell securities and forex. It is a term used by brokerages, financial institutions, and traders that trade a considerable number of trades daily.

Securities markets have requirements of a legal minimum of trading capital before a brokerage or trader can start trading.

 

Human capital

Human capital refers to human abilities and qualities that can improve a business’s economic output and productivity, increasing earnings.

Human capital is an intangible asset. However, it is not reported on a company’s balance sheet.

Human capital includes, inter alia, the following qualities and skills:

  • Education
  • Training
  • Communication skills
  • Intelligence
  • Health
  • Emotional intelligence
  • People management
  • Punctuality
  • Problem-solving
  • Technical qualifications
  • Mental and emotional well-being

The more a business invests in its human capital, improving the qualities and skills of its managers and employees, the more the productivity of the business will improve, increasing the value of the business.

 

Natural capital

Natural capital refers to natural assets or resources (renewable and non-renewable) that can be utilised by businesses to increase production, generate revenue, contributing to the value of the business.

Businesses may or may not own the natural resources required to increase their production.

Examples of natural resources or assets are:

  • Commodities such as crude oil, precious metals (gold, silver), and crude oil
  • Animals
  • Forest plantations
  • Crops
  • Wind power
  • Solar power

Natural capital is a type of asset; hence, it will be reported on a company’s balance sheet.

[1] See the article, ‘Equity Explained for Dummies’, for more information on equity.

[2] Refer the article, ‘Default in Finance Explained for Dummies,’ for detail about defaulting on debt.

Capital in Business Explained

The Difference Between Earnings and Revenue Explained for Dummies

Fresh Unique Article to increase your trading knowledge: The Difference Between Earnings and Revenue Explained for Dummies

Difference between earnings and revenue

Difference between earnings and revenue

What are earnings?

Regarding businesses, earnings are reported on the bottom line of a business’s income statement, indicating how much a business has earned after deducting all its expenses during a given financial period.

With regard to individuals, earnings refer to the money a person receives as a salary or money earned for being self-employed or as a business owner.

 

What is revenue?

Revenue is indicated on the first (top) line of the income statement of a business, referring to the total amount of money generated by a business for selling its goods and/or providing its services.

 

Earnings explained in more detail

 

Other designations for earnings

Earnings are also referred to as net income, net earnings, profit, or net profit.

 

Calculation of earnings

Businesses calculate their earnings by subtracting the following types of expenses from their revenue:

  • Cost of goods sold (COGS) (for example, labour, material, and expenses directly involved in the manufacturing of goods), or when a pure service business, cost of services rendered (such as travelling expenses, sales commission, rental costs for equipment and tools).
  • Operating expenses (such as rent, salaries, utilities).
  • Administrative expenses (for example office supplies, insurance, legal fees).
  • Imputed expenses (depreciation).
  • Finance charges (interest).
  • Taxes payable.

 

The importance of earnings to determine a business’s financial performance

Earnings are a key figure to determine a company’s financial performance, evaluating its viability and long-term sustainability.

There are various measures in which earnings can be used in order to enable analysts and investors to evaluate a specific aspect of a company’s financial capabilities. Measures such as EBT (earnings before taxes, EBIT (earnings before interest and taxes, EBITDA (earnings before interest, taxes, depreciation & amortisation, EPS (earnings per share), P/E (price to earnings), and earnings yield.

 

Earnings before taxes (EBT)

Earnings before taxes, also called pre-tax income, is the calculation of a business’s earnings before taxes are taken into consideration.

EBT is an important indicator because it excludes the effects of taxes on earnings when comparing the financial achievements of different businesses.

Commonly, EBT is calculated as follows:

EBT = Net earnings + taxes

 

Earnings before interest and taxes (EBIT)

EBIT, sometimes referred to as operating earnings, operating profit, or profit before interest and taxes, is a measurement of a company’s profitability from operations. It excludes the effects of taxes and cost of capital structure on a company’s earnings from operations.

EBIT focuses exclusively on a business’s ability to generate profit from its core operations.

Typically, EBIT is calculated as follows:

EBIT = Net earnings + Interest + Taxes

EBIT is useful when analysing companies that own a considerable amount of fixed assets (such as plant, equipment, and property) that are typically acquired by using debt.

 

Earnings before interest, taxes, depreciation, and amortisation (EBITDA)

EBITDA is used to determine a company’s profitability without the effects of financing implications and imputed expenses such as depreciation.

One of the methods to calculate a company’s EBITDA uses the following formula:

EBITDA = Net earnings (net income) + interest + taxes + depreciation + amortisation

Negatively, EBITDA can cause misrepresentations with regard to a company’s net earnings. Especially, concerning companies with a considerable amount of fixed assets on which depreciation is calculated.

 

Earnings per share (EPS)

Earnings per share (EPS) refers to a company’s profitability on a per-share basis. EPS is calculated by dividing a company’s net earnings by its outstanding ordinary shares. The outstanding shares of a company are the shares issued by the company and that are traded on the secondary market.

It is probably the most used financial measurement to evaluate a company’s value.    

 

Price-to-earnings (P/E) ratio

The price-to-earnings (P/E) ratio, sometimes called the price multiple or the earnings multiple, is used to determine a company’s share price in relation to its earnings per share (EPS).

The P/E ratio enables analysts and investors to, inter alia:

  • determine if the projected EPS of a company is accurately represented by its share price, evaluating whether the share price is overvalued or undervalued.
  • compare the share prices of companies in the same industry, producing the same type of products or rendering the same sort of services,
  • evaluate a company’s performance against its performances during previous financial years.

The formula for the price-to-earnings ratio is:

P/E ratio = Market value per share/Earnings per share (EPS)

Where market value is the current price of a company’s shares.

 

Earnings yield

Earnings yield is a financial ratio that indicates the correlation between a company’s earnings per share (EPS) for the last twelve months (LTM) and the company’s share price.

Earnings yield is the inverse or reciprocal of the P/E ratio. It is a ratio that indicates the percentage of a company’s earnings per share.

Put differently, earnings yield enables investors to determine how much earnings per share a company generates from every South African rand (ZAR) invested in the shares of the company. In other words, earnings yield measures the rate of return of a company’s shares.

For example, company TAS has an earnings yield of 10%. This means that a shareholder of company TAS has earned R10 for every R100 of TAS shares owned.

Earnings yield is calculated as follows:

Earnings yield = Earnings per share (for the immediately preceding 12 months)/Current share price

A high earnings yield may indicate that the shares of a company are undervalued. Conversely, a low ratio may be an indication of overvalued shares.

 

What are retained earnings?

Retained earnings are all the earnings accumulated by a company over its lifespan, less any dividends distributed to its shareholders.

 

Revenue explained in detail

As mentioned, revenue refers to the money generated by a business during its normal business operations, such as selling goods/products and/or rendering services to customers or clients.

Put differently, revenue is the income earned before any expenses are deducted.

Revenue is also called sales or services (in the case of a pure service business). Sometimes, revenue is also called net sales when discounts, allowances, and deductions for returned goods are included in the number of sales.

 

Methods to calculate revenue

Basically, there are two methods to calculate revenue:

  • In accrual accounting[1], cash sales, as well as sales made on credit, are included in the revenue amount.
  • In a cash accounting system, revenue comprises only sales of which payments are received.

 

Revenue as a financial indicator

Revenue is certainly the most basic, but important financial indicator of a business’s profitability and its financial performance as a whole.

There are many financial ratios in accounting in which revenue (sales) are used to determine the efficiency and profitability of a company. Ratios such as asset turnover ratio, gross margin ratio, operating margin ratio, and price-to-sales ratio.

 

Asset turnover ratio

The asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales (revenue) from its assets. The ratio is also referred to as the total asset turnover ratio.

The asset turnover ratio of a company can be affected by large sales of assets as well as considerable asset acquisitions during a given financial year.

The formula for the asset turnover ratio is:

Asset turnover ratio = Net sales/Average total assets

Where:

  • Net sales = the total of revenue generated during a given financial period less sales returns, sales allowances, and sales discounts.
  • Average total assets = (assets at the start of the financial year + assets at the end of the financial year)/2.

Noteworthy, either average total assets or end-of-period assets can be used in the calculation.

Typically, a high asset turnover ratio is an indication that a company utilises its assets to generate sales more efficiently than a company with a lower rate.

 

Gross margin ratio

The gross margin ratio, also called the gross profit margin ratio, is a profitability ratio in accounting that shows how much income a company has left after taking into account all the expenses directly involved in the manufacturing of goods and/or providing of services – referred to as cost of goods sold (COGS) or cost of services delivered.

The formula for the gross margin ratio is:

Gross margin ratio = Gross profit/Net sales

Where:

  • Gross profit = Net sales (revenue) – cost of goods sold or cost of goods delivered.
  • Net sales = the total of revenue generated during a given financial period after deduction of sales allowances, sales discounts, and sales returns.

 

Operating margin ratio

The operating margin ratio compares a company’s operating income to the company’s net sales, indicating how proficiently a company generates profit through its key operations. The ratio is expressed as a percentage.

To calculate the operating margin ratio, the following formula is used:

Operating margin ratio = Operating income/Net sales

Where:

Operating income = the amount of revenue available after the deduction of expenses from gross profit. Operating income is also known as EBIT (earnings before interest and taxes).

Net sales (see description under asset turnover ratio or gross margin ratio)

 

Price-to-sales ratio

The price-to-sales (P/S) ratio, also referred to as revenue multiple or sales multiple, compares a company’s share price to its revenues. The ratio indicates how much investors are prepared to pay per South African rand (ZAR) of the company’s revenue (sales) for a company’s shares.

 

The calculation of the P/S ratio is as follows:

P/S ratio = Market value per share (MVS)/Sales per share (SPS)

Where:

Sales per share = A company’s revenue (sales) divided by the total of its outstanding shares.

 

[1] See the article, ‘Accrual Accounting Explained for Dummies’, for more information about accrual accounting.

Difference between earnings and revenue

Default in Finance Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Default in Finance Explained for Dummies

Default in Finance Explained

Default in Finance Explained

What is a default?

In finance, a default occurs when borrowers fail to meet debt obligations in one way or another.

A default can happen when a borrower, among other things:

  • is unable to pay the debt in agreed times,
  • does not pay the amounts as agreed upon,
  • misses payments, or
  • avoids or terminates payments.

The time or situation a default occurs depends on the terms agreed upon by the lender and the borrower. For example, some lenders allow only one missing payment before default comes into play, while others default only after three or more missing payments.

 

Defaults on secured and unsecured debt

Defaults can occur on secured and unsecured debt.

Defaults on secured debt

Secured debt (loans) require collateral as security for the debt, a type of protection for the lender. Typically, collateral comprises assets such as a vehicle or home on which the lender has a legal claim to cover the debt.

If a borrower defaults on a secured loan, the lender is allowed to seize the collateral in order to recover some or all of the outstanding debt.

For example, if a mortgagor defaults on a mortgage loan on his/her home, the mortgagee is permitted to reclaim the home that serves as security for the mortgage loan. The home would be auctioned off and the income received used to repay the outstanding amount or a portion of the outstanding amount on the mortgage loan.

In the same way, with regard to a defaulted vehicle loan (auto loan), the lender is allowed to repossess the vehicle and put it on an auction to recover all or some of the outstanding debt.   

A boat loan is another example of a secured loan.

Defaults on unsecured debt

Unsecured debt is a type of loan that does not require any type of collateral. Borrowers are granted loans based on criteria such as:

  • a borrower’s creditworthiness,
  • the strength of a borrower’s credit score,
  • the quality of a loanee’s financial record,
  • an individual’s financial capacity (income and current debt),
  • a borrower’s employment history, and
  • references.

Examples of unsecured loans are credit cards, personal loans, medical bills, and student loans.

There is more risk involved in unsecured loans than in secured loans. Hence, interest rates are higher, and higher credit scores are required for approval.

Usually, if a borrower defaults on an unsecured loan, the lender or creditor can refer the loan to its collections department or appoint a collection agency to collect the debt.

If a borrower still does not cooperate to repay the debt, the lender/creditor may hand over the borrower to an attorney who may take the borrower to court if he/she is still defaulting on his/her debt.

 

Consequences of debt default

Defaulting on debt can cause dire consequences that can have long-lasting effects such as:

  • A borrower’s credit history will be negatively affected, lowering his/her credit score.
  • Chances to obtain credit in the future will considerably be reduced.
  • Higher interest rates on existing debt as well as any debt in the future.
  • Possibility of bankruptcy.
  • Debt default causes additional fees that need to be paid, for example, fees for late payments.
  • A garnishment in which a court orders a third party to deduct payments directly from a borrower’s salary or bank account to repay a lender or creditor.
  • Defaulting on a vehicle loan puts a borrower in danger of having his/her vehicle repossessed and auctioned. In addition, if the amount raised at the auction is less than the amount owed, the defaulter will still be responsible for the difference, plus expenses involved to auction the vehicle.
  • A default on a mortgage can lead to a foreclosure on the mortgagor’s home and eventually eviction.
  • Lawsuits if negotiations and all means of collecting the debt have failed.
  • Annoying, and even irritating debt collectors, who harass borrowers with calls to get the payments.

 

Avoiding a debt default

Debt defaults can often be avoided if the following actions and precautions are considered and applied when necessary:

  • Manage your borrowing. Only borrow money after you have done your homework, making sure you will be able to repay your debt (the interest and the capital) on time.
  • Prepare and follow a budget, preferably a monthly one. It is important to stick to your budget, preventing you to spend more money than what is available.
  • Live within your financial limits. Do not try to keep up with the Joneses, buying stuff that you cannot afford and do not need.
  • Create an emergency fund. Try to save a (small) amount of money every month for times of unforeseen difficulties and needs – the rainy days, as it is commonly called.
  • Keep track of your debts. Create a form that describes every type of debt, the payment dates, the duration of the loans, and the interest rates charged on the different loans.
  • If possible, try to pay more than the minimum on your debt repayments.
  • Understand your loan and loan agreement. This implies working through the agreement and reading and understand the small print.
  • When realising that you start struggling to make timely payments on your debt, consider the following possibilities:
  • Negotiation with your lender for a lower interest rate.
  • Debt consolidation, meaning consolidating all your debts into one loan.
  • Ask for help from friends or/and the family.
  • Refinancing of your mortgage loan. However, make sure that such a step is financially sound.

 

Finally, some wise sayings about debt

  • ‘If you think nobody cares if you’re alive, try missing a couple of car payments’ (Earl Wilson – American journalist and author)
  • ‘The only man who sticks closer to you in adversity than a friend is a creditor.’ (Unknown)
  • ‘Debt can turn a free, happy person into a bitter human being.’ (Michael Mihalik – Author of Debt is Slavery)

 

Default in Finance Explained

Debits Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Debits Explained for Dummies

Debits Explained

Debits Explained

Including debit balances

 

What is a debit?

In accounting, debit refers to an entry in one of the appropriate general ledger accounts of a business or individual that either increases an asset, expense, and loss account or decreases a liability, revenue, or equity account.

The opposite of a debit entry is a credit entry that either increases a liability, revenue, or equity account or decreases an asset or expense account.

The term ‘debit’ derives from the Latin word ‘debere’, which means ‘to owe’ or ‘what is due.’

The double-entry system of bookkeeping or accounting uses T-accounts to record debits and credits. Debits are recorded on the left side of a T-account and a credit on the right side. Typically, a debit is abbreviated as ‘dr.’ and credit as ‘cr.’

 

A summary of the use of debits in accounting

As mentioned, debits affect different accounts in the double-entry accounting system in one way or another. The 5 major accounts that are affected by debits are asset accounts, expense accounts, liability accounts, revenue accounts, and equity accounts.

In addition, accounts such as loss accounts, contra-revenue accounts, contra-liability accounts, and contra-equity accounts are increased by debit entries.

Major accounts that are increased by debits

Asset accounts

An asset is a resource or item with economic value, providing a future economic benefit to a business or individual.

A debit will, inter alia, increase the following asset accounts: cash, property, plant and equipment, inventory, prepaid expenses, vehicles, and accounts receivable.

Expense accounts

An expense refers to the cost incurred in the daily operations of a business in order to generate income (revenue).

Examples of expense accounts that are increased by debit entries: salaries, rent, finance charges, advertising, travelling, and advertising.

 

Other types of accounts that are increased by debits

Loss accounts

Loss accounts reflect losses, such as loss on the sale of assets or loss from a lawsuit. Losses recorded as debits in such an account increase the total amount of losses.

Contra-revenue accounts

Contra-revenue accounts such as ‘sales discounts’ and ‘sales returns’ are debited when returns or discounts on sales are allowed, increasing the balances of the accounts.

Eventually, the credit balance of the revenue account of sales will be decreased by the debit balances in the contra-revenue accounts.

Contra-liability accounts

Contra-liability accounts refer to accounts like ‘discount on bonds payable’ or ‘unamortised bond issue costs.’

Contra-equity accounts

Contra-equity accounts include accounts such as the owner’s personal drawings account and the treasury shares account.

  • Treasury shares account

Treasury shares, also referred to as treasury stock or reacquired stock, refer to previously outstanding shares which a company bought back from shareholders to deal with the shares as the company pleases.

When outstanding shares are repurchased by a company, the treasury shares account is debited, increasing the total of the account.

The account has a debit balance that reduces the total amount of shareholders’ equity. Hence, it is called a contra-equity account.

  • Owner’s personal drawings account

When an owner draws money from his or her business or pays for personal stuff from a business account, the amount is debited to the personal drawings account, increasing the total of the account.

Usually, drawings are recoverable from the owner by way of cash or in-kind return, such as goods or services instead of money, or adjustments to the owner’s equity account. A drawings account is considered an asset until it is recovered.

 

Accounts that are decreased by debits

Liability account

Liability refers to a financial obligation or debt, resulting from previous financial transactions, that a business or individual owes to another party (for example, creditor or lender), causing future sacrifices of economic benefits (assets).

Debit entries will decrease liabilities such as loans, accounts payable, mortgages, deferred revenues, tax payable, and accrued expenses.

Revenue account

Revenue accounts are accounts related to income received from the sale of goods and services. It also refers to interest earned from investments.

Examples of revenue accounts that will be decreased when debit entries are recorded in the particular account are sales, service revenues, interest income, investment income, and fees earned.

Equity account

Owner’s equity is one of the three components of the accounting equation: Assets = Liabilities + Owner’s equity. Put differently, Owner’s equity = Assets – Liabilities.

Owner’s equity comprises different equity accounts, reflecting the financial representation of the ownership of a business.

Equity accounts have different resources and, therefore, are classified into different types of accounts.

 

Normally, equity accounts have credit balances. The treasury shares account is the exception with a debit balance.

Equity accounts commonly used by companies and that is decreased by debits include:

  • Ordinary shares account

Ordinary shares also referred to as common stock, are issued to ordinary shareholders and represent a portion of ownership in the issuing company.

 

  • Preference shares account

Preference shares, also called preferred stock, like ordinary shares allows a shareholder a slice of the ownership of a company and have certain preferential rights over ordinary shareholders.

 

  • Additional paid-in capital account

Additional paid-in capital, commonly referred to as share premium, refers to the amount received by a company in excess of the par value of its shares.

However, regarding South African companies, subject to the Companies Act (Act 71 of 2008), a share premium is no longer allowed or applicable.

 

  • Retained earnings

Retained earnings (RE) are the accumulated profits of a business to date that are reserved for reinvestment back into the business and for the expansion of business operations.

The amount reported on the balance sheet under shareholders’ equity is calculated as follows: RE balance at the beginning of the accounting period plus the net income or minus the net loss for the specific accounting period less the total amount of dividends distributed to shareholders.

 

The following debits, for example, will decrease the retained earnings: a loss or dividends issued.

 

What is a debit balance?

In accounting, a debit balance indicates that the total amount of debit entries in a general ledger account exceeds the total amount of the credit entries in the particular account.

Put differently, a debit balance occurs when the total on the left side of the general ledger account is more than the total on the right side of the account.

The following accounts have normal debit balances, meaning that is expected that the specific account will have a debit balance: assets, expenses, losses, contra-revenue accounts, contra-liability accounts, and contra-equity accounts.

Debits Explained

‘It wasn’t us’: ANCYL task team disavows poster calling for NEC’s resignation

May 11th 2021 at 12:50

The ANC National Youth Task Team (NYTT) has distanced itself from what it called a “fake news” online poster, which calls for the ANC national executive committee to resign immediately.

ALSO READ: ‘We have a cash flow problem’, admits Duarte

The poster, complete with the ANC Youth League logo and colours, advertises a picket outside the Johannesburg City Hall at 5pm on Thursday, and a night vigil to be held at Luthuli House, the ANC headquarters, until the next morning on the same day.

Newly installed NYTT convener, Nonceba Mhlauli, condemned the poster and sent a response showing the words “Fake News” emblazoned across the poster.

The poster, purportedly by the ANCYL, calling for the heads of the ANC NEC.

“We distance the Youth League from this poster and such planned action. We view it as another attempt to undermine the ANC and its elected leadership,” Mhlauli said.

The poster came a day after ANC president Cyril Ramaphosa announced an endorsement by the ANC national executive committee (NEC) of the suspension of secretary-general Ace Magashule by the party.

Ramaphosa said the NEC had demanded that Magashule apologise publicly to the party structures and members for the suspension letter he wrote to him.

Magashule’s supporters were angered by his suspension and the NEC’s instruction forcing him to apologise.

Social media was flooded with their angry statement, which added to widespread tension from some branches in KwaZulu-Natal and North West, demanding the withdrawal of Magashule’s suspension and asking for the NEC to resign.

ericn@citizen.co.za

‘Jesus practised democracy’: ACDP’s Meshoe changes tune on Ancestors Day

May 11th 2021 at 12:25

African Christian Democratic Party (ACDP) leader Reverend Kenneth Meshoe has clarified his stance on the proposed Ancestors Day, stating that imposing his religion on others was against Christianity but that a public holiday to honour African religion made no economic sense.

Meshoe had at the weekend lambasted a proposal by liquor brand Castle Milk Stout and the Congress of Traditional Leaders of South Africa (Contralesa) to annually honour and observe Ancestors Day on 8 March.

In a statement, Meshoe opposed the proposal, stating that: “While we acknowledge that millions of South Africans consult and worship their dead ancestors, committed evangelic Christians know that God’s word denounces such practices.”

The reverend said at the time: “This nation desperately needs God’s intervention and not dead ancestors.

“Let us use Saturday 8 May 2021 as a day to intensify our prayers to ask our living God to save our souls, deliver us from evil, heal our land, bless and prosper all our people in the name of Jesus Christ our Lord and Saviour.”

ALSO READ: ACDP gets bee in its bonnet over Contralesa’s Ancestors Day

But on Tuesday, Meshoe said he was not against anyone exercising their democratic right to follow a faith of their choice.

Speaking to The Citizen, Meshoe said his statement was taken out of context and that he was only opposing proposing the day as a national public holiday.

“My statement is informed by the fact that our [country’s] debt is about 80% of the GDP… We need more days – more time for people to work and hope that we will come out of this junk status.”

While his party was based on Christian fundamentals, he said imposing their beliefs on a democratic society was against his faith.

Quoting John 3:16 in the Bible, he said Jesus practised democracy.

“If that impression [imposing his beliefs] was created, it was the wrong impression.

“People who want to impose do not understand the teachings of Christ. One of the popular verses, John 3:16… mentions ‘whosoever’. The word ‘whosoever’ has a democratic essence in it. It gives people choice.

“If anyone wants to impose Christianity, I would publicly oppose them. It would be wrong. That is not what Christ taught people since He never imposed,” Meshoe told The Citizen.

ALSO READ: ACDP vows to fight gender diversity and education in WC schools

But Contralesa remained resolute in their proposal, stating they only wanted to honour and celebrate their late great-grandparents and their ancestors.

One would never find traditional leaders slamming the beliefs of Christians, said Contralesa president Kgosi Mathupa Mokoena.

“You won’t hear a single day when chiefs and traditional leaders talk about the church and saying the church is wrong. We allow them to do what they want and they must just have peace and accept that we are doing what we think is good for us.

“Those of ACDP, when they have their sermons, they talk about God of Abraham and Isaac. Those are someone else’s ancestors,” said Mokoena.

rorisangk@citizen.co.za

Proposed pension changes could make it virtually impossible to retire comfortably in South Africa: CEO

May 11th 2021 at 10:18
The Pensions Funds Amendment Bill currently being considered in parliament could cause significant damage to the retirement industry, says Glenn Gamsy, chief executive of GIB Financial Services, a financial advisory consultancy and retirement fund administrator.

‘We have a cash-flow problem’, admits Duarte

May 11th 2021 at 09:56
By: Nica

For ANC deputy secretary-general Jessie Duarte, the ruling party is the only one in the country that is building structure at grass roots level and making itself accountable to the electorate.

In addition, she said during a media briefing on Tuesday, the ANC was the only party “putting itself out there” at the State Capture Commission. 

But despite this, funders are reluctant to lend a financial hand to the ANC and the party has a real cashflow problem, Duarte said.

Duarte said this was either because “many people who funded the ANC may have been funding other political parties”, or because they do not want to make their funding to the ANC known. 

“It’s not good for business. It’s a difficult one. We’re having financial difficulties, but we won’t cave in because of that.” 

She said the ANC asked for the Party Political Funding Act, knowing there would be consequences. 

ALSO READ: ANC expects Magashule to apologise ‘this week’ or face disciplinary action

“There seems to be some idea we are against it. We knew there would be consequences, but we did it so we could deal with the matter of how to support and fund democracy in a democratic state.” 

Duarte also dispelled rumours that the party had plans to reduce staff by 50%. 

“Labour law doesn’t allow us to reduce staff by 50%. We need to go through a process if we were to make such a decision. We will do so using labour laws.” 

A number of leaked audio recordings, both relating to the ANC national executive committee (NEC) meeting this past weekend, and past leaked clips, was also condemned by Duarte. 

“I think it’s very wrong to sneak into a private meeting and put out what you think is sensational, without knowing the whole story.”

SARS targets taxi industry for tax avoidance

May 11th 2021 at 08:36
By: SANews
Plans are afoot by the South African Revenue Services (SARS) to address tax avoidance in the country's minibus taxi industry, Finance Minister Tito Mboweni has revealed.

10 Best Savings Accounts

Fresh Unique Article to increase your trading knowledge: 10 Best Savings Accounts

In South Africa, there are several banks that offer savings accounts that suit the differing needs and objectives of a variety of clients. While it is important to have the perfect bank account for day-to-day banking and transactions, it is imperative to have a savings account where you can benefit while you save, whether it is for long-term or short-term savings.

Choose your quick section of our best Savings Accounts below.

Our 10 Best Handpicked Savings Accounts Revealed:

The list below will provide some insight into some of the best savings accounts and what you can expect from top-rated banks in South Africa.

 

A review about African Bank
 

African Bank MyWorld Savings Pocket

The African Bank MyWorld bank account offers users with a variety of interesting, beneficial features, with the Power Pocket feature that ensures efficient, hassle-free day-to-day banking while the savings pocket offers excellent features that include some of the highest interest rates.

A positive account balance in the MyWorld Account earns interest of 3.50%, the power pocket earns 3.50%, and the savings pocket earns 4.50% per annum.

There is a monthly bundle fee of 0 ZAR, with balance inquiries billed at 3 ZAR for both POS and ATM inquiries. Withdrawals from ATMs are charged at 6 ZAR per 1000 ZAR with POS withdrawals at a fixed 2 ZAR per transaction.

 

Pros and Cons

PROS CONS
Number of free services offered There are no rewards offered for this account (such as travel benefits, discounts, and so on)
The opportunity to save money and earn interest
There are no fees charged for monthly maintenance

 

A review about Nedbank
 

Nedbank4me Account

This account is the first step that customers can take towards becoming financially responsible as well as independent. It is designed for customers up to the age of 18 and it is a savings vehicle which can be used to save pocket money, money which is gifted, or money earned from part time work.

The savings account is exempted from most charges as well as account maintenance fees. Interest rates are typically higher than those of normal savings account, especially on lower balance ranges.

It costs only 10 ZAR to open this savings account, and interest can be earned from 50 ZAR and upwards. The best interest that can be earned on this account, despite the balance, is 3%.

Apart from other features, this savings account also helps customers support a cause that they consider important at no additional cost. This can be done easily by linking the savings account to any of the following charities:

The Green Affinity.

Arts Affinity.

Culture Affinity.

Sports Affinity.

Nelson Mandela Children’s Affinity.

 

Pros and Cons

PROS CONS
Charities supported at no additional cost Best interest rate of only 3%
Designed for children, to help them start saving from young
Low initiation fee

 

A review about FNB
 

FNB Fluid Youth Account

This savings account is specifically designed for children in teaching them to learn money management from an early age, to prepare themselves for a financially smart future. This Savings Account has a variety of benefits and it teaches the joy and art of saving and having certain financial security.

This account allows for safe and secure money transfers using a PIN-based MasterCard debit Card. The account is available for children aged 18 years and younger, and has the following features:

There is no minimum deposit to open an account.

There are two distinct pricing options to choose from.

The ability to keep track of transactions via SMS or email.

Account fees can be redirected to a parent or guardian’s FNB account.

Access to the account via ATMs, online banking, cell phone banking, or FNB branches.

The account earns interest between 0.25% up to 1.80%.

Balances of 500 ZAR and higher are not subjected to monthly account fees.

 

Pros and Cons

PROS CONS
Account fees can be rerouted to the parent or guardian’s FNB account Best interest up to only 2.95%
No initiation fee
Variety of benefits and features

 

A review about Standard Bank
 

Standard Bank PureSave Savings Account

With this account, customers can easily start saving and the account can be used as a casual savings account while earning competitive interest rates on balances. With the Standard Bank PureSave Savings Account, customers can gain instant access to their funds when they need it the most, and they are granted the ability to move money to their account via a stop-order.

There are variable interest rates on this savings account, and they are also tiered according to the account balance. This is calculated daily, and the interest is paid monthly. The PureSave Savings account can easily be linked to the Standard Bank ATM card to allow customer the ability to manage their account online, via their cell phone, or at any Standard Bank ATM.

To qualify for the Standard Bank PureSave Savings Account, customers need an opening deposit of 50Z ZAR. There is no monthly fee, and while the minimum interest rate that can be earned on amounts from 50 to 10 000 ZAR is 2.15%, the most that can be earned is 2.90%.

 

Pros and Cons

PROS CONS
Easy account management in a variety of ways Maximum interest rate is 2.90% regardless of the savings balance
Money can be moved and withdrawn as needed
There is a low opening deposit of 50 ZAR

 

A review about FNB
 

FNB Savings Account

The FNB Savings Account is an account that only individual Cheque Account clients can access. It is one of the most flexible savings accounts that features a ‘save my change’ option that allows for multiple deposits into the savings account.

Customers can set up scheduled transfers which will automatically move money from their cheque account into their savings account as well as cash investment accounts automatically.

This allows for a disciplined way of saving, especially when there is a specific purpose and goal that the customer has in mind. There is also no waiting period to access funds; to make a withdrawal, customers can merely log into either their internet banking or mobile app and request a transfer from the savings account to the transactional account.

The interest rate that customers can qualify for will depend on the balance of the account, with 3.8% from 75 000 ZAR and upwards. The interest rate subsequently increases as the account balance increases, with more savings earning higher interest.

 

Pros and Cons

PROS CONS
Easy access to funds whenever there is a financial need Interest rate is exceptionally low on amounts less than 75 000 ZAR
Flexible savings
There are no monthly fees

 

ABSA SA Shares
 

ABSA Savings Account

The ABSA savings account helps customers address one of the many challenges that South Africans face such as getting a savings account started. With the ABSA Savings Account, customers get two free ATM cash deposits, encouraging people who earn monthly or fortnightly to top-up their savings for free at least twice a month.

ABSA also offers unrestricted access to the Savings Account as there is no notice period that must be served before the savings funds can be accessed. The interest rate that can be earned is calculated according to the daily balance and it is paid into the account monthly.

The interest rate is variable and linked to market conditions as well as the prime lending rate. On average, the interest rate ranges from as little as 0.70% on balances from 50 ZAR up to 3.50% on larger account balances.

 

Pros and Cons

PROS CONS
Anytime withdrawals without a notice period Interest rate of a maximum of 3.50% is not feasible and it merely paces with inflation
Easily accessible savings account with an initial deposit from 50 ZAR
Free monthly and yearly transactions

 

A review about African Bank
 

African Bank Fixed Deposits Account

Fixed Deposit Investments are one of the best ways through which to invest either short, medium, or long-term. African Bank has mastered this savings account ahead of the rest in South Africa as the bank holds the best-fixed deposit rate in the country.

The savings strategy will determine the fixed deposit account, with investing that can start from 3 months and lasting up to 60 months with interest withdrawals optional. However, before investing or locking down money into an account such as this, customers must understand what it entails.

The interest rates that customers can expect, depending on their investment term are as follows:

3 months – up to 4.66% at expiry.

6 months – up to 5.18% at expiry.

12 months – up to 6% at expiry.

24 months – up to 6.97% at expiry.

36 months – up to 7.78% at expiry.

60 months – 11.11% at expiry.

 

Pros and Cons

PROS CONS
Best interest rates in South Africa None noted
From 3 months offered up to 60 months and longer
Variety of terms offered

 

A review about Capitec
 

Capitec Savings Account

The Capitec Savings Account is one of the most popular and best savings accounts offered in South Africa, with the bank offering competitive interest rates, and most customers who bank with Capitec have expressed satisfaction with the interest that they are earning.

The common Capitec savings account is the Globe One account which consists of four different plans, namely:

Transaction Account.

Savings Account which is the main account.

Flexible Savings.

Fixed Term savings.

Tax-free savings.

 

There are numerous benefits of banking with Capitec, some of which include:

The absence of fees for shopping online, swiping for fuel purchases, or paying accounts worldwide using the Global One Account.

The ability to tap to pay using either the Global One Debit or Credit Card.

Fixed ATM withdrawal fees, no matter how much is drawn at a single time.

 

The transactions that customers make attract fixed banking costs on top of the 5 ZAR monthly admin fee that is paid.

Interest which is earned on savings is calculated on the daily account balances and it is paid at the end of each month. The interest rate is determined by account balances and the higher the account balance, the higher the rate which is used. Interest from 2.5% can be earned per annum, depending on the account balance, with the highest rate clocking in at 2.75%.

 

Pros and Cons

PROS CONS
Convenience over funds The best interest rate only starts from 25 000 ZAR
Fixed monthly fees
Flexible savings and transaction account all in one

 

A review about Nedbank
 

Nedbank 32-Day Notice Savings Account

This account is an investment-savings account which is offered, targeted especially at low-income earners. The account does not have any fees or commissions, and the minimum deposit is 250 ZAR. The minimum deposit ensures that the account remains active and can start earning interest.

From here, customers can choose how they wish to increase their capital by making either weekly or monthly stop-orders from their current account. The minimum stop order amount is 100 ZAR and deposits can also be transferred from the account, however, on these, there are cash deposit fees charged.

Withdrawals that are made from the account require a 32-day notice, as the account name suggests, which means that customers must apply and inform the bank that they intend to withdraw their funds.

Interest rates on this account are calculated according to daily account balances and they are paid to the customer each month. Interest rates are variable and linked to market conditions in addition to prime lending rate.

However, the interest rates that customers are offered are also subjected to confirmation when Nedbank has received account funds, this allows for Nedbank to offer tiered interest rates on the savings account, ensuring that higher account balances receive the highest rates.

 

Pros and Cons

PROS CONS
Easy maintenance, additional deposits, partial withdrawals done by linking the account to the Nedbank banking profile Nedbank reserves the right to charge fees for cash deposits exceeding 5 000 ZAR in any calendar month
Free monthly statement sent once balances exceed 5 000 ZAR
Free weekly or monthly stop orders
Monthly interest paid out or it can be capitalised
No fees or commissions charged

 

A review about Investec
 

Investec Prime Saver

This savings account allows customers to earn a great return on their savings while simultaneously granting customers access to their funds. The account offers customers with one of the best rates in the South African market for cash deposits made into the account.

Some of the benefits and features of this account are:

Benefits derived from a premium prime-linked interest rate with deposits from 100 000 ZAR and higher.

Immediate access to funds.

No monthly fee charges.

Free online banking.

Access to a dedicated Client Support Centre, and more.

 

Pros and Cons

PROS CONS
Access to funds instantly Deposits from 100 000 ZAR and higher receive prime interest rate
No management or maintenance fees
No monthly fees

 

A review about African Bank

A review about Nedbank

A review about FNB

A review about Standard Bank

ABSA SA Shares

A review about Capitec

A review about Investec

SARS is going after taxis in its next tax drive in South Africa

May 11th 2021 at 05:56
The South African Revenue Service will focus on the taxi industry in the coming financial year as it embarks on major compliance drive, says finance minister Tito Mboweni.

Rand report: ZAR strength returns to the market

May 11th 2021 at 05:35

After the news broke on Friday, we saw the USD/ZAR pair drop approximately 1%. This came at the end of a week where the ZAR had already appreciated 1.7%, leaving it approximately 3% stronger by the close of play on Friday. 

Over and above this downside move by the USD, there’s been a general move towards riskier assets such as the ZAR, which is a carry currency, meaning the greater yield offered in South Africa becomes attractive to investors in lower yielding countries such as the USA. These investors then move their funds from USD to ZAR and it leads to ZAR appreciation as a result.

The UK continues to experience an easing of lockdown restrictions, with many stifling economic regulations coming to an end. If the vaccination rollout proceeds with no new resurgences, the UK economy is expected to come roaring back to life. Additionally, the recent Scottish election resulted in a win for the Scottish National Party (SNP), but not an outright majority, which has further prompted traders to back the Sterling’s bullish advance in the coming weeks.

Image credit: Supplied

This week, the market will take its cues from international developments, with local data releases not holding much. Although there is a current move towards ZAR strength, one should be aware that the ZAR is a fickle creature, and can give up weeks of gains in a few days. Currently there seem to be no major risks to the downside for the ZAR, but it is advised to remain cautious of the rally.  

On the international data front, UK growth data will be released on Wednesday, followed by US inflation figures and retail sales data to close off the week. 

Weekly market events

Tuesday 11 May

  • CHN: Inflation data    

Wednesday 12 May                  

  • UK: GDP data
  • US: Inflation data

Friday 14 May

  • US: Retail sales

Rand-graph-11-05-2021

Why the rand’s rally under R14 to the dollar might not be over yet

May 11th 2021 at 05:25
The rand’s 30% gain against the dollar since the height of the pandemic has outstripped emerging-market peers -- and the rally may not be over yet.

‘No new developments’ in Nelli Tembe inquest despite claims of abuse

May 11th 2021 at 05:10

The Western Cape police have said that there are no new developments to report on in the inquest of Anele “Nelli” Tembe’s death despite footage of an aggressive AKA going viral on social media on 9 May, sparking abuse claims. 

A Twitter user tweeted that a friend of Tembe handed over a copy of the video — which Tembe apparently gave to her on 13 March — to the police.

A friend of Nellie Tembe (AKA’a late fiancé) has provided the police with a copy of a video Tembe gave her on 13 March in which AKA can be seen breaking down a wooden door in their apartment and him essentially physically abusing her. #nellytembe #aka pic.twitter.com/VhjtWmxVnc

— Lesego Ntoahae (@ComradeKickass) May 9, 2021

Police keeping mum on AKA abuse allegations, viral footage

Asked by News24 whether the police has seen the footage, Western Cape police spokesperson Colonel André Traut chose not to comment on whether or not they have or whether the latest domestic abuse allegations will form part of the ongoing investigation.

“The death inquest you are referring to (is) still under investigation and at this stage there are no developments to report on,” Traut was quoted as saying by News24.

What sparked the abuse claims?

The fiancée of rapper Kiernan Jarryd Forbes, popularly known as AKA, plunged to her death from the 10th floor of the Pepperclub Hotel in Cape Town on 11 April. Her death was first rumoured to be suicide, but since then, both her father and brother have stepped forward, denying that Tembe was suicidal. 

The shock footage of an AKA which went viral over the weekend, shows the rapper breaking down a door to get to Tembe who was reportedly hiding from him. 

Just when i thought this AKA thing was over then these pictures, now im really confused ukuthi was he abusive to Anele or… pic.twitter.com/CfNXPqP6RB

— $ ͪ ⷶ ͧ ᷠ_ ᷜ ͤ ꙷ ᷦ🕊 (@_ShaunKeyz) May 9, 2021

NELLI TEMBE’S CLOSE FRIEND SPEAKS OUT

A close friend of Tembe, who have asked to remain anonymous, has spoken out saying that AKA had allegedly smashed Nelli Tembe’s face against a wall during a previous fight and that is why she was hiding from him in this particular video. 

The Tembe family chose not to comment on the matter as yet. 

AKA denies allegations in statement

AKA, however, instantly responded via a statement on his various social media accounts, denying the abuse claims:  

“I am fully aware of who the ‘sources’ engaging media are and what their intention is, which is to influence the SAPS inquest – which the investigating officer has stated numerous times to my legal team and to them, that i Kiernan Jarryd Forbes, have not been named to be a suspect, but have been nothing but a cooperating witness,” said AKA. 

🖤🙏 pic.twitter.com/F9EYXaSCFO

— AKA (@akaworldwide) May 8, 2021

DA outraged at delays in payment of NGOs subsidies

May 11th 2021 at 04:43

The DA has slammed Gauteng social development MEC Morakane Mosupyoe over the delay in the payment of NGO subsidies.

The party said on Tuesday it had written to Masupyoe’s office requesting the payment process to be speeded up.

DA Gauteng shadow MEC for social development Refiloe Nt’sekhe said she had received numerous phone calls and messages from NGOs across the province complaining they have not received their first tranche of subsidy payments from the department.

“The NGOs claim they were promised the subsidy would be paid 15 days after signing their service level agreements (SLA) but to date they have not yet received anything,” Nt’sekhe said.

“They have also written to the department officials who promised them payments would be expedited. However, to date the payments have not yet been made.”

ALSO READ: DA shoots itself in the foot, again

Nt’sekhe slammed the provincial government for poor planning.

“The SLAs should have been signed a long time ago as payments can only be done two weeks after signing. Delays in processing subsidy payments has a negative impact on NGOs in terms of rendering much needed social welfare services to our people,” Nt’sekhe said.

Furthermore, NGOs are dependent on this subsidy to pay salaries of their employees.

The DA has urged Masupyoe to urgently investigate the cause of the delays and to provide exact dates when these payments will be made.

By the numbers: Expat tax through the lens of expertise

May 11th 2021 at 04:32

However, it appears that these expat tax issues are not only highly relevant for taxpayers themselves, but also for the tax practitioners who are appointed to assist in meeting their obligations with SARS.

Tax Consulting South Africa had the privilege of hosting the first Expat Tax 101 webinar with the South African Institute of Tax Professionals (SAIT) on 29 April 2021. With some 495 attendees registered for the event, this was certainly one of the largest turnouts for such an event in recent memory. 

One of the main takeaways was that there is an urgent need for more upskilling and expertise in expatriate tax. 64,4% of the tax practitioners in attendance indicated that they currently assist expatriate clients with tax services – this shows the prevalence of the issues faced by South African expats abroad from a tax perspective.

An eye-opening statistic drawn from poll results during the presentation was that 56,3% of tax practitioners confirmed that, in their experience, SARS is definitely conducting more aggressive audits. A further 24,8% of tax practitioners confirmed that SARS is indeed asking more substantive questions and 12,2% of attendees indicated that their practice is seeing very strange audits from SARS. This shows not only the sharpened focus of SARS in this area of tax law, but also that the audit process in relation to expatriates is still very much a moving target – while audits may have previously been somewhat generic and often relatively easy to manage, this is no longer the case.

On a more hopeful note, it is encouraging to see tax practitioners rising to the occasion and whetting their blades on the most pertinent issues concerning expatriate tax. While there certainly are still significant gaps in market expertise within this niche area of tax law, many practitioners are very conscious of the particular requirements of an expat clientele and should continue to take the correct steps in ensuring that their client’s obligations are properly met. 

Expatriate tax is clearly still a growing area of tax, and it will be interesting to see where we eventually land from a legal and SARS policy perspective. Tax practitioners must continue to exercise precaution when dealing with their expatriate taxpayers’ affairs, with the non-disclosure of income and incorrect application of the relevant tax rules kept top of mind from a compliance enforcement perspective.

In the ever-changing landscape of expatriate tax, it is more important than ever to ensure that you have an effective tax partner to help guide the way. Whether you are a taxpayer or a tax practitioner, it is prudent to take the right first step towards responsible tax management in these cases and ensure smooth interactions with SARS in this regard moving forward.

If you are looking for advice on your South African tax affairs, please feel free to contact Dr Dylan Price at Tax Consulting South Africa via email on dylan@taxconsulting.co.za or call +27 11 467 0810. Tax Consulting SA is the largest independent tax practice in South Africa, visit www.taxconsulting.co.za for more information.

Good news for Vumacam in Johannesburg

May 11th 2021 at 03:41
Vumacam has announced it has connected seven of its CCTV poles in Rosebank and one in Braamfontein to the City Power grid in Johannesburg.

5 important things happening in South Africa today

May 11th 2021 at 01:45
Detection of two international Covid variants in SA throws third wave prediction models into a spin; SARS makes it clear that bribes are not tax deductible; the ILO has been pulled in to help break South Africa's public service wage deadlock; and it's ANC vs ANC as the party orders Magashule to apologise to Ramaphosa for the suspension letter.

Home improvements boon evident in the figures

May 10th 2021 at 18:01
Listed companies and franchises benefit from stay-at-home trend, even as pandemic restrictions ease.

Unapologetic Ace gives Ramaphosa the middle finger

May 10th 2021 at 14:16

Embattled ANC secretary-general Ace Magashule has shown the party’s second-highest decision-making body, the national executive committee (NEC), and President Cyril Ramaphosa the middle finger and vowed: “I won’t apologise.”

ANC president Cyril Ramaphosa on Monday displayed his resoluteness for all to see who is boss by giving Magashule his marching orders and telling him to apologise.

Backed by a strong endorsement from the party’s top brass NEC, Ramaphosa told Magashule to stay at home and apologise publicly for undermining him with an unwarranted suspension.

But an adamant Magashule vowed he would not apologise to anyone and he would proceed with legal action to challenge his suspension by the ANC.

A reliable source close to Magashule, who said he met him soon after Ramaphosa made the announcement, said the secretary-general would pursue legal action and nothing would stop him from speaking publicly, or doing what he wanted to do.

ALSO READ: Ace may have a point, but I can’t find my little violin for him

“The secretary-general has appealed the suspension, he will proceed with legal action. But he will not apologise because he is convinced of the position he has taken,” the source said.

Ramaphosa, in post-NEC closing remarks, said the letter Magashule wrote to suspend him was seen by the NEC as “not authorised”, “not mandated” by any structure of the movement and in flagrant violation of ANC rules, norms and the constitution.

The NEC stopped short of hauling him before a disciplinary committee for putting the party into disrepute. Instead, he was ordered to make a public apology to party structures and members. Whether he will do this remains to be seen.

The sidelined secretary-general is left with two choices: to accept the party’s censure and humble himself to Ramaphosa, or defy and face disciplinary action that could see him being expelled.

A clear sign that the ANC wanted to see the back of Magashule was its appointment of deputy secretary-general Jessie Duarte to take over Magashule’s duties as secretary-general until his criminal trial was concluded.

Ramaphosa indicated that Duarte was abused by Magashule’s supporters at Luthuli House. He condemned the “unwarranted attacks” and “insults” by staff at Luthuli House for carrying out a duty she was asked to do by the NEC, national working committee and senior ANC officials.

ALSO READ: Decisive action sets off surge of support for Ramphosa

The NEC’s decision ended speculation the ANC could ditch its step-aside rule in a bow to pressure from Magashule’s supporters in the NEC and outside the party.

However the governing party will still go on a lekgotla to discuss strategies to strengthen its renewal and unity project as suggested by former party president Thabo Mbeki.

But all this will happen without Magashule. Magashule’s supporters pushed for the lekgotla in the hope it would accompany the shelving of the step-aside rule and withdrawal of the suspensions of Magashule, ANC MP Bongani Bongo and others.

The NEC did not entertain Magashule’s ally, Dakota Legoete, and some branches in eThekwini and North West, which called for a special elective conference.

ericn@citizen.co.za

ANC NEC: It’s done, Ace is gone – Ramaphosa says suspension stands

May 10th 2021 at 10:06

ANC president Cyril Ramaphosa says the ANC national executive committee (NEC) has instructed suspended secretary-general Ace Magashule to apologise publicly to ANC structures, for the suspension letter Magashule addressed to Ramaphosa last week.

UPDATE: Unapologetic Ace gives Ramaphosa the middle finger

If Magashule fails to apologise within a set period, he could face further censure by the party’s disciplinary structure, said the president.

Ramaphosa said the NEC noted that Magashule had no power or mandate from the party’s highest decision-making body to pen such a letter.

He also made it clear that Magashule remains suspended from the party while his Free State asbestos audit corruption case is being heard in court.

“The NEC agreed that such conduct was completely unacceptable and a flagrant violation of the rules, norms and values of the ANC. The NEC furthermore instructed the officials to advise the secretary-general to apologise publicly to ANC structures and members within a set time frame.

ALSO READ: Decisive action sets off surge of support for Ramphosa

“If he fails to do so, the ANC will institute disciplinary procedures in accordance with the ANC constitution,” Ramaphosa said.

Ramaphosa was delivering the closing address after the party’s NEC virtual meeting at the weekend, where Magashule was removed.

Speaking to the EWN, Magashule explained on Saturday that he was removed from the meeting, which “he had convened” and attended for over an hour, after which the NEC noted his intention to appeal his suspension.

Ramphosa also reiterated that party deputy secretary-general Jessie Duarte would take up Magashule’s functions while he remains suspended and condemned attacks levelled at her and Luthuli House staffers.

ALSO READ: Ace may have a point, but I can’t find my little violin for him

“Deputy secretary-general Jessie Duarte will, in accordance with the ANC constitution, carry out the functions entrusted to the secretary-general by the national conference, the national general Council, the NEC or the NWC [national working committee]…”

“Members have condemned the unwarranted attacks on the deputy secretary-general and ANC staff members at Luthuli House for carrying out decisions of the NEC, NWC and officials. These attacks have taken the form of threats, insults, unfounded allegations and misinformation,” Ramaphosa said.

Additional reporting by Hendri Pelser

 

 

 

 

We compared reward programmes – here’s what we found

May 10th 2021 at 09:49

Loyalty or rewards programmes, usually implemented by retailers and other businesses, offer rewards, discounts, and other special incentives to their customers, as a way to keep their current customers or attract new ones.

South Africa has a wide range of rewards programmes which allow customers to save when shopping and get personalised discounts and specials.

Most of us can’t get through the queue at the store unless we’ve been asked if we have a DisChem card or a Smart shopper. Here is a list of a few of the best rewards programmes in South Africa which you should consider signing up for: 

Checkers Xtra Savings 

When you sign up for a Checkers Xtra Savings Rewards Card you can save up to 25% on selected groceries instantly at the till by just simply swiping the card. The Checkers Xtra Savings rewards programme has no points or levels.

FNB eBucks rewards programme

With the FNB eBucks rewards programme you earn eBucks automatically every time you make use of your qualifying FNB or RMB Private Bank account to pay for goods. Plus, when you use your bank card at an eBucks partner you earn even more eBucks.

Perks:

  • eBucks rewards members can earn up to R8/litre back in eBucks at Engen every quarter
  • up to 15% back in eBucks when buying groceries at Checkers and Shoprite
  • up to 15% back in eBucks on health and beauty essentials at Clicks

Pick n Pay Smart Shopper 

When signing up for a Smart Shopper card at Pick n Pay, you earn points every time you swipe your Smart Shopper card. The accumulated points can be spent on anything you like. Pick n Pay also has personalized discounts every two weeks which are automatically added to your Smart Shopper card. You can make use of your discounts in store, or online once you have linked your Smart Shopper card to your online profile.

Perks:

  • you earn 1x for every R2 you spend
  • for every 1,000 Smart Shopper points you earn, you are entitled to R5 cashback on your Smart Shopper card

Discovery’s Vitality Rewards programme

The Discovery Vitality programme is made up of three different programmes that reward you for living healthier, driving well and banking well.

1 . Vitality Health Programme

Vitality Health points are earned by getting active, eating well and doing all of your health checks. You can get rewarded for each of the different Vitality Health status levels and can improve your status as you get healthier.

Perks:

  • up to 28,000 Vitality points for health checks and assessments
  • up to 30,000 Vitality points for exercising
  • up to 12,000 Vitality points for eating healthy

2. Vitality Drive Points

You can earn Vitality Drive points by improving your driver behaviour and knowledge. You can get rewarded for each of the different Vitality Drive status levels.

Perks:

  • up to 900 Vitality points for driver behaviour
  • up to 350 Vitality points for knowledge and awareness

3, Vitality Money Programme

Discovery Bank aims to assist you to get financially heathier and giving you rewards for spending your money wisely. Improve your financial health by spending less than you earn, saving regularly, paying off your property, investing for the long term and making sure you are protected against insurable events.

Perks:

  • pay up to 6.75% less on your credit
  • get up to 4.75% interest on your demand savings
  • get up to 3.75% on the money in your everyday accounts

Clicks ClubCard

You can sign up for the Clicks ClubClub card on the Clicks app on your smartphone, or sign up at your nearest Clicks store. There is no need to carry around another plastic rewards card, because you can simply open the app and scan your digital ClubCard when you shop at Clicks to earn ClubCard points and save.

Perks:

  • for every R5 you spend at Clicks, The Body Shop, or Claire’s, you earn 1 point
  • if you spend R250 in a two month period, cashback is loaded to your ClubCard
  • if you spend R1,000 in the same period, you start earning double points, which means more cashback

DisChem’s  Loyalty Benefit programmes

DisChem Baby Programme

The Baby Programme is aimed at expectant parents and for parents of toddlers up to the age of 36 months.

Perks:

  • regular newsletter about pregnancy and baby
  • free Benefits Parent and Child magazine every quarter
  • free baby bag for expectant moms.
  • trained sisters in the Well Baby Clinic who can offer advice on topics such as breastfeeding and vaccinating your baby
  • exclusive vouchers and discounts

Beautiful Woman Programme

This programme was created for customers who purchase frequently at the cosmetics, fragrance and beauty departments.

Perks:

  • R100 birthday voucher
  • for every 11th BioNike treatment products purchased, the 12th one is free
  • for every fourth identical treatment received in a salon, the fifth is free but only on selected treatments
  • free quarterly Benefits magazine

60 Plus Programme

Created for senior customers over the age of 60.

Perks:

  • double points on all items purchased in store every Wednesday, excluding all exclusions and prescriptions
  • one free blood pressure test a month, only if you get your chronic medication from a DisChem pharmacy
  • discounts on selected salon treatments
  • invitations to exclusive 60 Plus tea parties

 

 

Ace may have a point, but I can’t find my little violin for him

May 10th 2021 at 08:46

If you are someone with any patience for “whataboutism”, then you must surely be feeling great sympathy for Comrade Ace. Sure, he’s probably guilty of a whole laundry list of dirty deeds and misdemeanours, but then how many in the ANC are not?

“What about (insert almost any top ANC name here)?”

Sure, what about them? Tell us all about it, Ace.

As the secretary-general, you can no doubt anatomically name each of the 206 bones of every individual smallanyana skeleton in every closet of the ANC.

But, while we’re here, what about you?

The truth is it’s difficult for me to go to Bloemfontein these days and see what’s left of the place. That’s where I went to school and university. And while it was never going to turn into Dubai, it was a place of many charms, a pretty little binneland city that could get under your skin; it was hard not to fall in love with the place.

There was much worth preserving there and building on. But it clearly hasn’t developed according to its promise, and it genuinely does look worse today than I remember. Like so many of the dots and circles on the Free State map under the years of Ace Magashule’s premiership, it deserved better. I read recently about how a former resident went back to Bloem after not seeing it for a decade, and she simply burst into tears.

So forgive me if I fail to summon up much sympathy for Ace Magashule’s problems. You could call what’s happening to him unfair because someone like David Mabuza is equally culpable (possibly more so), and he’s flying carefully under the radar after handing the presidency to Cyril Ramaphosa in 2017.

Sure, it would be great if all the other rotten apples could be tossed out along with the likes of Ace. But at this stage, one takes what one can get, whether it’s “fair karma” or just blind karma.

Ace may be right to try to broaden the 2017 elective conference resolutions at Nasrec that declared that those charged with corruption should step aside along with those alleged, reported and accused of corruption. But I doubt that he is right on that score. For the record, the ANC conference only resolved that anyone alleged, reported or accused of corruption should face the integrity committee so that their individual cases could be assessed. That’s a long way from being obliged to step aside, as Magashule has been.

However, Ace is genuinely right if he’s feeling there hasn’t been any consistency in how the 2017 Nasrec resolutions have been implemented. We must surely feel his pain that at this very same conference it was resolved that “the land” should be expropriated without compensation and that the Reserve Bank should be nationalised. The same conference equally sang the praises of “radical economic transformation”.

Three and a half years later and it should be obvious that the Reserve Bank is not being nationalised. The land expropriation issue is still between here and nowhere and Ramaphosa recently announced that people describing themselves as backing radical economic transformation would be barred from using the ANC’s resources and premises to do so.

Much to the astonishment of Carl Niehaus, Ramaphosa described them as a “faction”.

They are a faction, sure, but in 2017 they may have been forgiven for convincing themselves that they were the winning faction, at least on the policy front, despite their chosen leader, Nkosazana Dlamini-Zuma, not having won the presidency.

But that’s the thing. Life ain’t fair. Ag shame, Ace, we know. Its rough out there.

Ramaphosa has clearly now swung the levers of power his way, and he’s making sure that his enemies are sent packing. In a quote famously (and incorrectly) attributed to Winston Churchill, the victors write the history books. In the case of Ramaphosa and his allies, they may actually be rewriting recent ANC history in the hope that they can keep getting away with it.

Those on their side and even those who are just looking for a glimmer of hope that this country can be saved from the ANC itself will be hoping this ends up working out for them. But there are deeper question marks, always, about whether life for the average South African will improve regardless of which faction in the ANC ultimately triumphs.

Poor old Ace is indeed being “victimised” in all this, which led me on a brief search for the tiny violin I like to keep around to play at moments like this as a way to eulogise his pain. But I couldn’t find it. I recently moved house, you see, and it’s honestly very small.

Here’s what is boosting the rand right now – as it hits R14 to the dollar

May 10th 2021 at 06:38
The South African rand moved below R14 to the dollar on Monday morning (10 May), as it benefited from strong commodity prices, subdued US jobs data, and positive local news.

US Dollar exchange rate: Rand hits ‘best level in years’ – due to ONE major factor

May 10th 2021 at 06:10

Well would you look at that? South Africa’s flagship currency has staged a major recovery against the US Dollar this week, reaching levels not seen since 2019. The Rand briefly dipped below the $1 : R14 mark on Monday, before stabilising between R14.00 to R14.10. But what has caused this fluctuation in the exchange rate?

What is the latest exchange rate for the US Dollar and the South African Rand on Monday 10 May?

This time last year, the Rand was in meltdown against the US Dollar. As the value threatened to break the R20 mark, months of gradual recovery brought the currency back to the R15 range. But, following a strong few weeks, ZAR has made in-roads on the greenback – yet experts believe this is probably the peak of the resurgence:

“It will be interesting to see whether there is enough momentum for the rand to make a run at the 14.00 level. The expectation is for the rand to test lower, but the fact that 14.05 has held a couple of times leads us to believe that going lower could be a tough slog.”Andre Cilliers, currency strategist at TreasuryONE.

$USDZAR Rand below R14 to the US dollar.

Love it👌🏽 pic.twitter.com/xiZK8uqNcW

— Mthonti_ (@Mthonti_) May 10, 2021

Why is ZAR performing so well?

Quite simply, some jitters in America have helped the Rand along here. Lower-than-expected job creation numbers, combined with higher-than-expected unemployment figures, have somewhat devalued the US Dollar in foreign markets, allowing currencies like ZAR to gain ground on the exchange rate.

Although some have claimed that the Rand has strengthened against the Dollar due to Ramaphosa’s decision to suspend Ace Magashule from the ANC, this suggestion remains anecdotal. This swing in value could, however, lead to cheaper petrol prices next month – given that our oil costs are partly dependent on ZAR’s performance against USD.

With the risk on tone and the everything rally continuing this Monday, the rand breaks 14.00 to the US dollar. pic.twitter.com/whYP8047CM

— Nick Kunze (@NickKunze2) May 10, 2021

ANC to wrap up weekend’s dramatic NEC meeting

May 10th 2021 at 05:07

The weekend’s dramatic virtual meeting of the national executive committee (NEC) of the ANC will wrap up on Monday.

The meeting was engulfed by drama, ranging from public spats and audio leaks to some members being booted out of the meeting itself.

Top of the agenda was the party’s implementation of the resolution and guidelines on the step aside rule for members charged with serious crimes.

The meeting also covered the upcoming local government elections, organising campaigns an the update on the Covid-19 pandemic and vaccine rollout.

Embattled ANC members Ace Magashule and Bongani Bongo were booted out of the meeting on Saturday.

Magashule, who is appealing against his suspension, attended the special meeting as per an announcement by the party on Friday. He had previously vowed to attend the meeting and insisted his suspension was invalid and he still held the office of secretary-general.

It is widely reported he was booted out of the meeting as some members charged that his presence rendered the meeting “not properly constituted”, calling for his exclusion.

This was followed by audio leaks which the party has since condemned and raised its concerns about.

The party said it was looking into the leaks, including the unauthorised dissemination of ANC NEC material on social media platforms.

ALSO READ: Mbeki ‘fuels’ Magashule’s rebellion against ANC leadership

“Any conduct involving leaking of confidential information shall constitute a violation of this communications protocol and the ANC has a responsibility to deal with this act of misconduct in the same way as it would deal with any act that brings the organisation into disrepute,” ANC spokesperson Pule Mabe said.

“In terms of this protocol, any member who leaks or releases information to the media or public without due authorisation or prior approval, shall be guilty of misconduct.

The party is expected to release the meeting resolutions in the coming days.

Fighting for ‘powerhouse’ Magashule to the bitter end

May 9th 2021 at 16:38

Former president Jacob Zuma’s faction is not about to lose their last ‘powerhouse’ in ANC secretary-general Ace Magashule and fighting for him to stay in office is what they will do.

With Magashule, their last hope, first put in a tight corner and then out in the cold after he was sidelined by his ANC top brass fellows, the Radical Economic Transformation (RET) camp is rearing for war.

They will do anything – including going to court to challenge his suspension and the step aside rule.

They promised to make a “big noise” to demand an elective special national conference. The whole saga has prompted fears of an imminent split in the governing party.

ALSO READ: Double blow for Zuma faction as Ace, Supra face wilderness

Experts believe the conditions were ripe now than ever before for the governing party to rupture.

In one of several leaks of the ANC national executive committee (NEC) meeting discussions this weekend, former President Thabo Mbeki, spoke of a possible split in the party.

Mbeki knew better because he was ousted under similar circumstances after the Polokwane conference which resulted in some prominent ANC members establishing the Congress of the People (Cope) in late 2008.

Mbeki : Chair do we still have the ANC, do w still have the movement #ANCNEC pic.twitter.com/a4KGVmuJta

— Marxist (@Kgomo389) May 8, 2021

As a fightback in what they see as an attempt to pull the carpet from under their feet, the RET members threatened to challenge what they call “selective” implementation of the step aside rule by the national executive committee (NEC) in a court of law.

They raised voices to call for the convening of a special conference where new leaders would be elected – which meant the ANC must start afresh by dissolving and electing a new leadership, 18 months before the next conference in 2022.

This demand is unlikely to be acceded to unless as ANC constitution provided that a two-thirds majority of branches should support such a proposal, which is impossible under the circumstances.

The special conference organised in this fashion was unprecedented in the party’s almost 110 years of existence.

READ MORE:  Is there any way for Cyril and Ace to save this toxic relationship?

Besides, it came at a time when President Cyril Ramaphosa’s grip on power was gradually strengthening in the party and the state.

Magashule himself at the weekend conceded that the Ramaphosa camp was dominant in the NEC and that Ramaphosa was now fully in control of the party.

With Zuma out of the way and with no state resources at their disposal to rely on, the Zuma and Magashule camp had weakened since Nasrec 2017.

They have to hold onto the little power they have even if it means destroying the party because of an individual.

Magashule’s powerful position as the ANC secretary-general made him the last hope for the faction to have a semblance of control of the ANC.

They had to fight to the bitter end to keep him in the post hence the current noise to rally around him.

Some of them even spoke of collapsing the current NEC meeting by walking out leaving the Ramaphosa side alone so that they were unable to proceed.

ALSO READ: ANC will be the biggest loser from its internal leaks, says analyst

Indeed that could force a compromise and even the convening of a special conference.

The synchronised call for the elective special conference appeared to have been rehearsed and planned the RET members.

Those associated with the RET claimed the ‘step aside’ rule was applied selectively because it targeted Magashule and ANC MP, Bongani Bongo.

RET faction member, Olly Mlamleli, who is former Mangaung mayor and who was MEC for co-operative governance and traditional affairs (Cogta) in the Free State under Magashule, led the call for the ANC’s step aside rule to be challenged in court.

In a leaked audio recording, Mlamleli spoke at length during an RET group strategising meeting attacking Ramaphosa and lambasting the NEC for Magashule’s suspension.

She highlighted the need to approach the court to challenge the step aside decision.

“Let’s fight and make a lot of noise for a special conference and we take this action to court. Let’s take action, let’s interdict the discussion of step aside.

“Let’s take court action because the longer comrade Ace is outside that meeting, administration is going to be in tatters and highly manipulated. That’s’ exactly what is needed,” she said.

LISTEN: Ramaphosa to Zuma: ‘You believe that I’m deceitful and not to be trusted’

Mlamleli became the second RET member in one weekend to call for a special ANC conference after NEC member, Dakota Legoete, whose address at the NEC was leaked to the media in which he demanded the invocation of Rule 29 of the ANC constitution for special conference.

Mlamleli put her hopes on the power of ANC branches to fight the battle against step aside and Magashule’s suspension.

She said for this to happen branches must be informed because ‘amandla asemasebeni’ (power is in the ANC branches) to fight the step aside resolution.

“Branches are quiet, branches need to be led comrade – we need to lead branches. Everybody in the street need to know exactly what the resolution says. Their timing is very wrong because of elections,” Mlamleli said.

There was a need for a special conference in addition to the ANC Women’s League (ANCWL) call for a national general council.

But Ramaphosa’s supporters within the NEC had been standing up in his defence and the defence of the NEC decision.

For the second time in the last few months, “Ramaphosaites” have raised the tempo against the RETs.

Northern Cape ANC chairperson, Dr Zamani Saul, was uncompromising about the need to implement “step aside”.

READ MORE: ANC vs ANC – Busy start to special NEC meeting

He told the Northern Cape’s Pixley kaSeme regional conference that step aside was fundamental to the ANC renewal agenda.

“So an attack on the step aside is a direct attack on renewal, an attack on the renewal is a direct attack on radical socio-economic transformation because a corrupt and unethical ANC cannot midwife and bring about radical socio-economic transformation. So without renewal, radical socio-economic transformation is a still-born,” Saul said.

The Northern Cape along with the Eastern Cape, had taken a strong stance against corruption in the ANC.

Eastern Cape ANC provincial chair, Oscar Mabuyane fired his health MEC Sindiswa Gomba over corruption pertaining to the late Nelson Mandela’s memorial service at Buffalo City Municipality, where Gomba was a councillor before she was appointed as MEC.

Saul told delegates at regional conference that this weekend’s NEC would be recorded in history as the watershed moment in the fight for renewal of the ANC.

Saul encouraged the regional conference to craft a clear resolution in support of the step aside Nasrec resolution.

ALSO READ: ‘ANC has never protected me’ – Zuma lifts lid on top six meeting

Wit the eThekwini ANC branch where Zandile Gumede was a member and Supra Mahumapelo’s Mahikeng ANC branch in the North West had called for Magashule to be reinstated.

Both Gumede and Mahumapelo were expected to step aside due to their malfeasance.

Continuing her attack of the NEC step aside decision, Mlamleli said during the ANCWL’s national executive committee meeting, 20 were against Magashule stepping aside.

She said the 20 demanded that the ANC conference resolution be implemented as is without being modified”. “I just wanted to clarify those numbers,” she told the meeting.

Mlamleli, who had been charged along with Magashule, several Free State provincial government officials and business people, lashed out at Ramaphosa for communicating directly to branches and the public about NEC decisions including the step aside policy instead of leaving the task to Magashule.

“People are in a hurry, people are in a hurry,” she said as she lambasted Ramaphosa’s closing remarks after NEC meetings as an attempt to sideline Magashule.

READ MORE: ‘NEC rushing to implement step aside guidelines that are lacking

She accused the ANC integrity commission of taking decisions without a meeting quorum and simply making announcements without having sat in quorating meeting.

“People are charged selectively,” she said.

She claimed Magashule was given 30 days to consult but others were not.

“What about others, are we also not given 30 days to go and consult amadlozi (ancestors) and abo-gogo bami (my elders), my uncles and nephews but only one person is told to go consult,” Mlamleli said.

She suggested that the meeting must talk with proposals “so that the leadership must know what to do”.

ericn@citizen.co.za

ANC considering retrenching 50% of its staff members

May 9th 2021 at 14:13

During the ANC’s national executive committee (NEC) virtual meeting on Sunday, its treasurer-general, Paul Mashatile, said the party was now mulling cutting its staff by 50%.

Sources verified a leaked recording that News24 has in its possession. They claimed Mashatile told the meeting the party would have to cut staff members.

At the meeting, he said the organisation was looking at “right-sizing” itself.

“Officials have agreed that we’ve probably had to cut our staff by 50%. But those reports will come to the NEC. A lot of work is being undertaken. Comrade Febe is leading the process of restructuring and right-sizing,” he added.

ALSO READ: ANC slams leaked audio recordings of NEC meeting discussions

According to the Sunday Times, SARS had taken R17 million meant for the governing party, which was part payment for its ballooning tax bill.

The report alleged the party owed SARS millions, dating back to when Jacob Zuma was party president and Zweli Mkhize was the treasurer-general.

And while the ANC continues to limp from one financial scandal to another, Mashatile said more would be done to try and avoid the situation from happening, which would, in turn, affect the employers.

“There’s another team that’s looking at crowd-funding and all those aspects. We are also looking at fundraising for elections,” he added.

pic.twitter.com/1P9j5pAKFw

— The Insight Factor (@insightfactor) May 9, 2021

News24 understands a letter, dated 30 April, which was sent five days after payday, warned staff members the financial problems the organisation was facing would continue for the next three months.

In the letter, the party’s general manager, Febe Potgieter, told employees they should expect late payments.

READ MORE: ANC vs ANC – Busy start to special NEC meeting

The letter read: “Due to financial difficulties, this situation of uncertainties with regards to the exact date of the payment of salaries is likely to continue for the coming three to six months.”

Man Utd keep Man City waiting for title with Villa victory

May 9th 2021 at 12:35

Manchester United put Manchester City’s Premier League title celebrations on hold after coming from behind to win 3-1 away to Aston Villa on Sunday.

Defeat for Ole Gunnar Solskjaer’s side would have handed the title to City and their local rivals would have enjoyed seeing Villa’s Bertrand Traore opening the scoring midway through the first half.

But United hit back with two goals in four minutes after the break, Bruno Fernandes equalising from the penalty spot before Mason Greenwood put them ahead.

United wrapped up the win thanks to substitute Edinson Cavani’s goal three minutes from time.

Victory left second-placed United 10 points behind leaders City, with 12 still on offer to the Red Devils from their final four league games.

United, however, face Leicester and Liverpool in the coming week and defeat in either of those matches will see City, beaten 2-1 at home to Chelsea on Saturday, crowned champions before Pep Guardiola’s men are away to Newcastle on Friday.

United kicked off having not lost a Premier League match at Villa Park since 1995, a year before current manager Solskjaer joined the club as a striker.

Villa’s hopes of ending that run against United were not helped by England international Jack Grealish’s ongoing absence due to a shin injury, with Egypt forward Trezeguet a long-term absentee as well.

Grealish looked on from the stands on Sunday as did England manager Gareth Southgate, himself a former Villa defender.

Villa went ahead against the run of play in the 24th minute.

Fred’s poor pass to Scott McTominay allowed John McGinn to gain possession, with Douglas Luiz playing in Traore.

The Burkina Faso international turned neatly and held off the challenge of Victor Lindelof before beating United goalkeeper Dean Henderson with a powerful shot into the far corner.

United nearly equalised five minutes before half-time but Greenwood’s low shot was pushed away by Emi Martinez.

But United were level in th 52nd minute when Fernandes scored from the spot after Paul Pogba was brought down in the box by Luiz.

And they led in the 56th minute after Aaron Wan-Bissaka found Greenwood inside the box, with the teenage England forward beating Martinez with a low shot.

Worryingly for United, defender Harry Maguire limped off 12 minutes from time.

But Cavani made the game safe with an 87th-minute glancing header from Marcus Rashford’s cross.

And there was still time for Villa’s Ollie Watkins to be sent off after he was shown a second yellow card for diving.

‘NEC rushing to implement step aside guidelines that are lacking’

May 9th 2021 at 12:03

The African National Congress (ANC) branches in the eThekwini region have pledged their support for the party’s secretary-general Ace Magashule and former president Jacob Zuma as the future of this camp hangs in the balance.

Members of the party gathered at the Durban Girls High School hall on Sunday to outline a detailed plan to support Magashule and Zuma as the branches believe that the ANC leaders, among others, were being targeted internally within the party.

ALSO READ: ANC vs ANC – Busy start to special NEC meeting

Addressing the media, ANC eThekwini branches spokesperson Ntando Khuzwayo said the national executive committee (NEC) did not follow the right processes in regards to the party’s step asides guidelines.

“The NEC cannot willingly suspend or amend resolutions to suit its internal fights. The resolutions says that you must only suspend those who fail to give an explanation or voluntarily step down… and for that to happen there must be some organisational process that must be followed,” he said.

eThekwini branches are united and calling for disbandment of the NEC of ANC that has failed to implement resolutions of Nasrec to effect positive change in lives of people @MYANC pic.twitter.com/d78vzaUq5b

— Nkosentsha Shezi (@NShezi) May 9, 2021

Khuzwayo indicated the NEC had also failed to properly consult its branches over the guidelines.

“The NEC has rushed to implement guidelines which are lacking in terms of what are the recourse for the members. The NEC has only been communicating through the media and not a single meeting has been convened to deal with these matters of the guidelines,” he continued to say.

ALSO READ: Masina says ANC’s step-aside rule shouldn’t target individuals

He further revealed the branches were demanding the NEC to to convene a National General Council or a special national conference “if necessary”.

The branches have also called for the reinstatement of those have been affected the guidelines, Khuzwayo added.

Step aside rule

On Tuesday, ANC’s national working committee (NWC) reaffirmed a decision of the NEC taken in March 2021, that all members who have been charged with corruption or other serious crimes must step aside within 30 days.

The NEC had resolved to implement the party’s 2017 Nasrec conference resolution.

Stepping aside may include an ANC member relinquishing, forgoing or refraining from exercising her or his rights, duties and responsibilities as a member, office bearer or public representative.

READ MORE: ANC slams leaked audio recordings of NEC meeting discussions

Magashule was among several ANC leaders affected by the resolution, but he was then suspended this week after he failed to step down from his position.

However, Magashule indicated that he would be active in the ANC while he awaits the outcome of his appeal regarding the suspension.

His suspension has been seen as a blow for the Zuma camp, which is trying to find a replacement for the former president, who operated from the sidelines, following his recall by the ANC in 2018.

Since Magashule was elected at Nasrec, Zuma followers looked to him to take over as their moral leader.

Branches of eThekwini Region invite media in the briefing that will publicly outline detailed plan to support President #Zuma and SG, #AceMagashule

Venue : Durban Girls,
ML Sultan Campus
Date : 9 May at 12h00 pic.twitter.com/RsZ14Nlp6M

— PW Ngcobo???????? (@Nyuswapw) May 8, 2021

READ NEXT: All Zuma and Ace did was fight for the black child, says Free State RET Forces

Here’s how much the average taxpayer earns in Joburg, Cape Town and Durban

May 9th 2021 at 11:30
The South African Revenue Service (SARS) has published its tax statistics for the 2020 financial year, providing a breakdown of what the average taxpayer looks like in South Africa.

Nienaber bags Di Data Pro-Am title despite wayward driving

May 9th 2021 at 10:52

Wilco Nienaber battled to find an accurate drive in the play-off on Sunday in the Sunshine Tour’s and Challenge Tour’s Dimension Data Pro-Am on the Montagu course at Fancourt, and, in the end, that was not enough to stop him pulling off his maiden professional victory.

On the third play-off hole, he had two putts to win, and he took the opportunity with both hands after his birdie on the final hole got him into the play-off with Sweden’s Henric Sturehed. He cosied his 25-footer for birdie up close, and then tapped in for par to take advantage of the Swede going out of bounds off the tee in the third play-off hole.

“It’s not the nicest finishing hole if you’ve got some butterflies in your stomach, but I knew I was hitting it well and I just wanted to give myself a chance,” said Nienaber. “It’s basically like match play. After I missed out the first time, I wondered if I was going to get the opportunity again. I finally got it.”

The win is going to get him into the World Golf Championship-FedEx St Jude Classic in August, and, if he hasn’t already by then, Nienaber is going to blow American fans away with his distance off the tee.

ALSO READ: McIlroy two back of leader Mitchell at Quail Hollow

It was that very characteristic which nearly cost him his chance in the play-off. While the advantages of being 60 to 70 metres longer than your opponent off the tee in a “match play” situation are obvious, there is much to be said for keeping the ball on the fairway. And, not once in three journeys down the 18th for the play-off, did he keep it on the closely-mown area.

He pushed it right twice, and, in the final trip down 18, he pulled it left. He was able to go for the green the first time, but he battled to match the par of Sturehed. He laid up the second time, and again was able to match the Swede’s par.

On the third occasion, he pulled it left, and he was rescued from another scrambling attempt at staying in it when Sturehed pushed his tee shot out of bounds. In any case, Nienaber’s heart-rate must have cranked up a notch when Sturehed nearly saved par with a 25-footer on that final play-off hole.

“It was a little tougher than I wanted it to be but I pulled it off at the end,” said Nienaber. “I’m emotional obviously. I really played nicely. The whole week is a special week. I wanted to win this event, and I have done so.”

He was unable to say anything else as the enormity of the win sank in – especially since there has been so much pressure on him to get his hands on that first trophy after he first burst on the scene.

For now, it will all be about managing expectations – and getting ready for the world stage.

Courtesy satourgolf.co.za

ANC slams leaked audio recordings of NEC meeting discussions

May 9th 2021 at 09:29

The African National Congress (ANC) has slammed the recently leaked audio recordings from the party’s National Executive Committee (NEC) special meeting deliberations, which have thrust the growing tensions within the party into the spotlight yet again.

The audio recordings emerged on social media, particularly the clip of what has been speculated to be former President Thabo Mbeki.

In the one minute and 34 second clip, Mbeki could be heard summarising concerns expressed by another NEC member, who called for a two- or three-day retreat to discuss the question: “Do we still have any organisation called the ANC?”

READ MORE: ANC vs ANC – Busy start to special NEC meeting

The former president also mentioned that ANC Women’s League (ANCWL) leader Bathabile Dlamini and league secretary-general, Meokgo Matuba, told the gathering, on behalf of the league, that the “movement is about to collapse”.

Meanwhile, the ANC has since raised its concern over the leaks.

“The ANC is concerned about the growing tendency of leaking internal discussions of the organization, including the implications of such practice.

“A case in point is the leaking of information to a digital media platform referred to as Insight Factor that has appointed itself to perform the task of giving ‘as it happens’ updates of the NEC.

“We are aware that they are supplied information by their own proxies to further a nefarious task of not only dividing the ANC, but also to drive a particular narrative that goes against the united spirit displayed by the meeting of the NEC currently underway,” ANC national spokesperson Pule Mabe said in a statement on Sunday, 9 May.

ALSO READ: Duarte blames Magashule’s backers for leaked recording of her – report

Mabe highlighted that the leaks were in violation of the ANC’s communication protocol, which states that “any member who leaks or releases information to the media or public without due authorisation or prior approval, shall be guilty of misconduct.”

“The ANC legal team is looking into this matter of leaks, including the unauthorized dissemination of ANC NEC material across social media platforms,” he added.

Listen to the leaked audios below:

Mbeki : Chair do we still have the ANC, do w still have the movement #ANCNEC pic.twitter.com/a4KGVmuJta

— Marxist (@Kgomo389) May 8, 2021

Another leak of ANC treasure general Paul Mashatile also emerged in the public.

In the audio clip, Mashatile can heard discussing a number of matters during the NEC meeting.

LISTEN: Ramaphosa to Zuma: ‘You believe that I’m deceitful and not to be trusted’

The special meeting – which is taking place virtually from Saturday to Monday – will see the NEC discussing matters relating to the 2017 Nasrec conference resolution, Covid-19, the upcoming local government elections and the integrity commission’s reports.

pic.twitter.com/1P9j5pAKFw

— The Insight Factor (@insightfactor) May 9, 2021

Ramphosa and Duarte leaks

Last month, leaked audio recordings from a meeting between the party’s top six officials and former president Jacob Zuma have been making the rounds on social media platforms.

The leaks include clips from the party’s intense NEC meeting in late March and recordings of ANC president Cyril Ramaphosa and deputy secretary-general Jessie Duarte.

Additional reporting by News24 Wire and Thapelo Lekabe

READ NEXT: ANC will be the biggest loser from its internal leaks, says analyst

Common money saving mistakes and how to avoid them

May 9th 2021 at 07:50

With the cost of living increasingly expensive, it is important to know how and where to save money. In this way, you can get a handle on your finances and feel more in control.

We all have different money management styles. Along the way can find ourselves making mistakes, which can cost us a lot and possibly set us back on our money saving quest. Some common mistakes that people tend to make when trying to save money are:

Not having a financial plan

A budget is the most important part in your money management. Knowing where your money is going allows you to plan properly and know what you can and cannot afford. This allows you to find areas where you are overspending and where you need to manage the spending. To avoid this mistake, it is essential that you commit to preparing and reviewing your budget so that you can gain more control of your finances.

Excessive spending

Not budgeting will often lead to excessive spending, as you will have no way of tracking how much you are really spending. Increases in the cost of living result in higher food prices for most South Africans. If you are not tracking and reviewing your expenses, your income may not be enough to cover your expenses which will lead you to another money saving mistake.

Living on borrowed money

This is using credit such a credit cards, loans and overdraft to pay for your bills. Always remember to have a detailed budget detailing your expenses. It is one thing to just have a budget and not use it for its intended purpose. Therefore, always review and track your budget so that you can curb excessive spending and identify areas where you can chop and change to allow you to save money.

Not having an emergency fund

It is advisable to have saved three to six months of your income in an emergency fund, to help avoid a crisis in a cash emergency. Without one, people often use credit to solve the problem. Should you experience this unfortunate situation, focus on paying off that short-term debt by keeping the minimum payment amount and paying a little bit extra so that you decrease the interest payable and can finish paying off the debt quicker.

Also commit to steadily starting to save towards an emergency fund to avoid similar situations happening in the future. Saving requires discipline and commitment, therefore identify your savings plan and align it to a goal. This will help you to commit, as the end result becomes more desirable and reachable.

Not being honest with yourself about your current financial position

If you have no idea about your financial situation, or do not want to face up to your reality, it makes it even harder to plan your finances as you do not have a clear starting point. Start by identifying and dealing with your current money savings techniques and identify areas that need more attention and work on those areas. This mostly speaks to your emotions towards money – how you handle money will determine how money works for you.

Not having a savings account

Always have an account that is for putting away the money you have saved. Without one, you will likely find yourself using those funds and not being able to trace your savings. Consider saving using a tax-free savings account, as this allows you to grow your savings tax free throughout your lifetime, without capital gains tax.

Making your money work for you takes time and requires positive money practices. Remember to not make any of these money saving mistakes so that you can get closer to your financial goals.

Nelisiwe Mbara is a certified financial planner at Alexander Forbes. This article first appeared on Moneyweb and has been republished with permission.

ANC rubbishes Mabuza, Mashatile graft claims

May 9th 2021 at 06:09

The ANC has said that it “rejects and condemns in the strongest possible terms” allegations that its deputy president David Mabuza and treasurer general, Paul Mashatile, pocketed $2 million meant for Luthuli House.

The Mail & Guardian reported on Saturday that the duo pocketed money from donors meant for party coffers.

The publication quoted two anonymous sources.

Luthuli House’s financial wows are well know and insiders allege that the party is sitting on a massive tax bill, which includes millions of rands in pay-as-you-earn tax, which was deducted from salaries, but not paid to Sars.

ALSO READ: ANC vs ANC – Busy start to special NEC meeting

In response to the article, the ANC national spokesperson Pule Mabe issued a statement on Sunday morning, saying there is “no iota of truth” to the graft allegations.

“The ANC is considering laying a complaint with the Press Ombudsman,” Mabe said.

@MYANC rejects a report in the online edition of the Mail and Guardian of 8 May 2021 under the headline: “Mashatile, Mabuza accused of pocketing ANC donations”. pic.twitter.com/dX3t22fxHq

— African National Congress (@MYANC) May 9, 2021

“It is unfortunate that the Mail & Guardian has decided to cast unfair aspersions on the integrity of our leaders,” Mabe said.

“While the ANC has been honest and frank about its current financial challenges, it is unfortunate that some in the media chose to seize on these difficulties that confront our movement to manufacture and peddle falsehoods and to tarnish the reputation of individual leaders.”

The publication reported that ANC president Cyril Ramaphosa apparently lobbied around R30 million from “donors in 2019 and 2020 to help the ANC recover from its financial woes”.

The Citizen previously reported that the cash-strapped ANC had an R80 million tax bill when Mashatile took over as treasurer-general in December 2017, and that the party reportedly owed a further R140 million in provident-fund debt.

To date, Mashatile has reportedly paid over R100 million servicing this debt, but the bill remained high because of the interest.

Protect your income with disability and critical illness cover – Get a quote today

May 9th 2021 at 06:07
By: Partner
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ANC vs ANC – Busy start to special NEC meeting

May 9th 2021 at 05:51

The first day of the special ANC national executive committee’s meeting was filled with drama, even before it had even started.

We take a look at some of the developments:

ANC’s Women’s League

On Friday evening an ANC’s Women’s League meeting reportedly descended into chaos as they debated secretary-general Ace Magashule’s suspension from the party.

The league, who has traditionally been in Magashule’s corner, washed their hands of their suspended comrade and called for unity in the movement.

ALSO READ: ANC rubbishes Mabuza, Mashatile graft claims

“We have noted tensions in the movement that are getting worse. Our movement is making headlines for the wrong reasons of in fighting, divisions, and hate and the sad thing is that everything is played out in the media and to the gallery,” the league said in a statement.

More specifically, they singled out Magashule: “We are worried about the public conduct of our leaders including the Secretary General of the ANC.”

This after Magashule tried to suspend party president Cyril Ramaphosa this week.

The Women’s League said that the ANC must implement all Nasrec resolutions. This includes the step aside resolution that has lead to Magashule’s current suspension.

Ace kicked out

The NEC meeting is being held over three days virtually.

While on suspension, Magashule is not allowed to carry out his official duties as secretary-general.

However, he attended the start of the NEC meeting before being booted out.

Following his expulsion from the meeting, Magashule insisted that he remains active in his position.

Magashule explained that he was removed from the meeting, which “he had convened” and attended for over an hour, after which the NEC noted his intention to appeal his suspension.

Bongani also given the boot

Later on Saturday, MP and former state security minister Bongani Bongo, was also given the boot from the NEC meeting.

While the ANC has not issued any official comment on the NEC meeting, it is likely that Bongo was removed after he signalled his intention to appeal the NEC’s decision forcing him to also step aside.

The MP, who was cleared of bribery and corruption by the Western Cape High Court in February, is currently facing charges of corruption, fraud, theft and money laundering for his alleged role linked to dubious land deals in Mpumalanga amounting to almost R124 million.

More ANC fracas

During the first day of the three-day meeting, audio clips have been surfacing on social media. The clips appear to have been leaked from inside the NEC’s special sitting but has not been confirmed.

However, the leaked recordings speak to deep divisions within the ruling party’s top leadership.

At the same time City Press is reporting neither the Free State nor Gauteng provincial structures have submitted a list of names of cadres implicated in corruption or serious offences.

These lists were mandated after the NEC previously indicated that the step aside resolution will be implemented.

The publication is also reporting that some ANC branches are lobbying the NEC to reinstate Magashule. If this does not happen, they will reportedly insist on an early national general council.

The NEC meeting continues until Monday.

Chelsea beat Man City to delay Premier League title party

May 9th 2021 at 04:28

Chelsea forced Manchester City to put their Premier League title party on hold on Saturday, winning 2-1 to strengthen their grip on a top-four place as Liverpool kept their Champions League qualification hopes alive.

Victory for City in a rehearsal for the Champions League final would have confirmed them as English champions for the third time in four years but they must wait for their inevitable coronation.

Hundreds of City fans had gathered outside the empty Etihad Stadium hoping to spur their team on to victory.

As supporters spilled into the road and blue flares were lit, the coaches carrying the players needed to slow down to get through the crowds as they made their way to the ground.

Pep Guardiola’s men were on the right track when Raheem Sterling gave them the lead but Hakim Ziyech levelled in the second half and Marcos Alonso grabbed the winner in the dying seconds.

Sergio Aguero could have made his side’s task much easier on the stroke of half-time but saw his casual Panenka spot-kick easily saved by Edouard Mendy, with Guardiola turning away in frustration.

The win lifts the Londoners into third spot above Leicester and six points clear of fifth-placed West Ham with just three games left for Thomas Tuchel’s side.

Outgoing champions Liverpool beat Southampton 2-0 in the late kick-off to stay in the mix for the top four but a 3-1 defeat at Leeds was a hammer blow for managerless Tottenham.

Guardiola was frustrated at the manner of his side’s defeat — just their fifth loss of the season — but they have a huge 13-point lead over second-placed Manchester United.

“We missed our chance in the last minute of the first half for the penalty, but we were in a good position,” he told Sky Sports.

“We conceded a goal, suffered for 15 minutes, then reacted well, but in the end they scored.”

On the missed spot-kick, Guardiola said: “I have always said to him (Aguero), take one decision and take it full convincing, so he decided to do it this way. I have nothing to add.”

– Chelsea threat –

Tuchel’s in-form team ended City’s dreams of a historic quadruple by beating them in the FA Cup semi-final last month and they once again proved tricky opponents.

Guardiola made nine changes from the side that saw off Paris Saint-Germain in midweek while Chelsea made five changes following their triumph over Real Madrid.

Sterling broke the deadlock shortly before half-time, tucking home after a poor touch from Aguero following a pass from Gabriel Jesus.

City should have gone into the break two goals in front after Jesus won a spot-kick when he was bundled over by Billy Gilmour but Argentine striker Aguero squandered the chance.

As the second half wore on the visitors started to establish a foothold and they equalised just after the hour mark when Cesar Azpilicueta picked out Ziyech, who drilled home from the edge of the area.

The finish was frantic. Chelsea substitute Callum Hudson-Odoi had a goal ruled out for a marginal offside before Sterling had a penalty appeal turned down.

Alonso slotted home the winner in stoppage time after Timo Werner pulled the ball back to complete the turnaround but City could be crowned champions as early as Sunday, if Aston Villa beat United.

Tuchel admitted the match would have had a different complexion if Aguero had converted from the spot.

“If they score the penalty maybe it is over before it starts — at 2-0 you have no chance to come back,” the Chelsea boss said.

“I was impressed by the reaction and the performance in the second half. If you want to steal all three points here after being down, you need a bit of luck, decisions from the referee.”

Liverpool manager Jurgen Klopp was delighted to see his team back to winning ways following two costly draws, with Sadio Mane and Thiago Alcantara both finding the net at Anfield.

Speaking about his side being in the race for the top four, he told the BBC: “We are, kind of. It’s not impossible but it’s difficult. We will give it a try and see where we get to.”

Earlier, Crystal Palace beat already relegated Sheffield United 2-0.

Daily news update: New variant detected in SA, ANC NEC meeting and TTM win Nedbank Cup

May 8th 2021 at 23:00

Click on the links below for the full story or visit our home page for the latest news.

Daily Covid-19 update: India variant has been now detected in SA

The only two nurses on duty, Sipho Wilson Batlhaping and Ruth Seikaneng walk through a corridor of the Reivilo Health Centre in Reivilo, a town an hour away from Taung, in the North West province, on 3 September 2020. Picture: Thomson Reuters Foundation/Gulshan Khan

Speaking about the B.1.617 variant, circulating widely in India, Health Minister Dr Zweli Mkhize confirmed on Saturday evening that it has now been detected in South Africa.

Eleven cases of the B.1.1.7 – first detected in the UK – and four cases of the B.1.617.2 – first detected in India – were confirmed.

This means South Africa now has three variants circulating.

Magashule ‘will be active in ANC’ as he awaits appeal outcome

Ace Magashule

File picture. ANC Secretary General, Ace Magashule appears at Bloemfontein Magistrate’s Court with his co-accused, including 3 people arrested last night on February 19, 2021 in Bloemfontein, South Africa. Magashule were arrested, charged and released on bail in connection with the multimillion rand asbestos contract scandal in the Free State. (Photo by Gallo Images/Alet Pretorius)

African National Congress (ANC) secretary-general Ace Magashule has reiterated his claim that he will remain active in his position despite his suspension from the party.

This comes after reports emerged that Magashule was kicked out of the ANC’s national executive committee (NEC) special meeting earlier on Saturday, 8 May.

Speaking to the EWN, Magashule explained that he was removed from the meeting, which “he had convened” and attended for over an hour, after which the NEC noted his intention to appeal his suspension.

Bongani Bongo also given the boot from ANC NEC meeting

Bongani Bongo.

Former state security minister Bongani Bongo outside the Western Cape High Court after his appearance on 15 February 2021. Picture: Gallo Images/Brenton Geach

The African National Congress (ANC) national executive committee (NEC) has now also removed its MP and former state security minister Bongani Bongo from the party’s special virtual meeting.

While several news outlets are reporting that corruption-accused Bongo was given the boot from the meeting, it is unclear at this stage what the removal from the meeting means.

However, it seems likely that Bongo was removed from the meeting after he signalled his intention to appeal the NEC’s decision forcing him to step aside following in the footsteps of Magashule.

The Zulu king has been named insists Mangosuthu Buthelezi

Buthelezi

Zulu Kingdom Prime Minister Mangosuthu Buthelezi. Picture: IFPMedia

The AmaZulu Traditional Minister, Prince Mangosuthu Buthelezi has insisted that the new king of the Zulu nation has already been named amid divisions within the royal family over how the succession battle should be handled.

Buthelezi was addressing the media on Saturday evening after then-prince MisuZulu KaZwelithini was named king the day before.

“As far as the family and the Zulu nation is concern, the king is already on the throne, but of course you know that there are formalities that should be followed from the side of the government,” Buthelezi told eNCA.

NPA ‘on brink of making progress’ on state capture investigations

Shamila Batohi

National Director of Public Prosecutions (NPPA) Adv Shamila Batohi during a media briefing in Silverton where she introduced the new Investigating Director at NPA Head Office on Friday, 24 May 2019. (Photo by Gallo Images / Phill Magakoe)

The National Prosecuting Authority’s Investigating Directorate (ID) is “on the brink of making significant progress” on state capture investigations, said the National Director of Public Prosecutions, Shamila Batohi.

She said the change in the Zondo Commission’s regulations, to allow law enforcement agencies to access evidence presented at the commission, has made a big impact.

They are, however, wary of bringing cases to court, where evidence is still going to be led at the commission.

No misconduct found in Bellville Sassa water cannon incident

Covid 19 lockdown

JMPD officer Tebogo Shabalala helps Gogo Xaba at SASSA paypoint at Aexandra Plaza in Johannesburg, 30 March 2020, for their grants. SASSA paypoints are going to be paid from 30 and 31st of March, starting with older people and people with disabilities. Other Social grants are going to be paid on 1st of April. Picture:Nigel Sibanda

The Independent Police Investigative Directorate (IPID) could not find fault with the police’s actions when they used a water cannon to disperse frustrated Sassa grant recipients in Bellville on 15 January.

IPID found that the police used minimum force to get the grant recipients to practise social distancing in an effort to curb the spread of Covid-19.

They were within their operational rights to enforce Covid-19 regulations.

Lotto and Lotto Plus results: Saturday, 8 May 2021

Lotto and lotto plus results

Lotto and lotto plus results. Picture: iStock

Here are the Lotto and Lotto Plus results for Saturday, 8 May 2021: 

Lotto: 02, 12, 15, 24, 26, 43 Bonus: 06

Lotto Plus 1: 05, 08, 19, 32, 35, 37 Bonus: 34

Lotto Plus 2: 04, 16, 20, 29, 30, 40 Bonus: 41

Check out previous Lotto results here. For more details and to verify the numbers, visit the National Lottery website.

Tshakhuma Tsha Madzivhandila edge Chippa United to win Nedbank Cup

Tshakhuma Tsha Madzivhandila

Ndabayithethwa Ndlondlo of Tshakhuma Tsha Madzivhandila FC celebrates goal with teammates during the 2021 Nedbank Cup Final match against Chippa United at the Free State Stadium in Bloemfontein on Saturday (Muzi Ntombela/BackpagePix)

Tshakhuma Tsha Madzivhandila edged Chippa United 1-0 in the Nedbank Cup final on Saturday to win their first major trophy on Saturday.

A first half goal by Ndabayithethwa Ndlondlo was enough to earn Vhadau Vha Damani their first silverware since they bought the status of Bidvest Wits last season.

TTM managed to hang on to the slender lead until the half-time break.

PSL assistant referee Shaun Olive passes away after a car accident

Shaun Olive

Assistant referee Shaun Olive has died in a car accident (Pic Sydney Mahlangu/BackpagePix)

The South African Football Association (Safa) has announced the untimely passing of assistant referee Shaun Olive.

In a statement, Safa said Olive sustained serious injuries after being involved in a freak motor accident in Mondeor this week and died on Saturday morning.

Safa president Danny Jordaan described Olive’s death as not a huge blow for the country, but for the continent and the world at large.

 

Chelsea beat Manchester City to delay Premier League title party

May 8th 2021 at 14:49
By: AFP

Chelsea forced Manchester City to put their Premier League title party on hold on Saturday, winning 2-1 to boost their own chances of a top-four finish in a dress rehearsal for the Champions League final.

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Raheem Sterling gave the home side the lead just before half-time at an empty Etihad Stadium but Hakim Ziyech levelled and Marcos Alonso bundled in the winner in the dying seconds.

City could be crowned champions before they play again. Second-placed Manchester United face three matches before Guardiola’s men are next in action, against Newcastle on Friday.

The three points lifted Chelsea into third spot, six clear of fifth-placed West Ham with just three games to go.

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Thomas Tuchel’s in-form team ended City’s dreams of a historic quadruple by beating them in the FA Cup semi-final last month and they once more proved tricky opponents.

City, who have a huge 13-point advantage over second-placed Manchester United, are certain to win their third Premier League title in four years but must now wait for it to be confirmed.

Pep Guardiola made nine changes from the side that saw off Paris Saint-Germain in the second leg of the Champions League semi-final in midweek, with Ederson and Ruben Dias the only players to keep their places.

Chelsea made five changes following their triumph over Real Madrid.

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The home side dominated possession in the early stages, with Ferran Torres firing over after a thrust down the right and Benjamin Mendy shooting wide.

Raheem Sterling was booked in the 12th minute after catching Timo Werner with his studs but the punishment could have been worse.

Werner had the ball in the net just after the half-hour but he was well offside and Sterling had a shot at the other end but clear-cut chances were at a premium.

Ziyech tested Ederson in the City goal as the half-time break neared but moments later the home side were ahead.

Gabriel Jesus shrugged off Andreas Christensen to break into the area. He squared, looking for Sergio Aguero. The Argentine’s touch was poor but Sterling was on hand to tuck home.

City should have been 2-0 in first-half stoppage time but Aguero paid the price for attempting a Panenka penalty that was easily saved by Edouard Mendy, drawing the ire of Guardiola.

Jesus won the spot-kick when he was bundled over by Billy Gilmour.

As the second half wore on the visitors started to establish a foothold and they equalised just after the hour when Rodri lost possession on the halfway line.

Chelsea broke down the right and Cesar Azpilicueta picked out Ziyech just outside the area. The Moroccan drilled a low shot into the bottom corner.

Guardiola threw on Ilkay Gundogan and Phil Foden for Torres and Aguero as his side went in search of the win.

Chelsea substitute Callum Hudson-Odoi had the ball in the net with about 10 minutes to go but the goal was ruled out for a marginal offside.

The finish was frantic. Sterling had a penalty appeal turned down and Alonso then grabbed a last-gasp winner after an assist from Werner.

Tuchel has transformed Chelsea’s fortunes since replacing Frank Lampard at Stamford Bridge in January, losing just two matches on his way to the FA Cup final and Champions League final.

Their remaining three league matches are against Arsenal, Leicester — their FA Cup final opponents — and Aston Villa but they will now be strongly fancied to qualify for the Champions League for the third season in a row.

Magashule speaks out after being removed from ANC NEC meeting

May 8th 2021 at 10:22

African National Congress (ANC) secretary-general Ace Magashule on Saturday explained to Eyewitness News journalist Tshidi Madia why he was booted from the party’s virtual NEC meeting.

While the impact of his removal from the virtual NEC meeting is not yet clear, Magashule confirmed to reporters that he was indeed removed. However, the suspended SG claimed that he had convened the meeting.

Magashule’s suspension

Booted from ANC NEC meeting

The NEC was convened to discuss the party’s step-aside resolution, as well as the appeals process for members implicated by the policy and Magashule’s refusal to follow the party’s instruction.

Magashule – who was dealt a temporary suspension earlier this week – was removed from the party’s National Executive Committee [NEC] meeting when members of the meeting saw him on the Zoom call.

When asked how he could have been removed from the meeting when he was the one who reportedly convened the gathering, Magashule said, “let’s leave it there; that’s what happened, but I’m still secretary-general”.

Magashule still ‘active in the ANC’

Magashule said “branches, provinces and the general public of South Africa” must understand that he’s still active in the ANC, but said, “let’s leave the organisation to take whatever decision they take”.

“I was taken out of the meeting. For one hour and twenty minutes, I was in the meeting, and there was a discussion. The MEC noted my appeal and said now that I’ve appealed, there are certain processes that must still take place. Therefore, I was taken out of the meeting on Zoom. But my appeal was noted, I’m still the secretary-general of the ANC”.

He confirmed that he’ll still be calling media briefings and operating as the engine of the political party.

Listen: Magashule after being removed from NEC meeting

Now read: Ace Magashule threatens to suspend President Cyril Ramaphosa

France face 14-day quarantine before Wallaby Tests

May 8th 2021 at 01:56
By: AFP

France will have to observe a two-week isolation period before July’s three-match Test series in Australia, the French Rugby Federation’s vice-president Serge Simon told AFP on Friday.

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Les Bleus will play the Wallabies in Sydney on July 7, then in Melbourne six days later before finishing the tour in Brisbane on July 17.

Any Les Bleus players featuring in June 25’s French Top 14 final will be unable to play the opening Test.

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“The 14-day quarantine is mandatory. There will be a training camp however,” Simon said.

“The team will be able to train but without contact with outsiders.

“The decision about the make-up of the squad will be made in the next two weeks by the coaching staff, and they will adapt in the most reasonable way to the conditions that are not ideal,” Simon said.

GALLERY | BRITISH & IRISH LIONS SQUAD IN PICTURES

The series will be Fabien Galthie’s first matches against southern hemisphere opposition since taking over as France head coach after the 2019 Rugby World Cup.

The Wallabies won the last meeting between the two sides in November 2016.

READ | BRITISH & IRISH LIONS SQUAD: BREAKDOWN BY CLUB

Why you should get a new quote on your car insurance

May 8th 2021 at 01:50
By: Partner
If OUTsurance is more expensive than what you’re currently paying - on a like-for-like basis - you can ask them to pay you R500.

Super League breakaway ‘bad boys’ slapped with hefty fine

May 7th 2021 at 14:59
By: AFP

UEFA on Friday announced sanctions, including financial punishments, against nine of the 12 clubs behind the aborted Super League project, after the clubs “apologised” and acknowledged “a mistake”.

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The governing body of European football said that “in a spirit of reconciliation” the nine clubs had agreed to a “Club Commitment Declaration” and accepted a five percent cut in their European revenue for one season. 

However, three clubs, Barcelona, Real Madrid and Juventus, did not sign the declaration. 

UEFA said it reserved all rights to take whatever action it deems appropriate against those clubs that have so far refused to renounce the so-called ‘Super League’. 

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“The matter will promptly be referred to the competent UEFA disciplinary bodies,” the statement concluded.

The nine clubs that opted out of the project – Tottenham, Arsenal, Manchester City, Manchester United, Chelsea, Liverpool, Atletico Madrid, Inter Milan and AC Milan – have agreed to a series of “reintegration measures”

“These clubs recognised their mistakes quickly and have taken action to demonstrate their contrition and future commitment to European football,” said UEFA president Aleksander Ceferin.

“The same cannot be said for the clubs that remain involved in the so-called ‘Super League’ and UEFA will deal with those clubs subsequently.”

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The nine have agreed to forego five percent of their revenue from UEFA competitions for one season and pay, between them, a €15 million donation to support grassroots and youth football in Europe.

They also committed to participating in UEFA competitions for which they qualify and agreed to pay fines of €100 million if they ever seek to play in an “unauthorised” competition. 

“It takes a strong organisation to admit making a mistake especially in these days of trial by social media. These clubs have done just that,” said Ceferin.

“In accepting their commitments and willingness to repair the disruption they caused, UEFA wants to put this chapter behind it and move forward in a positive spirit.”

EXCLUSIVE | TOP KAIZER CHIEFS DEFENDER FACES BLEAK FUTURE

UEFA has approved reintegration measures for nine clubs involved in the so-called ‘Super League’.

The matter of the other clubs involved in the so-called "Super League" will be referred to UEFA disciplinary bodies.

Full story: ⬇

— UEFA (@UEFA) May 7, 2021

Bongani Bongo also given the boot from ANC NEC meeting

May 8th 2021 at 12:32

The African National Congress (ANC) national executive committee (NEC) has now also removed its MP and former state security minister Bongani Bongo from the party’s special virtual meeting.

This comes after ANC secretary-general Ace Magashule was also kicked out of the meeting earlier on Saturday.

The special meeting – which is taking place virtually from Saturday to Monday – will see the NEC discussing matters relating to the 2017 Nasrec conference step aside resolution, Covid-19, the upcoming local government elections and the integrity commission’s reports.

ALSO READ: Ace Magashule removed from from ANC’s special NEC meeting

While several news outlets are reporting that corruption-accused Bongo was given the boot from the meeting, it is unclear at this stage what the removal from the meeting means.

However, it seems likely that Bongo was removed from the meeting after he signalled his intention to appeal the NEC’s decision forcing him to step aside following in the footsteps of Magashule.

Speaking to the EWN, Magashule explained that he was removed from the meeting, which “he had convened” and attended for over an hour, after which the NEC noted his intention to appeal his suspension.

‘I’m not corrupt and never will be’

In March, Bongo claimed that he was not corrupt and would never be corrupt.

The MP, who was cleared of bribery and corruption by the Western Cape High Court in February, is currently facing charges of corruption, fraud, theft and money laundering for his alleged role linked to dubious land deals in Mpumalanga amounting to almost R124 million.

ALSO READ: Corruption case against Bongani Bongo dismissed

The case dates back to the time when he was an official in the Mpumalanga provincial government.

Asked on whether he was ready to step aside, the MP said that a court of law would decide his fate if it came to him being suspended.

“I have to this extent appealed this decision that was taken by the NEC. I am sure my appeal will be entertained,” Bongo told eNCA.

Step aside rule

On Tuesday, ANC’s national working committiee (NWC) reaffirmed a decision of the national executive committee (NEC) in March 2021 that all members who have been charged with corruption or other serious crimes must step aside within 30 days.

The NEC had resolved to implement the party’s 2017 Nasrec conference resolution.

This is a developing story. More to follow.

Magashule ‘will be active in ANC’ as he awaits appeal outcome

May 8th 2021 at 11:44

African National Congress (ANC) secretary-general Ace Magashule has reiterated his claim that he will remain active in his position despite his suspension from the party.

This comes after reports emerged that Magashule was kicked out of the ANC’s national executive committee (NEC) special meeting earlier on Saturday, 8 May.

The special meeting – which is taking place virtually from Saturday to Monday – will see the NEC discussing matters relating to the 2017 Nasrec conference resolution, Covid-19, the upcoming local government elections and the integrity commission’s reports.

ALSO READ: Bongani Bongo also given the boot from ANC NEC meeting

Speaking to the EWN, Magashule explained that he was removed from the meeting, which “he had convened” and attended for over an hour, after which the NEC noted his intention to appeal his suspension.

“There was a discussion and the NEC noted my appeal. [The NEC] felt that now I have appealed there are certain processes which must still take place and therefore for all viewers on Zoom I was then taken out of the meeting, but my appeal was noted so I am still the secretary-general of the ANC,” Magashule said.

Magashule said he would be active in the ANC while he awaits the outcome of his appeal.

“Let’s leave the organisation to take whatever decision that they take. I have appealed and therefore I will still be active in the African National Congress, that’s what our branches, our regions and provinces and the general public of South Africa must understand,” he added.

Step aside rule

In March, the NEC decided that all members facing serious criminal charges have 30 days to step aside or face disciplinary action after it resolved to implement the party’s 2017 Nasrec conference resolution, which was supported by the party’s national working committee (NWC).

Magashule was among several ANC leaders affected by the resolution, but he was then suspended this week after he failed to step down from his position.

The secretary-general faces 21 charges of fraud and corruption related to his tenure as Free State premier over a R250 million Free State asbestos contract.

He is out on R200,000 bail. The case was postponed to 11 August 2020 for pre-trial hearings in the Free State high court.

READ NEXT:  Is there any way for Cyril and Ace to save this toxic relationship?

Virus deaths top 4,000 in India as pope calls for patent waivers

May 8th 2021 at 10:14

New Covid-19 deaths surged past 4,000 for the first time in India on Saturday in one of the world’s worst outbreaks, as the pope called for patent waivers to “allow universal access to the vaccine.”

The call for waivers has gained momentum after the United States announced its surprise support for such a scheme to enable adequate vaccine supplies to fight the raging pandemic.

India now accounts for nearly half of the world’s new known cases according to an AFP database, and it reported a national record 4,187 new deaths Saturday.

New Delhi has struggled to contain the outbreak, which has overwhelmed its healthcare system and sparked public anger over mismanagement.

“The government says that there is ample supply of medicines and oxygen,” said Brijesh Pandey, who spends hours every day jostling with others to try to secure oxygen for his brother-in-law.

“But look how hundreds of desperate people are struggling to save their brothers, sisters and parents.”

 

 

 

India reported more than 400,000 new infections on Saturday, but many experts suspect the official death and case numbers are a gross underestimate.

The surge has spilled into next-door Bangladesh, Nepal and Sri Lanka.

Its eastern neighbour Pakistan began a nine-day shutdown targeting travel and tourist hot spots to try to stop its outbreak from snowballing during the upcoming Eid celebrations at the end of the Islamic holy month of Ramadan.

The Eid holidays usually see a mass movement of people across the nation of 220 million, and the government has mobilised the military to help enforce the restrictions.

‘Closed nationalism’

But mosques, which have been packed each night throughout Ramadan, will remain open despite the virus threat.

Pope Francis on Saturday expressed his backing for “universal access to the vaccine and the temporary suspension of intellectual property rights”, condemning the “virus of individualism” that “makes us indifferent to the suffering of others”.

“A variant of this virus is closed nationalism, which prevents, for example, an internationalism of vaccines,” he said.

“Another variant is when we put the laws of the market or intellectual property above the laws of love and the health of humanity.”

The global arsenal against the coronavirus expanded as the vaccine from China’s Sinopharm became the first fully non-Western shot to get the green light from the World Health Organization.

 

 

 

The WHO has already given emergency use authorisation to vaccines from Pfizer-BioNTech, Moderna, Johnson & Johnson, and AstraZeneca, a status that paves the way for countries to quickly approve and import shots.

Sinopharm is already in use in 42 territories around the world, including Pakistan, Egypt, the United Arab Emirates and Serbia.

The European Union meanwhile said it had sealed a deal with BioNTech/Pfizer for up to 1.8 billion extra doses of its Covid-19 vaccine.

“Other contracts and other vaccine technologies will follow,” EU chief Ursula von der Leyen said.

The United States this week backed a push led by the WHO, India and South Africa to waive Covid-19 vaccine patent protections to boost supply to poorer nations.

The European Union on Saturday pressed the US for a concrete proposal and a commitment to export much-needed jabs.

Worries about Tokyo Olympics

Rapid vaccine rollouts worldwide are considered critical in the fight against the virus, which has killed 3.26 million people so far, and some countries with high immunisation rates such as Britain are already easing restrictions and testing events with large gatherings again.

But concerns are swirling about the upcoming Tokyo Olympics, with Japan’s vaccination programme moving slowly.

A coronavirus state of emergency in parts of Japan, including Tokyo, was extended on Friday with authorities warning of some hospitals being overwhelmed.

The pandemic has already disrupted test events for the Olympics, with several postponed, cancelled or moved abroad.

But International Olympic Committee vice-president John Coates was adamant Saturday that the Games will go ahead despite the risks.

Asked by AFP if there was any scenario in which the event, due to start on July 23, could be cancelled or postponed again, he replied: “No, there’s not.”

Eastern Cape ANC suspends three leaders for violating party’s constitution

May 8th 2021 at 08:45

The ANC in the Eastern Cape announced that it had suspended three leaders for violating the party’s constitution.

The members are OR Tambo municipality council speaker, Xolile Nkompela, the deputy mayor, Robert Nogumla, and the municipality’s former chief whip, William Ngozi.

Nkompela and Nogumla have been suspended from the ANC for five years, and Ngozi for one year.

Nogumla has been suspended for defying the provincial executive committee (PEC) after he refused to accept its 12 October 2020 decision to recall him as deputy mayor and redeployed him to the position of mayoral executive committee member.

Nkompela is suspended for defying a decision of the PEC, which called for him to resign as speaker of the municipality.

ALSO READ: Is the ANC a political party or a criminal mafia

Ngozi was charged for failing or refusing to resign as chief whip of the municipality, despite being advised of the decision of the PEC that he be recalled.

He has since resigned and tendered his apology to the organisation.

Meanwhile, Raymond Mhlaba municipality chief whip, Lindelwa Penisi, was sanctioned to a three-year membership suspension, wholly suspended for three years, on condition that she doesn’t break the ANC’s constitution during the period.

She was caught on camera launching a verbal tirade at Fort Beaufort residents, who were pleading for water.

ANC provincial disciplinary committee chairperson, Sisisi Tolashe, said Penisi’s remorse weighed in her favour.

The suspended ANC members could not be immediately reached for comment. Their responses will be added once received.

Ace Magashule removed from from ANC’s special NEC meeting

May 8th 2021 at 06:04

The ANC’s national executive committee (NEC) has removed suspended secretary-general Ace Magashule from it’s special virtual meeting.

Magashule vowed to attend the special meeting during an interview with SABC on Friday. He insists that his suspension is invalid and that he still holds the office of secretary-general.

Several news outlets are reporting that the corruption-accused politician was given the boot from the meeting. It is unclear at this stage what the removal from the meeting means. However, expulsion from the party has been said to be on the cards.

On the agenda for the special meeting is the party’s step aside resolution, the appeals process for implicated members, and of course, Magashule’s defiance to adhere to the policy.

ALSO READ: Magashule: My suspension is a ‘banishment order’ similar to apartheid

During Magashule’s suspension, he has been barred from:

  • Carrying out the duties and responsibilities of his office as secretary-general,
  • Representing  the organisation publicly  and or in any other form,
  • Making public pronouncements  on matters  related to the organisation, and
  • Engaging in the mobilisation of ANC structures, any other organisations  or individuals, including  on your stepping aside and matters related thereto.

As a result, he was not allowed to attend the meeting at all and his removal is in line with the suspension protocols.

Asked if he expects to be expelled from the ANC at the weekend’s NEC meeting, he told the SABC the NEC could not be a judge and jury.

ALSO READ: Is there any way for Cyril and Ace to save this toxic relationship?

“There are processes which one will argue when I appear before the appeals body. The NEC has been conflicted in this matter. They have been the judge, prosecutor, investigator and jury.

Expulsion from the ANC

There is a real chance that Magashule could be expelled from the party following his actions this week.

After the ANC’s national working committee (NWC) said that it supports the NEC’s decision on the step aside resolution, Magashule was officially suspended from duty.

The organisation had decided that all members implicated in serious criminal offences need to step aside within 30 days or be suspended. Magashule was the first test for the resolution after repeatedly refusing to step aside.

Also this week, he penned a letter stating that he was in turn summarily suspending party leader Cyril Ramaphosa over allegations that his CR17 campaign fund received irregular contributions. Ramaphosa has not been charged in a court of law with any crimes.

This move has lead many commentators and analysts to believe that the NEC, and Ramaphosa as party head, have little choice but to eventually expel Magashule from the party.

‘Rogue elements’

The Citizen’s Brian Sokutu reports that political analysts expect the NEC to stamp its authority against its rogue elements within the party.

Independent political analyst, Dr Ralph Mathekga, said the NEC should “assert itself on its party resolution to suspend Ace Magashule – failure to do so will spell a disaster”.

“There is no more runway for more excuses on this one.

“The NEC has been pushed to a corner to do the right thing and we expect the ANC’s decision-making body to come out resolute,” said Mathekga.

Concurring with Mathekga, University of South Africa political science, professor Dirk Kotze, said: “While it may be difficult to predict the nature of discussions at the NEC meeting, what is clear is that the issue of stepping aside has been finalised, with no different decision expected to come out of the NEC.

“What may possibly become a matter for discussion is what action to be taken against Magashule for trying to suspend President Cyril Ramaphosa.

“The response from most leaders in the ANC has ranged from perceiving that as a disgraceful conduct, some not taking it seriously.

“They have taken this as not being a valid step because he was himself suspended at the time.

“In terms of Rule 25.70 of the ANC’s constitution says the secretary-general can suspend a public representative, but with the authority of the ANC – meaning he cannot do it on his own.

“Even if he was not suspended, he did not take such a decision on behalf of the NEC.

“No such NEC instruction was given to him, making his ‘suspending the president’ not being in line with the ANC constitution.”

This is a developing story. More to follow.

Additional reporting by Brian Sokutu, Neo Thale and News24 Wire.

Is the ANC a political party or a criminal mafia?

May 8th 2021 at 05:20

At the risk of being flippant at a time of grave crisis within the ranks of our ruling party, we cannot help but see the similarities between this weekend’s online meeting of the ANC’s national executive committee and episodes of Monty Python’s Flying Circus.

Starring role yesterday went to the organisation’s national spokesman, Pule Mabe. Never very forthcoming at the best of times, Mabe did an insane egg dance in front of journalists when they tried to pin him down about whether suspended secretary general Ace Magashule would be in attendance at the meeting.

“Well everyone, all members of the NEC who are expected to attend the NEC will attend this NEC…”

He kept repeating that refrain, much like the Dead Parrot Sketch by Monty Python, no matter how many times he was asked the question.

It would have been amusing, in a bizarre sort of way, if there was not, clearly, so much at stake in this weekend’s meeting.

Magashule, effectively, attempted a coup against the ANC leadership on Wednesday night by declaring himself still secretary-general, in the face of an official ANC suspension letter and, then, going further, by proclaiming that he, Magashule, was going to suspend president Cyril Ramaphosa.

His mutinous conduct was one of the most egregious cases of ill-discipline within the ranks of the ANC since it was unbanned and its leadership returned to the country in the early 1990s.

It was a gauntlet thrown down to Ramaphosa for the very soul – and future – of the ANC.

If Ramaphosa and his supporters do not immediately clamp down on Magashule – going as far as to expel him from the organisation – they will prove they are not serious about tackling corruption. They will confirm, in the minds of many, that they are not a political party but a criminal mafia.

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‘I’ll be there’ – Magashule to attend do or die NEC meeting

May 8th 2021 at 02:02

Ace Magashule has defied his suspension and promised to attend the weekend’s crucial national executive committee (NEC) meeting.

Speaking exclusively to the SABC, Magashule reiterated his claim that he has appealed his suspension.

Magashule said he remains the ANC secretary-general and has assured branches that he is going nowhere.

“There are processes which one will argue when I appear before the appeals body. The NEC has been conflicted in this matter. They have been the judge, prosecutor, investigator and jury.

ALSO READ: Magashule: My suspension is a ‘banishment order’ similar to apartheid

“You can’t be charged, like it is a kangaroo court. The step-aside resolution is designed to remove Bongani Bongo and me. We have collected many names (of those who are implicated),” he said.

Magashule claimed that he was a disciplined member, who had fought against apartheid.

Magashule said there were many senior ANC members and MECs, who have criminal cases against them, but have not been ordered to step aside.

I haven’t done anything wrong. There are no processes that were followed. I am attending the NEC meeting this weekend. I am also attending the officials meeting before the NEC.

“We all have rights as South Africans. We are accorded the same rights by the Constitution of the country and that of the ANC.”

Magashule said he has written to the NPA, to ask them to reveal what criminal charges he faces.

“I am a simple, humble leader of the ANC. I am going to die in the ANC. Some people think they are ANC. I will never allow people to take the ANC away from me.

“I joined the movement voluntarily. I won’t be the first to be removed,” Magashule said.

Has the current ANC been infiltrated by apartheid spies?

May 7th 2021 at 23:30

Rebellious retired former South African National Defence Force (SANDF) defence intelligence chief Maomela “Mojo” Motau claims the ANC has been infiltrated by apartheid and foreign spies, hell-bent on destabilising and destroying the governing party.

Motau said the ANC needed to get rid of the spooks within its ranks if it is to survive.

The allegations were also contained in a document titled “Tshwane Declaration” which, he claimed, was adopted at the ANC Cadre Summit 2, held in Pretoria on 30 April.

ALSO READ: OP-ED: ‘We don’t know this General Motau,’ says MK National Council

He said the ANC was infested with apartheid agents, foreign intelligence and security agencies who were directly and indirectly responsible for the deaths of many people during the fight against the apartheid regime.

They were now either blackmailed or deliberately willing to work against the movement and its people. They had consciously and deliberately elected to continue serving its erstwhile enemies.

Motau said the current and past ANC leadership knew about these spies – a list was compiled during the Nelson Mandela administration and handed over to him.

But the government and ANC itself failed to act on it. The agents had infiltrated the ANC and had campaigned for party positions with the intention to destroy the party.

“These people are found throughout the movement and society. They occupy positions of leadership and influence in the ANC and society in general.

“This is one of the greatest challenges we are facing today.

“Without addressing this challenge the ANC can only proceed to die,” Motau said. Motau said he had trained as an uMkhonto we Sizwe (MK) cadre at Emagojeni camp in Zambia after joining in 1974, was later in the MK high command and retired from the SANDF in 2009.

Now, he is part of a campaign, along with other former MK cadres, to cleanse, reclaim and refocus the ANC. He said they wanted to reclaim it from the clutches of neocolonialism and strive to maintain the party as the main agent of change.

Motau suggested the current ANC national executive committee (NEC) must be dissolved immediately because it was “highly compromised”.

He said it was well known that the Nasrec NEC was not democratically elected, but bought. “This leadership constitutes the most serious threat against the survival of the ANC.

“Comrades Thabo Mbeki, Jacob Zuma and Kgalema Motlanthe [all former presidents] are appropriate comrades to comprise a team to confront the listed enemy agents, starting from those who are serving in the NEC and other leadership structures.”

The three former leaders will “give confidence to our people that all agents will be treated equally without favour”.

According to Motau, this was in line with the vision of Mandela, who gave Mbeki and the late former defence minister Joe Modise the task of getting rid of enemy agents.

He said the list of agents was compiled from the records of Military Intelligence, the special branch of the apartheid South African Police and the National Intelligence Service.

“The task was not completed as Modise passed away suddenly after confronting a few enemy agents in the Military Intelligence list,” the document said.

At the first Cadre Summit, last year, former cadres had adopted a turn-around strategy 2025 to reclaim the ANC, including replacing the NEC with an interim national task team.

Motau refuted criticism from the MK national council that he was a loose cannon with no support.

The council claimed Motau had begun to show his true colours as the “enemy of the revolution” and the ANC while the MK Military Veterans Association said he was a member but not mandated by it, nor spoke on its behalf.

“Let them say what they want, we are the cadres of the ANC and we have been defending the ANC. “I don’t think the people you are talking about did anything serious or substantial in MK. I don’t know them,” Motau said.

Attempts yesterday to get comment from the ANC on the group failed.

ericn@citizen.co.za

OP-ED: ‘We don’t know this General Motau,’ says MK National Council

May 7th 2021 at 13:17

General Mojo Motau, former chief of military intelligence, has recently received attention from the media and, interestingly, from within the ANC leadership circles as well.

This is ostensibly because he is a former cadre of Umkhonto weSizwe (MK) and a former member of MK Military Headquarters (MHQ), who is on a solitary mission to save the ANC from its demise. This is the weirdest and most recklessly opportunistic development ever since the ANC was unbanned in 1990.

While it is historically correct that during the struggle the majority of the ANC’s tested cadres were members of Umkhonto weSizwe, it is politically incorrect and naïve to suggest that ANC cadres are only those who were in the military wing as insinuated by Motau.

ALSO READ: Former SANDF spy ‘an enemy of the ANC’

The ANC fought the struggle on many fronts, as defined broadly by the four pillars of its strategy to overcome apartheid rule. In all these fronts cadres were honed and developed by the ANC to advance the struggle. This work equally produced sterling cadres of the ANC.

Motau may well be among those ANC members who were assigned important responsibilities by the ANC in exile. In that regard, he is better placed to speak for himself. However, the MK National Council (MKNC) wishes to place it on record that Motau was never a member of MK-MHQ before the suspension of the armed struggle in 1990.

In this regard, the ANC submission to the Truth and Reconciliation Commission (TRC) provides all the relevant details of cadres who were deployed in its underground command structures in all countries where they were established.

In keeping with the principle of the National Council to insist that all MK members provide details of their backgrounds in order to curb cases of fraud, MK National Council publicly challenges Motau to provide information about where he underwent his military training, with who and under whose command, the detachment he belongs to, if he was trained internally, to indicate which machinery trained him and when.

Lastly, General Motau must provide us with his nom de guerre, i.e. his MK name.

As a matter of principle, and not a demand which seeks to single out Motau, the MKNC believes that the above protocol is the only way to ascertain the bona fides of all former members of Umkhonto weSizwe.

Motau did well to join the military after the unbanning of the ANC and the suspension of the armed struggle in 1990. He is a peace-time general, he must stay in his lane and not meddle in endeavours he evidently knows little about. He must enjoy his good pension and not destroy whatever credibility he may have by bringing the new democratic people’s defence establishment into disrepute.

The touchstone of the transformation of our defence establishment since 1994 is the civil-military relations doctrine, which the South African National Defence Force’s (SANDF’s) top brass is schooled in – to place South Africa’s military establishment under the political will and desires of South Africans.

Our country is at crossroads, this is crystallised by the titanic battles in our organisation, the ANC. This comes as no surprise to many who understand the challenges of transforming a society fraught with contradictions such as our country have.

ALSO READ: Army Chief’s ‘soldiers not activists’ stance welcomed

The pronounced fault lines of greed and corruption in the ANC today speaks to new challenges in our society. That Motau believes he can find solutions to ideological questions, policies, strategies and operational modalities which are so involved and wide ranging, over one sunny, Friday afternoon in Pretoria is blatantly arrogant and an insult.

Whereas Motau pretends to be inspired by the desire to see the preservation of the ANC, a careful reading of his declaration points to a nefarious plot to decimate the ANC. Two specific demands stands out in this respect.

The first is the suggestion that the most senior body or authority of the ANC between conferences must be dissolved without any suggestion on how that authority should be re-established. The second is the proposal that the organisation must plunge itself into internecine wars, confusion and anarchy by pointing out apartheid spies within the ANC.

Unassailable ANC leaders are spoken about in patronising terms and in a manner that isolates them from the broad membership, while those who are influential and serve to connect the organisation to the grassroots are vilified and demonised.

The perspective on how to deal with the national conjecture confronting us, as propagated by Motau, exposes the lack of the fundamental understanding that the masses are the makers of history.

The people must understand for themselves why things are wrong, and why we must all fight hard to change our way of doing business both in government and in the ANC for posterity. His commandist mentality, typical of militarism, unfortunately believes that you can effect societal solutions through orders from above.

This further corroborates our submission that Motau has no experience of Umkhonto wesizwe politico-military training, otherwise he would have had sight of the correct azimuth on this matter.

It has been our observation that since our democracy was ushered in 1994, moments of political uncertainty, anxiety and agitation have always been precipitated by documents churned out by the intelligence structures in government. Motau and those he is in cahoots with must not undermine our people’s intelligence and patience.

The MKNC calls on all our people, workers, youth and students, professionals, the churches, political parties, business leaders and civil society in general to step up to the plate, and exercise maximum vigilance.

Our constitutional order must be defended at all costs. No generals, quislings or benevolent militaries must be allowed to usurp our inalienable right to self-determination.

In our many political and social formations we must reclaim the right to develop our constitutional democracy and our country for posterity. The National Council can always be counted among those who occupy the front trenches.

We will not let them pass, victory or death!

Gregory Nthatisi is the acting general secretary of the MK National Council

Magashule: My suspension is a ‘banishment order’ similar to apartheid

May 7th 2021 at 12:04

ANC secretary-general Ace Magashule says the conditions of his suspension are draconian and akin to apartheid.

In an exclusive, wide-ranging interview with the SABC News’ Samkele Maseko and Bulelani Phillip, the beleaguered Magashule reiterated that the step-aside guidelines were being implemented hypocritically remove him.

During Magashule’s suspension, he has been barred from:

  • Carrying out the duties and responsibilities of his office as secretary-general
  • Representing  the organisation publicly  and or in any other form
  • Making public pronouncements  on matters  related to the organisation
  • Engaging in the mobilisation of ANC structures, any other organisations  or individuals, including  on your stepping aside and matters related thereto

He added that the criminal charges against, where he is implicated in corruption related to the Free State asbestos audit, were bogus because he was being charged with “oversight and negligence”.

Magashule: I’m saying the ANC is acting in an unfair manner, I have not committed any crime, I’ve been charged with oversight, what is that? #sabcnews

— Natasha Nokuthula Phiri (@NatashaN_Phiri) May 7, 2021

“I’m being follow. I’m bugged. I can’t believe I’m still living in apartheid. They arrest you and the next thing you are poisoned in prison,” Magashule said.

ALSO READ:  Could Magashule’s outcome see a formation of a new party?

Asked about his relationship with his deputy, Jessie Duarte, who served him with his suspension letter, Magashule said he was “dismayed” but he continued to have a “wonderful” relationship with her.

“I know comrade Jessie. We have been in the trenches together,” said Magashule.

Magashule reiterated his commitment to the ANC, saying he would stay in the ANC until he dies.

“I will never allow any individual to take the ANC away from me,” he said.

Asked if he expects to be expelled from the ANC at the weekend’s special national executive committee (NEC) meeting, he said the NEC could not be a judge and jury.

Magashule also said he respected every leader of the ANC, when quizzed by Maseko about “hating President Cyril Ramaphosa”.

Magashule said he would attend the weekend’s special NEC) meeting, despite his suspension letter written on Monday and leaked on Wednesday, clearly indicating he would not be allowed to participate in any party duties while he is suspended.

Watch the interview below, courtesy of the SABC News.

READ NEXT: ANC NEC in ‘do or die’ meeting over step aside resolution

Financial Risk Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Financial Risk Explained for Dummies

Financial Risk Explained

Financial Risk Explained

What is financial risk?

Financial risk is a category of risk that involves the possibility of financial losses and is applicable to businesses, governments, individuals, and financial markets.

Put differently, financial risk is a type of risk that indicates the possibility that parties (investors, shareholders, entrepreneurs, owners, and other financial stakeholders) involved in investments and business endeavours will lose money.

 

Types of financial risk

Financial risk can be categorised into various types of risks as described below.

 

Credit risk

Credit risk refers, inter alia, to the possibility that one of the parties involved in a financial transaction or contract may fail to fulfill their obligations towards their counterparties. For instance, a creditor default on payables or a borrower on the repayment of a loan. This type of financial risk is referred to as settlement risk.

Sovereign risk, also called country risk, is also classified under credit risk. Sovereign risk refers to the risk that a government could default on its debt obligations (sovereign debt) like government bonds. It can also describe the possibility that the treasury or central bank of a government will enact difficult exchange policies that will significantly lower or nullify the value of its forex contracts.

 

Liquidity risk

Liquidity risk, also called funding risk, refers to a situation when you are hindered or unable to raise cash fast, for example selling assets when you need the cash to execute a financial transaction.

Liquidity risk can be categorised into different sub-categories, namely:

  • Asset liquidity risk also referred to as market liquidity risk refers to the risk that a business or individual wants to sell an asset, but is not able to do so, unless the asset is sold below its market value, incurring a loss.
  • Funding liquidity risk is the risk that an entity or individual will not be able to honour their short-term financial obligations when due. Put in other words, funding liquidity risk occurs due to the lack of funds.
  • Currency risk, also called exchange-rate risk or FX risk, is the possibility of losing money due to unfavourable and unpredictable changes in the value of one currency to another currency. Businesses that trade across different countries or investors who invest in financial markets in foreign countries are exposed to currency risk.
  • Interest rate risk refers to the probability of an unexpected fluctuation in interest rates caused by announcements of a country’s central bank, related to changes in a government’s monetary policy, triggering investment losses. Fixed-income assets, such as bonds, are especially vulnerable to interest rate risk.

Many analysts see currency risk and interest rate risk as part of market risk.

 

Market risk

Market risk, also called systematic risk, is the risk of losses on financial instruments caused by unanticipated fluctuations in factors that affect the performance of an entire financial market. Price volatility often occurs due to factors such as inflation, exchange rates, recessions, fiscal deficits, geopolitical events, and interest rates.

The most common types of market risks are currency risk, commodity risk, interest rate risk, and equity risk.

  • Currency risk

See description above under liquidity risk.

  • Commodity risk refers to the adverse effect of changes to a commodity’s price, causing a negative effect on future market value and income of commodities such as grains, crude oil, metals, and gold, to name but a few.
  • Interest rate risk

Refer to description above under liquidity risk.

  • Equity risk is the risk that an investor will incur losses on investments in equity (shares in a company) when the shares of a company are subjected to swift price changes.

 

Legal risk

Legal risk is the risk of potential loss that a business or individual could encounter due to legal issues, such as lawsuits or other legal proceedings.

The risk to face legal action could arise from a number of causes regarding the products, services, actions, inaction, compliance, and other events of an individual or business.

Regarding a company, legal action can be initiated by its suppliers, customers, other businesses, employees, or shareholders.

Legal risk includes the risk that a counterparty in a contract or financial transaction will not be liable to keep to its obligations under the law. One of the most common reasons for the occurrence of such a situation is that transactions are not adequately well-documented to be legally enforceable.

 

Political risk

Political risk refers to the risk of financial losses that may occur because of uncertainty about government decisions and actions, unstable political conditions, political disruptions, or any new legislation. This type of risk is also called geopolitical risk.

Individuals, businesses, economic sectors, the overall economy, and financial markets may all be affected by political risk.

Factors that can contribute to financial risk are:

  • Political decisions by governments about currency valuation, taxes, trade tariffs, regulations with regard to investments, labour laws such as a minimum wage, and environmental regulations.
  • Political disruptions such as riots, acts of terrorism, coups, wars (civil or regional), and even political elections.

 

Operational risk

Operational risk comprises all the risks and uncertainties a business faces and may encounter in its day-to-day operations. Operational risk can be caused by mismanagement or technical failures.

Examples of operational risk are theft, fraud (internal and external), staff turnover, computer hacking, failure to follow internal policies, unrealistic marketing plans, inaccurate budgeting, unrealistic financial projections.

Even catastrophic events such as hurricanes, floods, and pandemics (Covid-19) are contributors to operational risk.

 

Reputational risk

Reputational risk, also known as reputation risk, is the threat to the good name, profitability, or sustainability of a business, caused by unfavourable, disapproving, and negative public perceptions of the products and services of a business.

It is a type of risk that can occur as a result of:

  • the actions and decisions of the company itself, or
  • the actions of an employee or employees.

Financial Risk Explained

Dilution Explained for Dummies

Fresh Unique Article to increase your trading knowledge: Dilution Explained for Dummies

Dilution Explained

Share Dilution Explained

Specifically regarding share dilution by companies

What is share dilution?

Share dilution, also referred to as stock dilution or equity dilution occurs when a company issues additional shares, reducing existing shareholders’ percentage of ownership in the company.

The Cambridge Dictionary describes share dilution as ‘the process or action of making a company’s shares less valuable by making more shares available.’

Applying some idioms from the world of baking, share dilution can be described as follows: It is not a situation of ‘the cherry on the cake’ for existing shareholders. However, a shareholder will still get a slice of the cake – the ‘equity cake’ – albeit a smaller slice of what he or she has been used to.

 

What is dilution?

In general, dilution refers to the process of making something less strong by adding something to it. For instance, a concentrated liquid produced from or flavoured with fruit juice, such as orange squash or lime cordial, is diluted by adding 3 parts of water to 1 part of the concentrated liquid, making it an enjoyable drink.

Dilution of company shares operates in a similar way.

 

Why do companies implement share dilution?

If the issue of additional shares makes a company’s shares less valuable, why do they still execute share dilution?

There are a number of reasons why companies issue additional shares. Some of the reasons are listed below:

  • Raising additional capital

Typically, this is the most apparent reason for a company to issue extra shares. New shares are issued to generate funds for further growth opportunities or to service outstanding debt.

  • Acquiring another company

If a company purchases another company, the acquiring company may issue additional shares to the shareholders of the acquired company.

  • Share options exercised by individuals

Companies may offer share options, also called stock options, to individuals like board members and employees. (A share option allows an option holder to buy shares in the company at a predefined amount on or before the expiry date.)

When share options are exercised, they are converted into ordinary shares of the company, increasing the number of shares.

  • Conversion of convertible securities

Some companies may also issue convertible securities, such as convertible bonds, convertible preference shares, or stock warrants. Warrants are typically issued to lenders.

A convertible security is described as a security that can be converted into different security. For instance, the preference shares of a company can be converted into ordinary shares.

A stock warrant also called a share warrant, allows its bearer the right to buy a company’s ordinary shares at a certain price at a specific date.

When the owners of convertible securities exercise their rights to convert them, the number of companies’ outstanding shares increases. (Outstanding shares refer to the number of shares that a company has issued.)

  • Distributing ownership

When the founders of a company reckon they own too much of a company, they can easily distribute ownership by selling a portion of the shares to new shareholders, reducing their percentage of ownership.

 

Examples of share dilution

  • Let us say a company, in an IPO (initial public offering), has issued 100 ordinary shares to 100 individuals, now referred to as ordinary shareholders. This means each ordinary shareholder owns 1% ((1/100) x 100) of the company.

In a secondary offering, the company issues 100 additional ordinary shares to 100 new shareholders, reducing each shareholder’s ownership to 0.5% ((1/200) x 100) in the company.

  • In the example below, company AJB started its operations with 200 000 shares owned by 100 ordinary shareholders. After a year of operations, the company needed additional capital to expand its operations and issued 40 000 new shares to 20 new shareholders.

 

The share dilution is calculated as follows:

  • Before dilution
  • Number of shares issued: 200 000
  • Number of shareholders: 100
  • Number of shares per shareholder: 2 000 (200 000/100)
  • Percentage ownership: 1% ((2 000/200 000) x100)

 

  • After dilution
  • Number of shares issued: 240 000
  • Number of shareholders: 120
  • Number of shares per shareholder: 2 000 (240 000/120)
  • Percentage ownership: 0.83% ((2 000/240 000) x100)

 

The effects of share dilution

  • Depending on the number of shares held by a shareholder and the number of additional shares issued, share dilution can affect a shareholder’s portfolio considerably. This means each existing holder of ordinary shares owns a smaller or diluted percentage of the company.
  • A company’s EPS (earnings per share) is also affected. Earnings per share (an indication of a company’s profitability) is determined by dividing a company’s profit by its outstanding ordinary shares. It is also referred to as basic EPS because it does not consider the dilutive effect of ordinary shares that could still be issued by the company.

For example, company YYY records a net income for ordinary shareholders of R755 000 and has 850 000 ordinary shares outstanding. YYY’s basic EPS is R0.89 (R755 000/850 000). After the issuance of another 50 000 ordinary shares, the basic EPS of company YYY will be R0.84 (R755 000/900 000).

However, if the share dilution causes a considerable increase in earnings, the basis EPS may not be negatively affected. If the additional capital received with the issuance of the additional 50 000 ordinary shares generates more revenue, the basic EPS may not be negatively affected. For instance, if the additional capital boosted company YYY’s revenue to R810 000, the company’s basic EPS will be R0.90 (R810 000/900 000).

Companies may also determine their diluted EPS, calculating the potential effect of share dilution if it is assumed that all ordinary shares that could be outstanding have been issued and that all convertible securities were converted or realised.

  • Share dilution also reduces the voting power of ordinary shareholders because the percentage of ownership of a company of each existing ordinary shareholder decreases with the increase in the number of shares issued.
  • The greater the share dilution, the more the possibility for a company’s share price to decrease. Dilution can hold share prices down even when a company’s market capitalisation (market cap) increases. (Market cap is calculated by multiplying a company’s current share price by its total number of outstanding shares.)

Share Dilution Explained

Why South African consumers are feeling better about their finances

May 7th 2021 at 10:00
The state of South African consumers’ personal finances continued to improve during the first quarter of 2021 (Q1 2021) on the back of a recovery in the income of especially middle- and higher income groups.

Suspended Magashule likely to attend ANC NEC meeting this weekend

May 7th 2021 at 08:51

When is a suspension a suspension? The answer to this is as clear as mud as far as the ANC’s suspended secretary-general, Ace Magashule, is concerned.

The ANC has seemingly confirmed that Magashule will attend this weekend’s special national executive committee (NEC) meeting. This is despite his suspension letter written on Monday and leaked on Wednesday, clearly indicating he would not be allowed to participate in any party duties while he is suspended.

ANC national spokesperson Pule Mabe said all officials who are expected to attend the meeting will be participating. He would not confirm whether Magashule would be among the attendees, but his refusal to verify that Magashule would not, seemed to indicate the SG might still have a role to play.

At the top of the agenda will be the implementation of the step aside resolution adopted at the ANC’s 2017 national conference.

Magashule this week defied the ANC national working committee’s (NWC’s) decision to suspend him after he failed to voluntarily step down from his post within his 30-day grace period.

This has created confusion about Magashule’s suspension.

His suspension means he may not carry out any of his duties as secretary-general, represent the organisation publicly, or make any public pronouncements. He is also prohibited from mobilising any ANC structures on matters both related or unrelated to his stepping aside.

Mabe refused to be drawn into questions about whether Magashule was still carrying out his duties as secretary-general.

He was asked if Magashule had been coming to the office but did not answer.

Speaking out on Thursday morning, a defiant Magashule said he remained in his post until his appeal challenging his suspension had been heard.

ALSO READ: ‘I’m still the secretary-general’ – defiant Magashule sticks to his guns

“Nothing is going on with me, I’m still the secretary-general,” he told EWN in an interview.

Magashule, who is facing fraud and corruption charges in the Free State, confirmed his letter to Ramaphosa was legitimate and said it was Ramaphosa, in fact, who had been suspended.

This has been disputed by several senior leaders of the ANC who said he did not have the authority.

Magashule also claimed his opponents were using state organs against him and his allies in the ANC.

Mabe said Magashule remained a member of the ANC and should there be any developments the nation would be informed.

 

Government workers sitting comfy, vulnerable survive on less than R5000 a month

May 7th 2021 at 08:48

Most financially vulnerable consumers earn less than R5,000 a month, are younger than 39 and are women or single, while people who work for the government are the least financially vulnerable, according to the latest Momentum-Unisa Consumer Financial Vulnerability Index (CFVI) for the first quarter of 2021.

While the index found that financial vulnerability was prevalent in all income groups:

  • 63.4% of respondents perceived consumers who earn less than R5,000 per month as most financially vulnerable
  • 13.8% regarded consumers who earn between R5,000 and R10,000 as financially vulnerable
  • 9.9% regarded consumers who earn between R10,000 and R30,000 as financially vulnerable
  • 6.9% regarded consumers who earn between R30,000 and R50,000 as financially vulnerable
  • 5.9% regarded consumers who earn more than R50,000 as financially vulnerable.

ALSO READ: Food price increases starving the poor

They also regarded the following groups as most vulnerable:

  • 67.3% indicated people younger than 39 as the most financially vulnerable
  • 66% perceived women as more financially vulnerable than men
  • 57% deemed individuals who are single, separated, divorced or widowed as more financially vulnerable compared to people who are married or living with a partner.

Expectations for consumer finances

While 31.7% of the respondents expect that the financial position of consumers will improve in the second quarter of 2021, 80.2% expect that it will take 18 months or longer for consumer finances to recover.

They also noted a significant drop over the past year in the level of control that consumers have over their lives and circumstances. This contributed to consumers adjusting their financial behaviour, searching for additional income generating opportunities and empowering themselves with appropriate skills.

The respondents are researchers, bankers, insurers, retailers, government officials, economists and analysts who deal with consumers daily.

 ALSO READ: Who is helping the forgotten middle class during the lockdowns?

Consumers becoming less financially vulnerable – survey

May 7th 2021 at 07:31

Consumers are becoming less financially vulnerable, according to a survey of the first quarter of the year, as their personal finances improved thanks to a recovery in the income of especially middle and higher income groups.

However, the majority are still more concerned about their finances than their health during the pandemic, with the majority of 30.7% of respondents believing consumers are more focused on their finances than on staying safe from Covid-19 and 26.7% saying that consumers still value their finances, but attach a high value to staying safe.

ALSO READ: Consumer spend drops massively during lockdown – index

The Momentum-Unisa Consumer Financial Vulnerability Index (CFVI) for the second quarter of 2020, when the lockdown started, was 35.4 points. In the first quarter of 2021, the CFVI improved to 49.7 points from 47.5 points in Q4 2020. The respondents are researchers, bankers, insurers, retailers, government officials, economists and analysts who deal with consumers daily.

Graphic of consumer financial vulnerability

The good news is that consumer expenditure, savings and debt servicing also improved and were actually higher than in the fourth quarter of 2019, except for savings:

  • The income index increased from 47.7 points in the fourth quarter of 2020 to 50.2
  • The expenditure index improved from 49.2 points in the fourth quarter to 52.3
  • The savings index increased from 1.5 points in the fourth quarter to 48.8 points
  • The debt servicing index rose from 45.8 points in the fourth quarter to 47.5 points.

This was a good start to the year, but South African consumers are not out of the woods yet, with the majority of consumers still feeling financially exposed and insecure. This means that any small adverse event, such as a pay cut, can contribute to a large deterioration in the state of their personal finances.

Measurement scale

  • The measurement scale of the index rates between 80 and 100 points as extremely secure and between 60 and 79.9 as very secure, with points above 60 regarded as having a cash flow position that is under control with little threat of becoming financially vulnerable.
  • Between 50 and 59.9 points is rated as mildly exposed and between 40 and 49.9 points as very exposed, with consumers whose cash flow has been affected so much that it creates a high risk of becoming financially vulnerable or insecure if they score between 40 and 59.9 points.
  • Consumers with a score of between 20 and 39.9 points are regarded as very vulnerable and those scoring below 19.9 points extremely vulnerable, with their cash flow affected to such an extent that it creates an actual experience or sense of being financially insecure and unable to cope.

ALSO READ: Consumers spend R6 of every R10 paying debts – just like the government

 Why consumers are becoming less financially vulnerable

  • The fact that income vulnerability decreased suggests that more consumers were able to earn or increase their income. Consumers now had a greater chance to retain or find employment and they had better income earning prospects.
  • Consumers’ expenditure vulnerability is supported by the recovery in employment as well as their ability to not exceed their incomes and remain within their budgets.
  • The decrease in their savings vulnerability can be attributed to the recovery in income as well as the fact that and more consumers are living within their means, but they still did not have greater access to emergency savings.
  • Consumers were less vulnerable in terms of debt servicing capabilities because low interest rates helped to limit debt servicing costs.

The main interventions or changes needed for consumers to recover financially are:

  • improvement in the local economy to stimulate job creation
  • financial discipline by limiting unnecessary expenses and saving more
  • financial planning, including setting attainable financial goals
  • increased financial literacy
  • additional income or starting their own businesses
  • limiting credit uptake and repaying existing debts.

The respondents noted that while South African consumers are resilient and some have started to adapt, they will require external support in the form of job creation and skills development, especially in poorer communities, to recover financially.

ANC NEC in ‘do or die’ meeting over step aside resolution

May 7th 2021 at 06:22

Following a dramatic week that saw embattled ANC secretary-general Ace Magashule suspended as well as his counter-suspension of ANC president Cyril Ramaphosa, the ANC’s national executive committee (NEC) will meet this weekend.

Sparks are expected to fly as the 80-member structure meets virtually via Zoom.

ALSO READ: Does the ANC have the backbone to serve Ace the Malema treatment?

At the top of the agenda will be the implementation of the step aside resolution adopted at the ANC’s 2017 national conference.

The resolution requires all ANC members charged with corruption and other serious crimes to step down from their positions pending the finalisation of their court cases.

So far, ANC KwaZulu-Natal deputy chairperson Mike Mabuyakhulu and the mayor of JB Marks Municipality in the North West, Kgotso Khumalo, have voluntarily stepped down from their posts due to their ongoing criminal charges.

However, Magashule remains defiant that he is still the party’s secretary-general and said he would appeal his “factional and unconstitutional” suspension. He faces multiple charges of fraud and corruption in connection with a multimillion-rand asbestos audit contract in the Free State.

Under the terms of his suspension, Magashule has been barred from representing the ANC or mobilising any of its structures, but he will be entitled to his full salary.

Many political pundits will be closely watching the response of Magashule’s allies and his radical economic transformation (RET) faction.

Ramaphosa ‘suspension’ to be discussed

Magashule sent shockwaves after he ordered Ramaphosa to step down as ANC leader because of allegations of vote buying during his 2017 ANC presidential campaign, known as CR17.

Magashule confirmed his letter was indeed legitimate and it was Ramaphosa, in fact, who had been suspended by the NEC.

Ramaphosa reportedly told the ANC’s parliamentary caucus on Thursday he had received Magashule’s letter with “shock and a measure of dismay”.

While numerous senior ANC leaders have disputed Magashule’s authority to suspend Ramaphosa, the president apparently wants the special NEC meeting to deal with this.

The structure that implements the decisions of the NEC, the national working committee (NWC), indicated that the NEC will discuss the various reports of the integrity commission, which makes findings on members accused of bringing the ANC into disrepute.

The NEC will also discuss proposals for the establishment of an appeals panel to hear the appeals of ANC members affected by the step aside resolution and the decisions of the integrity commission.

READ NEXT: ‘I’m still the secretary-general’ – defiant Magashule sticks to his guns

‘Did Msimanga and attacker make peace to cover up corruption?’ – ANC

May 7th 2021 at 06:04

The ANC caucus on Friday called on law enforcement agencies to investigate further the assault of Gauteng DA leader Solly Msimanga.

Msimanga was on Thursday assaulted by a man with a group of people who said they were there to collect items from Msimanga’s cousin’s business.

The man who attacked Msimanga has since apologised for the “unfortunate misunderstanding” and what he describes as a “scuffle”.

The unnamed man, standing alongside the former Tshwane mayor, expressed regret and said there was no money owed to him by Msimanga – which was the reported cause of the altercation.

The ANC said Msimanga and his “victim” may be covering up corruption by making peace after the incident escalated to the media.

It said the haste in which the matter was handled and resolved raised questions and suspicions.

“We call upon law enforcement agencies to properly investigate this incident despite claims that the perpetrator and Msimanga have smoked a peace pipe,” reads a statement by the party.

WATCH: Msimanga attacker sorry for spoiling former mayor’s ‘perfect day’

“We hope the so-called truce is not an attempt to cover up corruption allegations against Msimanga by his victim in the video. This brawl also exposes reasons why Msimanga was hiring bodybuilders as his advisors when he was  mayor.”

Msimanga was at the centre of an R12 billion infrastructure deal with GladAfrica.

The ANC also blasted the DA for coming to Msimanga’s defence.

“We are not surprised by the statement of the DA in defence of their blue-eyed boy, this is how they stood up for him when he was accused of sexually harassing former Gauteng MPL Nkele Molepo, whom the DA expelled from their party for making sexual harassment allegations against Msimanga,” reads the statement.

 

 

The importance of being alert of Cybercrime

May 7th 2021 at 05:34

“Fraudsters use websites or emails to trick you into giving out your personal or banking information. It’s important to stay up to date with the latest fraud trends so you can protect yourself. Never click on an Internet Banking sign link in an email or SMS,” says Carolina Reddy Head: Business Risk and Cybercrime at Standard Bank.

Luckily, there are plenty of ways to ensure that you steer clear of such scams and they rely solely on you being vigilant. Reddy has outlined various ways in which a cybercrime can be prevented when it comes to banking. Below is a list of the most common online scams and how you can prevent them from happening to you.

Phishing

This is a method used by cybercriminals to try and get your personal and banking details, such as your ID number, bank account number and credit/debit card number. They send emails impersonating companies or individuals asking you to click on a link directing you to a ‘spoofed’ website, which is a site designed to fool you into thinking that it is a legitimate website requesting you to verify your details, which the cyber-criminal uses to conduct fraud.

Vishing

Scammers call you impersonating the bank asking you for personal information and your one-time pin (OTP) to stop fraud on your account, meantime they are using this information to process fraudulent transactions against your card/bank accounts.

Change of Banking Detail Scams

This scam occurs when an unsuspecting individual receives notification that one of their suppliers has changed their banking details. The notification may come in the form of a telephone call, an email or a posted letter and will include the details of the new account, asking you to update your records. As a result, any future payments will be diverted into the fraudster’s account.

There are some general habits you can adopt to protect your personal and banking information online:

  • Don’t click on suspicious links and delete the email immediately.
  • Never share your one-time pin with anyone (including the bank).
  • If you suspect you have been compromised, contact your bank immediately.
  • Keep your personal information secure and ensure you have set up privacy settings on your social media accounts.
  • Contact the supplier directly to confirm if the bank account details have changed before making any payments.
  • Don’t use the same email address for your banking profile that you use for your social media accounts.
  • Use strong passwords that are difficult to socially engineer.
  • Do not log onto your digital banking on public WiFi.
  • Do not allow anyone to access your computer remotely. Someone from your bank will never ask you for Remote Access Control to update your information.
  • Be wary of spoofed websites which claim to be the legitimate website of an organisation and is set up to mimic the original website.

Says Reddy: “Consumers have embraced digital solutions in the last year and this has brought about unprecedented convenience and functionality. However, it has also meant that consumers have had to learn the safe habits of banking in the digital age. Consumers who are increasingly banking on digital channels should be aware of digital hygiene factors when banking as cybercriminals are likely to increase their activities as the adoption of digital channels increases.”

Be cyber wise and stay alert during the Easter season, scammers will be more prevalent than usual at this time. If you believe you have been scammed contact your bank immediately to ensure that you either recover your money speedily or prevent the scammers from taking what is yours. Stay alert and be WalletWise.

“It is important to remove emotion when working online. Be measured and responsible when it comes to managing your online profile and if you think you have been compromised contact Standard Bank immediately,” Reddy concludes.

Fiery debate over whether ANCWL should march for Magashule

May 7th 2021 at 05:29

A meeting of the ANC Women’s League (ANCWL) on Thursday night saw a fiery debate over whether it should march in support of ANC secretary-general Ace Magashule.

A virtual meeting of its national working committee met to discuss the drama rocking the ANC in which suspended party secretary-general Ace Magashule seeks to suspend President Cyril Ramaphosa.

A source with knowledge of the meeting told News24 that ANCWL president Bathabile Dlamini noted in her opening address the women of the ANC could not sit back while party leaders were fighting.

“She was saying that as women we have to act when the kids are fighting,” the source said.

ALSO READ: ‘Autonomous’ ANCWL can meet with Zuma whenever they want, says ANC

It was proposed to the meeting that the league either met with the ANC leadership on the matter or march to the party’s national executive committee (NEC) sitting this weekend.

Magashule has defied his suspension from the party which was imposed following his resistance to stepping aside from his position pending the outcome of his criminal trial.

The charge against Dlamini was led by Deputy Communications Minister Pinky Kekana who was said to have argued the decision of the ANC NEC was binding on the league and it could not support Magashule’s defiance.

Kekana argued the ANCWL had to “look at the picture” and the women of the ANC could not repeat the mistakes of supporting former president Jacob Zuma blindly in his rape trial.

The source noted: Pinky said that the real victims of corruption are women and they bear the brunt of it.

Another league leader from Limpopo was said to have supported this charge, resisting any suggestion to side with Magashule on the matter.

A second source noted the meeting heard the ANCWL could not be on the wrong side of history in the fight against corruption.

Magashule’s defiance of his suspension is expected to dominate discussions at the ANC NEC meeting over the weekend.

READ MORE: ANCWL leaders quiet on gender issues, for fear of losing positions

In the letter, which was dated 3 May, Magashule said he was informing Ramaphosa of his suspension, following a decision of the ANC’s national working committee (NWC).

“You have been reported to the Serious Offences Directorate and the matter of sealed documents relating to your CR17 campaign prior and during the national conference is pending before our courts,” he wrote.

In a statement, Magashule said his suspension from the ANC was unconstitutional and he announced he would appeal.

“I have also, in accordance with the powers vested in me as the secretary-general of the ANC, and furthermore, in full compliance with the relevant conference resolutions summarily, suspended the president of the ANC, Comrade Cyril Ramaphosa [sic],” he added in the statement.

Ramaphosa is said to have told the ANC parliamentary caucus on Thursday he was “dismayed” by the letter and it was “null and void”.

Attempts to get comment from the ANCWL were unsuccessful. Its comment will be added once received.

Tito Mboweni a ‘drunkard’ – Shivambu lashes out after ruckus in Parly

May 7th 2021 at 05:10

EFF deputy president and MP Floyd Shivambu hit back at Finance Minister Tito Mboweni’s criticism of the EFF’s conduct in the National Assembly on Thursday, saying “Drunkards must focus on alcohol and Magoebaskloof”.

This after Mboweni accused the EFF on Twitter of being disorderly and disrespectful to President Cyril Ramaphosa during his question and answer session.

Responding to MPs questions during a hybrid sitting of the House, Ramaphosa’s was briefly interrupted by Shivambu and several EFF MPs who quizzed him about his legitimacy as the country’s president following his “counter-suspension” from the ANC by the party’s suspended secretary-general Ace Magashule.

ALSO READ: Who are you representing? EFF quizzes Ramaphosa over ANC ‘suspension’

“All of us who are here are representing political parties and, as far as we are concerned, Mr Ramaphosa is suspended from the ANC. He must clarify who is he representing, is he representing his jacket or a political party because he is not,” Shivambu said.

However, his question was shot down by the deputy speaker of the National Assembly, Lechesa Tsenoli, who said the question was not related to Ramaphosa’s responsibilities as the head of state.

DA leader John Steenhuisen also accused the president of “waging a factional war” while the country faced several challenges.

In response, Ramaphosa told Steenhuisen to mind his own business because “what is happening in the ANC is not your business.”

‘Disruptive’ and ‘drunkards’

Taking to Twitter after Ramaphosa’s session, Mboweni without specifically naming the EFF tweeted: “To be disruptive, disorderly, disrespectful, uncouth, ungovernable and noisy in the National Assembly is not revolutionary. It is left-wing childishness!! Actually right-wing behaviour and anti-democracy!”

To be disruptive, disorderly, disrespectful, uncouth, ungovernable and noisy in the National Assembly is not revolutionary. It is left-wing childishness!! Actually right-wing behaviour and anti democracy!

— Tito Mboweni (@tito_mboweni) May 6, 2021

In response, Shivambu took a swipe at the minister and accused him of being a drunkard who attends “90% of National Treasury meetings under the influence of alcohol.” He also said Mboweni had failed to manage South Africa’s economy and to implement resolutions of the ANC’s 2017 national conference on the establishment of a state bank.

He tweeted: “To dismally fail to manage South Africa’s economy and to attend 90% of National Treasury meetings under the influence of alcohol. Failure to implement resolutions on State Bank and Sarb [South African Reserve Bank] is counter revolutionary and reactionary. Drunkards must focus on alcohol and Magoebaskloof.”

To dismally fail to manage South Africa’s economy and to attend 90% of National Treasury meetings under the influence of alcohol. Failure to implement resolutions on State Bank and SARB is counter revolutionary and reactionary. Drunkards must focus on alcohol and Magoebaskloof. https://t.co/VdJCXDzTWi

— Floyd Shivambu (@FloydShivambu) May 6, 2021

READ NEXT: Does the ANC have the backbone to serve Ace the Malema treatment?

Recovery Loan Scheme

May 7th 2021 at 04:33

The recovery loan scheme will remain open until 31 December 2021 (subject to review). The scheme is intended to provide further support to businesses to help them recover and grow following the disruption of the pandemic and the end of the transition period. The new scheme can be used as an additional loan on top of previous support received from other schemes such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme

Under the scheme, the government will provide lenders with a guarantee of 80% on eligible loans provided to UK businesses. The recovery loan scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

The following finance options are available:

  • Term loans and overdrafts are available between £25,001 and £10 million per business.
  • Invoice finance and asset finance are available between £1,000 and £10 million per business.

Finance terms are for up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years. No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security. 26 lenders have already been accredited for the recovery loan scheme and more are expected shortly.

No business owner should have to suffer the financial tragedy of over-trading through lack of planning. If you need help, pick up the phone or reach out to Exceed who can help.”

#AceSuspendsCyril: Nando’s takes aim at ANC in hilarious new meme

May 7th 2021 at 04:31

Nando’s has clapped back in the best way they know how after the suspension of the Secretary-General of the African National Congress (ANC), Ace Magashule, and his subsequent “suspension” of President Cyril Ramaphosa.

Image: Christopher Moagi/Daily Sun/Gallo Images via Getty Images.

MAGASHULE TO SUSPEND RAMAPHOSA AS ANC PRESIDENT

The South African previously reported that after being issued the letter of suspension on Wednesday 5 May 2021, Magashule referred to it as “fatally flawed”, adding that he is questioning Deputy Secretary-General Jessie Duarte authority on the matter.

Magashule said Duarte had no authority to issue the letter of suspension, citing it as “unconstitutional.”

He further added that he would now “summarily suspend Cyril Ramaphosa as the president of the ANC in full compliance with the relevant conference resolutions”.

This means that Ramaphosa would not be able to carry out the duties and responsibilities of the President of the ANC. He may also not represent the party publically in any forum, and may not make public statements pertaining to party interests.

FEELING THE HEAT

Nando’s proceeded to create a new meme – which was posted on their Twitter page – where they refer to Ramaphosa as “moreki,” a word which translates to a “buyer”, that ultimately aludes to the fact that Ramaphosa is indeed the buyer of the country.

Even Moreki is feeling the heat. #AceSuspendsCyril pic.twitter.com/z28y6SBatk

— NandosSA (@NandosSA) May 6, 2021

Of course, the internet – and especially social media users in South Africa – are loving it.

Zero chill on Nando's side…..LOVE IT!😂😂😂 https://t.co/B3zoAYxiHa

— Indigo_Rosefit (@IRosefit) May 6, 2021

The suspendee has suspended the suspender pic.twitter.com/nhL3FiARgF

— Josef tjikeu (@JTjikeu) May 6, 2021

Battle of the suspensions… I wonder who will CHICKEN out? 😏😏 pic.twitter.com/Brjm8Moop2

— Da-Emperor (@scmojela1) May 6, 2021

VIRAL NANDO’S ADS

The South African previously reported on Nando’s 15 best adverts, and that’s because their viral campaigns completely dominate the discourse. They’ve tackled everything from xenophobia to state capture Nando’s is known for stirring things up when it comes to their advertisements.

Other memes, includes their take on the various national lockdowns imposed in South Africa, to what feels like ever-lasting loadshedding.

We like to keep conspiracies out of the kitchen. #VaccineforSouthAfrica pic.twitter.com/1HnEOGu5Pw

— NandosSA (@NandosSA) February 1, 2021

Even when the tough times last a bit longer, we don’t lose hope! #LockdownLingo pic.twitter.com/6A7J9e7tg6

— NandosSA (@NandosSA) April 23, 2020

Also read: Nando’s brilliantly calls on us South Africans to “fix our shit” in new ad

gettyimages-1232285126-594×594-2

BOKSBURG, SOUTH AFRICA - APRIL 10: Secretary General Ace Magashule and President Cyril Ramaphosa at the annual wreath laying and 28th commemoration anniversary of Chris Hani?s killing at the Thomas Nkobi Memorial Park on April 10, 2021 in Boksburg, South Africa. Hani was shot in the driveway of his home in Dawn Park on 10 April in 1993. (Photo by Christopher Moagi/Daily Sun/Gallo Images via Getty Images)

Beware trading into insolvency

May 7th 2021 at 04:29

The present pandemic has created just the right conditions for certain businesses to trade their way into insolvency.

But isn’t this good news?

Under normal circumstances, yes, this is great news, but unfortunately, many businesses have needed to spend reserves and borrow in order to survive the last fifteen months of COVID disruption.

Some businesses are standing on the starting line for a marathon, wearing slippers; unprepared financially for what is about to unwind.

Does your business fit into this category?

  • Cash reserves are limited
  • Losses have stripped away accumulated profits
  • You may be obliged to offer better terms of trade to your customers than you receive from your suppliers. i.e., you sell goods on say 30-60 days credit terms but pay your suppliers for raw materials cash on delivery or less than 30 days.

But why does this matter if sales are profitable?

When you sell goods on credit – 60-days in our example – for those 60 days you will have to pay suppliers and other overheads, wages, rent and other costs, before cash arrives in your bank account for sales made almost two months ago.

Ironically, the more successful you are in creating new sales, the more damaging this funding crisis potentially becomes. In accounting speak, you will be over-trading.

Planning is critical to avoid insolvency

If your business fits the description we have outlined above it is imperative that you plan your business growth. It may still be possible to manage higher sales as long as you organise cash-flow support to fund costs until higher sales, and therefore retained profits, provide you with the resources to self-sustain future growth.

No business owner should have to suffer the financial tragedy of over-trading through lack of planning that leads to insolvency. If you need help, Pick up the phone, Exceed can help.”

‘Why did you fake your mother’s death?’ – Mbalula unfazed by Niehaus lawsuit

May 6th 2021 at 15:17

Transport Minister Fikile Mbalula is unrepentant about his view of Umkhonto weSizwe Military Veterans (MKMVA) spokesperson Carl Niehaus, again calling him an “unrepentant thug”.

In a Tweet reply to Niehaus on Thursday, Mbalula called the staunch supporter of ANC secretary-general Ace Magashule an “unrepentant thug” and a “self-confessed fraudster”.

You sue me for telling u the truth about yourself unrepentant thug. Self confessed fraudster. How did you lose job at GEP ? Under Mashatile,Why did you fake mothers death? What is your job description at luthuli house?

— |Mr Fix (@MbalulaFikile) May 6, 2021

He has called Niehaus an “unrepentant thug” before, in February. And the “fraudster” label is linked to his past, where he’s accused of defrauding the Gauteng Economic Development Agency (Geda), among others.

On Wednesday, it was revealed that Niehaus is suing Mbalula for R8 million, for calling him a thug and corrupt on Twitter last year.

Niehaus said he was suing Mbalula because he could not get away with insulting people with impunity.

“Minister Mbalula seems to think that he’s got impunity to insult people. He has also insulted minister Nkosazana Dlamini Zuma, minister Lindiwe Sisulu and many others including the secretary-general of the ANC, comrade Ace Magashule.

“I think the time has come for minister Mbalula to be told this is enough.  He will not be left with a situation where he feels he has impunity to insult people as he wishes and there will be consequences. That is why I decided to proceed with this summons,” he said.

ALSO READ: Mbalula alleges ‘Umshini Wami’-singing Supra Mahumapelo ‘formed Cope’

A history of violence

Mbalula and Niehaus have a history of not getting along.

Last October, in a series of tweets, Mbalula defended himself against “thugs” Niehaus and MKMVA leader Kebby Maphatsoe, alleging they were out to get him because he had closed their “milking cow” – the Passenger Rail Agency of SA (Prasa).

Back in 2019, Mbalula called Niehaus a “crook” after Niehaus criticised then-head of ANC elections Mbalula for saying President Cyril Ramaphosa’s election as party president in 2017 was a “game changer”.

Niehaus had said: “He [Mbalula] seems to fear much, especially engagement about his blatant opportunism, careerism and lack of respect for his seniors, such as the SG [secretary-general] of the ANC, comrade Ace Magashule. Talk about real cowardice!”

Additional reporting by Thapelo Lekabe

Editorial: Covid-19 vs ANC palace politics

May 6th 2021 at 15:00
By: Eyaaz

Our way of life is still far from finding its “new normal” and we aren’t getting any closer, while palace politics once again take centre stage as we head to October’s local elections

The post Editorial: Covid-19 vs ANC palace politics appeared first on The Mail & Guardian.

Man arrested for ruining Solly Msimanga’s ‘perfect day’

May 6th 2021 at 11:15

The man who assaulted Solly Msimanga in Benoni, claiming monies owed, and ruined the DA Gauteng leader’s “perfect day”, has been arrested.

The man apparently showed up with a group of people, who said they were there to collect items from the cousin’s business. Msimanga was then attacked after intervening in spat between the man and his cousin.

While on video, the man then accused Msimanga, who was on the phone to police, of owing him money.

However, he has since publicly apologised to Msimanga and confirmed that Msimanga does not owe him any money, according to the Democratic Alliance (DA) in Gauteng, in a statement.

“The assailant also offered to pay the medical expenses and other losses Mr Msimanga may have suffered in the process.

“The DA condemns this vicious and criminal attack on the provincial leader. Our country’s Constitution asserts the rule of law as a founding provision. If there is a disagreement, whether involving money or not, South Africans should commit to working through the parameters of the law to resolve their differences,” the DA said.

The DA said since this was a personal matter, they would respect Msimanga’s decision on whether to press charges or not.

Msimanga, before the assault, having a “perfect day”:

Msimanga, after the assault, on the phone with the police:

Former capital city mayor, the honourable Mr Solly Msimanga, beaten to the pulps! pic.twitter.com/hRr8eHm9PZ

— Mantikwe (@Mantikwe3) May 6, 2021

Additional reporting by Rorisang Kgosana

Who are you representing? EFF quizzes Ramaphosa over ANC ‘suspension’

May 6th 2021 at 11:08

President Cyril Ramaphosa on Thursday was quizzed by the EFF over his “suspension” from the ANC by embattled secretary-general Ace Magashule.

While he was replying to MP’s oral questions in the National Assembly, EFF deputy president and MP Floyd Shivambu, attempted to ask the president about his suspension.

ALSO READ: ‘I’m still the secretary-general’ – defiant Magashule sticks to his guns

However, he was shot down by the deputy speaker of the National Assembly, Lechesa Tsenoli, who said the question was not related to Ramaphosa’s responsibilities as the head of state.

“We are here to listen to the president of the country and so this is what is going to proceed,” Tsenoli said.

But Shivambu insisted his question needed to be addressed in Parliament before the president could respond to MPs’ questions.

“He must clarify who is he representing, is he representing his jacket or a political party because he is not,” he said.

Some ANC MPs could also be heard bashing Shivambu for his point of order and questioned why he was interested in the internal matters of the party.

This followed Magashule’s suspension letter addressed to Ramaphosa that surfaced on Wednesday following his suspension from the ANC due to his corruption trial.

In the letter, dated 3 May 2021, Magashule cited allegations of vote buying involving Ramaphosa’s CR17 ANC presidential campaign and the court case related to the sealing of the campaign’s financial records.

Voters still have confidence in ANC, says Ramaphosa

At the same time, Ramaphosa said the ANC would participate in the coming local government elections in October with a “great deal of enthusiasm”.

Ramaphosa said the ANC’s recent electoral wins in by-elections were an indication that a majority of South Africans still had confidence in the governing party.

This is despite continued infighting and divisions among ANC leaders over the implementation of the party’s step aside resolution.

“The ANC will participate in the forthcoming elections with a great deal of enthusiasm. We get elected to represent the people of our country.

“As you would have seen and this I say with all humility without being arrogant, the majority of our people still have confidence in the ANC,” Ramaphosa said.

He was responding to a supplementary question from National Freedom Party (NFP) MP Shaik Emam, who wanted to know whether the ANC and other political parties that received funds from companies accused of corruption would consider withdrawing from the polls in the interest of “creating a better society”.

“No, we will not, because our people want us to continue addressing their aspirations and fulfilling their dreams, which we continue doing on an ongoing basis. I’m sorry therefore to disappoint you and say we will not withdraw,” Ramaphosa said.

Last week, Ramaphosa admitted to the Commission of Inquiry into Allegations of State Capture that with hindsight, the ANC would not have knowingly accepted donations from corruption-accused company Bosasa. He was testifying at the commission in his capacity as the leader of the ANC.

Ramaphosa told MPs voters had confidence in the ANC because they could see the party was addressing its past mistakes.

“Those people can see what is happening and they see that the ANC is in a process of renewing itself, rebuilding itself, correcting itself and demonstrating its determination to focus on the interests of our people.

“They themselves are investing confidence in the ANC.”

READ NEXT: Ramaphosa remains ‘very resolute’ to address ANC corruption, says Pandor

ACDP gets bee in its bonnet over Contralesa’s Ancestors Day

May 6th 2021 at 10:49

The African Christian Democratic Party (ACPD) is upset at a proposal by beer brand Castle Milk Stout, renowned cultural activist and poet laureate Zolani Mkiva and the Congress of Traditional Leaders of SA (Contralesa) to make May 8 Ancestors Day.

Contralesa is calling on South Africans to celebrate and observe African spirituality and its role in our lives through ceremonies and rituals that honour the ancestors.

The inaugural ceremony is set to take place at the Mathibela Royal Palace in Bushbuckridge, Mpumalanga, where traditional leaders and heritage practitioners will come together under strict Covid-19 protocols to observe the day.

The ACPD on Thursday made calls to boycott the day.

In a statement by leader reverend Kenneth Meshoe the party told its followers to contest the proposed launch.

This nation desperately needs God’s intervention and not dead ancestors.

“Let us use Saturday 8 May 2021 as a day to intensify our prayers to ask our living God to save our souls, deliver us from evil, heal our land, bless and prosper all our people in the name of Jesus Christ our Lord and Saviour,” said Meshoe.

ALSO READ: ACDP vows to fight gender diversity and education in WC schools

“While we acknowledge that millions of South Africans consult and worship their dead ancestors, committed evangelical Christians know that God’s Word denounces such practices.”

Recently the party has made controversial calls. It last week staged pickets against a draft policy on gender identity and sexual orientation in public schools by the Western Cape education department.

It said that the DA was planning to actively mislead & confuse school children in the Western Cape with its draft regulations on gender identity and gender orientation.

 

Why we can’t really raise taxes in South Africa any more: deputy finance minister

May 6th 2021 at 07:08
It is no secret that South Africa has serious economic challenges, and chief amongst these is that the government is struggling to stabilise public debt, says deputy finance minister David Masondo.

V&A Waterfront: Cape Town signs off on R4 billion expansion project

May 6th 2021 at 06:53

The City of Cape Town announced the approval of a R3.9 billion expansion project at the V&A Waterfront on Wednesday, 5 May.

The mixed-use development is expected to create at least 1100 jobs during the construction phase and follows on the heels of two other significant development announcements.

V&A WATERFRONT EXPANSION TO TAKE PLACE AROUND DOCK ROAD

The expansion project will see construction projects take place on either side of Dock Road and the current Battery Park development in the waterfront 10.5 hectare canal district. The district is the thoroughfare for all visitors who enter the waterfront from the city.

“Following the recent approval of the R14 billion Harbour Arch Development and the R4 billion River Club development, which will together see roughly 40 000 jobs being created in Cape Town, the approval today of the V&A Waterfront’s Canal Precinct Plan, will see another significant boost to job creation for Cape Town,” said Executive Mayor Dan Plato on Wednesday.

Plato said lockdowns across the world had a major impact on cities in 2020 and the City of Cape Town is doing its utmost to ensure the local economy “bounces back even stronger than before.” Infrastructure developments such as these create job opportunities, attract investors and “offer significant benefit to our residents,” he said.

The development has been approved by Heritage Western Cape and will not adversely affect the rights of surrounding properties, according to the City. The maximum building height in the eastern part of the development will be capped at 60 metres.

The original development application was amended to incorporate oral submissions made to the Municipal Planning Tribunal during the appeal process.

“The V&A Waterfront is identified as a location that will remain an attractive destination for locals and international visitors for decades to come,” said Plato.

“Significant and sustained investment by the private sector facilitated by the City of Cape Town, will ensure the long-term sustainability of Cape Town. The concept is therefore approved.”

South Africa faces three big credit rating reviews in May – here’s what to expect

May 6th 2021 at 05:03
Credit rating agencies Moody’s Investor Services and S&P Global Ratings are expected to release their rating reviews on 7 May and 21 May respectively, with Nedbank analysts warning that further downgrades from the agencies are likely.

Here is the letter SARS is sending to wealthy taxpayers in South Africa

May 6th 2021 at 03:23
The South African Revenue Service (SARS) has formally established a high-wealth individuals unit as it aims to improve compliance amongst wealthy South Africans.

Chelsea dominate Real Madrid to set up all-English Champions League final

May 6th 2021 at 03:15
By: AFP

Chelsea set up an all-English Champions League final against Manchester City as goals from Timo Werner and Mason Mount beat Real Madrid 2-0 in a dominant display on Wednesday to seal a 3-1 aggregate victory at Stamford Bridge.

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If anything, the scoreline flattered Madrid as the 13-time European champions had no response to Chelsea’s greater strength and speed.

The Blues should have ran out far more convincing winners as they toyed with the tired visitors in the second half.

However, Werner’s cushioned header into an empty net on 28 minutes after Kai Havertz’s initial effort came back off the crossbar and Mount’s tap-in five minutes from time were enough to seal their place in Istanbul on May 29.

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“To never lose the concentration, focus and positive energy on the pitch – it was a huge performance and well deserved,” said Chelsea manager Thomas Tuchel, who has masterminded a huge turnaround in Chelsea’s season since replacing the sacked Frank Lampard in January.

Backed by Russian billionaire owner Roman Abramovich, Chelsea’s £220 million spending spree last summer has been rewarded with a first Champions League final since they lifted the trophy for the only time in 2012.

“We never lost the hunger, the desire to defend,” added Tuchel.

“In the second half we had even better structure to defend and it was a fantastic performance.

“We could have scored so much earlier and more to be safe, but it’s no time for criticism now. It’s a fantastic achievement and big congratulations to the team.”

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Madrid boss Zinedine Zidane welcomed back captain Sergio Ramos for the first time in six weeks, while Eden Hazard was handed a rare start in an injury-hit season on his return to Stamford Bridge.

But the Belgian was again a peripheral figure as Madrid’s over-reliance on Karim Benzema to provide a goal threat was exposed.

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“We needed to be better going forward,” said Zidane.

“We didn’t have any clear chances. They made a number of them and that’s football.

“We fought and tried but they deserved to win and go through.”

Madrid’s only serious threat came from a quick turn and shot from the edge of the box from Benzema that Edouard Mendy did brilliantly to turn behind midway through the first half.

Moments later they were behind as Werner scored just his fourth goal in his last 39 games.

N’Golo Kante and Havertz did the hard work as the French midfielder fed Havertz, whose audacious chip over Thibaut Courtois bounced invitingly off the crossbar for Werner to head into an empty net.

Chelsea have now kept 18 clean sheets in 24 games since the appointment of Tuchel turned their season around.

However, a failure to take their chances at the other end means they are still far from guaranteed a place in the Champions League next season.

That lack of a killer touch was exposed after the break as Havertz saw a free header come back off the bar before Mount blasted over with just Courtois to beat.

The former Chelsea ‘keeper, who controversially forced a move back to Spain in the summer of 2018, kept his current employers in the tie as he then saved one-on-ones with Havertz and Kante, with the Blues’ speed on the break too much for Madrid’s ageing midfield to cope with.

Tuchel was growing increasingly frustrated with his side’s inability to put the tie to bed, but could finally relax five minutes from time.

Substitute Christian Pulisic left Courtois on the floor and from his cut-back, Mount slid in to finish from close range.

Fired by Paris Saint-Germain on Christmas Eve after leading the French champions to their first ever final in this competition last season, Tuchel is headed back to the Champions League showpiece match for a second consecutive season, unlike his former club, who were beaten 4-1 on aggregate by City in the other semi-final.

Jarryd Hayne: Ex-49er, Australian rugby league star jailed for sexual assault

May 6th 2021 at 02:41
By: AFP

Former Australia rugby league star and San Francisco 49er Jarryd Hayne was on Thursday jailed for five years and nine months over the sexual assault of a woman at her home in 2018.

RUGBY QUIZ | ANSWER THESE 5 EASY QUESTIONS AND YOU COULD WIN R1 000!

The 33-year-old – best known outside Australia for a short-lived attempt to break into the NFL – was found guilty in March on two counts of intercourse without consent.

He must serve at least three years and eight months before being eligible for parole.

Jarryd Hayne was sentenced at a court in Newcastle, north of Sydney, after the judge heard the woman describe how the incident had changed her life.

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“Yes I am destroyed and damaged but I am still standing,” the 26-year-old, who cannot be identified for legal reasons, said in a victim impact statement.

The pair met on social media and the woman reported that he attacked her at her home in Newcastle on the night of the National Rugby League grand final.

Former Parramatta Eels star Hayne insisted it was consensual, but District Court Judge Helen Syme disagreed.

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“The reliability and honesty of the victim’s evidence was tested at length and in my view, her reliability was not in doubt. She said no several times,” Syme said, according to broadcaster ABC.

The Sydney-born Jarryd Hayne was the NRL’s player of the year in 2009 and 2014, making more than 20 appearances for New South Wales in State of Origin matches, which pit New South Wales against Queensland.

He was capped 12 times by Australia and four by Fiji, where his father comes from, as well as representing Fiji in rugby sevens.

Hayne attempted a career in the NFL in 2015 as a kick returner and running back, but experienced only fleeting success during a tough first season with the San Francisco 49ers.

He played eight times for the 49ers, making 79 yards and scoring no touchdowns.

FW de Klerk welcomes Ace Magashule suspension from ANC

May 6th 2021 at 02:38

The FW de Klerk Foundation has become amongst the latest to welcome a decision by the African National Congress (ANC) to suspend its secretary general Ace Magashule.

Magashule was suspended on Wednesday, 5 May 2021, after he refused to step aside, in line with the party’s contentious resolution, which has no doubt fueled factionalism within the ANC.

Under the step-aside policy, members facing corruption and other serious crimes, are to step aside from their posts or face suspension

“The FW de Klerk Foundation welcomes the immediate suspension of the ruling party’s secretary general, Ace Magashule, as well as other ANC members facing criminal charges – particularly corruption or other serious crimes,” the foundation said in a statement.

The decision to suspend Magashule from the ANC will likely spark anger from the SG’s fierce supporters. Magashule is considered a powerful figure within the ANC and the latest move by Luthuli House is said to symbolise a victory for party president Cyril Ramaphosa.

FW de Klerk: Magashule suspension ‘long overdue’

Having been the last president during apartheid South Africa, FW de Klerk has been rather vocal on matters relating to current affairs, as well as the state of governance, post democracy.

“The decision can be seen as a consolidation of President Cyril Ramaphosa’s power within the ANC in the ongoing factional battles between President Ramaphosa on the one side and former president Jacob Zuma and Ace Magashule at the other,” the FW de Klerk Foundation further said.

“It should also be welcomed as an important – and long-overdue – step to tackle corruption and take stern action against top ANC officials who stand accused of serious offences. The ANC’s factional battles have been negatively impacting governance and effective service delivery for far too long”

However, some South Africans are unhappy with de Klerk weighing in on Magashule’s suspension.

We revolutionaries understand the fight going on in this colony of UK called South Africa. The fight against Jacob Zuma is not corruption, just like Lula da Silva in Brazil, it's a policy fight. Students will study for free, Magashule will lead that struggle. We reject De Klerk! pic.twitter.com/uoEWeWLlnT

— uMaghebhula (@KamvelihleGoba) May 5, 2021

When your suspension is celebrated by the De Klerk Foundation 👀👀, the ANC is gone! #StepAside #magashule

— Mothakge Makwela (@PhillipGP) May 5, 2021

The De klerk foundation Welcome the suspension of Ace…

Just know this country is gone…

— KE SHARP (@danielmarven) May 5, 2021

Corruption crackdown by the ANC

May 6th 2021 at 01:59
South Africa’s ruling party is cracking down on leaders implicated in corruption.

North West mayor steps aside, as per ANC resolution

May 6th 2021 at 01:19

The African National Congress (ANC) step-aside resolution continues claiming more casualties – this time, Kgotso Khumalo, the JB Marks Local Municipality executive mayor, has resigned from his post.

According to City Press, Khumalo sent an email to the ANC interim provincial committee’s Hlomani Chauke.

On Monday, the ANC’s National Working Committee (NWC) reaffirmed its support for the party’s contentious step-aside resolution, which directs members facing corruption charges and other serious crimes, must temporarily vacate office.

Khumalo faces fraud and corruption charges involving R5 million allegedly meant for service delivery in his municipality.

Former ANC North West Chairperson Supra Mahumapelo came under fire for allegedly encouraging Khumalo to not resign, as per an instruction by the IPC. Mahumapelo himself had been suspended from the ANC, however Ace Magashule informed him that he remained a member, pending his appealing of the decision.

Magashule himself refused to step down and has since been suspended by the party.

How many more people will step aside from ANC?

In addition to Kgotso Khumalo, so far, only one other person has stepped aside in abidance to the resolution – ANC KwaZulu-Natal deputy chairperson Mike Mabuyakhulu.

“In line with the position adopted by our movement, I hereby respectfully tender to the Office of the Provincial Secretary, that I am stepping aside from my position as the Provincial Deputy Chairperson of the ANC in KwaZulu Natal, with immediate effect,” said Mabuyakhulu.

He is accused of receiving bribes to the tune of R330 000 from the organisers of the North Sea Jazz Festival in 2012, during his tenure as KZN economic development MEC. Mabuyakhulu is alleged to have authorised a R28 million payment to various parties for the festival, of which his department was the sponsor. Despite all the monies being paid, the festival never took place.

For now, the status of other ANC members remains unknown – whether they have stepped aside or have received suspension. This includes the likes of ANC MP Bongani Bongo, who’s been embroiled in a multimillion rand land case in Mpumalanga as well as former eThekwini mayor Zandile Gumede.

UPDATE: Magashule suspending Ramaphosa is NOT fake news

May 5th 2021 at 18:51

Earlier this evening, many media outlets received a statement that purported that ANC secretary-general Ace Magashule had suspended ANC president Cyril Ramaphosa.

While the statement seemed official, the ANC later said it was fake.

This statement coincided with the leaking of a letter between Magashule and Ramaphosa on Monday, regarding the step-aside resolutions.

ALSO READ: First take: Ace suspends Cyril – what in the actual hell?

The ANC initially told The Citizen the letter from Magashule suspending Ramaphosa was not real.

“In this digital age, anyone can create anything. Any communication about the ANC would have come from us,” ANC spokesperson Pule Mabe told The Citizen. However, Mabe later went on TV to say the opposite and confirmed that the letter was real. An official ANC statement also confirmed it.

Mabe has intimated on Newszoom Afrikathat Magashule is most likely mistaken if he believes he has the power to reinstate himself and suspend Ramaphosa

@MYANC response to the statement by Secretary General Comrade Ace Magashule. pic.twitter.com/yV7KSgOUCG

— African National Congress (@MYANC) May 5, 2021

Parts of the press release stemmed from Magashule’s official letter to Ramaphosa on Monday declaring that his CR17 campaign had been reported to the Serious Offences Directorate of the ANC, where Magashule indicated that Ramaphosa himself should let the party know that Ramaphosa’s suspension would be in the best interests of the party.

Below is the full Wednesday letter from Magashule to Ramaphosa, as released (or leaked).

pic.twitter.com/2FuK6oNyJL

— Ace Magashule (OFFICIAL) (@Magashule_Ace) May 5, 2021

The Citizen initially apologised for the mistake and retracted the article in its entirety, which turned out to be unnecessary.

ALSO READ: Hmmm … Ace Magashule’s little chess picture made the game all too clear

ANC responds to Magashule’s letter to Ramaphosa

May 5th 2021 at 16:15

The African National Congress on Wednesday evening responded to Secretary-General Ace Magashule’s letter to Cyril Ramaphosa, in which he “summarily” suspends him as the president of the party.

ANC responds to Magashule

The party said the “decisions of the National Executive Committee and the National Working Committee stand”.

In the statement, which was initially shared on WhatsApp, the party confirmed the NEC will be “meeting over the weekend and will accordingly respond to the Secretary-General.

“The ANC request that the Secretary General respect the decisions of the NEC and subject himself to the discipline of the organisation”.

Can Magashule suspend Ramaphosa?

Not really, no. National Chairperson of the African National Congress, Gwede Mantashe, confirmed Wednesday evening that the letter, if not a fake, “has no consequence” as Magashule doesn’t have the authority to suspend Ramaphosa.

Mantashe told the TimesLIVE the decisions within the party “are taken by structures and not individuals. He added that the intention of Magashule’s letter was to “cause confusion”.

“[Magashule] is doing someone’s bidding. […] You can’t take decisions on your own in an organisation. It has no consequence. You can’t as an individual write a letter suspending another letter.”

Mantashe likened it to being a member of a “church choir or a football club”, explaining that all decisions within the club are taken in a structure, not by any one individual.

Thus, he says, the “letter is not worth the paper it is written on”.

Now read: Ace Magashule threatens to suspend President Cyril Ramaphosa

Just in: Ace Magashule threatens to suspend President Cyril Ramaphosa

May 5th 2021 at 15:02

The Secretary-General of the African National Congress (ANC), Ace Magashule on Wednesday released a statement to formally appeal the “unconstitutional suspension”.

Ace Magashule strikes back

Magashule to suspend Ramaphosa as ANC president

After being issued the letter of suspension on Wednesday, Magashule referred to it as “fatally flawed”, adding that he is questioning Deputy Secretary-General Jessie Duarte authority on the matter.

Magashule said Duarte had no authority to issue the letter of suspension, citing it as “unconstitutional.”

He further added that he would now “summarily suspend Cyril Ramaphosa as the president of the ANC in full compliance with the relevant conference resolutions”.

This means that Ramaphosa would not be able to carry out the duties and responsibilities of the President of the ANC. He may also not represent the party publically in any forum, and may not make public statements pertaining to party interests.

‘Illegal and unconstitutional’ suspension

Magashule cited the terms of Resolution 8.2 of the 54th National Conference and Resolution 8.3, citing that “people who fail to give an acceptable explanation, or to voluntarily step down while they face disciplinary, investigative or prosecutorial procedures”.

He called on members of the party to “act with revolutionary dignity and respect, and to uphold the ANC Constitution”. Magashule added:

“None of us should bow to illegal and unconstitutional actions. In doing so we must protect the unity of the ANC as leader of society. […] Furthermore, these letters are based on a selective and factional interpretation of the relevant resolution”.

Why was Magashule suspended?

Magashule was suspended from office as a temporary measure to enforce the ANC’s step-aside policy. This follows after Magashule was accused of graft in the province of Free State.

During his time as the provincial premier, Magashule reportedly orchestrated a fraudulent operation worth more than R250 million. The political veteran, in the process, enriched himself through an asbestos auditing contract.

As reported earlier today, Magashule was charged by the Hawks, and further litigation awaits.

Now read: ANC responds to Magashule’s letter to Ramaphosa

Ramaphosa, Magashule face off in Limpopo

May 5th 2021 at 13:54

The gloves have come off between supporters of suspended ANC secretary-general Ace Magashule and President Cyril Ramaphosa ahead of the Limpopo ANC regional elective conferences.

The ANC in Limpopo announced last month three of its biggest regions will host their respective elective conferences soon.

The regions were Norman Mashabane, with 129 branches, Vhembe, with 127, and Sekhukhune, with 118.

But the main contest is in the Vhembe region, where Ramaphosa and Magashule’s backers are sweating it out for the top position on the regional executive committee.

ALSO READ: ANC suspends defiant Ace Magashule

The region is known for two things – the base of the controversial VBS Mutual Bank and as the ancestral home of Soweto-born Ramaphosa.

The Vhembe district municipality invested R300 million in VBS, a move that saw the region divided down the middle in ensuing factional battles.

The Ramaphosa faction was led by ANC Limpopo provincial secretary Soviet Lekganyane, while the Magashule camp was under treasurer Danny Msiza, who is facing a step-aside order.

Battling for control of the region are Msiza’s foot soldier Makonde Mathivha and Lekganyane’s supporter Dowelani Nenguda.

Mathivha is former municipal manager for Thulamela local municipality, while Nenguda is Vhembe’s executive mayor.

ANC regional secretary Anderson Mudunungu said Vhembe will hold its conference before the end of this month. But he would not comment on the nomination processes, except to say: “Nomination processes of the ANC remain exactly that, of the ANC. It is not open for public consumption.”

But an executive committee member, who spoke on condition of anonymity for fear of reprisals, said the wrangle for the control of the agricultural region would be a “walk in the park” for Nenguda.

“We are already smiling from ear to ear. This is a conference of numbers and we already have those numbers,” she said.

“Nenguda is just a rare breed we always wanted in the ANC.

“You will recall that two South African Municipal Workers’ Union members were recently assassinated in this region. Since then, it became sharply divided.

“It is Nenguda who has the rare miraculous political will to make sure their lives did not go in vain.”

She said Nenguda already had numbers both in the Makhado and Musina sub-regions. Makhado has 38 branches and only 12 successfully made it to the branch general meetings.

Nenguda won eight and the remaining four nominated in favour of Mathivha.

Former Proteas batting coach signs deal with English county Lancashire

May 5th 2021 at 13:12

Former Proteas batting coach Dale Benkenstein has joined English county side Lancashire on a short-term contract.

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Benkenstein played 23 ODIs for the Proteas between 1998 and 2002 and served as the national team’s batting mentor under head coach Ottis Gibson until after the 2019 Cricket World Cup.

The 46-year-old Benkenstein has scored over 16 000 runs in first-class cricket and was prolific with the willow in English county cricket with Durham, who he captained to their maiden County Championship title in 2008.

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He also previously served as head coach at Hampshire, leading them to two T20 Blast Finals Days and securing promotion back to the top tier of the County Championship.

Lancashire director of cricket, Paul Allott, said: “We were looking to add some additional expertise to the coaching team and Dale brings a wealth of experience to the changing room.

“He is highly respected in county cricket following his time as a player at Durham and then coaching at Hampshire.

“To add that knowledge into our dressing room can only be a good thing as we look to build on our positive start to the season.”

READ | CSA CONFIRMS SA PLAYERS RETURNING FROM IPL WILL QUARANTINE AT HOME

SARS targets first group of wealthy taxpayers – what you should know

May 5th 2021 at 07:32
SARS’ high wealth individual taxpayers unit is up and running and as promised, the revenue collector has sent out the first batch of 'welcome letters' to those who meet the criteria to form part of this elite club.

Regulator to tackle ‘undesirable’ medical aid co-payments in South Africa

May 5th 2021 at 03:40
The Council for Medical Schemes (CMS) has flagged co-payments as an 'undesirable practice' and plans to further introduce regulations in the coming months to further curb the practice.

ANC KZN deputy chair Mike Mabuyakhulu takes the plunge

May 4th 2021 at 15:26

The deputy chairperson of the ANC in KwaZulu-Natal, Mike Mabuyakhulu, has stepped aside.

On Tuesday, the party’s national working committee (NWC) said members charged with corruption or other serious crimes must be suspended if they did not step aside from their positions.

In a letter sent to the office of the provincial secretary of the ANC in KZN, Mabuyakhulu said the decision to step aside stemmed from the principles of the ANC which indicated party leaders must be disciplined and the organisation’s constitution upheld.

ALSO READ: Ace Magashule must step aside or be suspended

“In line with the position adopted by our movement, I hereby respectfully tender to the office of the provincial secretary that I am stepping aside from my position as the provincial deputy chairperson of the ANC in KwaZulu-Natal, with immediate effect as I hereby do.

“I must indicate that it has not been difficult for me to arrive at this decision, because I have done so before,” he added.

Mabuyakhulu said it was common cause that delegates to the 2018 provincial conference elected him to the position knowing fully at the time he had pending legal matters.

“As you are well aware, I was elected by the delegates of the ANC at the 2018 KwaZulu-Natal ANC provincial conference to the position of the provincial deputy chairperson of our glorious movement.

“As a disciplined member of the ANC, I accepted both the nomination as well as the subsequent election to this position because I sincerely believed that as part of the provincial leadership collective I could contribute meaningfully to the attainment of the ultimate objectives of the national democratic revolution.

ALSO READ: Coming soon: ANC vs ANC in court over step-aside rules

He said he accepted the nomination and election because he still believed he would be cleared of any wrongdoing by a competent court of law.

“I presume they did so for two reasons. The first reason is that the branches of our movement wanted to elect the leadership collective that would work tirelessly to renew and unite the ANC following the challenges we had before and after the 2015 provincial conference.

“They respected the principle enshrined in the Constitution of the Republic of South Africa, that everyone charged are presumed innocent until proven guilty,” Mabuyakhulu said.

The party’s national executive committee is expected to issue a comprehensive statement on all members who have been asked to step aside after convening its meeting over the weekend.

Pule Letshwiti-Jones

6 Tips for Investing in UK Rental Properties

May 4th 2021 at 15:19

Investing money in rental properties is one of the UK’s most established forms of investments. Generations of investors have trusted rental property to deliver a strong, long-term passive income. The best investments can grow your wealth, deliver steady revenue for your retirement, and leave you with a fantastic asset to bequeath to your loved ones.

But there are some important things you need to consider before investing in rental properties. Consider some of the rental property investment tips below to ensure you secure an investment that will deliver you success.

1. Do your research

Seems obvious, but too many investors – especially first-time investors – rush into a purchase before doing enough research.

Firstly, to get a good guide to rental property investment, speak to fellow investors. Maybe you know friends or colleagues who are property investors. What things do they recommend? What advice do they have for you based on their experience?

Next, read up on the latest market news and insights.  Staying informed will give you a solid foundation to plot out your rental property investment plan before rushing into any purchase.

2. Set realistic ROI goals

When deciding how to calculate return on investment for rental property, it’s important to remember that it should be viewed as an ongoing, long-term strategy. The best property returns take years, not months.

Then think about what you will be using your rental income for. Is it to pay off other outgoings? To build a pension pot? Or will this rental revenue be your main source of income?

Balance this against what you can realistically achieve from the rental market. What is a good ROI on a rental property? This depends on a number of factors, from location to the type of property you’re investing in. For example, a modern rental apartment in Manchester city centre could achieve anywhere between 4-7% each year. A property in London, where property prices are more expensive, is likely to achieve something a little lower than this.

Once you’ve set a good rental return from your investment property, you can then make plans to ensure that the investment you make will help you to achieve this figure.

3. Choose your location carefully

There are a number of different factors you need to take into consideration before deciding the best places to invest in rental property:

  • Which locations have an undersupply of rental property, versus rising demand levels?
  • Which locations – and types of properties in those locations – are attractive places for people to live?
  • Which locations are convenient for work/transport/education/leisure hubs?
  • Investing in desirable properties, in convenient locations and in areas of low supply will give you a strong foundation for any rental property investment.

Next, look at local average rental prices and yields. If property values are high, you may find yields are lower. For example, London has a large rental market, but as properties are more expensive than other parts of the UK, yields tend to be lower.

Using your sources of research in step one, check those locations where yield growth is strongest. Once you’ve decided on a specific town or city, you can then begin to drill down on the areas and properties within that location which will be most attractive in the rental market.

4. Decide on management prior to investment

As you begin evaluating rental property investment, one thing that is sometimes overlooked is property management.

Firstly, from a time perspective, managing a rental property can require a lot of your attention. From marketing the property and sourcing tenants, to ongoing repair and maintenance works. Being a landlord could soon begin to eat into your spare time.

Next are the cost implications – and the impact they will have on your overall returns. Managing a property can be expensive, whether it’s advertising costs or buying new materials to fix repairs. If you decide that you will be managing the property yourself, these cost implications will need to be factored into your decision making when setting your ideal yield target.

You may consider working with a property management company to deal with this on your behalf. They will deduct all management fees from your rental income, also giving you a clearer idea of your overall return.

5. Take time before your next move

It may take you a while to achieve your desired yield, and maybe slightly longer to see your returns grow even further still. Unlike assets such as stocks and shares, property returns take months and years, rather than days and weeks.

Don’t make any rash decisions to sell too early. Similarly, even if you enjoy success quickly, don’t rush to expand your portfolio. Take some time to manage one property and navigate peaks and troughs in the market.

Once you’re comfortable with your investment, you can then begin to explore the possibility of building on your rental property investment portfolio.

6. Stay up to date with the latest trends

It’s important to never be complacent when it comes to rental property investment. Times change, attitudes change. What makes your rental property desirable now may not in a few years’ time.

A good case study is 2020 and the impact of the global pandemic. As more people spent time at home in lockdown, new tenant priorities emerged, for example:

  • Larger living spaces for home working
  • Fast Wi-Fi connections
  • Access to outdoor space
  • Homes within close communities

2020 shone a light on those rental homes that are becoming increasingly outdated and unable to meet these new demands.

By staying up to date with the latest trends, you can react to market changes and ensure your property – or any future investment – is able to deliver on more of the things tenants want.

Contact Select Property Group for further property investment advice & discover their latest investment opportunities.

Phadima Fukula: Hawks investigating four cases related to whistleblower’s allegations

May 4th 2021 at 13:48

The Directorate for Priority Crime Investigation – better known as the Hawks – announced that it is investigating four cases related to corruption allegations made by ANC whistleblower Phadima Fukula, on Tuesday, 4 May.

One of the cases was opened in Gauteng and the remaining three in the Eastern Cape. “Although we do not normally state who the complainants are on any of our cases, however, in this instance information has now become a public knowledge either because of the complainants themselves or media leaks,” said the Hawks.

FOUR CASES AND A MISSING MAN

The Hawks explained that one of the cases under investigation was opened an investigation into perjury and crimen injuria by Lubabalo Oscar Mabuyane, the Premier of the Eastern Cape, against Fukula.

Another case was opened by Fukula and the Hawks themselves also opened one.

“All four cases relating to these allegations are being investigated jointly which will assist at arriving at the truth,” said Hawks spokesperson Lieutenant Colonel Philani Nkwalase.

Nkwalase added that “no one should jump to any conclusion” and said the lawyers involved with the matters should know better.

“Those who have information that can support the investigation should contact the investigation team instead of making media statements that may influence other potential witnesses,” continued the spokesperson.

The Hawks said incorrect information in media reports contradict the statements made under oath in its dockets. There is also an affidavit, allegedly signed by Fukula, circulating online that has several shocking unsubstantiated claims.

Premier Mabuyane is one of the individuals named in the affidavit – he opened a case of crimen injuria against Fukula, on Monday, 3 May, after the whistleblower accused him of handing him money to bribe a judge in July 2017.

“Today, I have come to open a case of crimen injuria at the Cambridge police station against a pathological liar who has been going around creating this concoction of a case that is completely frivolous from where I am seated,” said Mabuyane.

The case Fukula opened – which the Hawks are investigating, as mentioned above – was allegedly made against Mabuyane.

IS FUKULA MISSING? HAWKS ISSUE STATEMENT

On Thursday, 29 April, the Hawks released a statement asking the public to help locate Fukula. According to the directorate, investigators were interviewing him on 9 April in East London when he requested a short break and never returned.

The Hawks said a case of intimidation was reportedly opened in the city at the end of March and Fukula is the witness. “It is believed that he will assist in unlocking the allegation intimidation and corruption carried out by the Serious Corruption Investigation team in East London,” said the Captain Yolisa Mgoldela.

The mysterious disappearance of Fukula combined with the affidavit circulating online has caused quite a furore online, which is probably why the Hawks were complaining about “jumping to conclusions” and “media leaks” in their statement on Tuesday.

Black First Land First (BLF) accused the police and several government bodies of allegedly having a hand in the whistleblower’s disappearance, in a statement on Monday.

Will ANC account for alleged tax fraud linked to employee salaries?

May 4th 2021 at 13:21

The South African Revenue Service (Sars) must get tough with the ANC over the party’s alleged R17 million tax bill trickery, with experts saying this will drive home the sting of the legal implications of non-compliance and in turn inspire tax morality.

Insiders allege that the party is sitting on a massive tax bill, which includes millions of rands in pay-as-you-earn (PAYE) tax, which was deducted from salaries, but not paid to Sars. In terms of the Income Tax Act, this action is a criminal offence punishable by prison time.

Reports suggest that the cash-strapped ANC had an R80 million tax bill when Paul Mashatile took over as treasurer-general in December 2017, and that the party reportedly owed a further R140 million in provident-fund debt.

ALSO READ: Ace Magashule must step aside or be suspended

To date, Mashatile has reportedly paid over R100 million servicing this debt, but the bill remained high because of the interest.

ANC must be treated like any other ‘non-compliant organisation’

“The perception is there that there is no toughness against non-compliance, which is not good for tax morality. The public must see how Sars deals with this matter, that it is costly to be non-compliant,” tax attorney at Tax Consulting South Africa, Jean du Toit. said.

He said if a company is non-compliant, Sars has options to go for the company or the directors personally. In the case of an organisation such as the ANC, Sars could go after the organisation itself as a collective, or its representatives.

“There will be a designated person to ensure that the organisation meets its tax obligations,” he said.

Economist Patrick Bond said though he was unsure who should take responsibility for the party’s tax woes, he was fascinated by the apparent roles of Luthuli House leadership in this tax saga.

ALSO READ: Coming soon: ANC vs ANC in court over step-aside rules

“…because the treasurers of the party were not only Dr Zweli Mkhize before 2019 – and his own patronage through friends’ tender deals [on communication contracts] – have come to light; but also now Paul Mashatile… both Ramaphosa allies. Of course (secretary-general Ace) Magashule or (deputy secretary-general Jessie) Duarte should bear current responsibility,” he said.

Bond said former secretary-general Gwede Mantashe should also take responsibility if this practice dated back to 2017 and earlier.

Opposition calls for all to be equal before the law

The DA, meanwhile, welcomed Sars’ garnishing the R17 million allocated to the ANC by the Independent Electoral Commission (IEC) for the first quarter of 2021-2022 as partial payment of its debt.

Geordin Hill-Lewis, the party’s spokesperson on finance, urged Sars to continue to uphold the constitutionally enshrined principles of transparency and accountability.

“It is imperative that Sars act without any fear or favour in reclaiming any and all outstanding monies from the ANC. In terms of the Income Tax Act, it is a criminal offence punishable by prison time for anyone to wilfully and without justification withhold funds owed to Sars,” he said.

According to Hill-Lewis, as the withholding agent for its employees’ PAYE taxes, the ANC, just like any other employer in SA, was was directly liable for any tax debts on its employees’ names that is incurred due to its own negligent or possibly fraudulent action.

ALSO READ: First take: Well, what now Ace?

“Any suggestion of corruption on the part of the governing party must be prosecuted to the fullest extent of the law,” he said in a statement.

Siphithi Sibeko, Sars media manager, said they were prohibited by law to discuss or comment on the tax matters of their clients.

ANC spokesperson Pule Mabe ignored requests for comment.

siphom@citizen.co.za

Take note, Ace: Top ANC figure becomes first to ‘step aside’ due to corruption

May 4th 2021 at 10:42

We have a feeling Ace Magashule will be reading this news from behind the sofa: Mike Mabuyakhulu has taken a very important first step for both himself AND the rest of the ANC – he became the first significant figure in the party to voluntarily ‘step aside’ from his job after being dogged by allegations of corruption.

Who is Mike Mabuyakhulu?

The KZN Provincial Deputy Chair was identified by the ANC Integrity Commission as someone who had committed blatant acts of maladministration. Although he did not resign within the recommended 30-day window, Mabuyakhulu has now laid down the gauntlet for several other major players in the ruling party.

The National Working Committee (NWC) of the ANC last night instructed the secretary-general’s office to write letters to all members who are affected by the new “step-aside” rule. With Ace Magashule being implicated, however, he has had to hand duties over to Jessie Duarte. Anyone who fails to comply will now be suspended from their roles.

First ANC figure to ‘step aside’ – will Ace Magashule follow?

Mabuyakhulu has become the first person to walk before he could be pushed, and all eyes will soon swivel to Ace Magashule. The party stalwart has dug in stubbornly to ignore the step aside directive so far, but his comrade in KZN could prove to be the first domino of many that fall voluntarily. The deputy chair also released a statement on Tuesday.

“No individual is bigger than the ANC, and all of us should subject ourselves to bonafide ANC decisions. In line with the position adopted by our movement, I hereby respectfully tender my resignation. I will step aside from my position as the Provincial Deputy Chairperson of the ANC in KwaZulu-Natal.”

“My decision to step aside should be communicated to all members of the party, as well as the general public. It has not been difficult to arrive at this decision, and I would have tendered this letter much earlier – but I learned there was a meeting of national officials that would give more clarity and guidance on the ‘step aside resolution’.”

ANC KZN Deputy Chairperson Mike Mabuyakhulu has stepped aside in position in the KZN province. He is leading by example.

We will wait for rest to follow ✊🏾✊🏾#StateCaptureCommission#PleaseCallMe pic.twitter.com/Yy2rQoPBC7

— Keabetswe Nkosazana Manyobe (@KBmanyobe) May 4, 2021

ANC NWC reaffirms support for step-aside policy

May 4th 2021 at 10:21

The ANC’s National Working Committee (NWC) is backing the implementation of the step-aside resolution and has resolved that all members facing serious charges, including corruption must temporarily vacate their posts, or face suspension.

The ANC NWC met on Monday, 3 May 2021 and received reports from officials on the progress made in the implementation of decisions, by the National Executive Committee (NEC), the party’s highest decision-making body.

“The NWC reaffirmed the decision of the NEC on 26 – 29 March 2021 that all members who have been charged with corruption or other serious crimes must step aside within 30 days, failing which they should be suspended in terms of Rule 25.70 of the ANC Constitution,” the party said in a statement.

The ANC Constitution states that:

“Where a public representative, office-bearer or member has been indicted to appear in a court of law on any charge, the Secretary General or Provincial Secretary, acting on the authority of the NEC, the NWC, the PEC or the PWC, if satisfied that the temporary suspension of such public representative, office-bearer or member would be in the best interest of the Organisation, may suspend such public representative, elected office-bearer or member and impose terms and conditions to regulate their participation and conduct during the suspension.”

ANC NWC receives reports on those stepping aside

The various ANC provincial secretaries had until mid-April to submit the lists of names of people who were expected to step aside by Friday, 30 April 2021. At the time, the ANC said there was still some work to be done pertaining to the implementation of the resolution.

“The NWC received reports from provinces on members who have been charged with corruption or other serious crimes, the status of their matters, whether the affected members have been informed of the decision of the NEC, and whether they have stepped aside,” the ANC said.

“The NWC also received a report from the National Officials, through a team lead by the Treasurer General, on proposed terms and conditions regulating the participation and conduct of members during the period that they step aside voluntarily”

African National Congress (ANC)

The NWC has instructed that the necessary letters be written to the affected members implementing the step-aside policy (and suspension) and outlining the terms and conditions regulating their participation and conduct during the suspension.

South Africa prepares for next phase of the NHI – which includes ‘mandatory pre-payment’

May 4th 2021 at 09:03
The Council for Medical Schemes (CMS) says that government's planned National Health Insurance is in full development, with plans to move to phase three of the programme from next year.

One of South Africa’s biggest budget problems is getting worse

May 4th 2021 at 04:21
Government spending remains too high for the tax base and this gap has only increased as a result of the 2020 recession.

Pension changes for South Africa under the spotlight

May 4th 2021 at 03:05
Parliament's Standing Committee on Finance has invited interested parties to submit written submissions on the Pensions Funds Amendment Bill.