In our Friday morning roundup, see
summaries of our selection of recent South
African labour-related reports.
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VAT reversal welcomed by economists and businesses, but policy uncertainty remains BL Premium reports that the Treasury on Wednesday confirmed that the two 0.5 percentage point VAT increases announced in the March budget revision would not go ahead. This will leave a R75bn budget shortfall over the medium term. While economists and businesses welcomed the reversal of the VAT hike, concern is mounting over the “political flip-flopping”, which is fuelling policy uncertainty and undermining business confidence. Alan Mukoki, SA Chamber of Commerce and Industry (Sacci) CEO said: “While this was a positive move it is by no means a resolution of the bigger problem with our finances. We still have a serious problem with how to deal with the budget and in particular the deteriorating debt servicing costs to revenue.” Commenting on the policy uncertainty, Sacci president Mtho Xulu said while they were grateful for the reversal, he did not appreciate the decision-making process, which involved a statement landing after midnight, without full insight on who made the decision, whether stakeholders were involved and how the drastic decision was taken. “How many other policies could eventually be reversed, irrespective of the level of investment companies have made to comply with them?” he asked. Raymond Parsons of the NWU School of Business and Governance urged calm, saying the R75bn shortfall should be viewed in manageable terms. “It is difficult to believe that, with the necessary political will and economic expertise, it is not possible to find additional fiscal space within a budget spend of over R2.5-trillion,” he opined. Read the full original of the report in the above regard by Jana Marx at BusinessLive (subscriber access only). Read too, Economists welcome scrapping of VAT increase, at The Citizen. En ook, Ommeswaai oor BTW-verhoging wyd verwelkom, by Maroela Media About-turn on VAT hike good news for inflation, but revised budget will still hurt the poor Business Report writes that consumer inflation will no longer be hit by a proposed hike in Value Added Tax (VAT) given that, just days before it was set to increase from 15% to 15.5%, National Treasury issued a statement saying that the Minister of Finance, Enoch Godongwana, would maintain the tax rate at the current level. The proposed VAT hike of 0.5 percentage points was due to come into effect on 1 May. Investec economist Annabel Bishop had previously calculated that the increase of 0.5 percentage points in 2025 and again in 2026 would add 25 basis points in terms of inflation to each year. However, government still has a revenue hole to fill, given that by not increasing VAT, estimated revenue will fall short by around R75 billion over the medium-term. Godongwana will now have to seek alternative measures to cover the shortfall in revenue. National Treasury advised that the Minister would shortly introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill to maintain the tax at its current level. The Treasury’s statement said the department would consider all potential proposals to increase revenue collection. The reversal means that other measures to cushion the poor against the proposed hike will have to be reversed. The March National Budget proposed increasing the basket of zero-rated, or VAT-exempt, items to aid lower income households. Read the full original of the report in the above regard by Nicola Mawson at IOL Business Other internet posting(s) in this news category
Capitec triples number of staff earning R250,000 to R500,000 a year Moneyweb reports that over the last three years, Capitec Bank has tripled the number of its staff earning between R250,000 and R500,000 a year. This segment presently comprises six out of every 10 (62%) of its 16,525 employees (or just over 10,000). In its 2024 remuneration report, the bank said it had made “great progress in moving a large component” of its employees from the R180,000 to R250,000 band in 2021 to beyond R250,000 in 2024. Presently, only 16% of its staff earn between R180,000 and R250,000 a year, from 61% in 2021. In other words, the bank managed to flip the proportions of the two completely. In 2021, the percentage of employees who earned below R180,000 (R15,000 a month, or R13,500 after tax) was 9% of its staff complement whereas now this was only 2%, or around 330 people. This category represents “graduates and learnership interns”, and equates to a decrease of nearly 80%. In total, 82% of its staff now earn more than R250,000 a year. Some 10% earn more than R1 million a year. Capitec’s total salary bill, excluding those for IT staff, was R6.2 billion last year, of a total of R17 billion in operating expenses. Its IT salary costs (including outsourced resources) totalled R1.7 billion last year. This is up 28% from the prior year, compared to a 14% increase in other staff expenditure. Read the full original of the report in the above regard at Moneyweb Other internet posting(s) in this news category
Union urges Treasury to establish pension fund for domestic workers Business Report writes that the Progressive Domestic Workers Union of SA (Prodwusa) has called on the National Treasury to consider establishing a pension fund for domestic workers. Prodwusa's secretary-general, Thato Maleka, explained that the union was proposing a new model to ensure domestic workers received a pension. However, he clarified that the model was still in development and that further consultations with various stakeholders were necessary to determine which of the proposed models would be most effective. "Our proposed model is that we mimic something like the Unemployment Insurance Fund (UIF) where the employer will contribute, the worker will contribute and then we have the government coming in to match those contributions," Maleka indicated. According to the latest report from Statistics SA, "approximately 1.1 million South Africans are employed in private households, with 75.7% (or 854,000) working as domestic workers." Despite playing an essential role in many SA households, domestic workers often lack pension funds, unlike other occupations. They also remain vulnerable to exploitation and underpayment. In the past, unions have also criticised employers for failing to register domestic workers with the Unemployment Insurance Fund (UIF). Maleka called on the SA Revenue Service (SARS) to offer incentives to employers who complied with regulations. Read the full original of the report in the above regard by Mthobisi Nozulela at IOL Business. Read too, SA must invest in its domestic workers and set up a dedicated pension fund, at Mail & Guardian
Eastplats appoints new chairperson following death of George Dorin Mining Weekly reports that Eastern Platinum (Eastplats) has appointed director Changyu Liu as nonexecutive chairperson with effect from 22 April. He succeeds George Dorin who passed away in March. Liu is also chairperson of Ka An Development, which is a long-term shareholder of Eastplats, and he brings to the board of the company two decades of experience in business investment and financing enterprises in China, Hong Kong and North America. Liu commented that Eastplats was emerging as a significant producer of important minerals in the global economy and he looked forward to continue working with the management team to support them as they built the company towards more rewards for all shareholders. Read the original of the short report in the above regard at Mining Weekly Other general posting(s) relating to mining
Umalusi raises alarm over declining quality of TVET exams The Mercury reports that Umalusi has sounded the alarm on the declining quality of TVET (Technical Vocational Education and Training) examinations. The quality assurance body reported a significant drop in the number of papers meeting acceptable standards, with only 77% passing initial moderation, a sharp decline from 87% the previous year. The report, which covers the National Certificate (Vocational) [NC(V)] and NATED Report 190/191 Engineering Studies qualifications, found that 46 question papers contained grammar and language issues. These included “confusing and awkward phrasing,” “incorrect use of terminology,” and instances where “instructions to candidates were incomplete, unclear, or not in accordance with DHET specifications.” Umalusi also raised concern over misalignment between question difficulty, time allocation, and mark distribution. In some cases, candidates were unable to complete papers within the allocated time, while others finished too early due to underdeveloped content. The report also highlighted widespread problems with Internal Continuous Assessment (ICASS) tasks. “This level of non-compliance compromises the credibility of the assessment process. The failure to meet the minimum requirements of the ICASS guidelines reflects poor planning and oversight at institutional level,” the report noted. Read the full original of the report in the above regard by Siphesihle Buthelezi at The Mercury Other internet posting(s) in this news category
Two BMA officials among nine people arrested for corruption at Beitbridge border post News24 reports that two Border Management Authority (BMA) officials were among nine people arrested for corruption at the Beitbridge Port of Entry, which is one of SA’s busiest border posts, on Tuesday. "During the operation, surveillance teams observed a white Mercedes-Benz taxi parking next to the shop. Two BMA officials, a 61-year-old female and a 44-year-old male, both stationed at the Beitbridge Border Post, were seen stopping the vehicle and subsequently allowing it to proceed, allegedly after receiving a bribe," police spokesperson Colonel Malesela Ledwaba reported. The vehicle was later intercepted and was found to be transporting 18 passengers, five of whom were found to be undocumented foreigners who had no travel documents. A female passenger and the taxi driver, believed to have played active roles in the illicit facilitation, were also arrested at the scene. All nine suspects were charged with corruption and appeared before the Musina Magistrate’s Court on Wednesday. The five undocumented individuals faced additional charges under the Immigration Act. The BMA has since suspended the two implicated officials, pending the outcome of internal disciplinary processes and the criminal investigation. Read the full original of the report in the above regard by Nicole McCain at News24 (subscription or trial registration required). Read too, Two BMA officials, foreign nationals and facilitators arrested at Beitbridge, at The Citizen. And also, Understaffed, under-resourced BMA has hands full at borders, at SowetanLive Cape Town law enforcement officer arrested for alleged gang hit plot News24 reports that a City of Cape Town law enforcement officer has been arrested on an attempted murder charge after allegedly conspiring with a prominent Cape Flats gang boss to carry out a hit on a witness, who survived the attack. The officer was arrested in Bishop Lavis on Tuesday after months of investigation into his links to the gang leader currently on trial for murder, extortion and corruption. Sources close to the investigation claimed the officer's arrest follows the detention of a woman found in possession of an unlicensed firearm. Under questioning, the woman revealed the location of a house believed to contain drugs and weapons. When police and law enforcement raided the property, they discovered the law enforcement officer among the occupants. While the identity of the intended target remains unclear, a police spokesperson said the matter remained under investigation. Mayoral Committee Member for Safety and Security JP Smith confirmed that the arrest resulted from a multi-agency investigation involving SAPS Crime Intelligence, the Anti-Gang Unit, and several municipal departments. "This matter will be dealt with in terms of City policies and processes, a suspension notice is already being prepared," Smith added. City insiders say the arrest has rattled officials within the safety and security directorate, prompting renewed scrutiny of vetting procedures. Read the full original of the report in the above regard by Velani Ludidi at News24 (subscription or trial registration required) Petrol claim fraud lands Polokwane detective in court Polokwane Review & Observer reports that a 52-year-old detective warrant officer stationed at the Polokwane Crime Intelligence Unit has been formally charged with fraud following allegations of fraudulent petrol claims. Limpopo police spokesperson Col Malesela Ledwaba indicated that the charges stemmed from a report submitted by the State Security Agency regarding suspicious claims submitted by the officer. “Upon investigation, it was found that all the petrol slips attached to the claims were photocopies, raising immediate red flags. A case docket was opened, and the Provincial Anti-Corruption Unit took over the investigation,” he said. The suspect was served with a summons to appear in the Polokwane Magistrate’s Court on Wednesday. The acting provincial police commissioner Major General Samuel Manala strongly condemned the incident, stating that the SAPS did not tolerate corruption within its ranks. “This type of misconduct tarnishes the integrity of our service,” said Manala. Read the full original of the report in the above regard at The Citizen Five fake cops in EMPD uniforms arrested for truck hijacking in Modderfontein SABC News reports that five suspects in police uniform were arrested on Wednesday for allegedly hijacking a truck in Modderfontein, east of Johannesburg. The suspects were found wearing Ekurhuleni Metro Police Department (EMPD) uniforms and SA Police Service (SAPS) reflector jackets. Police rescued the truck driver and recovered the hijacked truck. Gauteng police spokesperson Mavela Masondo reported: “The suspects were intercepted immediately after they hijacked a truck carrying solar batteries to the estimated value of five million rands and kidnapped the truck driver. All five suspects were arrested and charged with truck hijacking, kidnapping, possession of suspected stolen property and impersonating police officers. The arrested suspects will be profiled to establish if they are not linked to other serious and violent crimes.” Read the original of the short report in the above regard by Pearl Magubane at SABC News. Lees ook, ‘Kapers’ in polisie-uniforms vasgetrek, by Maroela Media Other internet posting(s) in this news category
Police officer arrested for alleged sexual assault of detainees at Paarl East station Cape Argus reports that another police officer has been arrested for allegedly sexually assaulting two detainees inside police cells, this time at Paarl East police station. The officer was arrested in March and was charged with the sexual assault of two persons who were being detained in the cells. Police have since confirmed that the suspect has made an appearance in court and was granted bail. He is expected back in the dock in May. Details of the alleged incidents have yet to be revealed. In March, Cape Argus reported on the case of two Moorreesburg officers who are alleged to have kidnapped and raped a woman whom they offered a lift on a farm in the area. National Prosecuting Authority (NPA) spokesperson, Eric Ntabazalila, confirmed their release on R2,000 bail. He said they faced multiple charges for the alleged attack including kidnapping, six counts of rape and assault with intent to cause grievous bodily harm. Whistle blower Zona Morton said a pandemic was growing within the police with officers being accused of rape and sexual assaults. In January, a constable who worked in the sexual crimes regional court at Blue Downs Magistrate’s Court, allegedly raped a female remandee as she walked back to the holding cells. In November, another constable stationed at Mfuleni police station, was arrested followed by another rape on Christmas Day in Malmesbury. Read the full original of the report in the above regard by Genevieve Serra at Cape Argus Mankweng court postpones bail ruling for former teacher accused of raping 13-year-old learner SABC News reports that the Mankweng Magistrate’s Court in Limpopo has postponed the case of a former teacher accused of raping a 13-year-old learner to next Tuesday for a decision on his bail application. The accused resigned from his position as a teacher after his arrest last month. He faces counts of rape and child sexual grooming. The state and the defence closed their arguments on the bail application. The lawyer for the former teacher told the court that public opinion should not be used to determine his client’s bail application. But, the prosecution argued that the accused had failed to establish exceptional circumstances to meet the requirements for his release on bail. The accused had been a teacher for 34 years. He has been remanded in custody. Read the full original of the report in the above regard by Michael Makungo at SABC News
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