News

Download logo

The Chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA), Dr Zweli Mkhize, has welcomed an investigation into allegations that councillors and other politically connected individuals have been receiving inflated stipends under the Expanded Public Works Programme (EPWP) in Matjhabeng Local Municipality in the Free State.

This follows the committee's joint oversight visit to the Free State last week, where 23 municipalities appeared before the joint oversight delegation. The delegation also included some members from Parliament's Standing Committees on Public Accounts and the Auditor-General, as well as the Free State Provincial Legislature.

Following the committee's interrogation of the state of Matjhabeng's finances, the Minister of Public Works and Infrastructure, Mr Dean Macpherson, announced his decision to suspend EPWP funding to Matjhabeng Local Municipality. The Chairperson said the committee has been aware of the allegations and supports a comprehensive, multi-stakeholder investigation, which combines the efforts of the Department of Public Works and Infrastructure, the Free State MECs for Finance and COGTA and the Office of the Premier of the Free State. He said during the oversight engagement with Matjhabeng municipality, the committee learned that while the irregular payments involve a limited number of individuals, the complete suspension of EPWP funding will affect hundreds of poor EPWP workers receiving R2 600 per month, many of whom are not implicated in any wrongdoing.

The Chairperson has proposed that stipends be suspended only for the implicated individuals until the investigation is completed. He advised against cutting off funding to all EPWP workers, warning that most participants are vulnerable and depend on the small stipend to make ends meet. “While any abuse of public funds must be met with swift and decisive action, it is critical that investigations are targeted and that innocent beneficiaries are not penalised,” the Chairperson said. “We cannot allow the poor to suffer for the misdeeds of a few. Those found guilty must face disciplinary and criminal consequences, but the programme itself must continue to serve its intended purpose – to provide short-term work opportunities to the unemployed.”

The Chairperson stated that although some of the allegations may be driven by politics or confusion about internal staffing, it's important for the process to be transparent and based on clear evidence and not hearsay. He further called for public participation and oversight at the municipal level to be strengthened, stating that communities must be engaged in the design and monitoring of public employment programmes. “Mayors and municipal managers must regularly consult communities and account for their spending. Citizens must be given avenues to report concerns and submit evidence,” he said.

The committee will request a consolidated report from the minister, the MECs and the Provincial Treasury within three months. The report must include updates on disciplinary action taken, financial recovery efforts and measures to prevent recurrence. The findings will be tabled in Parliament for further scrutiny.

The Chairperson reiterated that the Matjhabeng case shows the need for constitutional oversight at all levels. “If municipalities fail to perform, provinces must intervene. If provinces neglect their oversight duty, national government must act. That is how the Constitution envisages cooperative governance,” he said.

Dr Mkhize said Matjhabeng provides a chance to set a national example. “We must act firmly against corruption but fairly. Our fight is not against the EPWP, but against its abuse, and we have to protect the integrity of the system while safeguarding the rights of those it was designed to serve,” he said.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

Download logo

The Presidency is today, 28 July 2025, releasing the latest progress report on the implementation of actions arising from President Cyril Ramaphosa's response to the recommendations of the State Capture Commission, showing significant progress across both accountability measures and institutional reforms.

President Ramaphosa has also submitted the report to the Speaker of the National Assembly and the Chairperson of the National Council of Province.

The report, covering the period up to the end of Quarter 4 2024/25, reveals that of the 60 actions identified in the President's October 2022 Response Plan, 48% are complete or substantially complete, 23% are on track and 29% are delayed but receiving attention.

MAJOR ACHIEVEMENTS IN ACCOUNTABILITY

Criminal Justice Progress

The Integrated Task Force, led by the National Prosecuting Authority, is actively implementing 218 criminal investigation recommendations across multiple state capture focus areas. As of March 2025, 21% of these cases were either finalised or  enrolled for trial. Just over half were under active investigation. Several high-profile cases are scheduled for trial through 2025-2026, including matters related to the Free State Asbestos Removal Case, SA Express, Bosasa-related cases and Transnet contracts.

Four state capture-related cases have already concluded with guilty verdicts.

Asset Recovery Success

Government has achieved remarkable success in recovering stolen public funds, with total recoveries now reaching nearly R11 billion, a substantial increase from the R2.9 billion reported in October 2022. This includes R2.9 billion recovered by the Special Investigating Unit and R8 billion by the Asset Forfeiture Unit.

Additionally, assets worth R10.6 billion are currently under restraint or preservation orders, indicating significant additional recoveries to come. Major recoveries include settlements from ABB (R2.55 billion), McKinsey (R1.12 billion), and SAP (R1.16 billion).

INSTITUTIONAL REFORMS TO PREVENT FUTURE STATE CAPTURE

Law Enforcement Strengthening

The National Prosecuting Authority Amendment Act of 2024 established the Investigating Directorate Against Corruption (IDAC) as a permanent entity with enhanced police powers and criminal investigation capabilities. IDAC officially commenced operations in August 2024.

Financial Crime Combat Measures

South Africa has implemented comprehensive anti-money laundering reforms through the General Laws Amendment Act of 2022, addressing all the deficiencies identified by the Financial Action Task Force. Among other things, these measures have resulted in a 40% increase in compliance with anti-money laundering requirements between 2023 and 2024.

Public Procurement Transformation

The Public Procurement Act of 2024 represents a fundamental transformation of South Africa's procurement landscape, consolidating previously fragmented systems into a single regulatory framework designed to enhance transparency and combat corruption.

Intelligence Services Reform

The General Intelligence Laws Amendment Act, enacted in March 2025, disestablished the State Security Agency and created two separate entities – the South African Intelligence Service (foreign intelligence) and the South African Intelligence Agency (domestic intelligence) – restoring the pre-2009 structure and strengthening oversight mechanisms.

Public Administration Professionalisation

Government has made substantial progress in professionalising the public service through the National Framework for Public Sector Professionalisation. Key measures include mandatory lifestyle audits for senior officials and supply chain personnel, with 138 departments implementing these audits by 2024.

CORPORATE ACCOUNTABILITY MEASURES

The Companies and Intellectual Property Commission has completed reviews of 10 private sector entities implicated in state capture, with six investigations ongoing. The National Treasury imposed a 10-year ban on Bain & Co from doing business with the South African state, running from September 2022 to September 2032.

Professional bodies have taken disciplinary action against implicated professionals, including the permanent disbarment of a chartered accountant by the South African Institute of Chartered Accountants, with a R6.1 million fine.

LEGISLATIVE ACHIEVEMENTS

Several critical pieces of legislation have been enacted to address state capture vulnerabilities:

• Electoral Matters Amendment Act (Act 14 of 2024): Criminalises donations to political parties in expectation of contracts or influence 
• Judicial Matters Amendment Act (Act 15 of 2023): Introduces corporate liability for failure to prevent corruption 
• Companies Second Amendment Act (Act 17 of 2024): Extends time limits for director delinquency proceedings 
• General Intelligence Laws Amendment Act (Act 37 of 2024): Reforms intelligence services structure and oversight 

LOOKING AHEAD: 2025-2026 PRIORITIES

President Ramaphosa emphasised that while substantial progress has been made, the work continues. Key priorities for the coming year include:

• accelerating high-profile prosecutions and bringing new cases to court;
• finalising the Whistleblower Protection Bill for presentation to Parliament; 
• finalising the National State Enterprises Bill as part of SOE governance reform;
• completing SARS Act amendments based on Nugent Commission recommendations;
• finalising anti-corruption architecture proposals under consideration by the Executive.

"The progress outlined in this report demonstrates our unwavering commitment to ensuring that those responsible for state capture are held accountable and that the systemic weaknesses that enabled this assault on our democracy are permanently addressed," said President Ramaphosa.

"We have recovered nearly R11 billion in stolen public funds, strengthened our law enforcement capacity and implemented comprehensive reforms across government. However, our work is far from complete. We remain committed to the full implementation of the State Capture Commission's recommendations and to rebuilding public trust in our institutions."

The President emphasised that the effectiveness of these reforms will ultimately be measured by their ability to prevent future occurrences of state capture and restore public trust in state institutions.

The full progress report, including detailed annexures on implementation status, new legislation, court cases and asset recoveries, is available on The Presidency website. https://tinyurl.com/25rx85j

Distributed by APO Group on behalf of The Presidency of the Republic of South Africa.