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As South Africa faces a looming leadership crisis amidst upcoming elections, trust in key institutions has reached unprecedented lows, according to various studies. In response to this alarming trend, there is a growing call for a shift towards responsible leadership to foster economic and social stability. According to the Institute of Justice and Reconciliation’s December …
National Treasury publishes Policy Position Statement on financial ombud system
National Treasury has published its Policy Position Statement titled, 'A Simpler, Stronger Financial Sector Ombud System', which outlines proposed reforms to the ombud system.
The Policy Position Statement follows the publication of a World Bank Diagnostic Study in 2021 titled, 'South Africa - Financial Ombud System Diagnostic'.
“The study provided an independent review of South Africa’s financial ombud system and recommended reforms to enhance consumer protection and encourage good quality outcomes in the financial services sector,” National Treasury said on Thursday.
Prior to the diagnostic study, an earlier discussion document titled, 'A Known and Trusted Ombud System for All (2017)', had proposed initial reforms to the ombud system, which were later included in the Financial Sector Regulation (FSR) Act (Act 9 of 2017), as part of the Twin Peaks financial sector regulatory reform.
National Treasury said the publication of the policy position is a necessary step to communicate and publish its Policy Position Statement and accompanying detailed feedback statement, including an implementation plan.
“This publication also provides a response to consultation comments, and enables ombud schemes and the Ombud Council to work towards implementing a reformed structure,” National Treasury said.
Key elements of the proposed reform that National Treasury supports include:
“Full implementation of the above reforms will require legislative amendments. In the interim, National Treasury notes and welcomes the voluntary amalgamation, in consultation with the Ombud Council, of four of the current industry schemes (Credit, Banking, Long-term Insurance and Short-term Insurance) to form a new, streamlined industry scheme, the National Financial Ombud Scheme South Africa (NFO).
“The NFO is expected to commence operations on 1 March 2024, after recognition by the Ombud Council. This is an important step towards the broader reforms outlined in the policy position and will simplify their implementation,” National Treasury said.
The following documents are available on the website of the National Treasury at www.treasury.gov.za:
- SAnews.gov.za
nosihle
Thu, 02/29/2024 - 13:25
Limpopo committed to good governance, says Mathabatha
Limpopo Premier Stan Mathabatha says the province has, over the past decade, worked tirelessly to bring stability and sound administration.
“Through collective effort and unwavering commitment, we have seen remarkable improvements in audit outcomes and overall provincial performance,” Mathabatha said.
Delivering the State of the Province Address in Polokwane on Thursday, Mathabatha said the once prevalent disclaimer audit opinions are now a thing of the past in the provincial departments, public entities and municipalities.
"In 2013, Limpopo was at a critical juncture. Five departments were under national administration. Confidence in our provincial administration was waning. Our task was clear, yet daunting. It was to breathe life back into these departments and restore confidence in our governance.
“[Now] no department is under administration. As we reflect on the progress we have made, let us also look to the future with optimism and determination,” Mathabatha said.
Mathabatha said the story of Limpopo's renewal and development is far from over.
“It is a continuous journey, one that requires an active citizenry, and the collective effort of every community and leader. Together, we can build on the foundation we have laid, striving for even greater achievements and a brighter future for all who call Limpopo home.
“Our trajectory towards a Limpopo that we all yearn for is taking shape during an unfavorable, harsh global reality,” he said.
Mathabatha said under the circumstances, the province needs to build greater self-reliance and increase its share of value addition in finished products.
“It is important to continue our efforts to achieve manufacturing localisation, to deepen and expand domestic beneficiation of our minerals and primary agricultural products, industrialise and drive large-scale employment,” he said.
Mathabatha said since 2022, the province has become the fifth largest province in South Africa.
“Although we have moved from the fourth spot, we have become the largest contributor to Gauteng’s population.
“Our economic and social development programmes should help us retain our youth, while protecting their freedom of movement. Democracy has brought about many shifts. More people stay where they want to,” he said.
Food security
Mathabatha said the provincial government remains determined to support its people in food production.
“Limpopo has established a firm role in food security in our country.”
Mathabatha said 29% of households in the province now grow food in their yards.
“This is a testament to the fact that we have an active citizenry in food production. We remain determined to support our people in food production,” Mathabatha said.
He emphasised the need to build on the progress made, harnessing the potential of the youth, investing in infrastructure, fostering industrialisation and promoting sustainable development.
“... We have made progress in addressing the legacy of colonialism and apartheid. We also all acknowledge that there is still a lot of work to be done. I am sure we all agree that the road to success is a journey, not a sprint,” Mathabatha said.
Mathabatha said as the province, they reaffirm what President Cyril Ramaphosa said during the State of the Nation Address earlier this month, that the provincial government must strive for a non-racial and non-sexist democratic South Africa. - SAnews.gov.za
Edwin
Thu, 02/29/2024 - 13:07
I placed a GoPro on my camera to show what’s happening from a photographer’s perspective
Cabinet approves hosting of New Development Bank meeting
Cabinet has considered and approved the hosting of the annual meeting of the New Development Bank (NDB) to take place in South Africa in June 2024.
Minister in The Presidency Khumbudzo Ntshavheni said it has been 10 years since Brazil, Russia, India, China and South Africa (BRICS) countries signed the Articles of the NDB at the 6th BRICS Summit in Fortaleza, marking the establishment of the “first multilateral development institution by emerging and developing countries”.
Briefing media on the outcomes of the Cabinet meeting on Thursday, Ntshavheni said South Africa had so far contributed R25 billion towards the bank’s paid in capital.
“South Africa is looking forward to host the meeting on the NDB and commits to working hand-in-hand with the bank and its member countries to achieve sustainable development and create a better the African continent,” Ntshavheni said.
Social service professionals strategy approved
Cabinet has also approved the Strategy for the Employment of social service professionals (SSPs) strategy, as part of increasing the human resource capacity of government, including non-governmental organisations, and the private sector to proactively respond to social ills that are facing the country.
“The strategy is a collective commitment to building a social service sector that is responsive to the needs of our communities and overcome social ills such as crime, gender-based violence and femicide, teenage pregnancy, bullying, child-headed households, mental health and substance abuse.
“The strategy is also aimed at laying the foundation for a socially inclusive and resilient future and a caring society,” Ntshavheni said.
Comments sought on Green Paper on Comprehensive Social Security
Meanwhile, Cabinet has called on the public to submit comments on the revised Green Paper on Comprehensive Social Security for the country.
This follows Cabinet’s approval of the publication of the revised paper, which aims to introduce a mandatory social security pension system that provides retirement, disability, and death benefits to all workers.
Low income earners would have their contributions subsidised, in line with existing provisions.
“The paper further proposes the harmonisation of the tax treatment of older persons in the tax and social grant system to address the unequal treatment of older persons in the two regimes.
“In addition, the paper also seeks to propose institutional reforms to promote coherence in social security policy making for administrative efficiency, improved service delivery and ensure effective regulation, governance and oversight across all social security arrangements,” Ntshavheni said. – SAnews.gov.za
GabiK
Thu, 02/29/2024 - 12:07
KZN continues quest to remain most favoured investment destination
While unemployment figures may cause despair, KwaZulu-Natal Premier, Nomusa Dube-Ncube, says the rate of investment into the province is a sign that tomorrow will be better than today.
“As KwaZulu-Natal, we faced an uphill battle in ensuring that investor confidence is unwavering, despite challenges with load shedding, the civil unrest, ageing utilities' infrastructure, some of which could not withstand the recent floods. Yet we remain determined to continue in our quest to ensure that investors know that KwaZulu-Natal is and remains the most favoured investment destination in Southern Africa,” Dube-Ncube said.
The Premier made the remarks when delivering the State of the Province Address (SOPA) at the Oval Cricket Stadium in Pietermaritzburg on Wednesday.
Dube-Ncube said during the South African Investment Conference (SAIC) held last year, where President Ramaphosa’s target was exceeded by some R306 billion, KwaZulu-Natal’s share included 55 companies in the province, which invested over R300 billion.
Dube-Ncube said some of the investments are located in the province's Special Economic Zones (SEZs), Richards Bay and Dube Trade Port, and around the province.
“Targeted business expansion and retention support activities amounted to over R23 billion, resulting in 37 201 jobs being created. Added to this are investments attracted by Trade and Investment KwaZulu-Natal (TIKZN) over the last two decades, amounting to over R60 billion and creating over 95 000 jobs,” Dube-Ncube said.
The Premier said KwaZulu-Natal is committed to the establishment of new leather and textile Special Economic Zones in the Newcastle and Ladysmith corridor, which are estimated at R600 million.
She said the two new SEZs will add to the two provincial SEZs of Dube Trade Port and Richards Bay Industrial Development Zone (RBIDZ), and will create 4 500 employment opportunities.
According to the Premier, 35 Black Industrialists have been supported by the Department of Trade, Industry and Competition (the dtic) and for grant funding, and they will create approximately 4 000 jobs. She said the target is to support 10 new Black Industrialists in the coming financial year.
“KwaZulu-Natal has 35 small scale fisheries cooperatives comprising 1 000 small scale fishers registered by the Department of Forestry, Fisheries and the Environment. Government has rolled out training to capacitate these fishers in the variety of Ocean Economy and Maritime technical skills,” the Premier said.
Dube-Ncube also highlighted some government-led projects to create jobs, including the Port of Durban's R1.34 billion investment programme aimed at upgrading port facilities to mainly increase port capacity. This created 1 328 jobs.
The Passenger Rail Agency South Africa (PRASA) has also spent over R900 million in KwaZulu-Natal through its capital programme on investment and infrastructure works.
“This includes projects on rolling stock upgrades, including the Bridge City Development with a new rail network, new access gates and CCTV cameras and stations, and the Dalbridge turnaround facility and general infrastructure station improvement. These were never there prior to this government.
“In 2023, the R2 billion Dr Pixley ka lsaka Seme Regional Hospital was officially opened with 500 beds and a full package of regional services provided. This hospital has changed lives, especially in the Phoenix, lnanda, Ntuzuma and KwaMashu (PINK) area, and created 5 312 jobs during construction,” Dube-Ncube highlighted.
The Premier acknowledged that government alone cannot address the enormous developmental challenges faced by the province.
“In order to accelerate development, we have partnered with the private sector to stimulate our economy. The public and private projects, worth over R129 billion, have created over 339 000 jobs,” the Premier said. – SAnews.gov.za
GabiK
Thu, 02/29/2024 - 10:05
SA works on exiting FATF grey list
National Treasury has noted that whilst South Africa is on track to address all the outstanding action items by the Financial Action Task Force (FATF) with regards to the country’s grey listing, it remains a challenge to address all 17 of the remaining action items by February 2025.
“All relevant agencies and authorities will need to continue to demonstrate significant improvements, and also for such improvements are being sustained,” National Treasury said on Thursday.
The FATF is the international standard-setting body that oversees global compliance with anti-money laundering rules.
“The February 2024 FATF Plenary adopted a report by the Joint Group, confirming that five of the 22 action items are now addressed or largely addressed. These relate to the legal provisions criminalizing terrorist financing and underpinning South Africa’s targeted financial sanction regimes related to terrorism financing and proliferation financing, increasing the use of financial intelligence from the Financial Intelligence Centre to support money laundering investigations, and increasing the resources of AML/CFT [Anti-Money Laundering and the Combating of the Financing of Terrorism] supervisors,” National Treasury said.
The FATF grey listed South Africa at its February 2023 Plenary meetings where a jointly agreed Action Plan was adopted listing 22 action items linked to the strategic deficiencies identified in the AML/CFT regime.
The FATF grey list refers to the FATF’s practice of publicly identifying countries with strategic AML/CFT deficiencies. The FATF maintains two such lists with one being jurisdictions under “increased monitoring” that are actively working with the FATF to address strategic deficiencies in their regimes” and secondly “high-risk jurisdictions subject to a call for action” that are not actively engaging with the FATF to address these deficiencies.
South Africa is required to address all 22 to exit the FATF grey list.
“The deadlines for addressing the action items fall between January 2024 to January 2025. Should South Africa be assessed to have largely addressed all 22 Action Items in February 2025, the FATF will schedule an onsite visit in April/May 2025, to confirm that assessment and make a recommendation to the June 2025 FATF plenary.
“In this cycle of reporting, the FATF also considered that two further action items that were previously not addressed, have now been partly addressed, confirming that 14 of the 17 outstanding action items have now been partly addressed.
“Three action items still have not been addressed as yet. The deadline for South Africa to address (or at least largely address) four of the outstanding action items in the Action Plan, is May 2024,” National Treasury said.
The FATF will consider South Africa’s progress on these action items at its plenary meeting in June 2024. A further eight action items are due in September 2024, and the final five items are due in January 2025.
The process in addressing effectiveness deficiencies is distinct from the process in addressing technical compliance deficiencies (related to the adequacy of the country’s AML/CFT laws and policy frameworks).
“The October 2023 FATF plenary formally re-rated 18 of South Africa’s 20 deficiencies, based on the progress made by the South African authorities in the two-year period following the 2021 mutual evaluation. Of these, 15 were upgraded to a point where they are no longer deficient, as 14 Recommendations are now fully or largely compliant, and one Recommendation was deemed to be inapplicable to South Africa.
“Following these re-ratings, South Africa is now deemed to be fully or largely compliant in 35 of the 40 FATF Recommendations, including in five of the six core FATF Recommendations. South Africa will apply for further re-ratings of technical compliance deficiencies, for the consideration of the October 2024 FATF Plenary,” National Treasury said. –SAnews.gov.za
nosihle
Thu, 02/29/2024 - 09:38
In the realm of hospitality, where comfort and luxury are paramount, the role of linen suppliers cannot be overstated. These suppliers form an integral part of the hospitality industry in South Africa, providing establishments with the essential linens that contribute to the overall guest experience. From hotels and resorts to restaurants and event venues, the demand for …
Putco concerned by how long CCMA process is taking
In the bustling domain of logistics, there’s a significant emphasis on innovative courier services in South Africa. These services cater to both local and international delivery needs, showcasing a dynamic approach to addressing the diverse logistical challenges faced by businesses and individuals alike. Let’s embark on an exploration of this vibrant sector, shedding light on the …
THOUGHT LEADERSHIP BY JASON GRIESSEL, Head of Cushman & Wakefield | BROLL Strategic Risk Services, who shares strategic forecasts and proactive strategies to ensure resilient real estate investments for the future. Charting uncharted waters: A quintet of challenges for South Africa’s built environment In an era marked by unprecedented change and complexity, the “Global Risks Report …
In the heart of South Africa, a vibrant and dynamic sector is reshaping the culinary landscape—food manufacturing. This industry, characterized by its innovation, sustainability, and quality, plays a pivotal role in feeding the nation and beyond. Among the leaders in this sector are bulk food manufacturers, who are setting new standards in food production, distribution, and …
In today’s rapidly evolving digital landscape, businesses are continually seeking innovative solutions to stay ahead of the curve. This guide delves into a suite of services that are pivotal for organizations aiming to harness the power of technology and digital transformation. These offerings span from educational initiatives to cloud computing, data intelligence, and beyond, showcasing …
When it comes to the effectiveness of tadalafil for ED, numerous men have found a reliable ally in the small, yet powerful tablet. Developed by the reputable Eli Lilly and Company, Tadalafil, the essence of the brand Cialis®, distinguishes itself in the realm of erectile dysfunction (ED) treatment options. Its noteworthy pharmacological profile is characterized …
Court considers nuances of grammar in decision to acquit man
Judges question City of Cape Town about eviction of Bromwell Street tenants
In the wake of the annual Budget address delivered by South Africa’s Minister of Finance, Enoch Godongwana, on 21 February, Regent Business School took the helm in fostering an illuminating webinar. This hybrid gathering, spearheaded by the school’s respected Dean, Dr Shahiem Patel (who is also a Non-Executive Director of the Institute of Bankers) alongside …
Spotlight on GBV action plan
Government and civil society continue to forge a collaborative approach to ensure the implementation of the National Strategic Plan on Gender-Based Violence and Femicide (GBVF-NSP).
Launched in April 2020, the GBVF-NSP has six pillars, including accountability, coordination and leadership; prevention and rebuilding; justice, safety and protection; response, care support and healing; economic power, and research and information.
Women, Youth and Persons with Disabilities Deputy Minister, Nokuzola Tolashe, said the department has already made a submission requesting that GBVF be dealt with as a pandemic, with President Cyril Ramaphosa committing to the call during the State of the Nation Address.
“Since the launch of the National Femicide Prevalence Survey in March 2022, the department has reaffirmed its willingness to confront GBVF with unwavering determination through a multi-stakeholder and intergovernmental approach, with the ultimate goal of ending gender-based violence,” Tolashe said.
Tolashe said GBVF continues to plague the country, despite some progress being made to curb it.
“As a widespread occurrence, GBV continues to spread its ugly legs and it is deeply rooted in communal structures, such as homes, churches and workplaces."
She argued that GBV and femicide are structural issues fuelled by inequalities that cut across race, class, gender, sexuality and age.
“Women in third world countries are more likely to experience gender-based oppression perpetuated and motivated by patriarchal customs. When poverty and lack of jobs or economic empowerment opportunities are present, GBVF is likely to be exacerbated,” the Deputy Minister said.
As part of the two-year goal set by the GBVF Presidential Summit in 2022 to implement the National Strategic Plan, Tolashe said there is a proposal to establish local economies centred on women cooperatives, supported by local institutions.
“This initiative can bolster government endeavours to combat GBVF, empowering women and persons with disabilities to break free from economic dependence,” Tolashe said.
The World Bank said GBVF is a global pandemic that affects one in three women in their lifetime.
“GBV is not only devastating for the survivors of violence and their families, but also has significant social and economic costs to the country’s Gross Domestic Product (GDP),” the World Bank stated.
KPMG, a global network of professional firms providing audit, tax and advisory services - said GBV costs South Africa between R28.4 billion and R42. 4 billion per year (or between 0.9% and 1.3% of GDP annually), resulting in individuals and families bearing the greatest proportion of costs. – SAnews.gov.za
GabiK
Wed, 02/28/2024 - 09:52
Psoriasis and Ethnic Diversity By: Ahmed El Hofy General Manager for South Africa for The Janssen Pharmaceutical Companies of Johnson & Johnson: JOHANNESBURG, February 21st, 2024 – Psoriasis, a chronic skin condition affecting millions worldwide, has long been a topic of concern in the medical community, in that no cure has been discovered, although there …
African nations adopt digital and social media guidelines
The Association of African Election Authorities (AAEA) has launched a set of principles and guidelines aimed at getting the most out of digital and social media, while mitigating its potential harms.
The guidelines, launched on Tuesday, emphasise the dangers of social media abuse, and call for responsible use and accountability from both platform owners and users.
The launch event was attended by 16 African Election Management Bodies (EMB) from countries that will hold elections in 2024 and 2025.
The guidelines encourage African EMBs to develop a clear and comprehensive plan for responsible social media use during election campaigns. It emphasises the critical roles governments and regulatory bodies can play in safeguarding electoral processes across Africa.
In addition, the guidelines encourage African states and regulatory authorities to refrain from imposing measures that might disrupt access to the internet, and to digital and social media.
Furthermore, they call on social media operators to treat political parties and candidates equitably and ensure that their online messaging, including that of their supporters, does not undermine electoral integrity or contravene human rights.
Speaking at the launch in Johannesburg, the AAEA President, who is also the Chairperson of the Mozambique National Election Commission, Reverend Carlos Simao Matsinhe, said the guidelines are an invaluable resource for protecting elections integrity and credibility.
He said the fight against disinformation is critical because left unmitigated, it can have a deleterious impact on the credibility of elections. He urged EMBs to socialise the guidelines in their respective countries.
South Africa, through grant funding by the African Renaissance and International Cooperation Fund, played an important role in developing the guidelines.
In his keynote address, South Africa’s Deputy President, Paul Mashatile, pledged the country's support for socialising the principles and guidelines.
“The reality is that the political environment during elections is tense and volatile, and we should use social media with responsibility to ensure that the content we share is credible and accurate. I urge political parties that participate in robust debate on social media to uphold ethical standards and refrain from going too far in being unjust, deceptive, or hateful,” said Mashatile.
The Chairperson of the Electoral Commission of South Africa, Mosotho Moepya, urged all stakeholders to play their role in ensuring that the guidelines are widely socialised and implemented, not only to increase voter confidence and trust in electoral processes, but also to ensure the deepening of democratic values.
Echoing Moepya's sentiments, the representative of the African Union Commission (AUC), Ambassador William Awinador-Kanyirige, said the adoption of the guidelines will play a huge role in the transformation and handling of elections in Africa.
“The existence of these principles and guidelines will go a long way in inspiring other countries to follow the same steps, thus promoting peaceful elections,” he said. – SAnews.gov.za
Edwin
Wed, 02/28/2024 - 10:23
The Deputy Minister of Health, Dr Sibongiseni Dhlomo has praised the North West Province for registering massive progress in the provincial department's endeavour to trace and track ex-mineworkers who left work without claiming their benefits. Accompanied by the North West Health MEC Madoda Sambatha at Westvaal Hospital, the Deputy Minister found out that a total of 20 798 ex-mine workers were successfully traced, with 2669 claims processed and paid a combined figure of R76.9 million. All this was achieved between August 2022 when the project was launched and the end of 2023.
The North West Province ex-mineworkers compensation project was launched by the Deputy Minister of Health, Premier of North West Province and the MEC for Health in August 2022.
The aim of the intervention is to provide ex-mineworkers and their beneficiaries with access to compensation benefits for occupational lung diseases and other social protection funds which were left unclaimed.
Speaking at Westvaal Hospital in Orkney and after receiving a report and assessment of the center, the Deputy Health Minister, Dhlomo congratulated the North West Province, the provincial health department and all stakeholders including the Mining Council and the interim Ex-Mineworkers leadership structure for the commitment shown in tracing deserving ex-mine workers.
“The province and the Department has done extremely well if you consider that between 2017 and 2021, the total value of the payouts were ranging from between 10 and 11% but in one year of 2023 the province was able to pay R76.9 million. It's a massive success though there are still many ex-mineworkers to be traced and compensated”, said Deputy Minister Dr Sibongiseni Dhlomo
All stakeholders in attendance immediately convened to discuss strategies for accelerated tracing and tracking. The target is all Ex-mineworkers who are estimated at 168,000 and their beneficiaries who reside in the North West Province.
As stakeholders deliberated on ways of improving the project output, MEC Madoda Sambatha made a commitment to integrate the Ex-mineworkers programme in the HAST programme of the Department. “We already have community health workers who are doing a good work of ‘loss to follow-up' because they track and trace people who miss their TB treatment. When we integrate this programme, we will be able to utilise this resource to track and trace ex-mine workers”, said MEC Sambatha.
The Ex-Mineworkers Council Interim Provincial Secretary, Mr Mr Tana Mahlophe suggested the use of two ex-mineworkers per region who can be contracted for a short period to assist in tracing deserving ex-mineworkers while the Mineral Council of South Africa committed to assist should this option be implemented.
Meanwhile the Department of Health has committed to ensure that all ex-mineworkers centers in the four districts remain operational and accessible to all ex-mineworkers. The centres are: Westvaal Hospital for Dr Kenneth Kaunda District, Old Vryburg Hospital for Dr Ruth Segomotsi Mompati District, Mahikeng Provincial Hospital for Ngaka Modiri Molema and Job Shimankana Tabane Hospital in Bojanala District.
MEC Sambatha concluded the deliberations by assuring stakeholders that the Department is committed to conclude outreach in the remaining districts between March and May 2024 as this will raise awareness to ex-mineworkers especially those in deep rural areas who might not be aware of the project.
All the key stakeholders in the projects were highlighted as essential for its success and they include the Provincial Leadership, Local government structures, the Minerals Council SA, TEBA Bank, the National Department of Health MBOD/CCOD, XDS call centre, IP Capital, Rand Mutual / CCMS, Tshiamiso Trust and the Traditional Leadership. They will be consulted throughout all the project implementation phases to ensure its success.
Distributed by APO Group on behalf of South African Government.
February is a time when hearts are in the spotlight. It is a time earmarked for raising awareness on congenital heart disease (CHD). According to studies it’s classified as the most common type of birth defect1,2 with up to 3.12 million babies born with CHD in 20193. To commemorate the annual CHD calendar awareness week, …
Empact Group, a purpose-led, 100% South African-owned company, continues to demonstrate its commitment to empowering small businesses through its Enterprise and Supplier Development (ESD) programme. The most recent ESD training session, dedicated to the significance of Marketing, PR, and Social Media, showcased the importance of these elements in the marketing mix for small and medium …
SARS takes legal action against Sasfin Bank
The Commissioner for the South African Revenue Service (SARS), Edward Kieswetter, has confirmed that the revenue service has instituted legal proceedings against Sasfin Bank.
SARS has conducted a thorough investigation into various South African taxpayers who had not made true and accurate tax disclosures to it.
“The investigation revealed that the taxpayers had colluded to expatriate funds offshore in a manner that obscured tracing the expatriated payments and jeopardises the recovery of tax in South Africa.
“The Commissioner’s position is that it is inappropriate to comment on the question of liability and compensation for the fiscus’ loss, as these are legal issues that are now before the South African judicial system. Given this development, SARS will not be making any further comment,” SARS said on Tuesday.
The Commissioner affirmed his commitment to pursue the enforcement and recovery of taxes without fear, favour or prejudice in the interest of upholding the fiscal integrity of the South African tax system.
Meanwhile in an announcement on Tuesday, shareholders of Sasfin Holdings Limited were advised that Sasfin Bank, a wholly owned subsidiary of Sasfin Holdings, was served a civil summons for a total amount of R4,872,327,649.27 plus interest and costs in the form of a damages claim, instituted by SARS.
“This summons, which was received on 9 January 2024, arises from SARS’ purported inability to collect income tax, value added tax and penalties allegedly owed by former foreign exchange clients of the bank.
“Former foreign exchange clients of the Bank operated as a syndicate that ran an unlawful scheme to facilitate the expatriation of money out of South Africa and colluded with former employees of the bank who operated outside the scope of their employment.”
Sasfin Holdings Limited also added that the bank took decisive action when it became aware of this unlawful scheme, including instituting an expanded investigation led by an independent forensic consultancy.
This resulted in the termination of relationships with the implicated clients and employees and the opening of criminal cases against them.
“Subsequent to receiving the summons, Sasfin Bank engaged transparently with the relevant regulators on the matter and obtained a legal opinion from ENS, authored by Professor Dale Hutchinson, Professor Michael Katz and Aslam Moosajee and endorsed by Adv. Wim Trengove S.C.”
“The legal opinion is unequivocal that the claim falls outside of the recognised parameters of applicable law and has a very remote likelihood of success. On the basis of this legal opinion, Sasfin Holdings concluded that the claim will not result in the recognition of any liability.”
In the SENS announcement, the board of directors of Sasfin Holdings “remains of the view that SARS’ claim has no merit and has little chance of success.”
“The Bank will therefore defend the claim, and given that this involves a defended trial action, the matter is only likely to come to trial in several years’ time,” said Sasfin Holdings. –SAnews.gov.za
nosihle
Wed, 02/28/2024 - 10:23