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Wed, Sep 10, 2025

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SA Rugby Union technically insolvent, and construction mafias hit R550 million project

The rand remained stable against a stronger dollar on Friday after the world’s largest economy reported stronger-than-expected employment data. 

The rand traded at 17.78 against the dollar, showing little change from Thursday’s closing level. 

It initially gained value early in the day when the South African Reserve Bank announced an increase in foreign reserves for the previous month. 

The dollar was approximately 0.5% stronger against a basket of currencies following a report from the U.S. Labour Department, which showed that non-farm payrolls rose by 139,000 in May, surpassing economists’ estimates of a 130,000 increase, as reported by Reuters. 

As a risk-sensitive currency, the rand often reacts to global factors such as U.S. economic policies and data, in addition to local influences. 

This week, domestic investors will be paying close attention to manufacturing and mining reports to assess the health of Africa’s most industrialised economy.

On Monday, 9 June, the rand was trading at R17.77 to the dollar, R24.08 to the pound and R20.28 to the euro. Oil was trading slightly lower at $66.41 a barrel.

SARU is technically insolvent: The South African Rugby Union (Saru) is technically insolvent after a nearly R100 million loss in 2024, largely due to a failed equity deal with Ackerley Sports Group. However, 2025 has started strong, improving the outlook. [Business Day]

*This article was first published by BusinessTech

SA Rugby Union technically insolvent, and construction mafias hit R550 million project

Minor arrested for crash that led to death of a teen

A 12-year-old boy has been arrested for allegedly causing a crash that killed a 14-year-old pedestrian in Brakpan.

A 12-year-old car driver has been arrested for allegedly disobeying a stop sign and crashing into a 14-year-old pedestrian who died at the scene in Brakpan, Ekurhuleni.

City spokesperson Zweli Dlamini said metro police were summoned to an accident that occurred at the corner of Northdene and Medeley streets on Saturday. 

"Officers found the lifeless body of a 14-year-old pedestrian, who was declared deceased at the scene by the paramedics. Also at the scene, the officers found a Mazda that was driven by a 12-year-old driver," Dlamini said.

"It is alleged that the 12-year-old disobeyed a stop sign and collided with the pedestrian. The suspect is expected to appear before the Brakpan magistrate's court soon.

He said the driver was handed to Brakpan police and was in the company of his guardian.

The minimum legal age to obtain a driver's licence in SA is 18 years.

*This article was first published by SowetanLIVE

Minor arrested for crash that led to death of a teen

What Helen Zille’s runs as mayor of Joburg could mean

Is a political heavyweight stepping back into the boxing ring? Helen Zille, the current Chairperson of the Federal Council of the Democratic Alliance (DA), former leader of the DA, former Mayor of Cape Town and Premier of the Western Cape, is considering running for Mayor of Johannesburg.

Zille is known as a formidable political pugilist, and the revelation that she is considering a run to take charge of South Africa’s largest city and its undisputed economic hub, has caused a stir of some magnitude.

According to Prof Kedibone Phago, director of the School for Government Studies at the North-West University (NWU), unleashing Zille could give the DA a strategic advantage in the run-up to the 2029 general election.

“The DA is beginning to realise that the ANC is rapidly losing support, yet it is not the DA that is necessarily gaining that support. This presents an interesting strategic challenge for the DA, particularly as it positions itself for the 2029 general election.

One potential strategy could involve bringing in a popular leader like Helen Zille to serve as mayor of Johannesburg. If she were to address citizens’ concerns, rebuild the city’s infrastructure, and restore functionality, Johannesburg could become a symbol of effective governance. By 2029, this could place the DA on par with - or even ahead of - the ANC in electoral outcomes. This may very well be part of a broader, long-term plan.

Another challenge the DA faces is the presence of smaller parties, such as ActionSA and BOSA, which complicates coalition dynamics. To strengthen its national appeal, the DA needs to show that it is not only focused on Cape Town, but also committed to delivering in other cities it governs. Bringing in Zille could be seen as a bold move to reinforce this commitment and to present the DA as a party fighting for a better-functioning South Africa.

If the DA succeeds in turning public frustration into tangible outcomes, particularly through improved service delivery and the provision of basic municipal services, it could significantly boost its national standing by 2029. The key lies in responding to the everyday frustrations of citizens, who are increasingly disillusioned with local governance.”

*This article was first published by Bertie Jacobs (NWU) 

What Helen Zille’s runs as mayor of Joburg could mean

SARS warning to taxpayers in South Africa: pay up, or face severe fines or prison

South African taxpayers are being warned to fully comply with SARS’ compliance directives or face severe penalties, which include fines, public naming and shaming, and even imprisonment.

This is according to tax experts André Daniels, Head of Tax Controversy and Dispute Resolution, and Colleen Kaufmann, Legal Manager at Tax Consulting SA.

However, other experts have cautioned SARS against the danger of “heavy-handedness” in its treatment of taxpayers as it prepares to ramp up tax collection efforts. 

According to Tax Consulting SA, the revenue service is stepping up enforcement and has the mandate and resources to pursue non-compliant individuals and businesses aggressively.

With R7.5 billion in additional medium-term funding, R4 billion earmarked for debt recovery and R3.5 billion for modernisation, SARS is entering a new phase of tax enforcement. 

The tax experts said that SARS’ two-pronged strategy of assisting compliant taxpayers while clamping down on those who defy the system is being enforced with greater urgency. 

“SARS has invested heavily in smarter systems, automation, and enhanced data analytics. These tools now enable the authority to conduct precise, data-driven audits and investigations,” they said.

“Gone are the days of random checks, SARS now targets suspected non-compliance with intent and accuracy.” 

Tax Consulting SA observed that taxpayers who have not regularised their affairs are increasingly under pressure.

The firm explained that SARS offers non-compliant taxpayers a legitimate, legislated pathway to correct compliance issues through the Voluntary Disclosure Programme (VDP).

However, this option is only available before any form of audit, investigation, or verification has begun.

“Those who used the VDP early have protected themselves from reputational harm, financial ruin, and in some cases, criminal prosecution,” said the consultancy firm.

“But those who delayed or failed to act are now facing real consequences, including civil judgments, penalties of up to 200% of the tax debt, and even prison time in severe cases.”

Concerns that SARS will be too heavy-handed

Despite the clampdown warning, Tax Consulting SA noted that SARS is willing to engage constructively with those making genuine disclosures. 

However, the legal requirements remain strict. According to the firm, taxpayers must be fully registered, have all returns up to date, and provide full and accurate disclosures. 

“Any rushed or incomplete VDP applications are likely to be rejected, and SARS has already invalidated several such applications, leaving taxpayers exposed to the penalties they wanted to avoid,” they said. 

This sharpened enforcement strategy is backed by cutting-edge systems. SARS has invested heavily in automation, data analytics, and inter-agency cooperation. 

Tax Consulting SA explained that audits are no longer random; they are targeted and data-driven. 

“Once SARS initiates an audit, the door to the VDP closes. At that point, taxpayers can no longer make a voluntary disclosure, and the consequences become far more serious.”

Tax Consulting SA added that SARS has already executed garnishee orders, applied for asset preservation, and launched criminal prosecutions. 

The burden of proof lies with the taxpayer, and failure to keep proper records or declare all income can be disastrous.

As part of its intensified effort to recover outstanding debts, SARS plans to employ an additional 1,700 debt collectors this year, in addition to the 750 it hired in 2024. However, not everyone supports this aggressive stance.

The South African Institute of Chartered Accountants (SAICA) has raised concerns that SARS may become too heavy-handed in its pursuit of revenue. 

Speaking in Parliament, SAICA’s project director for tax advocacy, Lesedi Seforo, cautioned that pressure to collect revenue could result in delayed refunds, premature garnishee orders, and action taken even when SARS’ own timeframes aren’t met.

SARS has responded to these concerns. Commissioner Kieswetter said it is “unhelpful” for SAICA or anyone to make sweeping generalisations. 

“SARS will always respond to specific incidents of unprofessional behaviour. But in the absence of anything specific, such comments undermine our hard work,” he said.

SARS spokesperson Siphithi Sibeko defended the tax authority’s actions and stressed that any fear of heavy-handedness is unfounded.

He said that SARS is acting and will always act within the law, and continues working with all stakeholders to build a better tax system. 

*This article was first published by Eye Witness News

SARS warning to taxpayers in South Africa: pay up, or face severe fines or prison

Parliament's Constitutional Review Committee receives more than 250 proposals to change the Constitution

The Constitution was last amended in 2023 to include sign language as an official language.

Parliament’s Constitutional Review Committee has received more than 250 proposals to amend the Constitution.

But it could take up to a year to decide how many of them are worthy of the attention of the committee which is currently still dealing with legal opinions on submissions made during the previous administration.

Co-chairperson of the committee, Glynnis Breytenbach says it’s an arduous and painstaking process the committee will now embark upon after the deadline for submissions closed at the end of last May.

The Constitution was last amended in 2023 to include sign language as an official language.

Prior to that, the Constitution had not been amended since 2012 after an attempt to amend Section 25 to allow for land expropriation without compensation in 2021 flopped without the two thirds majority required by the National Assembly.

Breytenbach says some submissions exceed 100 pages, and Parliament’s administrative and legal staff will have to categorise the submissions depending on their substance.

"It’s not a must that the committee must find matters that must be brought to the National Assembly. If none of them are of any significant import, then we will again call for submissions."

Breytenbach says it could take up to a year to grapple with these serious submissions. 

"Even that takes a long time because then you have to find the space for those people to come and present. You have to hear all the presentations. The pros and the cons."

Among submissions received by the committee deal with the consequences for impeached individuals which Breytenbach says warrants Parliament's urgent attention. 

*This article was first published by Eye Witness News

Parliament's Constitutional Review Committee receives more than 250 proposals to change the Constitution

Grounded airline could be making a comeback in South Africa

Mango Airlines is closer to resuming its operations in South Africa again, four years after the carrier was grounded. 

The state-owned airline, which ceased operations in July 2021, is now in the final stages of concluding a transaction with a selected investor that could pave the way for its return.

Business rescue practitioner Sipho Sono, a chartered accountant appointed to manage Mango’s restructuring process, confirmed progress is being made this week. 

In an interview with IOL on Thursday (5 June), Sono said the transaction is now in its final phases. 

As part of the process, Mango has begun verifying the value of ‘unflown’ tickets that couldn’t be used after its operations were suspended, and issuing vouchers.

Mango released a statement urging affected passengers to log their ticket and voucher information on the airline’s newly launched verification portal, which is available on the airline’s website. 

This portal opened to the public on 4 June 2025 and will remain active until 1 September 2025. The goal is to accurately account for outstanding liabilities before finalising the deal with the investor.

“If the transaction is successful, Mango will issue vouchers to customers that they can use when flights resume,” Sono explained. 

“However, if the transaction fails, these tickets and vouchers will be treated as creditor claims within the business rescue process, with passengers receiving a partial payout.”

Additionally, Mango’s parent company, South African Airways (SAA), has yet to approve the sale of shares agreement submitted in November 2022.

Although SAA previously approved Mango’s business rescue plan, it has not signed off on this essential agreement that would facilitate the airline’s sale to a new investor.

On 2 May 2025, Sono’s legal team issued a formal letter to SAA, demanding a response within 14 calendar days. 

He warned that any further delays could derail Mango’s return and jeopardise the success of the entire rescue process.

The reintroduction could be good news for flight prices

Mango’s exit in 2021 left a noticeable gap in the South African aviation market, especially in the budget travel segment. 

As one of the few affordable domestic airlines at the time, its disappearance reduced competition, placing pressure on the remaining carriers and resulting in a spike in ticket prices across the country. 

Consumers faced fewer low-cost options, while high demand and limited seat availability drove up fares, particularly on high-traffic routes like Johannesburg to Cape Town and Durban. 

Mango’s journey to potential recovery follows a turbulent period created by financial instability and operational challenges. 

The airline was officially placed under voluntary business rescue in July 2021 after it was grounded due to mounting debt and the withdrawal of financial support from government stakeholders.

Mango was heavily reliant on funding from its parent company, SAA, which itself was undergoing a business rescue process at the time. 

Without access to capital and unable to meet its obligations to staff, creditors, and service providers, Mango ceased operations and entered business rescue.

Despite numerous attempts to secure an investor over the past few years, progress has been slow, in part due to regulatory hurdles and delays from SAA and the Department of Public Enterprises. 

If the deal receives final approval, Mango could rejoin the competitive South African aviation market and provide more affordable options to domestic travellers. 

*This article was first published by BusinessTech

Grounded airline could be making a comeback in South Africa
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