Category: MIL-OSI

Public Works and Infrastructure Minister Dean Macpherson has directed Director-General Sifiso Mdakane to implement precautionary suspension and disciplinary proceedings against a senior Construction Project Management (CPM) Director. 

The director appeared in court on Tuesday on charges of fraud in relation to a multimillion-rand project linked to the Mpumalanga Department of Education. 

The Minister acted after learning that the official had been arrested, alongside others, for allegedly defrauding the Mpumalanga Department of Education of R113 million through a tender established between 2018 and 2019 as an emergency intervention to repair 21 schools in the province.

While the Department of Public Works and Infrastructure (DPWI) was not involved in the tender issued by the Mpumalanga Department of Education, the Minister stressed that all officials within the department must be beyond reproach. 

Macpherson said the precautionary suspension and disciplinary action must be in line with the prescripts of the Public Service Act and regulatory framework, and be both procedurally and substantively fair. 

“… We have adopted a zero-tolerance approach to corruption and ethical misconduct within this department. That position is non-negotiable. 

“Upon becoming aware of the official’s arrest and court appearance, I directed the Director-General to implement the precautionary suspension of the official and to initiate the appropriate disciplinary action. 

“Any official implicated in serious criminal allegations, particularly those involving public funds meant for critical infrastructure such as schools, ought not remain in their role, while these processes are underway,” the Minister said, adding that the department will fully cooperate with law enforcement authorities, while internal disciplinary processes will proceed in parallel with the criminal matter.

“There will be no protection for wrongdoing. We owe it to the people of South Africa to act decisively against corruption wherever it arises. 

“Every rand lost to fraud is a rand taken away from classrooms, communities and service delivery. We are committed to strengthening governance, tightening oversight, and ensuring that public infrastructure budgets are used strictly for their intended purpose. 

“Accountability is not optional – it is fundamental to restoring trust and ensuring that infrastructure delivery serves the public, not private interests,” the Minister said. – SAnews.gov.za

Cabinet has joined President Cyril Ramaphosa in expressing gratitude to Russian President Vladimir Putin for facilitating the return of 17 South African men, who were recruited to fight on the Russian frontlines in the conflict between Russia and Ukraine.

The South African government, working closely with Russian authorities, secured the safe return of the men, aged between 20 and 39, after distress calls were received from them seeking assistance to come home.

Briefing the media in Pretoria on Thursday following Wednesday’s Cabinet meeting, Minister in the Presidency Khumbudzo Ntshavheni confirmed that all 17 men have been released from the contracts they had signed with military contractors.

“Fifteen of the men are back in South Africa, while two remain in Russia, with one in a hospital and the other one is being processed before finalising his travel arrangements,” Ntshavheni said.

President Putin pledged his support during a telephone call with President Ramaphosa on 10 February 2026.

The Presidency said the South African Embassy in Moscow will continue monitoring the individual who remains in hospital until he has fully recovered and is fit to travel.

Ntshavheni said investigations into the circumstances surrounding the recruitment of the young men into mercenary activities and violations of South African law are ongoing.

Government commends support in Ekapa Mine rescue efforts

Cabinet has also commended mining companies and the Minerals Council South Africa for their assistance during rescue operations following a mud rush accident at the Ekapa Minerals Mine on 17 February 2026.

The incident resulted in five employees being trapped underground.

Ntshavheni reported that all operations at the mine have been suspended, while an intensive rescue operation continues.

“Once the rescue operation is completed, the Department of Mineral and Petroleum Resources will conduct a formal investigation, in line with the Mine Health and Safety Act to determine the cause of the incident,” the Minister said.

Minister of Mineral and Petroleum Resources Gwede Mantashe, together with Northern Cape Premier Zamani Saul and Sol Plaatje Executive Mayor Martha Bartlett, visited the mine in Kimberley following the accident.

Ntshavheni said a team from the Department of Mineral and Petroleum Resources, led by the Chief Inspector of Mines, remains on site to monitor and support the rescue efforts.

“The affected families are receiving ongoing communication. Government’s thoughts and prayers are with the families of the affected employees as rescue efforts continue,” Ntshavheni said. – SAnews.gov.za

The key economic milestones reflected in the 2026 Budget indicate that government’s implementation of structural reforms to support economic recovery has strengthened the country’s global standing.

This is due to government’s efforts to promote faster economic growth, anchored on four pillars: maintaining macroeconomic stability, implementing structural reforms, investing in growth-enhancing infrastructure, and building State capacity. 

South Africa’s consolidated budget deficit narrowed to 4.5% of Gross Domestic Product (GDP) for 2025/26, an improvement from 4.8%.

The deficit falls to 4% in 2026/27 and 3.1% the year after.

“Many important things emerged from the Budget Speech yesterday but one truly stood out for me, and I hope it stood out for most of the people… For the first time in 17 years, government debt is stabilising. Never have we been happier to hear the word ‘stabilising’ than we were yesterday. And South Africa has exited the grey list,” Brand South Africa (Brand SA) Deputy Chairperson of the Board of Trustees, Zama Mkosi, said on Thursday.

According to the budget, gross debt stabilised as a share of GDP in 2025/26, at 78.9%. In 2026/27, it falls further to 77.3% of GDP and declines to 76.5% by 2028/29.

“It is the most important signal that a country sends to its citizens on how public resources are to be utilised. In today’s global environment, where capital is cautious, and competition for investment is intense, credibility matters,” Mkosi said.

She was addressing the post-Budget breakfast in Cape Town, held after the tabling of the 2026 National Budget by the Minister of Finance, Enoch Godongwana. 

“The Budget Speech is about more than just numbers… It is truly a statement of intent. It is a statement of transparency and accountability for public finances, and at the same time, it reflects choices and trade-offs. As we know, it reflects a renewed outlook on South Africa’s reform agenda,” Mkosi said. 

South Africa’s reform agenda is driven by Operation Vulindlela, an initiative focusing on urgent structural changes to accelerate economic growth, stabilise energy supply, fix logistics, and improve municipal service delivery.   

National Treasury’s commitment to a clear reform agenda and a disciplined fiscal strategy has resulted in the stabilsation of public debt, South Africa’s removal from the Financial Action Task Force (FATF) greylist, the first credit rating upgrade in 16 years and the easing of borrowing costs, creating space for growth and development. 

“These [economic milestones] are not abstract technical indicators. They are important signals of restored credibility, renewed confidence, and a country that is truly regaining its economic footing. From a nation-brand perspective, these signals matter.

“How South Africa is perceived internationally and even domestically, affects the cost of capital, investor confidence, and our ability to attract long-term partnerships. 

“It also shapes whether our challenges are seen as permanent or as part of a reform process, rather than as risks that we are not in control of as a country,” she said.

This is a key function for Brand SA. The entity is responsible for building the country’s brand reputation to improve its global competitiveness, with the intention to contribute towards economic growth, job creation, poverty alleviation, and social cohesion by encouraging local and foreign investment, tourism, and trade through the promotion of Brand South Africa.

“This is where Brand South Africa’s mandate becomes relevant. Our role is not just to comment on fiscal detail, but to ensure that South Africa’s progress, reforms, partnerships, and opportunities are clearly understood both domestically and globally. 

“We work to strengthen coherence in how the country is positioned. We are here to amplify the credible progress that has been made and to ensure that confidence is supported by consistent messaging and measurable outcomes.

“Reputation is not built overnight, nor is it sustained by mere rhetoric. It is built through alignment — alignment between policy and implementation, and alignment between ambition and delivery,” Mkosi said. –SAnews.gov.za

Deputy Finance Minister, Dr David Masondo, says the 2026 Budget is redistributive while balancing the need for fiscal discipline.

The Deputy Minister participated in the post-Budget speech breakfast discussion hosted by the National Treasury, in partnership with Brand South Africa and the Government Communication and Information System (GCIS).

National Treasury has hinged the economic growth strategy on four pillars: maintaining macroeconomic stability, implementing structural reforms, investing in growth-enhancing infrastructure, and building state capacity.

These, Masondo said, are aimed at improving the lives of ordinary South Africans in the long run.

“All these things are significantly linked to the interests of the poor. At the end of the day, it’s what impact will this have on the ordinary person in terms of jobs. Without economic growth you can’t have the tax revenue that enables us to do the things that we have to do like education and health.

“This is a redistributive budget in terms of expenditure as 60% of the budget goes to the poor. Those who say we are austere they must look at the facts,” Masondo said.

The Deputy Minister said this year’s budget presents a different case which includes a withdrawal of some R20 billion in tax increases while carefully managing the public purse.

“What is different about this year’s budget is that we have withdrawn the tax increase. It also has to do with the fact that we have been responsible in managing our fiscal policy and that has implications on the cost of capital.

“Investors look at your sovereign risk premium to determine the cost of capital. So they look at how we are managing our deficit, primary budget surplus, economic growth and so forth.

“That matters because with the debt service costs going down…the debt service costs are going to reduce by R10 billion and what that does is that it opens up space for us to spend money on the needs of the poor, for entrepreneurs…capital becomes cheaper. That has huge implications for our ability to raise money for creating jobs and so forth,” he said. – SAnews.gov.za

Business Unity South Africa (BUSA) has welcomed the 2026 National Budget, noting its clear acknowledgement of South Africa’s central economic challenge, including insufficient growth, which continues to entrench unemployment and inequality.

Reacting to the 2026 Budget Speech tabled by Finance Minister Enoch Godongwana in Parliament on Wednesday, BUSA commended the budget’s focus on prudent fiscal management and responsible stewardship of public finances.

READ | Finance Minister Enoch Godongwana: 2026 Budget Speech

BUSA CEO Khulekani Mathe highlighted several key milestones achieved over the past year, including South Africa’s removal from the Financial Action Task Force (FATF) grey list, a credit rating upgrade, debt stabilisation, a narrowing budget deficit and easing borrowing costs.

“These developments are worthy of recognition because they demonstrate what is achievable when the country concentrates on the right priorities and works together. The removal from the FATF grey list, in particular, required coordinated efforts across government departments and agencies, as well as the private sector,” Mathe said.

The organisation noted that public debt is stabilising, while fiscal consolidation efforts have begun to yield measurable improvements in market confidence.

Mathe pointed to the Gross Domestic Product (GDP) growth forecast of 1.6% in 2026, rising to 2.0% by 2028.

While the projected improvement suggests that South Africa’s economy is beginning to turn the corner, BUSA remains concerned that the growth rate is still too modest to meaningfully address unemployment at scale.

“Building on these positive developments to raise the growth rate must now be the focus of all our efforts. Sustained improvement will strengthen investor confidence, which is essential to unlock higher growth and job creation,” Mathe said.

BUSA also commended Godongwana for a budget that contains no surprises, particularly regarding tax policy, while reflecting significant gains from improved tax administration and expenditure reviews.

Improved tax administration and expenditure reviews have generated sufficient gains to close the R20 billion funding gap anticipated for the 2026/27 fiscal year without the need for additional tax hikes.

The organisation further welcomed additional tax measures aimed at easing the financial burden on businesses and households, including adjustments to personal income tax brackets, an increase in the VAT registration threshold, and raising capital gains tax exemption for the sale of small businesses.

Mathe said the four features of National Treasury’s fiscal strategy, namely supporting economic growth, improving the efficiency of public spending, enhancing the composition of spending by containing the public service wage bill, while increasing capital investment and entrenching sustainable public finances with a principles-led fiscal anchor, are yielding positive results.

Local government failures a major constraint

Despite the positive fiscal outlook, BUSA warned that the country’s progress will be constrained, unless service delivery at local government level improves materially.

It noted that failure of some municipalities to fulfil basic service delivery functions, continues to impose direct costs on households and businesses.

“Dry taps, potholes, sewage running through the streets and non-functional traffic lights have become daily occurrences that erode confidence and undermine the positive narrative of a country on the mend. BUSA is concerned that the measures announced do not go far enough to address this rapidly deteriorating situation,” Mathe said.

BUSA noted that the budget includes allocations aligned with priorities outlined in the President’s State of the Nation Address (SONA), including increased funding for early childhood development, the deployment of the army to combat organised crime and gangsterism, the employment of additional doctors, and infrastructure investment.

According to the organisation, this alignment reflects improved coordination within government and bodes well for effective implementation. BUSA said “government must now demonstrate its delivery capacity on these commitments through decisive action”.

Structural reforms and business-government collaboration

BUSA acknowledged progress in areas where stronger collaboration between government and business has intensified, particularly in structural reforms in energy, transport, and logistics under the auspices of Operation Vulindlela.

“Private-sector participation, coupled with public-private partnerships currently under development, is essential to unlocking the growth potential of the South African economy.

“Business stands ready to support measures aimed at growing the economy, boosting investment and accelerating job creation,” Mathe said. – SAnews.gov.za

Traditional leaders are indispensable partners as government works to improve the economy and the lives of every South African man, woman and child.

“It is you who our people turn to in times of uncertainty and upheaval, and on whom they rely for guidance and wisdom that has been passed down through the ages and generations,” said President Cyril Ramaphosa, speaking at the opening of the National House of Traditional and Khoi-San Leaders on Thursday.

He said the institution of traditional leadership forms the sturdy roots that hold the great tree of the nation up.

“Traditional leadership is the institution that anchors us in history. It nourishes us with identity. It stabilises us when storms rage.

“In many of the provinces across our country, traditional leaders remain enablers of social cohesion, mediators of conflict, guardians of land and transmitters of culture. Long before the formal architecture of the modern state, there were systems of cogent accountability rooted in consensus and community.

“As the custodians of many of our cultures, customs and shared values that are the source of our nation’s strength, you hold the soil together, anchor the trunk and help us grow taller. Without strong roots, a nation cannot stand,” said the President.

He said the service delivery challenges in local government are felt particularly hard in rural areas.

“Where roads are poorly maintained, farmers cannot transport their goods to towns. Schoolchildren and the elderly have to travel long distances to get to clinics and schools, costing them money that is already in scarce supply.

“Rural areas are increasingly water-stressed. When the taps are dry, it doesn’t only affect households, but small-scale and communal farmers who rely on water to till the land, grow crops and sustain their livestock.

“The effects of climate change are worst in rural areas, as we saw with the recent floods in parts of Limpopo, Mpumalanga and KwaZulu-Natal. Extreme weather such as floods and droughts affect crop yields and the condition of livestock herds.

“As communities rooted in land and tradition, there is much we should learn from traditional communities as we approach these challenges,” said the President.

He said through the District Development Model, government has sought to align planning and service delivery across the country’s districts and metros.

“We continue to work with traditional leaders to gain an understanding of the conditions in their communities, of their specific needs and priorities, and to undertake development that is responsive to these realities.”

One area where impact is being felt in efforts to support youth development in rural communities is through public employment.

The Presidential Employment Stimulus has to date created over 2.5 million work and livelihood opportunities for young people, including in rural areas; the Social Employment Fund continues to support agricultural interventions for smallholder farmers, including skills development, training in sustainable farming practices and access to markets; the National Rural Youth Service Corps (NARYSEC) is having a positive impact on the lives of rural youth and last year, many young people in rural areas graduated from this programme, having received training in agriculture, construction, IT, hospitality and other areas.

“Agriculture is the lifeblood of rural communities. In the State of the Nation Address, I outlined the steps we are taking to support farmers and improve agricultural productivity across the country.

“We will continue to provide innovative funding to black producers, with the support of the Land Bank and commercial banks.

“This year we will be deploying 10 000 new agricultural extension officers across the country to provide technical support to both smallholder and commercial farmers.

“We will also be consolidating the training funded by the AgriSETA to bring more young people into the agriculture sector,” said President Ramaphosa.

With some of the world’s largest reserves of critical minerals lying beneath the soil, government has dedicated funding to mapping reserves and undertaking exploration.

Progressive legal and regulatory frameworks have sought to ensure that mining activity does not result in environmental degradation, displacement or loss of livelihoods.

“In some cases, rural communities have benefited from these developments, but in far too many instances they have not. As we work to harness the potential of our critical minerals, government and traditional leaders must work together to ensure that these resources create jobs and businesses in the areas where they are mined,” said the President.

He commended the House on the important work it has embarked on in partnership with government and other stakeholders. These include work with Habitat for Humanity, the Al-Imdaad Foundation, the National Heritage Council, the Hendrietta Bogopane-Zulu Foundation, and others.

“May this House continue to be a stabilising force in our democracy and national life. As our traditional leaders you must remain custodians of dignity and cohesion. And may you help lead the renewal of our rural economies, the empowerment of our youth, and the strengthening of our social fabric,” said the President. – SAnews.gov.za