Eric Palmer Attorney

29/03/2023

Crackdown on businesses with ‘hidden’ owners in South Africa

The Financial Intelligence Centre is cracking down on secret business owners.

23/02/2023

De Ruyter strikes back

Outgoing Eskom CEO Andre de Ruyter has given an explosive interview about political interference at Eskom – and what South African can expect from load shedding this winter.

23/02/2023

Budget 2023's big news

This year's National Budget, delivered on Wednesday, was dominated by SA's power woes, with Finance Minister Enoch Godongwana announcing that government will take over a large part of Eskom's debt.

23/02/2023

Government spending R66 billion on social grants – with plans to replace the R350 SRD payouts.

Finance Minister Enoch Godongwana has announced that social grants will increase by at least 5% in the next financial year.

“R66 billion is allocated to Social Development over the medium term, with R36 billion to fund the extension of the Covid-19 Social Relief of Distress [SRD] grant until 31 March 2024.

R30 billion will be used for inflation-linked increases for other social grants,” Godongwana said.

The Minister presented the 2023 National Budget in Cape Town on Wednesday.

The increases in social grants are as follows:

*The old age grant will go up from R1,985 to R2,085
*The old age grants for those over the age of 75 will increase to R2,105
*Grants for war veterans increase to some R2,105 from R2,005
*Disability grants go up to R2,085
*The Foster care grant increases by 5.1% to R1,125
*Care dependency grants rise to R2,085 from R1,985
*Child support grants go up by 5.2% to R505
*Grant-in-aid rises to R505 – up by 5.2%

National Treasury budget documents said although the SRD grant will continue, government is considering options to provide alternative social protection to those receiving it.

“In 2023/24…R400 million is allocated to the South African Social Security Agency to administer it. Government is still considering alternative options to provide appropriate social protection for the working-age population that can replace or complement the current grant.

“Funds spent on the grant are lower than projected in 2022/23 due to improved means testing,” the department said.

READ the article in BusinessTech on 22 February 2023.
IMAGE: Social Grants / SRD beneficiaries. Used for illustration.

23/02/2023

Do let us know your thoughts on this ->>> Government to take over R254 billion of Eskom’s debt.

National Treasury has proposed to provide the country’s embattled power utility, Eskom, with R254 billion in debt relief over the next three years.

This was on Wednesday confirmed by Finance Minister Enoch Godongwana while delivering the 2023 Budget Speech at the Cape Town City Hall.

Of the R254 billion debt relief, R168 billion will be in capital while R86 billion will be in interest, said the the National Treasury in its 2023 Budget Review document.

“Because of the structure of the debt relief, Eskom will not need further borrowing during the relief period. Government will finance the arrangement through the R66 billion baseline provision announced in the 2019 Budget, and R118 billion in additional borrowings over the next three years,” said the Minister.

In the report, the Treasury said Eskom’s operational failures were intertwined with its “untenable” financial position.

Since 2008/09, government has provided the utility with R263.4 billion in bailouts.

These allocations, it said, have failed to stem the collapse of Eskom’s balance sheet and operations.

With a current R423 billion debt on its book, the document says the figure imposes an “enormous drain on the economy”.

“Government guarantees R350 billion of this debt, which is at risk of default – a contingent liability that raises South Africa’s risk premium and borrowing costs,” read the document.

The goal of the debt relief is to strengthen the utility’s balance sheet, enabling it to restructure and undertake the investment and maintenance needed to support the security of the electricity supply.

The key features of this arrangement include government providing Eskom with advances of R78 billion in 2023/24, R66 billion in 2024/25, and R40 billion in 2025/26. These advances will cover capital and interest payments as they fall due and may only be used for that purpose.

In 2025/26, Godongwana said the government will directly take over up to R70 billion of Eskom’s loan portfolio. This arrangement has been the subject of extensive consultation with Eskom and its stakeholders.

“Its success rests on the implementation of key reforms that address the inadequacies of the transmission network and performance of existing power stations,” reads the Budget Review.

The implementation of these reforms will form part of obligatory conditions.

These include:

*Eskom, the National Treasury, and the Department of Public Enterprises have agreed to design a mechanism for building new transmission infrastructure that will allow for extensive private-sector participation in the development of the transmission network.

*The National Treasury has appointed an international consortium with extensive experience in the operations of coal-fired power stations to review all plants in Eskom’s coal fleet and advice on operational improvements. The review is scheduled to conclude by mid-2023. Eskom is required to implement the operational recommendations emanating from this independent assessment.

*This will include a determination of which plants can be resuscitated to original equipment manufacturers’ standards, following which Eskom must concession all these power stations with clear targets for the electricity availability factor and operations.

PUBLISHED in Businesstech 22 February 2023.
IMAGE: Used for illustration.

23/02/2023

MEDIA STATEMENT: Andrè de Ruyter leaves Eskom with immediate effect
Wednesday, 22 February 2023

Andre de Ruyter leaves Eskom with immediate effect.
Read attached.

14/02/2022

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14/02/2022

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23/07/2019

Public Protector Adv Busisiwe Mkhwebane faces a request for her to be struck off the advocates roll by the Legal Practice Council following Monday morning’s Constitutional Court judgment.

20/09/2018

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04/09/2018