Week 25 ending 23rd June
Ben Pieters - the Business Support Specialist
Constantly challenging ourselves to deliver more to our clients.
Welcome to 'Navigating GRC' your guide through the intricate landscape of Governance, Risk, and Compliance.
Corporates and homeowners, stay ahead of the curve with expert insights, practical strategies, and industry best practices.
Lifelong learning is not just a professional requirement but a strategic advantage in the dynamic world of GRC. Unlock the power of effective GRC to drive business success and mitigate risks.
Please note that we identify the author and the name of the publication the article appeared in, and directly extract aspects we believe would reflect the idea or thought expressed therein.
South Africa - a water crisis?
Water utility Rand Water will kick off its 37-day maintenance programme on Saturday (22 June), with the bulk of disruptions to water services starting on Monday (24 June).
South Africa is heading for a major water crisis as the country’s infrastructure continues to deteriorate without any signs of strong government intervention.?
This is feedback from the head of private markets at Mergence Investment Managers Kasief Isaacs, who told Classic Business that the government has to turn to the private sector to address this crisis.?
“In our view, South Africa is heading for a significant water crisis that will be as severe as the country’s energy crisis,” Isaacs said.?
“Unless there is decisive intervention by the government, we will be dealing with a crisis.”
Over the past few years, South Africa’s major metropolitan areas have been plagued by water interruptions and shortages.?
Isaacs said that worryingly for the economy, water shortages have become more common in Gauteng since 2022, threatening the main driver of South Africa’s GDP.
Due to leakages and underperforming pumps, 40% and 50% of potable water in South Africa is lost before it reaches the end user.?
In Joburg, the July maintenance will impact:
A major risk to households and businesses is that South Africa would need hundreds of billions of rands to repair dilapidated infrastructure and billions more to meet increasing demand from major cities.?
Age vs mileage in a used car
Albert du Toit writes in TopAuto that Lower mileage counts more than age when it comes to purchasing a used car.
This is because the mechanical condition of a vehicle with fewer kilometres on the clock will usually be better than a newer example with higher mileage.
Colin Morgan, Head of Pricing of the used-car platform getWorth’s writes “It is mostly using and wear on components that affect a car’s mechanical condition. The age of the parts makes less of a difference these days.”
He compared the price of a 2021 Kia Picanto 1.2 Street Auto with an odometer reading of just 20,000km to that of a 2022 model with 50,000km.
He believes that a year of age on this Kia affects the price by 6%, and each kilometer adds 42 cents. Hence, the two examples should be almost identical in price.
“While both age and mileage are crucial in determining the value of a used car, expert advice leans towards lower mileage,” concludes Morgan.
A lower risk to households would be a car with lower mileage, indicating less wear and tear on mechanical components and better overall condition. "Ultimately, understanding your priorities and the vehicle’s history is key to making the best decision.”
Air Traffic Controllers Guide Your Flights
You don’t see air traffic controllers when you travel, but if your trips are trouble-free, they deserve considerable credit.
At least a dozen of them track the progress of every flight you take.
Their work starts even before you take off.
First, your pilots contact ATNS, a continuously updated recording that reports the active runway number, weather conditions, and other data.
Then they call clearance delivery to obtain the route that they must follow from the departure airport to their destination.
Next, they contact ground control and advise it that they have the ATNS information and a clearance and are ready for taxi instructions.
Only after the crew acknowledges those instructions is the aircraft ready to taxi from the parking ramp to the runway.
Few of us spare a thought for the individuals at ATNS when we fly. Same with the pilots and ground personnel who keep us safe and accept the flight risks on our behalf.
Electricity bill warning
Homeowners and landlords in South Africa cannot plead ignorance when it comes to the accrual of debt related to electricity use, even if it is by tenants.
But municipalities also have to let them know of the mounting charges—and can’t expect to collect a debt that has prescribed.
These are the key findings from a new court case reported on by ENS, Robarts Flagship Trust v Drakenstein Municipality.
The court said that a municipality discharges parts of its constitutional and statutory obligations by collecting amounts that it is owed. The policy to refuse removal of the meter is designed to ensure that the municipality can collect the amounts due.
“Regarding the special plea of prescription, the court held that a municipality cannot sit back and let costs accrue without notifying the owner of the property and by demanding immediate payment years later.
Ultimately, the landlord was declared responsible for the charges, and the municipality’s policy of declining to remove the meter was correct. That said, the landlord was only held liable for the consumption charges accrued after October 2019 due to the claim for the prior amounts prescribing. ??????
All homeowners must regularly and diligently monitor all municipal charges to avoid the risk of late- or non-payment.
Hidden threat to your retirement
Shaun Jacobs writes in Daily Investor that One of the biggest threats to South Africans’ ability to retire is their behaviour, with early withdrawals and poor investing decisions severely impacting their quality of life.?
Most South Africans cannot retire comfortably and sustain their quality of life without a regular salary.?This forces many to work part-time or even full-time into retirement to maintain their lifestyle.?
People live longer and retirement often could exceed 25 years or more. This is a global retirement crisis and is not unique to South Africa.?
We are no exception. More than 90% of people are unable to afford retirement, meaning that they rely on their families, communities, or the state to survive.?
According to the latest 10x Investment Retirement Reality Report, only 37% of South Africans have a retirement fund, and 61% contribute less than 15% of their salary to their retirement savings.
Change is required to help people achieve financial health during their life after work.?
领英推荐
Read the full article here >
Individuals can no longer focus solely on investment risk – consideration of behavioural risk and health and longevity risk are critical, too, when determining how much is needed to retire. Improvements in savings behaviour and modelling life expectancy have a material impact too.
South Africa’s green ID books
Hanno Labuschagne writes in My BroadBank that the Department of Home Affairs (DHA) is years behind on its plan to completely replace green ID books with smart ID cards.
That means that South Africans who have not adopted the new ID card will likely be able to continue using their ID books for many years to come.
In 2013, the Department of Home Affairs said the plan was to phase out the old green ID books within five to seven years.
It estimated there were around 38 million South African ID holders at the time.
It later revised the estimated phase-out to take eight years from 2014, putting the final date for the issuing of green ID books in 2022.
In 2017, the DHA assured that an expiry date for green ID books would only be announced once all its branches had smart enrollment equipment for faster ID card applications.
“We wish to make it clear that the green barcoded ID book remains a legal form of identification and will continue to be until such time that the Live Capture System is rolled out".
The department recently revealed this had increased to just 21 million by December 2023. That makes up just about 55.3% of the original 38 ID books estimated to be in circulation. However, many of those in the 21 million would have been South Africans who never had an ID document, including citizens who turned 16.
Warning for shopping malls and petrol stations
Malcolm Libera reports in BusinessTech that security firm Fidelity ADT has warned retail businesses and petrol stations that there has been a rise in criminals targeting their shops—and consumers are also advised to exercise caution.
Criminals are increasingly targeting retail establishments like clothing stores in shopping malls and garage shops at petrol stations, which are easily accessible targets.
The criminal’s main target is cash from the tills, but there is potential for these robbers to turn their attention to consumers’ valuables, such as their smartphones, jewellery, and money.
“Business owners are urged to maintain a high level of vigilance, ensure the functionality of their CCTV systems, and remain alert for any suspicious activities. “It is recommended that at least two staff members carry concealed panic buttons at all times,” said Fidelity ADT
Visitors to these outlets are advised to exercise extra caution. The potential for a robbery to escalate into violence can be mitigated through the behaviour of both staff and customers.
Unfortunately, South Africa has seen an increase in robbery at commercial premises, shoplifting, and hijackings year-on-year, with some provinces experiencing a bigger jump in these crimes than others. We must all be vigilant.
The Coronation Case
The ConCourt ruling on multimillion-rand tax debt brings an end to anxiety and uncertainty in the market.
Tax commentators have called the Constitutional Court judgment in the Coronation case “clear, smart and well-reasoned”. It brings an end to the protracted battle between Coronation and the South African Revenue Service (SARS).
The Constitutional Court held that Dublin-based Coronation Global Fund Managers (CGFM) conducted the business of a fund manager. Its “primary business operations” were those of a fund manager operating in terms of the business model used by most fund managers in Ireland, says ENSafrica in its note on the latest judgment.?
South Africa introduced controlled foreign company rules to prevent South African multinationals from avoiding tax in SA. However, if the foreign entity qualifies as a foreign business establishment (FBE), the net income attributable to the qualifying FBE is excluded from the taxable income of its SA holding company.
To qualify, the FBE must have a fixed place of business located outside South Africa that is used for conducting the “primary operations” of the controlled foreign company’s business for at least one year.?
Peter Dachs, head of tax at ENSafrica, says most commentators felt that the SCA judgment was incorrect in law. “It is great to see the Constitutional Court remedy a bad decision.”?
Court settlements of RAF claims
Mard Andrew of RAF Cash reports in GoLegal that if you or a loved one has been involved in a road accident in South Africa, understanding the RAF claims process is crucial.
One of the most complex aspects of this process is the court settlement and negotiation phase.
The Road Accident Fund is a public entity that provides compulsory cover to all South African road users against injuries or death resulting from motor vehicle accidents.
Funded through a levy on fuel, the RAF offers a financial lifeline to accident victims, helping cover medical expenses, loss of earnings, and other damages.
Out-of-court settlements in RAF claims involve reaching an agreement with the Road Accident Fund without the need for a trial. These settlements can offer a quicker and less stressful resolution compared to court proceedings.
They save time by avoiding the lengthy court process, reduce costs associated with legal fees and court expenses, and provide a less adversarial and more straightforward approach to resolving the claim.
By understanding the process and employing effective strategies, claimants can navigate the complexities of RAF claims and achieve a successful outcome, thus avoiding the risk of a protracted unfair settlement.
Cohabitation and legal recognition in SA
Robyn Shepherd of SchoemanLaw reports in GoLegal that cohabitation, commonly known as living together, common law marriage, or a domestic partnership, is not acknowledged as a legal relationship by South African law.
Consequently, no legal framework exists to govern the rights of individuals in such partnerships.
In essence, men and women living together do not possess the same rights and responsibilities as married couples. Unlike marriage, which is governed by specific laws ensuring protection for the individuals involved, cohabitation lacks such legal safeguards.
South African courts have occasionally provided relief to cohabiting couples by recognising an express or implied universal partnership. A universal partnership arises when parties act as partners in all material respects without a formal partnership agreement.
When such relationships dissolve, courts may award a share of assets acquired during the partnership. Establishing a universal partnership is challenging and requires proof of mutual contributions aimed at a profitable enterprise that benefits both parties.
To protect the individuals involved against exploitation and risk, cohabitants should enter into agreements to regulate their obligations and the financial consequences of their union’s termination. Courts generally enforce these agreements, provided they are not illegal, immoral, or contrary to public policy.
Talk to Us
Don't hesitate to reach out to our experts for guidance tailored to your needs. We are here to support you with any governance, risk, or compliance questions or concerns you may have.
We're committed to being a trusted partner on your GRC journey.
Put succinctly: we can help; we know what has to be done.
‘Navigating GRC’ is published as a weekly newsletter on LinkedIn and Twitter.
Permanent Representative of Royal Aeronautical Society to ICAO
5 个月Comprehensive and well-organized. Thanks for all the hard work and attention Ben. Regards Don