SARS full-on assault and R123 million looted from National Skills Fund

Here’s what is happening and affecting South Africa today:

• SARS crackdown: Tax experts have said SARS has increased its tax season audits this filing season, asking for documents and explanations for certain transactions more than five years ago.  The revenue service has also become more severe in issuing penalties for noncompliant taxpayers. According to Tax Consulting South Africa, the tax crackdown also includes higher-income or wealthier people.  [News24]

• R123 million looted from National Skills Fund: A farm, a Nissan Navara, and other luxury vehicles were acquired with funds designated for aiding poor communities, according to a forensic audit of the National Skills Fund (NSF) under the Department of Higher Education and Training. The report uncovered fraud, forgery, and non-delivery of services by involved companies, leading to millions of rands being unaccounted for. Instead of supporting intended beneficiaries, the funds were diverted by a few individuals for personal gains, including buying luxury items and a farm, leaving community organizations in need without support. [City Press]

• Zuma expelled from the ANC: A leaked report from the ANC National Disciplinary Committee (NDC) revealed that former President Jacob Zuma had been expelled from the party for violating its constitution. Zuma faced two charges, notably for campaigning and leading the uMkhonto Wesizwe (MK) against the ANC, an action deemed a violation of rule 25.17.17(4), which prohibits actions that compromise the ANC’s integrity or collaboration with counterrevolutionary organizations. [Daily Maverick]

• StatsSA shrinks Joburg population, which could impact the budget: The 2022 Census showed Johannesburg’s population at 4.8 million, unchanged, while Cape Town’s population has risen to 4.7 million, suggesting Cape Town may now be larger in population. Despite the census occurring in 2020, current growth trends support this shift. These results impact national treasury budget allocations, which depend on population, among other factors. Despite the census presenting Johannesburg’s population as 20% lower than anticipated, affecting budget projections for the next decade, the city intends to use a 6 million figure for its planning purposes, arguing this better reflects observed growth not captured by the census. [News24]

• Markets: The rand gained against the dollar on Friday after a reading of U.S. inflation did little to alter expectations of a September interest rate cut by the Federal Reserve. On Monday (29 July), the rand was trading at R18.28 to the dollar, R23.58 to the pound, and R19.88 to the euro. Oil is trading at $81.43 a barrel. [Reuters]