Calls for state of emergency, and municipalities’ spending problem

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

• Gauteng calls for a state of emergency: The Gauteng Executive Council says that it is asking the national government to declare the rising cases of food-borne illnesses in the province a state of emergency. This follows a rise in food contamination cases involving children across the province. Most recently, 110 pupils from a primary school in Katlehong were hospitalised after experiencing stomach cramps and vomiting following a meal during break. [EWN]

• Hunt for ex-CFO of municipality: Former CFO Tumelo Ratau faces arrest after missing court appearances in Pretoria on Monday and Wednesday. Ratau was arrested in November 2021 for facilitating R230 million in illegal investments with VBS Mutual Bank for the Fetakgomo-Greater Tubatse Municipality. His co-accused, ex-municipal manager Nkhono Mohlala, reached a plea agreement, receiving a five-year suspended sentence for breaching the Municipal Finance Management Act. [News24]

• Treasury raises the flag on municipal spending: The National Treasury reports that municipalities with operating budgets beyond their means fell into deficit in the 2024/25 financial year. The 2024/25 budgeted municipal revenue is R652.3 billion, rising to R728.7 billion by 2026/27. Property rates and service charges make up 68.3% of this revenue. The Treasury warned that failure to meet revenue targets could worsen financial distress in municipalities as spending continues despite lower collections. [Business Day]

• Government Printing Works back in court: Insolvency practitioners have filed a contempt of court application with the Pretoria High Court over delays in publishing legal notices in the Government Gazette. The South African Restructuring and Insolvency Practitioners Association (Saripa) is seeking action against officials responsible for the delays, which began in 2021 when the Government Printing Works (GPW) failed to publish gazettes on schedule. This disruption has slowed estate wind-ups, delaying payments to creditors, employees, heirs, and the South African Revenue Service. [Moneyweb]

• Markets: The rand took a nosedive against a buoyant dollar on Wednesday as “Trump trades” surged after Donald Trump won the U.S. election. On Thursday (07 November), the rand was trading at R17.61 to the dollar, R22.78 to the pound, and R19.98 to the euro. Oil is trading at $75.38 a barrel. [Reuters]