Court slams government contracts with no money, and border red flags

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

• Court slams government ‘IOU’ payments: The Supreme Court of Appeal has ruled that government departments cannot enter into contracts that exceed the amount appropriated for a particular service as this renders the contract unlawful and constitutionally invalid. Parliament’s Standing Committee on Public Accounts chairperson Songezo Zibi said that the judgment was significant and far-reaching as government departments repeatedly enter into contracts for which they have no money. [Business Day]

• Border red flags: Police have said that they are following all leads after an eNCA report highlighted the state of South Africa’s porous borders. At least 6,000 inmates escaped from a prison in Mozambique on Christmas Day, with the report showing some managing to cross into South Africa undetected. [eNCA]

• Zama zama standoff heads to ConCourt: A human rights group, Mining Affected Communities United in Action (Macua), has approached the Constitutional Court to appeal a December High Court ruling that dismissed its case. Macua seeks an order for the state to provide food, water, and medication to illegal miners (zama zamas) underground who are in a standoff with police and initiate rescue operations at the mine in Stilfontein. [News24]

• Temporary power outage at OR Tambo: Airports Company of South Africa (ACSA) has said that it is closely monitoring the situation at OR Tambo International Airport after a “temporary power failure.” Acsa said the outage was caused by a trip at municipal level, and assured that all operations will continue without disruption. [The Citizen]

• Markets: The rand started the new year on a positive note on Thursday after a volatile end to 2024. On Friday (03 January), the rand was trading at R18.70 to the dollar, R23.15 to the pound, and R19.53 to the euro. Oil is trading at $76.16 a barrel. [Reuters]