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Government has just announced strict new regulations to prevent price gouging during the coronavirus crisis.

According to new regulations as part of the Disaster Management Act, signed by minister of trade and industry Ebrahim Patel on Thursday, companies are not allowed to hike prices for a list of goods by more than the increases in the cost to produce these products.

They are also not allowed to hike their profit margins on these products to above the average mark-ups during the three months to 1 March 2020.

The list of products includes:

• toilet paper
• hand sanitiser
• facial masks
• disinfectants and cleaners
• surgical gloves
• surgical masks
• disinfectant wipes
• antiseptic liquids
• all-purpose cleaners
• baby formula
• disposable nappies
• bleach
• cooking oils
• wheat flour
• rice
• maize meal
• pasta
• sugar
• long-life milk
• canned and frozen vegetables
• canned, frozen and fresh meat, chicken or fish
• bottled water

Prices for private medical services relating to the testing, prevention and treatment of the coronavirus will also be covered by the new regulations.

Culprits could face fines of up to R1 million or 10% of a firm’s turnover, and imprisonment for up to 12 months.

Suppliers must also ensure the “equitable distribution” of goods to consumers and customers, including small businesses, and must also maintain adequate stocks of goods.

South Africa has seen scenes of widespread panic buying in recent days.

The new regulations also mention that maximum prices could be set on private medical goods and services relating to the testing, prevention and treatment of Covid-19.

The national state of disaster has officially come into effect with government publishing the gazetted regulations that will govern this period.

President Cyril Ramaphosa announced the national state of disaster on Sunday in a bid to stem the growing number of positive Covid-19 cases in South Africa.

On Wednesday, that number sat at 116 confirmed cases, with eight cases of local transmissions.

The regulations, which form part of the Disaster Management Act, were signed off by Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma on Tuesday and published on Wednesday.

Here are the most important sections of the regulations.

1)      Duty of ministers

Each government department has their own role to play as set out in the regulations. For example, the minister of health can procure the services of retired health professionals, non-governmental organisations or employees of the Expanded Public Works Programme to assist him in combating Covid-19.

Amid panic buying and necessities flying off the shelves, the minister of trade and industry is to maintain the supply of goods and services, as well as fair pricing on these necessities.

All ministers, within their mandate, are permitted to take “any other steps” to alleviate the effects of Covid-19, the regulations say.

National organs of state must also make available personnel to be used in emergency services.

National, provincial and local institutions must also make available resources, above and beyond funding, to implement these regulations but without affecting their service delivery.

2)      Punishable offences

The regulations also place preventative responsibility on South Africans, criminalising certain conduct which could hinder these efforts.

It is illegal for a person to hide the fact that they or anyone else are infected with Covid-19, and this could be punishable with a fine or imprisonment.

Read more: Coronavirus: National state of disaster takes effect with publishing of gazetted regulations

It is also illegal for anyone to intentionally spread fake news about Covid-19, those infected with the virus or government efforts to address the virus.

A person who intentionally exposes someone else to Covid-19 could also be charged with assault, attempted murder or murder.

3)      No refusals

Anyone who tests positive for Covid-19, is suspected of having Covid-19 or who has been in contact with someone who is infected with the virus may not refuse to be admitted for a medical examination or into a medical facility. They also cannot refuse treatment or quarantine in a bid to prevent the spread of the virus.

A warrant in this regard can be issued by a magistrate.

4)      Liquor restrictions

Premises selling liquor such as taverns, restaurants or clubs, are to be closed immediately, the regulations say, unless they accommodate no more than 50 people at a time if space and hygienic conditions are provided.

No special or events liquor licenses will be considered during this time either, and premises selling liquor must be closed by 18:00 on weekdays and Saturdays, and 13:00 on Sundays.

5)      Implementation of regulations

The regulations governing the national state of disaster comes into effect when they are published in the Government Gazette. This means that from Wednesday measures talked about by government to address the deadly Covid-19, was implemented.

South African political party leaders, led by President Cyril Ramaphosa, have pledged to put aside their differences and pursue a consorted, non-partisan approach towards containing the spread of the Covid-19 coronavirus pandemic.

Ramaphosa and leaders of opposition parties made the announcement on Wednesday following a meeting in Cape Town, where all the parties discussed the nation’s response to Covid-19.

The president said this would be part of the wide-ranging consultation process that he is currently engaged in, after announcing a national state of disaster on Sunday night.

According to Ramaphosa, all the parties vowed “to limit all political gatherings and keep any meetings to fewer than 100 people”.

This falls in line with the measures the president declared during his national state of disaster announcement to limit the increase in Covid-19 infections.

“We are not helpless as a country, all citizens can play a role towards ensuring that the spread of this virus is limited. All political parties must also bear the responsibility of giving citizens regular and accurate information pertaining to the virus,” said Ramaphosa.

The president made it clear that the country finds itself in an “extreme situation requiring extraordinary measures”, adding that “it requires that all South Africans work together in unity and solidarity, in partnership and cooperation”.

“It is therefore both appropriate and significant that the 14 political parties in our Parliament stand together, across party political divides, to fight this disease. We hereby demonstrate practically that we are united as the leaders of our nation to overcome this global crisis facing our country and our people.”

Fellow South Africans,

I am addressing you this evening on a matter of great national importance.
The world is facing a medical emergency far graver than what we have
experi-enced in over a century.

The World Health Organisation has declared the coronavirus outbreak as a
global pandemic.

There are now more than 162 000 people who have tested positive for the
coronavirus across the globe.

Given the scale and the speed at which the virus is spreading, it is now
clear that no country is immune from the disease or will be spared its
severe impact.

Never before in the history of our democracy has our country been
confronted with such a severe situation.

From the start of the outbreak in China earlier this year, the South African
gov-ernment has put in place measures to screen visitors entering the
country, to contain its spread and to treat those infected.

As of now, South Africa has 61 confirmed cases of people infected with the
virus, and this number is expected to rise in the coming days and weeks.
Initially, it was people who had travelled out of the country, especially from
Italy, who had positively tested for the virus.

It is concerning that we are now dealing with internal transmission of the
virus.

This situation calls for an extraordinary response; there can be no halfmeasures.

Cabinet held a special meeting earlier today.
After which, due to the serious measures we are going to announce, I have
consulted the premiers.

We have decided to take urgent and drastic measures to manage the
disease, protect the people of our country and reduce the impact of the
virus on our society and on our economy.

We have now declared a national state of disaster in terms of the Disaster
Management Act.

This will enable us to have an integrated and coordinated disaster
management mechanism that will focus on preventing and reducing the
outbreak of this virus.

We will also be able to set up emergency, rapid and effective response
systems to mitigate the severity of its impact.

Following an extensive analysis of the progression of the disease
worldwide and in South Africa, Cabinet has decided on the following
measures:

Firstly, to limit contact between persons who may be infected and South
African citizens

We are imposing a travel ban on foreign nationals from high-risk countries
such as Italy, Iran, South Korea, Spain, Germany, the United States, the
United Kingdom and China as from 18 March 2020.

We have cancelled visas to visitors from those countries from today and
previously granted visas are hereby revoked.

South African citizens are advised to refrain from all forms of travel to or
through the European Union, United States, United Kingdom and other
identified high-risk countries such as China, Iran and South Korea.
This is effective immediately.

Government will continue to regularly issue travel alerts referring to specific
cities, countries or regions as the situation evolves based on the risk level.
Any foreign national who has visited high-risk countries in the past 20 days
will be denied a visa.

South African citizens returning from high-risk countries will be subjected to
testing and self-isolation or quarantine on return to South Africa.
Travellers from medium-risk countries – such as Portugal, Hong Kong and
Singapore – will be required to undergo high intensity screening.
All travellers who have entered South Africa from high-risk countries since
mid-February will be required to present themselves for testing.

We will strengthen surveillance, screening and testing measures at OR
Tambo, Cape Town and King Shaka International Airports
South Africa has 72 ports of entry in the country which are land, sea and air
ports.

Of the 53 land ports, 35 will be shut down with effect from Monday 16
March.

2 of the 8 sea ports will be closed for passengers and crew changes.
Effective immediately, all non-essential travel for all spheres of government
outside of the Republic is prohibited
We further discourage all non-essential domestic travel, particularly by air,
rail, taxis and bus.

Secondly, it is essential therefore that we minimize the risk of the spread of
this virus by limiting contact amongst groups of people.
While we appreciate the economic, religious, and cultural significance of
social and community gatherings, the coronavirus is spread through
contact between persons.

As we have said before, the current circumstances require extraordinary
measures to curb the spread of infections. Countries that have heeded the
call to implement these radical measures, have fared much better than
those than do not.

Therefore to encourage social distancing Cabinet has decided on these
additional measures:

Gatherings of more than 100 people will be prohibited.
Mass celebrations of upcoming national days such as Human Rights Day
and other large government events will be cancelled.

Where small gatherings are unavoidable, organisers will need to put in
place stringent measures of prevention and control.
Schools will be closed from Wednesday, 18 March, and will remain closed
until after the Easter Weekend.

To compensate, the mid-year school holidays will be shortened by a week.
Government is working closely with colleges, universities and other public
facilities such as Parliament, prisons, police stations and military
installations to intensify hygiene control.

Visits to all correctional centres are suspend for 30 days with immediate
effect.

Government is aware of the confirmed case of a student who has tested
positive for the coronavirus at Wits University.

Those who have been in contact with the student will be quarantined.
The Minister of Higher Education, Science and Innovation is consulting with
vice chancellors of universities and colleges across the country and will
soon be announcing measures in this regard.

We call on all businesses including mining, retail, banking, farming to
ensure that they take all necessary measures to intensify hygiene control.

We also call on the management of malls, entertainment centres and other
places frequented by large numbers of people to bolster their hygiene
control.

Thirdly, to further strengthen our health response:
Government is strengthening its surveillance and testing systems.
We are in process of identifying isolation and quarantine sites in each
district and metro.

Capacity is being increased at designated hospitals in all provinces.
We are also increasing the capacity of existing contact tracing processes.
We are partnering with the private sector to set up a national tracking,
tracing and monitoring system of all people infected with the coronavirus
and those they have been in contact with

We are undertaking a mass communication campaign on good hygiene
and effective prevention behaviour.

Therefore, we are calling on everyone to:
• Wash their hands frequently with soap and water or hand sanitisers for at
least 20 seconds;
• over their nose and mouth when coughing and sneezing with tissue or
flexed elbow;
• Avoid close contact with anyone with cold or flu-like symptoms.
In essence, we are calling for a change of behavior amongst all South
Africans.

We must minimise physical contact with other people, and, encourage the
elbow greeting rather than shaking hands.

Because of the severity of this virus and its rapid spreading, government
will make funding available to capacitate the sectors dealing with the
national response to the Coronavirus outbreak.

Since the outbreak of this pandemic, our government’s response has been
led by an Inter-Ministerial Committee, chaired by the Minister of Health, Dr
Zweli Mkhize.

We congratulate them on the outstanding work they have done – together
with their able support teams – to steer our country through this challenging
and un-certain period.

As part of the intensification of this effort, we have decided to establish a
National Command Council chaired by the President.

This Command Council will include, amongst others, members of the InterMinisterial Committee and will meet three times a week, to coordinate all
aspects of our extraordinary emergency response.
My fellow South Africans,

In addition to the impact that this pandemic will have on health and wellbeing of our people, and the impact it will have on the day-to-day life of our
society, COVID-19 will also have a significant and potentially lasting impact
on our economy.

In the last few weeks, we have seen a dramatic decline in economic activity
in our major trading partners, a sudden drop in international tourism and
severe instability across all global markets.

The anticipated effects of the decline in exports and tourist arrivals will be
ex-acerbated by both an increase in infections and the measures we are
required to take to contain the spread of the disease.

This will have a potentially severe impact on production, the viability of
businesses, job retention and job creation.

Cabinet is therefore in the process of finalising a comprehensive package
of interventions to mitigate the expected impact of COVID-19 on our
economy.

This package, which will consist of various fiscal and other measures, will
be concluded following consultation with business, labour and other
relevant institutions.

It is clear that this disease will be extremely disruptive.
Our priority must be to safeguard the health and well-being of all South
Africans, to minimise the number of infections and to ensure all those
infected get proper treatment.

While we are battling a contagious virus, perhaps the greatest dangers to
our country at this time are fear and ignorance.

We must appreciate the extent of the threat that this disease presents, we
must accept the anxiety that it causes, but we cannot allow ourselves to be
overwhelmed by fear and panic.

We should stop spreading fake and unverified news and create further
apprehension and alarm.

While we are facing a medical emergency far graver than we have
experienced in recent times, we are not helpless.

We have the knowledge, the means and the resources to fight this disease.
If we act swiftly, with purpose and collectively we can limit the effects of the
coronavirus on our people and our country.

Although we may be limiting physical contact, this epidemic has the
potential to bring us closer together.

We are responding as a united nation to a common threat.
This national emergency demands cooperation, collaboration and common
action.

More than that, it requires solidarity, understanding and compassion.
Those who have resources, those who are healthy, need to assist those
who are in need and who are vulnerable.

All the institutions of the state will be mobilised to lead this effort, but, if we
are to succeed, every company, trade union, NGO, university, college,
school, religious group and taxi association will need to play its part.

We thank those people who suspected they may have been exposed to the
virus for coming forward to be tested and for taking measures – such as
self-isolation – to prevent further transmission.

We thank the medical teams around the country who are leading our
response and are putting the well-being of others ahead of the risks they
face themselves.

On Saturday we welcomed 104 of our compatriots who were in Wuhan City,
China.

We thank the repatriation team for the task they performed with pride and
efficiency to return them to the country and ultimately to their families.
The repatriation has been successful and those who have returned have
settled in the quarantine area.

We thank the military health officials, pilots, cabin crew and all those who
participated in this exercise.

We thank the leadership and the people of Polokwane and Limpopo for
warmly welcoming our fellow South Africans.

We also extend our gratitude to the staff and management of the Ranch
Hotel who have accommodated our compatriots and also subjected
themselves to quarantine.

We extend our appreciation too to the companies, organisations and
individuals who have taken it upon themselves to disseminate information
about this virus and to raise awareness.

We thank those businesses that have taken steps to protect their
employees, and those unions that have taken steps to protect their
members.

Ministers who are at the frontline of coordinating our response to this crisis
will be briefing the nation tomorrow, where they will unpack details in
relation to the measures we announced tonight.
Fellow South Africans, this is the most definitive Thuma Mina moment for
our country.

I have great trust that our people will respond positively to this call to
common action.

Fellow South Africans,

This epidemic will pass.

But it is up to us to determine how long it will last, how damaging it will be,
and how long it will take our economy and our country to recover.
It is true that we are facing a grave emergency.

But if we act together, if we act now, and if we act decisively, we will
overcome it.

I thank you.

Zimbabwe has announced plans to give back land controversially taken over under its controversial fast track land reform programme, which started in 2000.

The programme, which was criticised for being both chaotic and violent, resulted in numerous deaths in the course of land seizures.

On Friday, the Zimbabwean government gazetted new legislation under which former landowners may opt for repossession or monetary compensation. The new regulations will apply to indigenous farmers whose farms were appropriated, as well as to those whose land was protected by bilateral treaties.

Several countries, among them South Africa, Austria, France, Germany, Mauritius, Holland, Sweden and Malaysia, had signed investment protection agreements with Zimbabwe at the time.

Of those covered by bilateral treaties, South Africans were the worst affected, according to the Commercial Farmers Union in Zimbabwe, as over 200 farmers lost their land.

However, the new legislation does not automatically grant compensation. Any application may be rejected “on the basis that granting it would be contrary to the interests of defence, public safety, public order, public morality, public health, regional or town planning or the general public interest”, according to the gazetted regulations.

Land ‘waiting to be used’

The South African Embassy in Zimbabwe welcomed government’s decision to return land under Bilateral Investment Protection and Promotion Agreements (BIPPAs) and Bilateral Investment Treaties (BITs) to its former owners.

“We welcome the development, as we believe there is enough land waiting to be used,” a spokesperson from the South African Embassy, speaking on behalf of ambassador Mphakama Mbete, said by phone from Harare.

“We think the position is in line with the mantra ‘Zimbabwe is open for business’.”

He said commercial agriculture would grow “exponentially” now that land is being availed again to those with expertise and the required capital.

“While we don’t have the numbers, in terms of those likely to benefit, we have spoken to a number of South African farmers who already have their own funding to start agriculture activity in Zimbabwe, so this decision is welcome,” he said.

Despite droughts that have befallen the southern African country several times since year 2000, land reform has been blamed for Zimbabwe’s failure to feed itself, with the country resorting to imports and international help.

The United Nations World Food Programme plans to double the number of Zimbabweans that it assists, up to 4.1 million, and will require over $200 million to meet needs in the first half of 2020 alone.

Article by Fin 24

Setting things to rights without serious consideration of the cost of the present context will inevitably aggravate an already very pear-shaped BEE public procurement policy. That’s essentially what Dr Anthea Jeffery, Head of Policy Research at the Institute of Race Relations, is saying here about the ‘upgraded’ BEE requirements of the Draft Public Procurement Bill, now out for public comment. She juxtaposes intended broadened access to the estimated R950bn in annual state procurement of goods and services, with statements that directly contradict the skewed and hugely expensive outcome of BEE policies – made by the actual guardians of the fiscus. Something is seriously amiss when once again, we witness ANC policies that embolden and encourage inflated quotes and sub-standard services and products in the name of corrective action. Or as Jeffery says, making rules that ‘benefit the few and harm the many.” It’s almost as if there’s a deliberate double standard at play in government behaviour; on one hand appoint all manner of commissions to uncover graft, corruption and fraud that peaked in the Zuma years, while on the other enacting laws that create the perfect environment for it all to continue. One could almost say they’re choreographing a macabre ballet. First published on The Daily Friend. – Chris Bateman

The Bill will make it even more difficult for businesses to predict how preferential procurement rules may change from time to time. Yet already firms find the uncertainty around BEE a major barrier to investing and doing business in South Africa. As the local subsidiaries of American companies pointed out in 2017, ‘no one plays a game where the goal posts keep shifting’ all the time.

In addition, the Bill will prohibit firms from contracting with the state at all unless they ‘comply with the Employment Equity Act’ (EE Act) of 1998. The EE Act is soon to be amended to give the minister of labour and employment the power to set binding racial targets for companies in different sectors. These targets are sure to be based on demographic representivity and to ignore the limited skills and experience of the black population, almost half of which is under the age of 25.

Powers not explained

Under the Bill, the minister will also be empowered to make regulations setting ‘market-related price ceilings for goods and services’. This power is not explained, but the wording suggests that the minister will be able to impose price controls in many contracts with state entities, including SOEs.

The minister’s power might thus be used to set the ‘developmental’ prices for Eskom coal that the government has failed to achieve under its proposed amendments to mining legislation. (These amendments were put before Parliament in 2013, but never successfully enacted.) Again, this would allow the executive to bypass the legislature and further undermine the separation of powers.

In addition, the Bill seeks to reduce spiralling procurement litigation by adding more layers to a mandatory dispute-resolution process. A dissatisfied bidder must first ask the relevant state institution to reconsider its decision. Thereafter he must apply to a new Public Procurement Regulator to examine that decision. Only once this has been done, may he seek relief from a new Public Procurement Tribunal. And only after the Tribunal has made its ruling may he approach the courts for judicial review under the Promotion of Administrative Justice Act (PAJA) of 2000.

The minister will appoint all the members of the new Tribunal, which will lack any vestige of institutional autonomy. Its hearings will be conducted as informally and ‘expeditiously’ as possible, and it will not be bound by the normal rules of evidence (despite their importance in securing credible testimony).

Dissatisfied bidders will need deep pockets to traverse all these steps in the dispute-resolution process before they can finally seek relief from the courts. In practice, many are likely to give up along the way.

Who will benefit from Bill? A host of township, rural, and other small enterprises are clearly to be given access to the R950bn public procurement pot as well. A broader range of people may be drawn in, but political connectivity will doubtless still largely determine to whom state contracts are awarded.

A narrow group of BEE ‘tenderpreneurs’ will draw lucrative ‘rents’ from the additional preferences. Price inflation will escalate, leaving less revenue available to fund delivery. The poor, as ever, will suffer the most, while the constitutional requirement for ‘transparent, competitive and cost-effective procurement’ will recede still further. So too will any realistic prospect of increased investment, growth, employment, and prosperity.

Article by BizNews

Johannesburg – A massive R3.5billion in unauthorised, irregular, fruitless and wasteful expenditure has highlighted the alleged dire state of Joburg’s finances.

The auditor-general revealed that Joburg’s wasteful and irregular expenditure worsened by R758million in the 2018/19 reporting period, compared to the previous year.

The city has also been flagged for not paying its creditors within 30 days, which is a repeat offence that the auditor-general has highlighted in his previous report, including that there was a lack of competitive bidding processes for Joburg contracts.

The auditor-general revealed that goods with the value below and above R200000 were procured without inviting competitive bidders, in line with supply chain regulations.

The Competition Commission has published Draft Guidelines for the Automotive Aftermarket Industry.

The automotive aftermarket industry is the market for motor vehicle spare parts, tools and components after the vehicles are sold to consumers. This market also includes maintenance and repair services sold by dealerships to consumers.

Currently, most new vehicle owners in South Africa are locked into using a vehicle manufacturer’s service centres, repair shops and parts in ‘embedded’ motor and service plans.

If these owners decide to use an independent service or repair provider of their own choice, vehicle manufacturers punish them by voiding their warranties.

This has also locked out independent workshops and service centres, thereby limiting small-to-medium-sized enterprises’ abilities to transform and grow the sector.

“The guidelines have been labelled as controversial by some bodies, with some claiming that the guidelines could have serious negative consequences for consumers and the country’s road safety initiatives,” said law firm Cliffe Dekker Hofmeyr.

“Whilst the guidelines are not binding, they seem to stipulate a set of ‘rules’ that will apply to Original Equipment Manufacturers (OEMs), service providers (i.e. those who service and maintain motor vehicles); dealers; insurers; and independent service providers or ISPs (i.e. those service providers not appointed by an insurer or OEM).”

Below Cliffe Dekker Hofmeyr outlined the biggest changes and what it means for motorists.

The deadline for parliament’s ad-hoc committee to make amendments to Section 25 of the constitution and allow the expropriation of land without compensation, has been extended.

While the deadline to draft the amendment was initially due to be the end of March 2020, the National Assembly unanimously passed a motion on Thursday, 5 March 2020.

The final day for the submission will now be 29 May 2020.

The process has not been without challenges, since being passed in parliament in 2018. In January 2020, various political parties and organisations made requests to the committee, asking that the comment on the draft bill be extended by a month to the end of February.

The ANC and EFF remain at loggerheads over which land should be expropriated without compensation, as the second round of public hearings gets under way.

ANC NEC member and spokesperson Pule Mabe was left red-faced on Thursday morning during a panel discussion hosted by the Black Business Council at its annual summit under way in Midrand.

A two-thirds majority — which the ANC and EFF collectively have — is required to amend the constitution, and in this instance the Bill of Rights as well, to allow for expropriation without compensation.