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Hundreds of millions budgeted to spruce up politicians’ houses, government buildings

The government is planning to spend a whopping R423m on renovating the official homes and offices of SA’s senior public office bearers.

Public works and infrastructure minister Patricia de Lille revealed in a written reply to a parliamentary question by DA MP Tim Brauteseth that R423,741,621 has been set aside for the government’s so-called prestige projects for the 2020/21 financial year.

De Lille’s document reveals that R203m of the budgeted amount will be spent on facilities management for the Union Buildings and presidency facilities in Pretoria.

About R135m is set aside for numerous projects in the parliamentary precinct, including structural repairs to a part of the Old Assembly building, upgrading of security systems, refurbishment of ministerial offices and replacement of kitchen equipment, including construction work in kitchens.

Some of the projects in parliament have been completed while others will be completed in the next few months.

The Groote Schuur Estate in Rondebosch, Cape Town, will get a “total upgrading of its civil infrastructure and electrical installation”. De Lille said they have budgeted R48m for this, while almost R16m has been set aside for refurbishment of roads and parking at the Bryntirion presidential estate.

A further R40m will be spent on routine and sustainable maintenance and minor upgrades to residential units in the three parliamentary villages in Cape Town. Another R54m has been set aside to provide integrated facilities management services for five years in the parliamentary villages and for official residential accommodation.

De Lille explained that this was the current facilities management contract that will expire on September 30 2020.

A similar amount [R54m] is budgeted for similar integrated facilities management services for five years but this time the contract pertains to providing these integrated facilities management services for the parliamentary complex and for official office accommodation. That management contract also ends on September 30 2020. A further R26m has been set aside for a new facilities management contract that will kick in when the old one ends in September.

The residences of sessional officials in the three parliamentary villages were refurbished to the tune of R300,000. De Lille said this project has been completed.

The minister’s response shows that tens of millions more will be spent on the parliamentary precinct, including on structural repairs to the Old Assembly building area, repairing cracks, water proofing, repairs to walls and removing of shelving to the archives and to carry out external work. This will come at a cost of R15m.

The department told parliament last month that its spending focus over the next three years will be on developing and reviewing policies for the prestige accommodation portfolio in line with the ministerial handbook, improving the delivery of services to “prestige” clients with regard to the provision of both movable and immovable assets as well as meeting the protocol responsibilities for state functions.

“While it may be argued that some of this expenditure is essential maintenance, the DA believes that in a Covid-19 crisis when the health services are faltering under immense pressure and the economy is plummeting, such expenditure is incredibly irresponsible,” said Brauteseth on Wednesday.

He called for all available, non-essential expenditure to be directed towards caring for the lives and livelihoods of all South Africans, not projects concerning government installations which are only being used by a greatly reduced percentage of their occupants, especially during the lockdown and Covid-19 pandemic.

Article by Sowetan Live

Govt’s coronavirus command council not established in terms of any act, Ramaphosa’s answers reveal

  • The controversial National Coronavirus Command Council was established as a committee of the Cabinet.
  • Cyril Ramaphosa did not answer on which law he relied on for its establishment, merely stating it was established as a Cabinet committee. 
  • All Cabinet members serve on the NCCC, he said.

The National Coronavirus Command Council (NCCC) was not established in terms of the Disaster Management Act.

This was revealed in President Cyril Ramaphosa’s answers to DA MP Glynnis Breytenbach.

Breytenbach posed two written questions to Ramaphosa on the topic of the controversial NCCC, a body established after the declaration of a national state of disaster. Its legal standing has been questioned while lockdown regulations seemingly emanate from it.

ANALYSIS | The cracks inside Ramaphosa’s ‘consultative government’

In one of her questions, Breytenbach asked on “which existing Act of Parliament, regulation or provision of the Constitution of the Republic of South Africa” did Ramaphosa rely on when he established the NCCC and from which existing Act, regulation or provision of the Constitution does the NCCC derive its power, responsibility, functions and duties.

Ramaphosa’s full response to this question read as follows: “The National Coronavirus Command Council [NCCC] – originally known as the NCC – was established as a committee of Cabinet by the Cabinet in its meeting of 15 March 2020.”

The NCCC faced criticism for taking far-reaching decisions related to the nationwide lockdown to curb the spread of Covid-19 in the country. But the government changed tune, saying the NCCC did not take decisions.

Breytenbach also asked, in both questions, whether the NCCC had taken over or was duplicating the powers, responsibilities and functions of the Intergovernmental Committee on Disaster Management and the National Disaster Management Advisory Forum or National Disaster Management Centre. These bodies are established in terms of the Disaster Management Act.

READ | ‘Unwarranted personal attacks’ from Presidency shuts down debate on NCCC – Craig Watt-Pringle

“No,” was Ramaphosa’s full response both times the question was posed.

Breytenbach also asked for details on the powers, responsibilities, functions and duties of the NCCC and in which ways do these specified powers, responsibilities, functions and duties differ from each of the Intergovernmental Committee on Disaster Management, the National Disaster Management Advisory Forum or National Disaster Management Centre.

“The NCCC co-ordinates government’s response to the coronavirus pandemic. The NCCC makes recommendations to Cabinet on measures required in terms of the national state of disaster. Cabinet makes the final decisions,” Ramaphosa responded.

However, the whole Cabinet serves on the NCCC, according to answers from Ramaphosa to Breytenbach and from Minister in the Presidency Jackson Mthembu to IFP MP Narend Singh.

Breytenbach and Singh asked what the composition of the NCCC was.

Initially, all ministers except the following were included in the NCCC:

  • Women, Youth and Persons with Disabilities Minister Maite Nkoana-Mashabane.
  • Agriculture, Land Reform and Rural Development Minister Thoko Didiza.
  • Employment and Labour Minister Thulas Nxesi.
  • Mineral Resources and Energy Minister Gwede Mantashe.
  • Public Enterprises Minister Pravin Gordhan.
  • Public Works and Infrastructure Minister Patricia de Lille.
  • Small Business Development Minister Khumbudzo Ntshavheni.
  • Sports, Arts and Culture Minister Nathi Mthethwa.

“However, after two meetings of the NCCC, the president decided to invite the rest of the members of Cabinet, as it became clear that they too were crucial to the national response,” Mthembu answered to Singh.

“Other members of Cabinet were subsequently invited to attend NCCC meetings. It is supported by the Cabinet Secretariat and National Joint Operational and Intelligence Structure [NatJoints],” said Ramaphosa.

The letters informing ministers of their appointment to the NCCC is attached to Mthembu’s answer. The one with the initial members is dated 18 March, the one informing the rest of their appointment the next day.

Neither letter mentions any legislation.

Mthembu said the NCCC was briefed by Health Minister Zweli Mkhize at each meeting, based on the advice of “Health Expects [sic]”.

“All NCCC matters that have police implications are referred to the Cabinet for decision-making,” Mthembu said.

Article by News24

Article by Financial Mail

ConCourt ruling opens door for independent candidates to stand for election in SA

The Electoral Act did not make provision for private citizens to be elected to the national or provincial legislatures as independent candidates. Stock photo.
Image: RAJESH JANTILAL / AFP

The Constitutional Court on Thursday ruled that the Electoral Act was unconstitutional — opening the door for independent candidates to stand for national and provincial elections in SA.

The application, challenging the constitutionality of the act, was brought by NGO the New Nation Movement (NNM).

As it stands, the act only allowed candidates of political parties to contest elections and not adult citizens to be elected to the national and provincial legislatures as independent candidates.

The ruling could be a game changer for politics in SA.

This is a developing story.

Article by Timeslive

ANC discusses possible electronic voting in next year’s local elections

  • The ANC’s national working committee said it discussed a range of responses on these and other challenges impacting next year’s electoral system.

    The ANC’s national working committee (NWC) has discussed a range of possibilities, including electronic voting for next year’s local elections.

    It was recently reported that the Independent Electoral Commission of South Africa (IEC) is in consultation to possibly postpone next year’s local government elections due to the Covid-19 pandemic.

During its Monday meeting, the NWC said it discussed a range of responses on these and other challenges impacting next year’s electoral system.

It includes a synchronisation of elections at national, provincial and local spheres of government; introducing elements of constituency-based representation at national and provincial spheres, consistent with the constitutional requirement for an electoral system that results, in general, in proportional representation; and the use of electronic voting.

“The NWC discussed these proposals in the context of strengthening the accountability of responsiveness of democratic institutions and the building of a more effective and capable developmental state.

“In this regard, the NWC also considered the impact of the electoral system on the strengthening of the district development model seeking to align planning, budgeting, and implementation across national, provincial and local spheres of government.”

The campaign season for next year’s elections was halted by the government’s regulations to curb the spread of the coronavirus.

The ANC’s mid-term policy assessment, the national general council which was due to be held in June, was also postponed.

Evidence-based approach

Shortly after the government’s implementation of the lockdown to curb the spread of Covid-19 in March, the Electoral Court postponed by-elections scheduled for 3 and 10 June, along with associated activities, including voter registration.

This also meant that by-elections could be held beyond the 90-day legislated period for the filling of councillor vacancies, but not beyond 120 days from the date of the order, the IEC said in a statement.

The Electoral Court also granted the IEC permission to approach the court again for further alternative relief, including further postponement, IEC spokesperson Kate Bapela said.

ANC spokesperson Pule Mabe said the NWC emphasised that these proposals must be supported by a rigorous evidence-based approach, including clarity regarding their constitutional implications.

“It mandated the Legislatures and Governance Sub-committee of the NEC to conduct research to further develop these proposals,” he said.

Article by TheCitizen

Eastern Cape pushes for alcohol ban as crime, trauma cases spike

  • A report by the Eastern Cape coronavirus command council shows a significant spike in serious violent crime since 1 June. 
  • 3 145 violent criminal cases reported at the province’s 197 police stations since the move to Level 3 lockdown.
  • Health MEC Sindiswa Gomba reported that the province’s trauma units have been stretched by patients with alcohol-related injuries.

In the space of seven days, more than 3 000 violent criminal cases were opened at the Eastern Cape’s 197 police stations, with the province’s Health MEC saying trauma units are under increased pressure due to alcohol-related injuries since the move to Level 3.

The Eastern Cape provincial coronavirus command council revealed in a report on Monday that there has been a significant spike in serious, violent crimes since the country moved to Level 3 lockdown on 1 June, which allowed for the sale of liquor.

This, as Eastern Cape Premier Oscar Mabuyane announced that he would be petitioning the national government to reinstate the alcohol ban in his province to contain the spread of Covid-19.

A total of 3 145 cases were reported in the province since June. Among the crimes are:

– 77 reported rape cases;

– 94 murders;

– 354 assault with intent to cause grievous bodily harm; and

– 25 culpable homicide cases.

There were also 354 cases of attempted murder opened at the province’s 197 police stations. The report noted that the crimes coincided with the opening of the liquor trade.

“The total number of cases reported during the same period is 3 145 but the above is of a serious nature [and] can be directly or indirectly linked to the abuse of liquor,” the province’s report revealed.

There were also 51 drunk driving cases opened; 25 cases of driving under the influence where someone was injured, while there were 26 cases where no one was hurt during the accidents.

Surge in trauma cases

On Monday Eastern Cape Health MEC Sindiswa Gomba reported a surge in a number trauma cases at the province’s 91 hospitals and more than 700 clinics, saying this was due to alcohol-related accidents.

“Unfortunately, with the sale of alcohol allowed again, we have seen a surge in the number of trauma cases at our hospitals. At Frere Hospital alone there were 67 trauma cases over the weekend. These are all related to the sale of alcohol. It is the same in all other facilities as well.

READ | Booze ban: Mabuyane to push for alcohol ban in the Eastern Cape

“This is why I want to make a plea to the people of the Eastern Cape to drink responsibly. When they over-indulge, that has been proven to result in car accidents, stabbings, and general violence which adds more pressure to our already over-stretched doctors and nurses,” said Gomba.

“We all need to be responsible and not abuse alcohol or else our healthcare system might be overwhelmed because of the number of trauma cases and Covid-19.”

‘Enforce the law instead’

The province’s liquor licensing authority – the Eastern Cape Liqour Board – has threatened to clamp down on irresponsible drinkers and non-complying traders following the spike in crime.

The Eastern Cape Black Business Forum has slammed the proposed call for another ban of alcohol and urged law enforcers to crack down on those who drink and misbehave instead.

On Tuesday, the forum’s secretary, Luthando Bara said: “Does alcohol contribute to the spread of the virus? No. Does it cause the body to weaken its ability to deal with the virus? No. Which leaves us with only one variable. Alcohol causes people to congregate. If law enforcement agencies are doing their job of ensuring that people do not congregate but consume alcohol at home, then alcohol cannot be said to be a contributing factor.”

“It is way too late in any case to stop alcohol usage, the horse has bolted. Even the suggestion that the province intends to lobby for a ban of the sale of alcohol, panic buying, overstocking and bootlegging will follow and will not address the main issue without proper policing and enforcement.”

He said the BBF’s view is that the government must do what it has to do which is to strengthen both communication – to consume at home and enforcement – and to not congregate or drink and drive.

Article by News24

Article by Financial Mail

Sloppy science taints Dlamini-Zuma’s tobacco court defence

The government believes that banning cigarettes will force people to quit; that 95% of smokers do so successfully without help; and that smoking cigarettes makes contracting Covid-19 more likely.

These claims are part of the “scientific” reasons for banning tobacco contained in the government’s court papers. The trouble is, they’re simply not true.

The government and minister of co-operative governance & traditional affairs Nkosazana Dlamini Zuma were forced to provide reasons for the ban on tobacco sales by the Fair Trade Independent Tobacco Association (Fita), which has challenged the ban in court. The case starts this morning, in the judge’s chambers, and in court tomorrow.

In a supplementary affidavit provided for Fita, psychiatrist Mike West, who specialises in treating people with addictions, dismantles the government’s arguments.

West says people trying to stop smoking need support or licensed medication, and that the data shows that people “under significant stress” are twice as likely to fail in their quit attempts. (West was not paid for his work.)

But his analysis exposes how the government’s arguments include flawed estimates of how many SA smokers will get Covid-19, incorrect study references, false claims, outdated science from the 1990s, and studies cherry-picked to show the negative effects of smoking on Covid-19.

In its opening argument, the government claims smoking tobacco increases the risk of contracting the coronavirus. “The evidence is that the use of tobacco increases … the risks of transmission,” it says.

However, the World Health Organisation (WHO) itself says there is “no evidence” to show this. Instead, the WHO’s scientific brief on Covid-19 and smoking says the risk of smokers getting the disease, or of being more susceptible to landing up in hospital, has not been investigated. “There are currently no peer-reviewed studies that have evaluated the risk of SARS-CoV-2 infection among smokers,” it states.

One claim made by the government is that smokers are more likely to get Covid-19 because they move their hands to their mouths more often. West responds that anyone who eats also puts their hands near their mouths, and no evidence exists that repetitive hand-to-mouth actions are linked to more Covid-19 infections.

Elsewhere, the government references Asian studies that did indeed find worse outcomes among hospitalised smokers with Covid-19. West took the time to match the government’s scientific references and twice it quotes the wrong study to back up its claims. He fixes its citations.

One study done in China by Fei Zhou and printed in The Lancet, which the government cites, showed that there was no difference between the rates of death of smokers or nonsmokers. However, the government doesn’t quote that conclusion.

The government also argues that the lockdown has caused 88% of people to quit smoking, based on data from the Human Sciences Research Council (HSRC). However, a study done by University of Cape Town (UCT) researchers found that 90% of smokers surveyed obtained tobacco anyway during the lockdown, but on the black market.

The government says in its court papers that 95% of people who stop smoking don’t need any assistance, pharmaceutical or otherwise; this claim is based on a book it says was written in 2012.

However, West found that the book was actually written in 1990, when little medication to stop quitting was available.

“The author states that 95% of smokers who successfully quit have done so on their own without any support. It is worth noting that in 1990, the only available supports were counselling and nicotine gum, the latter of which is not often successful when used in isolation,” he says.

West says the known interventions to help people stop smoking were developed after the book was written.

“Nicotine patches were only introduced in the 1990s, and the medications bupropion and varenicline only received approval in 1997 and 2006, respectively … It is no wonder that 95% of patients quit without support — there simply wasn’t any support available in 1990,” he says.

Elsewhere, the government’s statistics seem shaky. It quotes the HSRC as saying that 1% of SA’s 8-million smokers will get Covid-19, which amounts to 80,000 people. Of these, it says, 10% – or 8,000 people – will need intensive care treatment. However, the HSRC provided no study to corroborate these numbers.

West says: “On further enquiry with Priscilla Reddy from the HSRC, I was informed [those] figures were, ‘conservative estimates that were guided by prevalence and infection rate studies such as the seroprevalence studies conducted in several countries and districts’”.

He says Reddy “did not elect to share or reference any of these studies”.

Yet those HSRC numbers contradict other models. For example, the SA Covid-19 Modelling Consortium estimates that about 4% of symptomatic patients will require intensive care — not 10%.

Another argument made by the government is that banning cigarettes will reduce people sharing cigarettes – or “zol” – and thus sharing saliva. But if cigarettes on the black market are 90% more expensive, as the UCT study found, the likelihood of people sharing a smoke actually increases.

There were other noticeable errors in the government’s court papers. For example, it claims Israel banned cigarette sales during Covid-19 (it didn’t) and that SA has 4,000 ventilators (it doesn’t).

One area where West concedes there is some evidence is that smokers who do end up in hospital are more ill and are more likely to need a ventilator, as seen in Chinese studies.

But even here, the WHO cautions that the evidence is of poor quality, since the studies didn’t look to see if smokers who needed intensive care were also overweight, older, male or with uncontrolled diabetes – all known risk factors for Covid-19 complications.

West says the same: “The literature referenced in the response in support of these statements is either nonexistent, or of low to very low quality.”

He then explains that studies on smokers in intensive care are limited: “Some studies do not differentiate between current and past smokers, none of the data sets stratify smokers according to pack-year-history (a measure of quantity in duration of smoking).”

This matters, since newer studies appear to show that current smokers are less likely to die than former smokers from Covid-19, though no one knows whether or not this is just an anomaly.

Much of the government’s argument details the harm of tobacco and severely increased risk of lung cancer, heart disease, and low birth weight of babies born to smoking moms. This is not disputed by Fita.

But it is not clear what curbing these side effects of smoking have to do with controlling the spread of Covid-19 specifically.

While smoking is obviously bad for people, and it can lead to worse outcomes if smokers land in hospital with severe Covid-19, the government’s court documents appear to be a haze of outdated science, sloppy references and leaps of logic in contradiction to the WHO.

Article by Financial Mail

This is who is paying tax in South Africa

Finance minister Tito Mboweni has published new data on how South Africa’s tax statistics have changed over the last five years.

Responding as part of a written parliamentary Q&A, Mbonweni’s data indicates that there has been a clear decrease in persons submitting Personal Income Tax (PIT) while the number of Corporates submitting returns (CIT) has increased.

Despite this shift, provisional tax data published by SARS in April shows that Personal Income Tax (PIT) is still a key source of revenue.

In 2019/2020 the revenue collector collected a gross amount of R1.6 trillion, which was offset by refunds of R291.9 billion, resulting in net collections of R1.35 trillion.

This represents growth of R68.2 billion (5.3%) against the 2018/19 financial year, the revenue collector said.

SARS noted that the main sources of revenue that contributed to the R1.35 trillion collected were:

  • Personal Income Tax (PIT) contributed R528.9 billion (39%);
  • Value-Added Tax (VAT) contributing R346.6 billion (25.6%);
  • Company Income Tax (CIT), contributed R214.7 billion (15.8%);
  • Customs duties contributed R55.4 billion (4.1%).

The below table, provided by Mboweni, shows the total number of persons who submitted personal tax returns in each of the past five tax years.

The below table shows the total amount of tax paid by personal taxpayers in each of the last five tax years.

The final tables show the total number of companies that submitted corporate tax returns in each of the past five tax years and the total amount of tax paid by corporate entities in each specified tax year.

Demographics

South Africa’s annual tax statistics published at the end of 2019 also provides interesting data on who is paying South Africa’s Personal Income Tax.

SARS’ data shows that:

  • 2,680,449 (54.5%) of assessed taxpayers were male taxpayers; 2,236,580 (45.5%) were female;
  • 1,342,511 (27.3%) of assessed taxpayers were aged 35 to 44 years; and
  • 1,976,674 (40.2%) of assessed taxpayers were registered in Gauteng, of which 636,460 lived in the Johannesburg Metro and were taxed on an average taxable income of R446,838.

This graph shows how income tax collection looks distributed geographically:

This graph shows how income tax collection is distributed between males and females:

This graph shows how income tax collection is distributed across broad income groups:

This table shows how income tax collection is distributed across narrow income groups:

Article by BusinessTech

U-turn – You will not be arrested for transporting alcohol after hours

No, you will not be arrested for transporting booze after hours, including Friday, Saturday, Sunday and any public holiday.

The U-turn comes just days after SA police spokesperson Brig Vish Naidoo issued a stern warning to the public, saying anyone caught transporting alcohol after 5pm on Thursday and before 9am on Monday will be charged with violating the National Disaster Act.

“Between Monday at 9am and Thursday at 5pm is the only time people are allowed to purchase and transport alcohol for their personal use,” Naidoo said. “Any other time beyond that will be a contravention of the regulations. People must be warned.”

Speaking to TimesLIVE on Thursday, Johannesburg metro police spokesperson Wayne Minnaar said an exception to the transporting of alcohol from one place to another would be made for licensed traders only.

“Permits are for dealers and not for individuals who make private purchases,” said Minnaar.

However, the warning on transportation is no longer valid.

According to a specialist attorney in liquor law, Danie Cronje, Naidoo has retracted his statement.

In a post shared on LinkedIn, Cronje said Naidoo confirmed that members of the public can transport liquor at any time. It was only the purchase booze after hours that was restricted to the days and times referred to in the regulation, said Cronje.

“We can confirm that Naidoo said it is not an offence for members of the public to transport liquor on any day or at any time,” he said.

“Naidoo stated that members of the public are not encouraged to transport liquor during times when liquor may not be purchased as this opens the risk for dealing in liquor outside the prescribed times, but he emphasised that it is not a crime for a member of the public to transport liquor outside these hours,” Cronje added.

peaking to TimesLIVE, Cronje said members of the public cannot be arrested should they be found to have alcohol in their vehicles.

“There is nothing in the regulations that prohibits the transportation of liquor by members of the public.

“I can’t say the police won’t arrest you because they often interpret the regulations incorrectly, but based on the regulation there is no contravention,” he said.

TimesLIVE made several attempts to get a comment from Naidoo. At the time of publishing this article, a response had not been received.

The latest Government Gazette, which officially explains the sale, dispensing and  transportation of liquor, states that the sale of liquor at any licensed premises or through e-commerce delivery is permitted only from Monday to Thursday between 9am and 5pm.

The transportation and distribution of liquor to licensed premises is permitted, subject to directions which may be issued by the relevant cabinet member.

Article by TimesLive

SA may be getting new rules on what qualifies as a bicycle – with big implications for e-bikes

  • A new draft law seeks to change the definition of a bicycle in South Africa, to include e-bikes – but only if they can go no faster than 25km/h.
  • And e-bikes that go faster than 45km/h may require a licence to drive, just like a motorbike.
  • That could have implications for safety, insurance, who gets to use bike lanes, and how legally dangerous it will be to overclock an e-bike.


    South Africa will be getting a new definition of what qualifies as a bicycle, if the transport department gets its way.

    The National Road Traffic Amendment Bill, published this week, notably seeks to set the drunk-driving limit in South Africa to zero, potentially meaning drivers will have to watch what they drink the night before getting behind the wheel to go to work.

    But it also, for the first time, brings e-bikes into road legislation, in a fashion that has everyone from insurance experts to e-bike importers taking notice.

    The draft law proposes broadening the definition of a “pedal cycle”, which currently allows two or three wheels but no motor, to include bicycles with both pedals and an electric motor.

    There is a limit, though: that motor may not be capable of propelling the bicycle or tricycle unassisted at a speed not exceeding 25km/h.

    Separately, the definition of what qualifies as a “motor vehicle” is also altered. If passed in its current form, an exclusion for e-bikes from being considered motor vehicles will drop away as soon as they have a “maximum design speed” of more than 45 km/h.

    That could see moderately fast e-bikes banned from areas reserved for bicycles, such as cycle lanes, while requiring motorcycle-type licensing for both the vehicles and their riders if they can go fast enough.

    Bicycles may go faster – but they’re lighter.

    Those kinds of speeds are not unusual on bicycles that come with no electrical help at all, says David Maree, a professional rider and a rider representative at Cycling SA. But there’s a crucial safety difference between a cyclist barrelling down a hill at 70km/h and someone on an e-bike going at similar speeds, he says.

    “With a bicycle you’re looking at 7kg, that e-bike is 20kg to 30kg, and the momentum isn’t the same. If you hit someone with a 7kg bike you are still doing damage, but it is nothing like what you do with a 20kg bike.”

    While Maree can see a safety argument for limiting e-bike speeds, he is not clear on how it would be policed. He himself deals in “de-restricting” e-bikes, allowing them to go faster than their manufacturers intend – often to meet criteria such as South Africa’s draft limits.

    But many buyers in the  growing e-bike sector may stick to governing limits built into their bikes, he believes, which may reduce injuries.

    Enforcement aside, bringing e-bikes into the realm of motor vehicles will very likely cause trouble with it comes to insurance – and the Road Accident Fund (RAF), says Gert Nel, a specialist personal-injury lawyer who happens to have a keen interest in cycling.

    “Somewhere someone is going to get hurt, and then questions will arise,” says Nel. Questions such as: if someone is injured by an e-bike designed to go faster than 45km/h, does that person have a claim against the RAF? If so, will that hasten a nearly inevitable process to move funding for the RAF away from being drawn via a petrol levy, leaving electric vehicles as non-contributors even while they are covered by the RAF?

    That will likely only be settled by a court once the first such incident occurs, Nel says. In the meanwhile, changes may start to seep in at the level of municipal bylaws and rules relating to specific, pedestrian-safe spaces as e-bikes pick up speed.

    “The ordinary guy on the street sees e-bikes as bicycles until they start going so fast that they seem to be a danger and people get uncomfortable,” says Nel.

    “That’s when we’ll see regulation.”

Article by BusinessInsider

ANC and unions plan to use private pensions to fund South Africa’s growth

An alliance between South Africa’s ruling party and labour unions is pushing for the mobilization of domestic pension funds to drive economic growth and urging caution about borrowing money from international financial institutions.

A discussion document dated 25 May, prepared for meetings of the alliance members, cited the use of so-called prescribed assets during the apartheid era to fund infrastructure.

South Africa has been ruled by the African National Congress, which is in an informal alliance with the Congress of South African Trade Unions and the South African Communist Party, since white-minority rule ended in 1994.

Attempts to fuel growth “must include a large drive toward domestic resource mobilization from both the public and private sectors,” according to the document seen by Bloomberg and verified by Cosatu.

Measures taken must include “among others, impact investments, interchangeably developmental and productive-asset investment requirements,” it said.

The alliance encouraged the use of both privately managed pensions and civil-servant retirement funds administered by the state-owned Public Investment Corp.

South Africa’s economy is forecast by the country’s central bank to contract 7% this year as a result of the coronavirus outbreak and the loss of the last investment-grade rating on the nation’s debt.

While South Africa has shunned the use of funds from institutions such as the International Monetary Fund in the democratic era, labour groups have now backed the government’s approach to the lender to seek $4.2 billion from its Covid-19 relief facility.

“International finance should therefore only be accepted if the conditions do not undermine, compromise or subvert South Africa’s national sovereignty, democracy or independence,” the document said.

It should “neither interfere with our domestic development policies and goals nor our fundamental right to self-determination,” it said.

Article by BusinessTech