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Daily podcast – February 15, 2013.

15th February 2013

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February 15, 2013.

From Creamer Media in Johannesburg, I’m Motshabi Hoaeane.

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Making headlines:

President Jacob Zuma warns of a contractor crack down as more than R860-billion is spent on infrastructure.

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DRC Prime Minister Augustin Matata Ponyo Mapon says UN drones could deploy to the DRC as early as June.

And, South Africa aims to conduct a tax review of its finance ministry this year.

 

President Jacob Zuma used his 2013 State of the Nation Address to offer a report back on progress made in the country, while also warning large construction companies that government would take a hard line against fraud, collusion and corruption in the sector. The warning comes after he declared that infrastructure development would be a primary focus of government.

He said that between 2009 and the end of March 2013, more than R860-billion would have been invested on projects that laid the basis for increased exports, particularly mining exports, higher economic growth and social development.

The comments were made against the backdrop of ongoing criticism about the sluggish pace at which infrastructure programmes had unfolded, with many projects having been delayed owing to insufficient funding, incomplete engineering designs and the slow processing of environmental and regulatory approvals.

Zuma acknowledged that the infrasturcture programmes had been a “valuable source of learning for government”. “The lessons are that we must coordinate, integrate and focus on implementation,” he said, promising that, in the year ahead, key projects would be fast-tracked with the support of the Presidential Infrastructure Coordinating Commission.

 

Democratic Republic of Congo Prime Minister Augustin Matata Ponyo Mapon said on Thursday that surveillance drones could be used by peacekeepers in the rugged hills of eastern DRC as early as June. This would be the first such deployment of unmanned aircraft in a UN mission.

The Security Council approved their use last month in Congo's porous and volatile borderlands, where UN experts claim a year-old rebellion has received support from neighbouring Rwanda and Uganda, a charge both countries deny.

The force, composed mainly of soldiers from eastern and southern African nations, will operate under the existing UN peacekeeping mandate: however, it is also tasked with pursing illegal armed groups.

 

President Jacob Zuma says South Africa's finance ministry will review its tax regime this year, including looking at mining royalties, to ensure the government is raising sufficient revenue from the economy.

Zuma said in his annual State of the Nation address on Thursday that later this year, the Minister of Finance would be commissioning a study of the government’s current tax policies to make sure that the country has an appropriate revenue base to support public spending. He added that part of this study would evaluate the current mining royalties regime, with regard to its ability to suitably serve South Africa’s people.

Finance Minister Pravin Gordhan delivers his 2013/14 budget on February 27 against the backdrop of sluggish growth in Africa's biggest economy, a stubbornly wide spending gap and turbulent labour relations in the key mining sector.

 

Also making headlines:

Mali announces that it will hold a presidential election on July 7.  

President Jacob Zuma says the mining royalties regime will come under the spotlight as part of a tax study Finance Minister Pravin Gordhan will commission.

Ratings agency Moody’s says water scarcity could increase ratings pressure on mining companies.

And, opposition parties say they were unimpressed with President Jacob Zuma's state-of-the-nation speech on Thursday.

 

That’s a roundup of news making headlines today

 

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