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1 Issue 1| APRIL 2014 Social|Economical|Polical Minded Leaders The meaning of PRASA’s plan Acquiring for profit and re- source intensification, or for competition elimination? R19.50 ISSN 2310-8827 Youth wage subsidy NSFAS: Funding for Liberation Why CA(SA) Spells success? Do we need black or African empowerment? April 2014 ISSUE 001

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1 Issue 1| APRIL 2014

Social|Economical|Political Minded Leaders

The meaning of

PRASA’s plan

Acquiring for profit and re-

source intensification, or for

competition elimination?

R19.50 ISSN 2310-8827

Youth wage subsidy

NSFAS: Funding

for Liberation

Why CA(SA)

Spells success?

Do we need

black or African

empowerment?

April 2014

ISSU

E 0

01

2 Issue 1| APRIL 2014

CONTENTS P35. NPA OPPORTUNITIES

Editorial Letter 4

What PRASA’S Plan mean to the working class and entrepre-

neurs 6

Youth wage subsidy 10

Circle of debate 13

Funding for liberation 18

Acquiring for profit and resource intensification, or for competi-

tion elimination? 21

Why CA(SA) spells success? 23

Story of Vusi Nkabini 27

Film incentive 30

A new infrastructure projects in south Africa 33

NPA opportunities 35

What does PRASA’s new trains plan

mean to working class and entrepreneurs? P 6

P18. YOUTH WAGE SUBSIDY

P23. WHY CA(SA) SPELLS “SUCCESS”

3 Issue 1| APRIL 2014

We are

known by

DOING it

not

dreaming By Circle of Concern’s Team

“I have been impressed with the urgency of doing.

Knowing is not enough; we must apply. Being willing

is not enough; we must do” Leonardo da Vinci

4 Issue 1| APRIL 2014

EDITORIAL

Editor-In-Chief Editor-in-Chief

Komane Golden

[email protected]

Contributors and Journal-

ists

Lethukuthula Kubeka

Molebogeng Mashobane

Donald Msiza

Given Mbowane

Simphiwe Nkosi

Athi-Nkosi Majavu

Bonolo Ramokhele

Reinhard Nell

Sales

[email protected]

Subscription

[email protected]

Advertising

Publisher

CIRCLE OF CONCERN is

published by CATHEL

Our Potential Readers

B elieve it or not, I am writing this editorial

letter with my eyes closed. I cannot stop smil-

ing and giggling alone and I wish you feel what

is in me. Presenting the first issue of CIRCLE

OF CONCERN is viewed as success to the

strong team that embarked in the journey with-

out proper shoes.

I still believe that if something cannot be done,

we would not have thought about it at the first

place. Never allow people to seduce your mind

by introducing you to the world of doubters.

All I can tell you is that, just go beyond the

community‘s benchmark then you will achieve

greatness.

Never stop dreaming but do not spend the

whole time fantasizing only, you have to give

your dream a go .Every journey started with

one step that is why you had to be a toddler in

order to reach where you are now.

I hope that after reading this refined magazine,

you will be mentally rich. We all need to be

intellectually competitive in order to get what

we want. This magazine will make you a better

person than you were yesterday or before you

paging through its leaves.

You need current affairs, valuable and accurate

information, motivation, a friend and a refer-

ence that is why we are bring a magazine of its

own to the people. Owing a copy of this maga-

zine is like having a half million worth of in-

vestment that is yields more than any offer in

the financial markets

Spread the word all over the place about this

great magazine then we will blowout accurate

information timely. We are everyone‘s ladder,

never be afraid to climb through us and with us.

Do not forget to get a next month copy of the

magazine or you can simply subscribe and it

will be delivered to you.

I am sending best of luck to all our readers.

Write to the Editor

Express yourself by writing a letter to the edi-

tor. The editor reserves the right to edit and

make changes where necessary. The opinion

expressed by readers is not that of Circle of

Concern and printers of the magazine. Please

write in a language that is free from racism,

sexism and does not promote hatred. Letters

are not published on first come first serve ba-

sis. All the letters must be directed to the fol-

lowing email:

Quotes

LIFE: ―Life is the art of drawing without an

eraser.‖ John W. Gardner

SUCCESS: ―All successful people, men and

women, are big dreamers. They imagine what

their future could be, ideal in every respect, and

then they work every day toward their distant

vision, that a goal or purpose.‖ Brian Tracy

LOVE: ―Love and kindness are never wasted.

They always make a difference. They bless the

ones who receives them, and they bless you, the

5 Issue 1| APRIL 2014

6 Issue 1| APRIL 2014

What does PRASA’s plan

mean to working Class

and entrepreneur? BY Komane Tshegofatso

7 Issue 1| APRIL 2014

COVER STORY

What does PRASA’s new trains plan mean to

working class and young entrepreneurs?

On the fifth of December 2012

the then minister of

Transport, Honorable Dikobe Ben

Martins, MP announced the Gibela

Consortium as the tender frontrunner.

The tender will be replacing old

Metrorail trains towards the end of

2015 by new ones (pictured above)

that are user-friendly and improved to

better the lives of commuters and busi-

ness people. On the last quarter of

2015 commuters will be saying good-

bye to lateness and sore emotions on

Monday mornings.

PRASA (Passenger Rail Agency of

South African) owns 4 638 coaches for

Metrorail operations in Western Cape,

Gauteng, Durban and Eastern Cape but

90 per cent of the rolling stock is much

older. They acknowledged the fact that

old coaches cannot be upheld anymore

due to tear and being old enough. Al-

most 2 per cent of their coaches were

bought in 1980s and the rest were pur-

chase in 1950s which indicates that

these trains can no longer adapt to re-

cent changes. The technology systems

of the current fleet is inherently outdat-

ed and this makes it hard for both com-

muters and Metrorail to get along.

PRASA is a South African state owned

enterprise in the country that was

founded in 1990 (as SARCC). It con-

sists of three divisions ( PRASA Tech-

nical, PRASA Rail Operations and

PRASA CRES) and two subsidiaries

( AUTOPAX and INTERSITE IN-

VESTMENT MANAGEMENT).

PRASA is at the forefront of govern-

ment efforts to transform public

transport in South Africa, with rail

services forming the backbone of the

network. The focus of the article is on

the Rail operations which consist of

two divisions Metrorail and Shosholo-

za Meyl. PRASA owns 317 of the 468

stations Metrorail operates, with the

remainder belonging to Transnet

Freight Rail. Metrorail is responsible

for transporting up to 2 million com-

muters daily in their area of operations.

PRASA National Strategic Plan docu-

ment 2013 outlines

Current network issues

Overcrowding is a serious issue on many

corridors at peak periods

Timetables are variable, with few corridors

operating trains at regular intervals

Poor integration with other modes

Journey times are slow on most corridors,

compared with road transport

Speeds are relatively slow by world standards

Relatively few off peak services

Train interiors do not meet modern standards

for public transport provision

Ticketing is inflexible, prohibit variable pric-

ing

and flexible season tickets, Station facilities

need improvement

Transformational timetable changes

Strengthened off peak services

Revised stopping patterns

Higher speed services – 120kph to 160kph

Improved station facilities

Better focus on modal interchange

Replacement of Suburban Rolling Stock

New Ticketing System

Selective infrastructure enhancements

Potential network extensions where rail -most

appropriate

New Train Source: PRASA

8 Issue 1| APRIL 2014

The majority of these rail transport users

are working class from South African

well-known townships and one of their

characteristics is poverty. These trains are

widely used by scholars, workers, hawk-

ers and other ordinary South Africans

who cannot afford to use taxis or who are

running away from weekday‘s morning

and afternoon road traffic. Metrorail

trains are reasonably priced compared to

any means of transport in this country and

that serves as the reason why the working

class usually uses them. A single trip

from Mabopane to Rissik station

(Hatfield) cost R8.00 with a train but

R30.00 with an ordinary taxi and that

leaves an individual with R22.00 to do

other things or save, then if you choose to

buy a monthly ticket then you will save

R440 per month against normal taxi.

Metrorail was criticized by its inability to

serve people in a satisfactory manner

which led to burning of Mabopane train in

2012 but with these new trains all of those

problems will be things of the past, we

hope. Lateness of current trains became a

norm to us commuters, I also write by

things I witnessed. The unpunctuality led

to overcrowding and crime also. The obso-

lete and outdated signaling system which

makes the movement of trains unsafe and

less predictable is challenged and expects

to be defeated by this new project,

PRASA‘s chairman Sfiso Buthelezi high-

lighted in the 2013 annual report.

Dr. Werner Heyns, Associate (Transport

Planning) from ARUP indicated current

network issues and generic interventions in

PRASA National Strategic Plan document

that was delivered at 32nd Annual South-

ern African Transport Conference that was

held on 8 – 11 July 2013. ARUP is an in-

dependent consulting firm.

This initiative turns to be a great move but

do we really understand what it means to

working class and young entrepreneurs?

Every plan turns to be good and bad at the

same time but it depends of how you ap-

proach and analyze the situation. It is sig-

nificant that we use Cost Benefit Analysis

to judge the projects but the problem is

that not all of the costs are quantifiable and

that‘s where we always get things wrong

or accidentally right. It will in fact save the

most important commodity that cannot be

found in any market in the world, which is

time. We still have one question that needs

PRASA to answer it, are we still going to

pay the same amount we used to pay?

This project is going to simplify lives of

poor people from the black communities

and entrepreneurs who are looking forward

to penetrate the market by crafting oppor-

tunities for themselves and other people.

The current business activities in the train

stations are quite promising even if the

health issues arise at all times due to un-

clean trains and stations caused by the

same people selling and buying, in general

us commuters. Different kinds of product

are sold in trains at daily basis, ranging

from fruit and vegetables, toiletries, acces-

sories, food and drinks. Did you know that

you cannot starve in a train if you have R2

in your pocket? NO HUNGER IN A

TRAIN.

Pictured above: Old trains that are going to be replaced Source: PRASA Annual report 2013

COVER STORY

9 Issue 1| APRIL 2014

Pictures New trains versus Old trains

New Trains Old Trains

COVER STORY

10 Issue 1| APRIL 2014

Why is there an Employment Tax Incentive?

Millions of young South Africans are currently unable to participate in economic activity, and as a result suffer disproportionately

from unemployment, discouragement and economic marginalisation. High youth unemployment means young people are not gaining

the skills or experience needed to drive the economy forward. This lack of skills can have long-term adverse effects on the economy.

In South Africa the current lack of skills and experience as well as perceptions regarding the restrictiveness of labour regulations

make some prospective employers reluctant to hire the youth. As a South African employer you now have a great opportunity to

boost the employment of young work seekers.

What is it?

The Employment Tax Incentive (ETI)/Youth Subsidy is an incentive mainly aimed at encouraging employers to hire young and less

experience work seekers. It will reduce the cost to employers of hiring young people through cost-sharing mechanism with govern-

ment. This incentive will complement existing government programmes with similar objectives. ETI was implemented with effect

from 1 January 2014.

Who qualifies?

The employer is eligible to receive ETI if the employer-

Is registered for employee‘s tax (PAYE);

Is not in the national, provincial or local sphere government;

Is not a public entity listed in Schedule 2 or 3 of the Public Finance Management Act (other than those public entities designated

by the Minister of Finance by Notice in the Gazette);

Is not a municipal entity;

Is not disqualified by the Minister of Finance due to displacement of an employment of an employee or by not meeting such

conditions as may be prescribed by the Minister by regulation.

As an individual is a qualifying employee if he or she-

Has a valid South African ID;

Is 18 to 29 years old (Please note that the age limit is not applicable if the employee renders services inside a special economic

zone (SEZ) to an employer that is operating inside the SEZ, or if the employee is employed by an employer that operates in an

industry designated by Minister of Finance;

Is not a domestic worker;

Is not a ―connected person‘ to the employer;

YOUTH AND LAW

11 Issue 1| APRIL 2014

Was employed by the employer or an associated person to the employer on or after 1 October 2013; and

Is not an employee in respect of whom an employer is disqualified to receive the ETI ( i.e. the employee is paid below the mini-

mum wage applicable to that employer or paid a wage below R2 000 per month if a minimum wage not applicable).

www.sars.gov.za

How does it work?

Employer will calculate and claim the incentive on a monthly basis. The employer must follow these steps:

Identify all qualifying employees in respect of that Month

Determine the applicable employment period for each qualifying employees

Determine each employee‘s monthly ―remuneration‖

The EMP201 form was amended to include a field for claiming ETI.

How long will it be available ?

The incentive is currently scheduled to end on 31 December 2016 but its effectiveness will be reviewed to determine whether to con-

tinue with the incentive.

NEED HELP?

Call SARS 0800 00 SARS (7277) or visit your nearest SARS Branch. Source: SARS

YOUTH AND LAW

12 Issue 1| APRIL 2014

13 Issue 1| APRIL 2014

Circle of

ECONOMICAL

POLITICAL

SOCIAL

A W A KE NI NG TH E M A SS E S | E DU C AT I NG O U R N AT I O N

A page dedicated to political, social and economical debates for

young people. Its time we acknowledge the fact that problems we are

currently facing cannot be solved using one perspective, consolidat-

ing them will easy our way to economic emancipation

Manyosi Mswazi Mantutle

It’s a slippery slope question. To be fair though I say Afri-

can empowerment. As we cannot dwell on the past, ra-

ther have an open-minded approach to bettering the lives

of all Africans. Everyone under our skies deserves a better

life.

Professional Chef & Entrepreneur

Sipho Skhosana

Is there any difference between the two? Okay I think we do

need African empowerment not black empowerment, as it

defines specific color whereas the word “African” depicts a

kind of human species from Africa that is also capable and

has the ability to improve a nation’s performance by provid-

ing and participating in economic activities.

IT Student at UNISA and Data Capturer

Thabo Godfrey Mongatane CA(SA)

Based on current BEE structures it seems there’s been too

much abuse. But like anything ,any project is prone to

abuse. The need is there for corporate to support previously

disadvantaged. The trick is not of our people can benefit

from BEE. For example if government can take back land

and give it to my grandfather who has no education, no

background, nothing. Do we expect that the operations at

the farm be as lucrative as before? But look at me, look at

you. If transformation projects like Thuthuka didn’t exist do

you think there’d be Godfrey Mongatane on SAICA’s list of

members?

Auditor at Auditor General of South Africa

Freddy Sambo

We need black empowerment because there is a huge

gap between whites and black communities. Although

people says its not about money but it is a real factor

and majority of blacks are still poor while they are in

majority. We don’t blame whites the past differences

but the gap can only closed by uplifting the previously

disadvantaged. Blacks are not economical active that is

why we need to uphold black people to ensure equality

with the country. Blacks only concentrate on studying

and looking for a job. The gap in terms of education is

closed but in terms of skill still remain a huge problem.

Transport Graduate

DEBATE

14 Issue 1| APRIL 2014

Prince Moeng

There are 925 million black people in Africa out of

1.033 billion in totality (2011). This shows that there

are more black people in Africa; therefore, empower-

ing black people would also lead to African empower-

ment. The concept of black individual would mean

being a “black” ethnicity in their particular country,

typically having a degree of Sub-Saharan African an-

cestry, or who are perceived to be dark skinned rela-

tive to other “racial groups”.

Empowering black people who occupy majority of the

African demographic would broaden participation in

the economy. Africans, on the other hand, include oth-

er racial groups like Whites, Indians, Portuguese, etc.

who also have their origins in Africa.

With light to that I believe we need black empower-

ment, which has a lasting, real and sustainable impact

on the continent economy and promotion and develop-

ment of Black-owned companies. This will also harness

a race representation in Top Level management. The

truth about the demographics of the business struc-

tures in Africa is that they are mostly dominated by

white people; therefore, empowering black people will

cause a fair representation of race in decision-making

positions and top level positions.

The empowerment of black people would lead to an

increase/improvement in the performance of the com-

pany that they work for, specifically with regard to

overall and international competitiveness, service ex-

cellence and client satisfaction, quality, productivity,

entrepreneurial spirit and innovation, production per-

formance, human development, staff morale, business

ethics and transparency, sale and access to markets,

and financial performance. Therefore I conclude that

Black empowerment is needed!

ABASA UJ Student Chapter Chairperson

DEBATE

VISIT OUR FACEBOOK/WEBSITE TO CHECK

NEXT MONTH’S TOPIC! CIRCLE OF CONCERN MAGAZINE

Sanele Zulu

Ok, well at this stage in our society, considering our

past and the ills in our society that is tracked to the

past of apartheid and colonization, also the fact that

what our past looked like was only biased towards col-

our. It is really important to appreciate that where we

find ourselves now, we must have black empowerment,

because, anyone can be an African, whether, white,

Jew, or Chinese, but the most affected race by our past

is the Black community. The reason why I'm starting

with the past is because we can never appreciate where

we are if we don't know where we come from and we

can never understand the promises of the future if we

don't appreciate where we are. Having said this, the

reason why we must push for black empowerment is

because a black mens background has always been

that of little or poverty or limited resources. Black em-

powerment is also important so that we may be able to

balance our society, because as a country and conti-

nent we are the most unequal society in the world, es-

pecially when you compare with other racial groups.

In SA alone, white people still occupy more than 60%

of the executive seats in corporate... And about 55%

are amongst the richest but are also considered Afri-

cans. So we cannot pursue African empowerment

without tackling the real issue at hand that a black was

supressed and therefore never had enough opportuni-

ties in the past. So by empowering black we are rewrit-

ing the past, which many of you guys are fortunate

enough to be part of. And then for harmony, love and

peace, ofcourse we must pursue the empowerment of

Africans. But yeah, your question would also be dictat-

ed by the context of the topic, if we speak, financial, we

speak, educational, we speak, Africanism with our

brothers and sisters from our neighbouring countries.

#BlackEmpowerment.

15 Issue 1| APRIL 2014

Philasande

Firstly South Africa is a rainbow nation, full of different

tribes, cultures and languages. So if we say we need black

empowerment, we will be stealing others the opportunity

to make their part in our country. South Africa is diverse,

so we need that diversity to make it a better place to be.

It might be hard to say but there are other things that as

black we cannot do but other races can, like when we talk

of creativity, we lacking at that so we need other races to

fill up the circle by coming with their creative minds. We

are all gifted in our different ways no matter you are

white, black or coloured u have a gift and u need the op-

portunity to show it, whether it's political, economical or

social but u need be given a chance to show that gift. So

we don't need a black epowerment but an African, a unit-

ed country is a successful country.

Anonymous

If you are basing it on apartheid then yes ,Black em-

powerment or rather the idea of it is exploited by

corruption as much as we try to move on from apart-

heid south africa is deeply scarred by it in terms of

inequality...people still struggle to break out of pov-

erty because apartheid put them there its hard even

with freedom because of lack of means to sustain the

desired lifestyle just know that there’s still a big gap

to fill before south africa is an actuall unit in terms of

equality...as for the corruption...its sad because it

takes away from the larger portion of poor people

that cud b helped...its the sad truth...

I do think it works...just that they go off lane here nd

ther...which is sadly at the expense of people who

already have nothing.

Sifiso Thela

BEE as a policy to address inequalities which are the prod-

uct of the past apartheid era is still a much needed policy.

The objective of the policy is still not achieved. Though it

may seem that blacks have moved into positions of influ-

ence and are now in control of companies, this is only a

minority of individuals. Even in these cases you find that

some are used as fronting for the company to have a cer-

tain BEE status. In instances where a company is wholly

owned by black individuals, you find that it (company)

ends up being bought out by big companies to gain BEE

points. Still the objective to level out economic positions is

not achieved. All is not so bad, a huge distance has been

covered but we still have to find ways in implementing

our policies as a country and not have loopholes found by

many defeat our strides to become a better country that

we are.

Lebo

Yes, I think BBE is important because it gives black

people the opportunity to level out the effects of

apartheid and to reach their true potential. Apartheid

left black and white people in different generation

spheres... BBE bridges the gap.

Retang Phaahla

I believe we do need African empowerment more

than money and more than hand outs. Empower-

ment liberates our minds in a way that enables us

to start searching for solutions to our own prob-

lems and strengthens belief in ourselves. Africans

need to be empowered to believe that they have

the ability to think for themselves and freed from

a mindset of dependency.

16 Issue 1| APRIL 2014

Spetane Sithole

No. I believe there should be South African empower-

ment. I understand that our govt is attempting to amend

the injustices of the past, but 20 years on we need to fo-

cus on the present injustices that occur daily in this

country. Being disadvantaged is no longer defined by

race; it is defined by economic status. Those without the

opportunity to better them financially are the ones who

are being oppressed. Empowerment by the government

should focus on those who are unable to empower them-

selves. Universities should not favour black apeoplei-

cants for places; they should make active efforts to help

underprivileged schools grant their students a better

quality education, so that the students are able to get

into higher education through merit, not by colour. By

empowering black citizens now, white and other races

are being disadvantaged, creating a vicious cycle that

will have to be rectified later on. True equality cannot

be achieved through methods of inequality. Something

to ponder is how black empowerment makes black peo-

ple who have gained opportunities merely on the basis of

their skin colour feel? Do they feel worthy? Do they be-

lieve they deserve their place, that they have earned it,

or do they realise that they have been given a chance

simply because of the race into which they were born.

What about a black person who has genuinely earned

their place, how do they gain a sense of accomplishment

if they are constantly questioning whether they received

the opportunity based on their hard work or on their

skin colour? The government needs to consider all of its

citizens, and empower those who are powerless to do so

for themselves. This, I believe, begins with a proper edu-

cation and job creation.

Miranda

Lol I can't give u 100 to 200 words but

my opinion is that dat we do need it. In

a perfect world with no corruption it’s

actually a beautiful concept dat aimed

at correcting the inequalities of the

past. But it also has its disadvantages

and is unfair on white people of our

generation cuz they ddnt ask for.....so

explore it and have fun it.

Athi

There is a strong argument about how

bee status is granted to companies and

research shows that certain companies

use black employees to gain a certain

bee status is a reality. This shows that

there are still holes in the administra-

tion of BEE. We need to have bee being

more than just financial support but

something beyond that to achieve a situ-

ation where we don't only have numer-

ous black business people but quality

black business people.

However, in a different view, the at-

tempt to level out economic positions

according to the demographics of the

country may be counterproductive in

the growth of our economy. Hence this

calls for a general African Empower-

ment.

17 Issue 1| APRIL 2014

18 Issue 1| APRIL 2014

The National Student Financial Aid Scheme (NSFAS) is one of

the most successful stories of the ANC-led government. Since

its inception it has supported more than 1.4 million students,

mainly from poor black families, most of whom being first

generation university or college graduates. It has grown from

around R400 million in 1999, to a staggering 9,6 billion in

2014; tripling from R3.1bn in only the last five years since

2009.

Very few, if any, budget items has grown so much in any one

term of government, underlining President Zuma's commit-

ment to education as an apex priority. It would perhaps be no

exaggeration to claim that NSFAS is the single largest contrib-

utor to the growth of the black middle class since 1994.

However, the last few weeks has seen some public criticism of

the National Student Financial Aid Scheme (NSFAS), often

without any verification of the facts. While some of the criti-

cism may have been warranted, most has been uninformed or

even mischievous. The danger is that such unfair denigration

of NSFAS could not only undermine public confidence in this

extremely valuable national institution, but also distort its

enormous achievements.

The origins of NSFAS can be traced back more than twenty

years. Careful reflection on its achievements and future plans

can put current debates into perspective.

In the early 1990s the African National Congress (ANC), the

government in waiting, began preparations to govern South

Africa. The movement visualised a liberated South Africa in

which all men and women would be equal and where all

would receive education and training to help them to fulfil

their potential, as outlined in the Freedom Charter. It was

aware that one of the most destructive legacies of apartheid

was Bantu Education which hindered the intellectual develop-

ment of blacks in schools and tertiary institutions.

Without an expansion of educational opportunities, one of

the main aims of the liberation struggle would not be

achieved. Black people would not gain the skills necessary to

play a leading role in the economy, the government and the

civil life of society. Unemployment would be intensified and

lead to frustration, disillusion and socio-economic turmoil

detrimental to a new democracy.

Although the ANC did have some successes in providing high-

er education and training to exiles in the decades preceding

1990, a massive expansion of skills was needed to run a future

South Africa, the majority of whose citizens had been deliber-

ately robbed of a proper edTo counteract this problem, the

newly-unbanned ANC put pressure on the apartheid regime

and big business to look seriously into the plight of black stu-

dents at tertiary level. In 1991, the newly established Inde-

pendent Development Trust (IDT) established the Tertiary

Education Fund of South Africa (TEFSA) to provide loans to

black students.

DEBATE

19 Issue 1| APRIL 2014

As with any fast-growing organisation, administrative challenges

have arisen as NSFAS has expanded. The 2010 report of the Min-

isterial Review Committee on NSFAS identified the challenges

and most have already been addressed. The greatly increased

efficiency of NSFAS over the past few years was acknowledged

by the Vice Chancellor of the University of Cape Town, Dr Max

Price, at a meeting of the parliamentary higher education and

training portfolio committee on 5 March.

NSFAS continues to look into innovative ways to improve effi-

ciency and tackle bottlenecks in its system. It has recently

launched a student-centered loans and bursaries model aimed at

putting students themselves at the center of the funding system.

This new model, piloted at seven universities and five FET col-

leges in January this year, enables NSFAS to have direct contact

with students and gives the organisation tighter control of dis-

bursed funds.

The overall aim of the new funding model is to replace the old

Loans and Bursaries Management System, designed to handle

reasonably low amounts of funds for fewer students. NSFAS will

continue to pay tuition and residence fees directly to public insti-

tutions. However, allowances for private accommodation, food,

books and transport will be paid to the students themselves in the

form of credit available on a smart card that will ensure that the

funds are used solely for the intended purpose.

Most importantly, this project enables students to apply for finan-

cial aid before registering with their institutions of choice, pre-

venting the long queues at universities and colleges that have up

to now been a feature of the beginning of each academic

year. Above all, this new funding model is aimed at preventing

fraud and corruption. This will enable NSFAS to account fully to

the Auditor General and Parliament for the public funds for

which it is responsible.

Today, NSFAS beneficiaries are making a meaningful contribu-

tion to the economy of the country, serving as engineers, teach-

ers, curriculum designers, scientists, artisans and economists. A

large section of today‘s black middle class owes its success to

NSFAS and its forerunner, TEFSA. This support for needy stu-

dents will continue and grow.

DEBATE

Empowering the nation through education!

20 Issue 1| APRIL 2014

21 Issue 1| APRIL 2014

M ergers appear in three forms, based on the com-

petitive relationships between the merging parties.

The most common of which is a horizontal merger wherein one

firm acquires another firm that produces and sells an identical

or similar product in the same geographic area and thereby

eliminates competition between the two firms. Competition

law seeks to prohibit transactions whose probable anti-

competitive consequences outweigh their likely benefits. It is

widely accepted that industries and or sectors function properly

and consumers are treated fairly where there is fair competi-

tion amongst the producers. Anti-trust laws have been put in

place to guard against unfair competition and unfair competi-

tion elimination, like where Company A acquires a well doing

start-up, Company B merely because given the right amount of

time, B would become a major player in the industry or sector

in which A dominates, or rather monopolises and as a result

pose as a threat to A. However, exceptions do exist through

which companies have been left the latitude of selling or buying

companies in whole or in part because mergers are said to have

a couple of social benefits, hence anti-trust laws make way for

mergers for which benefits outweigh anti-competitive conse-

quences.

Mergers can produce economies of scale; where the combined

company becomes able to reduce its fixed costs by removing

duplicate departments or operations, lowering the costs of the

company relative to the same revenue stream, therefore in-

creasing profit margins, and economies of scope where efficien-

cies primarily associated with demand-side changes, such as

increasing or decreasing the scope of marketing and distribu-

tion, of different types of products, these reduce costs, improve

quality, and increase output.

Another reason for which mergers occur is synergy; a merger

may result in managerial economies, i.e. managerial specialisa-

tion. In as much as mergers might be desirable, they do raise

competitive concerns one of which is that the unification of the

merging firms' operations might create substantial market pow-

er and might enable the merged entity to raise prices by reduc-

ing output unilaterally. This can be seen, as per according to my

view from recent acquisitions associated with Facebook. Face-

book has acquired 10 companies with its largest acquisition

being the purchase of WhatsApp on the 19th of February ’14

for $19 billion thereby raising its market capitalisation which as

of January ’14 was US $ 177.78 billion. Most of Facebook's ac-

quisitions have been 'talent acquisitions' and acquired products

are often shut-down. Facebook CEO Mark Zuckerberg has been

reported as saying "We have not once bought a company for

the company. We buy companies to get excellent people... In

order to have a really entrepreneurial culture one of the key

things is to make sure we're recruiting the best people. One of

the ways to do this is to focus on acquiring great companies

with great founders."

Although hiring is one of the biggest motives behind mergers

and acquisitions, some motives might just be a façade of the

real rational behind an acquisition, competition elimination

which will, through the elimination of start-ups (thereby in-

creasing concentration in the relevant market for the acquirer),

lead to many transactions strengthening the ability of the mar-

ket's remaining participants to coordinate their pricing and out-

put decisions; price fixing, which we see in the South African

construction industry.

Or are we perhaps living in economical times requiring entre-

preneurs to start companies with only the view of disposing

them of for profit in the future, thereby evading being competi-

tively weak and strategically eliminated, are mergers and acqui-

sitions really murders and executions?

[email protected]

@nmsiza

Acquiring for profit and

resource intensification,

or for competition

elimination?

Donald Msiza

LAW&ECONOMICS

22 Issue 1| APRIL 2014

By South African Institute of Chartered Accountants and Komane Tshegofatso

T he debate on a career path has always been on whether to choose a career

path for job satisfaction or for monetary reward. The debate also begs the

question: Can I get both monetary reward as well as job satisfaction and the

answer is a very firm yes. Research revealed that the South African business-

es needed 22 000 qualified accountants. Therefore students choosing to study chartered

accountancy have a better chance of good achieving better career prospects than any

other profession and getting well paid because of the demand.

If you have a flair for numbers, excel in Mathematics and enjoy the business working

environment, then job satisfaction as a chartered accountant will be a given.

Perhaps you plan on going into commerce, starting your own business or want to enter a

profession that will ensure you always have a great job anywhere in the world. The

smart thing to do is become a chartered accountant.

The South African Chartered Accountancy [CA (SA)] qualification is not only highly

regarded in South Africa, but throughout the world and currently there are approximate-

ly 6 000 South African chartered accountants who are working abroad. In its 2010/11

Global Competitiveness Report the World Economic Forum (WEF) rated South Africa

Currently there are ap-

proximately 6 000

South African chartered

accountants who are

working abroad.

In its 2010/11 Global

Competitiveness Report

the World Economic

Forum (WEF) rated

South Africa No.1 in

the world for the

strength of its auditing

and reporting standards

75% of CFOs of the JSE

top 200 are CAs(SA)

32% of CEOs of the JSE

top 40 are CAs(SA)

FAST FACTS

CAREERS

23 Issue 1| APRIL 2014

Fly away with your CA(SA) qualification The South African Institute of Chartered Accountants (SAICA) Senior Executive

for Professional Development, Transformation and Growth Chantyl Mulder herself

a CA (SA) says that the qualification opens up the world. ―With CA (SA) after your

name, there are very few business obstacles you can't conquer. The CA (SA) desig-

nation is well thought of and recognised the world over.‖

It is easily the most sought after professional qualification in South African busi-

ness. A recent survey of the top 200 companies on the Johannesburg Stock Ex-

change (JSE) found that:

11.59% of Directorships held by MBAs are CAs(SA)

32% of Directors of the JSE top 200 are CAs(SA)

75% of CFOs of the JSE top 200 are CAs(SA)

32% of CEOs of the JSE top 40 are CAs(SA)

This shows that there is a demand for chartered accountants in the corporate

world. And, this year an independent survey of South African Business leaders

found that:

ABOUT SAICA

The South African Institute of Chartered

Accountants (SAICA), South Africa‘s pre-

eminent accountancy body, is widely rec-

ognised as one of the world‘s leading ac-

counting institutes. The Institute provides a

wide range of support services to more

than 30 000 members who are Chartered

Accountants and hold positions as CEOs,

MDs, board directors, business owners,

chief financial officers, auditors and lead-

ers in their spheres of business operation.

Most of these members operate in com-

merce and industry, and play a significant

role in the nation‘s highly dynamic busi-

ness sector and economic development.

SAICA serves the interests not only of the

Chartered Accountancy profession, but

also of society in general through its key

objective of upholding professional stand-

ards and integrity. The pre-eminence of

South African Chartered Accountants [CAs

(SA)] nationally and internationally attests

to the successes achieved by SAICA on a

broad global canvas. SAICA‘s members

enjoy the privilege of using the highly re-

garded and prestigious CA(SA) designa-

tion. Members of SAICA are subjected to a

Code of Professional Conduct, which pro-

vides guidelines for ethical and profession-

al behaviour.

Fundamental ethical principles to which

CAs(SA) are expected to achieve include:

Integrity, Objectivity, Professional Compe-

tence and Due Care, Confidentiality, and

Professional Behaviour.

SAICA members serve on international

accounting bodies including; the Trustees

of the International Financial Reporting

(IFRS) Foundation, the International Ac-

counting Standards Board (IASB), the

IFRS Interpretations Committee, the IFRS

Advisory Council and the Council of the

International Federation of Accountants

(IFAC). SAICA is also a member of The

Global Accounting Alliance (GAA).

STEP ONE SECONDARY EDUCATION

You've got to have that university exemption in the bag (that means you must

work hard in your last few years of school). You’ll need at least a C-plus in

mathematics (simple maths literacy is a definite no-no), maybe you did ac-

counting until grade 12 (but that's a bonus, not an essential). You must hold

your own easily when debating in the English language.

STEP TWO VARSITY EDUCATION

Next you need to apply to study a relevant BCom degree at a SAICA accredited

university. SAICA, as a registered Education and Training Quality Authority (ETQA),

only recognises certain universities as having the necessary quality to academically

qualify prospective CAs (SA). These universities are rigorously and continuously

monitored to promote quality in the content and delivery of the education pro-

gramme. A list of accredited universities and detailed career information is availa-

ble at www.nowican.co.za. After graduating from you accounting degree then you

will have to register for CTA– certificate in theory of accounting also know as hon-

ours in Accounting .

CAREERS

24 Issue 1| APRIL 2014

STEP THREE TRAINING STAGE

Once you finish your BCom degree and then the certificate in theory of accounting (CTA) - an Honours level degree – you will

start your three-year internship or ‗articles‘ with an accounting firm, in government or in a commercial company. This is called a

training contract.

A training contract is tough. You have to hold down a full-time job, study for your various exams — and still find time for some

recreation. But it can be done – and more than 33 000 CAs(SA) can testify to this! However, it requires discipline and good time

management.

You will be deeply involved with practical issues of real businesses, all the while fine tuning your academic knowledge. You could

possibly work in one or a combination of the following environments:

Auditing – express your opinion on financial statements

Taxation – Tax Consultant – advise clients on their tax

Accounting – lead a team that handles the payroll, VAT returns, tax reports, annual financial statements, cash flow forecasts

etc.

Business Advisory - business plans, profit improvement advice, investment strategies

Forensic Accounting – investigate fraud, high overhead costs

Corporate Finance – mergers, acquisitions, disposals

Schemed Finance – structured deals, investments and businesses

Company Secretarial – Statutory books

Wealth Management – estate planning, wills and trusts

Entrepreneur – pursue a business of your choice

Education – Lecturer

If you do your training contract in one of the large accounting firms, you can specialise fairly early in your training, focusing on

specific sectors or industries such as, for example, mining, manufacturing, banking or financial services.

In a small- or medium-sized firm you may find you can move into, or even start, one of the firm‘s subsidiary companies that might

include corporate governance, internal auditing, IT and recruitment. In government you might see what makes the economy tick at

the National Treasury or guard public spending with the Auditor-General. Regardless of where you serve your training contract,

your qualification is the same — the globally recognised and prestigious CA(SA).

While completing your training contract there are two final qualifying exams (QE 1 and 2) that must be passed before you can call

yourself a CA(SA) and can practise as a CA(SA) and or as a registered auditor (RA).

You can now work in almost any field of business. For example:

You can go into private practice.

You can work as a tax advisor or consultant.

You can become a forensic accountant.

An entrepreneur.

A financial manager.

A chief financial officer (CFO).

A chief executive officer (CEO).

The list goes on, beyond accounting firms.

A CA(SA)‘s reputation is built on four pillars:

Integrity, ethics, technical excellence and training

CAREERS

25 Issue 1| APRIL 2014

SAICA- Professional development – 20 Years of Democracy By South African Institute Chartered Accountant

South Africa‘s National Development Plan (NDP) focuses on

education as one of its priorities to address the issue of transfor-

mation and growth in the country. Some of the priorities in-

clude:

―eradicate infrastructure backlogs‖

―provide 1 million learning opportunities through Community

Education and Training Centres‖

―improve the throughput pass rate to 80 per cent by 2030‖

―increase enrolment at universities by at least 70 %‖

It is clear that such an ethos is mirrored in SAICA‘s unit that

focuses on Professional Development, Transformation and

Growth.

Examinations and statistics

Aspiring chartered accountants achieved excellent results in

Part II of the Qualifying Examination, Financial Management

(QEII) towards becoming a CA(SA).

The overall pass rate for QEII, written in November 2013, is

86%, an all-time high from the previous year‘s 78%. A total of

209 candidates sat for the 2013 examination, whereas only 182

candidates wrote the examination in 2012.

Mandi Olivier, Senior Executive Professional Development at

the South African Institute of Chartered Accountants (SAICA)

said, ―More African candidates wrote and passed this crucial

examination, Olivier points out that the number of these candi-

dates passing had risen from 63 to 102 candidates in 2013. This

means that more than half of the total number of candidates

passing the 2013 QE II is African-an excellent milestone in-

deed.

The overall pass rate among Indians, African and Coloured can-

didates was 84% (up on last years 71%).‖

The QE II and PPE will be replaced in November 2014 with one

assessment for all prospective CAs(SA) irrespective of where

they are undertaking their training. This new form of assess-

ment will be known as the Assessment of Professional Compe-

tence (APC). The APC has been designed to more appropriate-

James Sithembele

―I am so excited to hear that I have PASSED the IRBA Public Practice Ex-

amination (Audit) which was my last professional board exam to becoming

a Chartered Accountant.

I have now the next 10 months remaining (till 31 December) to finish my

articles here at Deloitte. These are great news. The Thuthuka programme

has played a massive role in me being where I am today.

My family could have never been able to put me to university. Through

hard work and my faith in God I studied at one of the best universities at no

cost to my family. I usually say when I talk to other young people: The

Thuthuka Bursary was designed with people like me in the mind. It requires

nothing from you but your commitment towards academic excellence in so

doing becoming a Chartered Accountant. Where would I have been without

this support?

Thank you to Unathi Speirs who believed in me when there seemed to be no

way. Thank you to Lwando Bantom from SAICA who is the pillar of

strength for our Eastern Cape region. Thank you to Nthato and Desmond

from SAICA who came to NMMU to give a presentation on ―Attitude‖ in

2011 – when I was so negative because I had failed my Honours (2010)-

they changed my life for the better. I never failed since then.

Thank you to Chantyl Mulder from SAICA who heads the Professional

Development, Transformation and Growth unit who bravely knocked on

different doors seeking funding and support for a Black kid. This is a trans-

formed action in itself.

I will never forget the role you played. I vow to be one of the best commu-

nity-centered and empowering individuals- this is how we change commu-

nities: you impact one person and that person impacts others.‖

Let the beneficiaries speak:

CAREERS

26 Issue 1| APRIL 2014

27 Issue 1| APRIL 2014

When Vusi completed matric in 1981 in Middelburg,

Mpumalanga, he was forced to work as a laboratory

technician for years to earn a salary. Then he went to

Rhodes University to pursue his dream of qualifying as

a chartered accountant. He attended Rhodes from

1986-1989 where he completed his BCom degree fol-

lowed by CTA. He then wrote the Board examinations

five times and failed.

In 2008 he enrolled for CTA again, but he suddenly

contracted Chickenpox. In 2009 he enrolled again.

This time the taxi that he was travelling in broke down

and he had to literally run for five kilometres and ar-

rived at the examination venue an hour late. Then he

experienced anxiety and swollen hands and was una-

ble to go beyond one question. He re-wrote the exam-

ination in 2011 and he had one supplementary exami-

nation to write.

Finally, in 2102, he wrote QE1 and passed. He enrolled

for PPE in 2013 and hear on 21 February 2014 that he

had passed and finally he can add the much sought

after CA (SA) designation to his name.

He describes his joy as “dizzy” and for a 52-year old man, this can be a fulfilling experience indeed. To Vusi, he is a worthy role

model to his three children: an 18-year old son (who is currently in Grade 12); a 15-year old daughter and an impressionable 12-

year old son.

Who says that chartered accountants are dull and boring people who love grey suits? What do some of them do in their spare

time (when they manage to get some)?

Vusi says, “I grew up playing soccer. I also have a deep love for music, especially South African gospel and choral music. I follow

national cricket, rugby and soccer. I love eco-tourism and have a basic off- road driving certificate. I enjoy travelling (when I can

afford it) and admiring our country’s natural beauty.

I obtained a karate black belt in 2004. I visited Japan the same year and trained under Master Hirokazu Kanazawa (and his son),

Master Manabu Murakami and Master Suzuki (and son). In 1995, I trained under Master Kenneth Funakoshi during his visit in

South Africa. Master Kenneth Funakoshi is the son of Master Gichin Funakoshi, who is regarded as the founder of karate. My

South African karate trainers and heroes in karate include Sensei’s (Sensei is a Japanese term for Teacher, accorded to someone

who has obtained at least a third degree black belt) Rashid Loonat (my second karate instructor), Gordon Apollis, Edward Mtshali,

Master Mohan Hira, the late Sensei Patrick Lubambo. (I also acknowledge my chief karate sparring partner Sensei Zane Abrahams.

I had a few training sessions under the late Sensei Kisofero (from Kenya). I became junior karate instructor, preparing students for

their grading and tournaments. I also obtained a few gold and silver medals in karate competitions. My karate career was short-

ened by a nagging groin muscle injury that started late in 2004.”

By SAICA

CAREERS

28 Issue 1| APRIL 2014

Spread your wings and win clients.

Presents

WHY BUSINESS SHOWCASE EVENT?

To create a solid network within small and

medium-sized businesses.

Expose young entrepreneurs to the iconic

world of business leaders.

To help small and medium-sized enterpris-

es to advertise their products or services.

To ensure that prospective entrepreneurs

get mentors within their industry.

To equip business leaders with financial

and leadership skills.

“Building bridges is useless when roads are of disgrace” Circle of Concern Magazine’s Founder

Date: to be announced soon

Place: Protea Hotel Hatfield

Participation as a business

Email: [email protected]

Participation as an individual

Email: [email protected]

29 Issue 1| APRIL 2014

DID YOU KNOW?

30 Issue 1| APRIL 2014

Description

The South African Government offers a package of incentives to promote its film production and post-production industry. The in-

centives consist of the Foreign Film and Television Production and Post-Production incentive to attract foreign-based film pro-

ductions to shoot on location in South Africa and conduct post-production activities, and the South African Film and Television

Production and Co-Production incentive, which aims to assist local film producers in the production of local content.

Foreign Film and Television Production and Post-Production Incentive

Objectives:

To encourage and attract large-budget films and television productions and post-production work that will contribute towards em-

ployment creation, enhancement of international profile, and increase the country‘s creative and technical skills base.

Benefits:

Shooting on location in South Africa, the incentive will be calculated as 20% of the Qualifying South African Production Ex-

penditure (QSAPE). No cap will apply for this incentive.

Shooting on location in South Africa and conducting post-production with a Qualifying South African Post-Production Expendi-

ture (QSAPPE) of R1.5 million in South Africa, the incentive will be calculated at 22,5% of QSAPE and QSAPPE (an additional

2,5%, cumulative 22,5%)

Shooting on location in South Africa and conducting post-production with a QSAPPE of R3 million and above in South Africa,

the incentive will be calculated as 25% of QSAPE and QSAPPE (an additional 5%, cumulative 25%).

Foreign post-production with QSAPPE of R1.5 million, the incentive is calculated at 22,5% of QSAPPE.

Foreign post-production with QSAPPE of R3 million and above the incentive is calculated at 25% of QSAPPE.

Eligible Enterprises:

Foreign-owned qualifying productions and South African qualifying post-production work with:

QSAPE of R12 million and above, provided that at least 50% of the principal photography schedule is filmed in South Africa,

for a minimum of four weeks.

QSAPPE of R1.5 million and above, provided that 100% of the post-production is conducted in South Africa, for a minimum of

two weeks.

An applicant must be a Special Purpose Corporate Vehicle (SPCV) incorporated in the Republic of South Africa solely for the

purpose of the production and/or post-production of the film or television project.

An applicant must be the entity responsible for all activities involved in the production and/or post-production in South Africa

and must have access to full financial information for the whole production and post-production worldwide.

Only one entity per production and/or post-production for film, animation and television drama or documentary series is eligible

for the incentive.

The applicant must comply fully with its obligations in terms of the Legal Deposit Act 54 of 1997.

SA Film & TV Production and Co-production

Objectives:

FUNDING OPPORTUNITY

31 Issue 1| APRIL 2014

Benefits:

The rebate is calculated as 35% of the first R6 million of QSAPE and 25% of the QSAPE on amounts above R6 million.

Eligible Enterprises:

Special Purpose Corporate Vehicles (SPCV) incorporated in the Republic of South Africa solely for the purpose of the produc-

tion of the film or television project. The SPCV and parent company(ies) must have a majority of South African shareholders of

whom at least one shareholder must play an active role in the production and be accredited in that role.

An applicant must be the entity responsible for all activities involved in making the production in South Africa and must have

access to full financial information for the whole production.

Only one film production, television drama or documentary series per entity is eligible for the incentive.

The following formats are eligible: feature films, tele-movies, television drama series, documentaries and animation.

The incentive is available only to qualifying South African productions with a total production budget of R2.5 million and above.

Contacts:

32 Issue 1| APRIL 2014

You must look within for value, but

must look beyond for perspective.

Denis Waitley

33 Issue 1| APRIL 2014

S outh Africa has become one of the biggest economies

in the African continent attracting millions of for-

eigners and direct foreign investment. It can be said

that this encourages the growth of the economy; as

such the infrastructure of the country has to keep up with the

growth in economic activity. In the 2012 World Economic Fo-

rum discussions the lack of adequate infrastructure was cited as

one of biggest factors affecting growth in the African continent.

With its vast natural resources Africa has been attracting invest-

ment however the infrastructure to support industry, manufac-

turing and mining has been a concern for foreign investors .

Inadequate energy supply hampers production, whilst inade-

quate rail infrastructure results in delays in terms of the delivery

of goods to their destinations not forgetting low port capacity.

SA is one of the African countries that are making strides in

addressing the infrastructure backlog in South Africa. The gov-

ernment has appointed the Presidential infrastructure committee

which is tasked with advising in matters relating to infrastruc-

tures development this is accompanied by the National Infra-

structure Plan and further legislative processes have been abled

before parliament in the form of the Infrastructure Bill. This is

all aimed at addressing the infrastructure problems facing the

country.

In addressing the energy crisis the state owned power utility

namely Eskom has commenced the construction of a hydro

power plant in KZN namely Ingula and two coals fired power

stations Medupi and Kusile in Limpopo and Mpumalanga with

Medupi upon completion producing 4.764mw of power whilst

creating job and skills development opportunities during the

construction phase.

In addressing the transport infrastructure challenge Transnet

another state owned company launched a R300bn infrastructure

plan that is set to create a total of 588 000 new jobs in the SA

economy, this will include rail, ports, pipelines in a seven year

period not only the state and public enterprises are playing a

role in this sector but also private companies in the form of

Public Private Partnerships.

The private sector is also gearing up for the boom in infrastruc-

ture development a case in point would be the development of

the Gautrain, it too is an example of infrastructure development

with the concession company Bombela Concession Company

having announced plans for a R50bn expansion.

One can easily ask where the capital to finance such projects

comes from A finance mechanism called project finance is

used; this method engages a multilateral of participants includ-

ing multilateral organisations, governments, banks and private

companies. When such method is the preferred method of fi-

nancing the parties share the risks that may follow as a result of

the projects a project company also known as a Special Purpose

Vehicle is incorporated which then has independent legal per-

sonality this form of financing is also called off balance sheet

financing because unlike normal corporate finance, in project

finance the repayment of a debt is not based on the assets re-

flected on the sponsored company‘s balance sheet but on the

revenue the project will generate.

This form of financing has and continues to stimulate economic

activity in the SA economy with professional services firms

such as Law firms and Investment banks increasing their prac-

tice groups in areas of project finance.

YOUTH AND INFRASTRUCTURE

By Bongani Rakgalakane

34 Issue 1| APRIL 2014

35 Issue 1| APRIL 2014

THE NPA’S ASPIRANT PROSECUTOR

PROGRAMME - WHAT YOU NEED TO

KNOW

Are you a law graduate or student interested in pursuing a career as a Prosecutor? The

National Prosecuting Authority (NPA) is offering you an excellent and a lifetime opportunity

to fulfil your career ambitions through our unique training programme – the ASPIRANT

PROSECUTOR PROGRAMME.

Please go through the Questions & Answer below to find out more about the above

programme:

1. What is the Aspirant Prosecutor Programme?

The Aspirant Prosecutor Programme is an internship programme offered by the NPA, aimed

at equipping law graduates with practical experience to pursue a career as a Prosecutor. It is

an in-service training programme in which successful candidates are attached to the NPA’s

National Prosecutions Service to gain the required practical experience.

2. How long is the Aspirant Prosecutor Programme?

The programme runs for a period of 12 months.

3. What happens on successful completion of the programme?

On successful completion of the programme, you can expect to be offered an entry level

prosecutorial position within the NPA’s National Prosecutions Service.

4. I am interested in joining the programme. What are the requirements?

Interested applicants should have a Bachelor’s degree in law or in their final studies towards

an LLB degree, which should include at least the following courses:

• Law of Evidence,

• Criminal Law, Criminal Procedure,

• Civil Procedure; and

• Interpretation of Statutes

FUNDING OPPORTUNITY

36 Issue 1| APRIL 2014

5. Where does the training programme take place?

The programme is presented at 20 training centres, namely: Athlone, Bloemfontein, Durban,

East London, George, Johannesburg, Kimberley, Klerksdorp, Middelburg, Mthatha,

Pietermaritzburg, Polokwane, Port Elizabeth, Pretoria, Thabamoopo, Benoni, Welkom,

Madadeni, Randburg and Soweto.

6. Do successful candidates choose which training centre they will be attached to?

During the application process, candidates are required to submit their applications to the

preferred training centre.

7. Who conducts the training?

The training is conducted by qualified tutors who hold the same rank as Senior Public Prosecutor.

Each tutor is assigned a maximum of 10 aspirant prosecutors during the 12 months evaluation

period.

8. How is recruitment done? Is there an application form I can fill straight away?

To ensure that the recruitment process is fair and transparent, an advertisement will be placed in

the national newspapers, inviting interested candidates to apply. Therefore, there are no

application forms that you need to fill in to apply – you’ll only apply in response to an

advertisement that the NPA will place in the national press. You must therefore be on the look

out for that advert! The advert is normally placed in the national press and the NPA website in

June or July every year.

9. How is the selection process conducted?

The following outlines how the selection process will be conducted:

• Based on the requirements of the advert, the tutors perform pre-selection of

candidates

• After the pre-selection phase, applicants who qualify are invited to register for the

entry examination. The purpose of the entry examination is to assist with the sifting

of applications. Upon registration, applicants are each given a Training Prosecutors

Manual from which they prepare themselves for the entry examination. 3

• Amongst other criteria, the mark obtained by a candidate will also be used to

FUNDING OPPORTUNITY

37 Issue 1| APRIL 2014

• Following the interviews, ten (10) successful candidates at each centre are

recommended to undergo the training. In addition, five (5) candidates at each centre

are recommended as secundi.

• Upon completion of the aforementioned process, candidates will be required to sign

a contract with the NPA for a period of 8 months.

10. In what format is the training conducted?

During the first month, Aspirant Prosecutors receive classroom tuition. From the second month

onwards, they receive practical or in-court training. They will be required to conduct real cases in

court to demonstrate their competency.

11. How will learners be assessed?

Learners are assessed on a continuous basis to determine their competency. Before the expiry of

the programme, final assessment is conducted on each aspirant prosecutor. Only those that are

found to be competent may be offered positions within the NPA.

12. Do you need SA citizenship to apply?

Yes, only South African citizens must apply.

13. Is the training programme accredited by the South African Qualifications Authority (SAQA)?

Not yet, but the NPA is in the process of seeking full SAQA accreditation.

FUNDING OPPORTUNITY

38 Issue 1| APRIL 2014