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
Contributors and Journal-
ists
Lethukuthula Kubeka
Molebogeng Mashobane
Donald Msiza
Given Mbowane
Simphiwe Nkosi
Athi-Nkosi Majavu
Bonolo Ramokhele
Reinhard Nell
Sales
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CIRCLE OF CONCERN is
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Our Potential Readers
B elieve it or not, I am writing this editorial
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I still believe that if something cannot be done,
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All I can tell you is that, just go beyond the
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Never stop dreaming but do not spend the
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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
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
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
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.
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!
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?
@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
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]
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
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