Business News: Credit Bureau Warns South Africans About Rate Increases
- A Credit Bureau has sent a warning out to SA citizens about the rise in municipal charges which are expected to negatively impact the country's economic recovery
- A statement by TPN revealed that property prices, investors and consumers all may be impacted by the confidence held in the economy
- Due to the Covid-19 pandemic job losses, unemployment, financial insecurity and tenants and property owners will feel the brunt of the issues
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TPN Credit Bureau has warned South Africans about the increase in municipal charges which does not fair well for the country's economic recovery. It explained that there is a direct correlation between South Africa's economy and the property market.
Property prices increase, investors and consumers face higher levels of confidence in the economy, according to a statement by TPN. Commercial and residential sectors have a close relationship with the economy, business and investor confidence.
TPM stated that while the world and country are facing trouble due to the global Covid-19 pandemic which is characterised by job losses, financial insecurity and the increase in unemployment, tenants and property owners will feel the brunt in the next few months. This is due to double-digit increases in charges from the municipal level.
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Municipal charges increasing
According to BusinessTech, municipal usage charges are growing faster than the Consumer Price Index (CPI). Chief Executive Officer from TP Michelle Dickens stated that the quality of services of the municipality shows a deterioration.
The report continued by explaining that the Auditor-General stated that only 20 out of Mzansi's 257 municipalities had clean audits for the 2018/2019 financial year.
Credit Bureau's statement
TPN's statement said that there were ominous inclinations for the Office Market which still shows the best tenant payment performance out of 3 major commercial sectors in property by the end of last year. The statement continued by revealing that significant financial issues still existed for the Office Sector.
"The TPN monthly preliminary data extracts on a sectoral basis indicate that the poorest performing Retail Property Sector has nonetheless continued its gradual improving path. However, the better performing Industrial and Office Sectors’ tenant payment performance lacked further improvement during the 4th quarter."
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SAA faces trouble, once more
Previously, Briefly News reported that issues came to light due to the sale between South African Airways (SAA) and the Takatso Consortium, which is seeking a 51% share in the embattled airline.
31 March, 2017 marks the last time SAA audited financials for the end of the year. The Auditor-General failed to complete any audits during the business rescue process. Draft financial statements for the years 2018 and 2019 were sent to Parliament in 2020 by the BRPs.
At the Scopa meeting held on 25 March, it was obvious that the financial statements for the end of 2020 were not complete despite the 2021 financials being due.
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Source: Briefly News
