Jeremy’s Weekly Recap: The Effects of a Misinformation Campaign in South Australia

This week on Moneyweb@Midday, we devoted considerable time to discussing Finance Minister Enoch Godongwana’s unexpected reversal of the VAT increase that was announced just days before its implementation.

This decision raised significant concerns about South Africa’s fiscal planning and credibility. Tax expert Thomas Lobban highlighted that the reasons behind this sudden shift remain ambiguous—whether it was a political strategy or a practical decision—but it has undeniably caused disruptions for both businesses and consumers.

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The legal implications are complex, especially since the VAT hike had already gone through the legislative process, and the reversal aligns with a court ruling questioning the hike’s legality under Section 74 of the VAT Act. Companies have been compelled to quickly adjust their systems, retract public communications, and face additional costs, while consumers must remain alert to avoid being overcharged due to outdated pricing structures.

The urgent question now is how the government will manage the consequent revenue shortfall, estimated to be between R15 billion and R75 billion, without introducing additional tax increases.

Lobban indicated that personal income tax hikes are unlikely, but inflationary pressures and stagnant thresholds could lead to higher effective tax burdens due to bracket creep.

SARS now faces the challenging task of enforcing stricter audits while maintaining public trust.

While this action may reflect internal strife and initial hurdles within the new Government of National Unity, it has diminished confidence in the Treasury’s commitment to a consistent, rules-based policy framework, potentially unsettling investors already worried about South Africa’s unstable fiscal trajectory.

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Subsequently, we examined a thorough investigation by Kyle Cowan from Media24, revealing that a 46-year-old guesthouse owner, Sebastian Jooste, known online as “Twatterbaas,” is orchestrating a widespread disinformation campaign.

Presenting himself as a conservative truth-teller, Jooste has exploited anxieties around farm attacks and white Afrikaner identity politics to amass a considerable following, gaining endorsements from influential figures like Elon Musk and Donald Trump.

Read:
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His narratives have permeated right-wing American circles, spreading false information about South Africa’s land policies and amplifying fears of white genocide—messaging that has influenced international perceptions and may have hardened US stances towards South Africa, particularly concerning trade agreements like the African Growth and Opportunity Act (AGOA).

During our discussion, Cowan warned that this weaponized misinformation presents significant social and economic threats, criticizing platforms like X for allowing its spread under the guise of free speech.

He further noted the alarming trend of exploiting unresolved traumas—especially involving land reform within Afrikaans identity politics—to gain influence and financial rewards online.

Despite the gravity of these revelations, there has been no official response from South African authorities or human rights organizations, and Jooste has yet to face any legal repercussions, although he has threatened to take legal action against the investigation.

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