SAP Suspends Execs Over Gupta Leaks

Software multinational firm SAP has suspended South Africa’s management team after a #GuptaLeaks exposé by AmaBhungane and Scorpio revealed it allegedly paid a Gupta front R100m in kickbacks for state business. SAP has initiated an independent external investigation as well as an internal probe into the matter. The current management team has been placed on leave pending the findings of the review.

Source

MTN Accepts Rwanda Fine

frica’s cellular giant, MTN, confirmed it was in talks with the Rwandan authorities on how it would pay the R111 million fine for non-compliance. MTN landed itself in hot water for failing to comply with a directive precluding it from including its operation in that country into the IT hub it runs in Uganda. The company was fined $5.2 billion in Nigeria for failing to disconnect unregistered SIM- cards.

Source

Labour Broker Employees Now Entitled To Full Benefits

The Labour Appeal Court has ruled that employees hired via labour brokerage firms will be entitled to benefits if they remain employed by a company for more than three months. This effectively means that after the end of a three month period, labour broker employees cannot be treated any differently from a traditional employee. Employers will also no longer be able to simply cancel the labour contract and would have a number of obligations including full dismissal procedure under the Labour Relations Act.

Source

6 Million Verizon Customers Data Hacked

The security issue, uncovered by research from cybersecurity firm UpGuard, was caused by a misconfigured security setting on a cloud server due to “human error.” The error made customer phone numbers, names, and some PIN codes publicly available online. PIN codes are used to confirm the identity of people who call for customer service. No loss or theft of customer information occurred

Source

China Fertility Clinic Industry Booming

A paradox has emerged in China: As the country finally relaxes its one-child policy, factors like lower sperm counts, later pregnancies and other health barriers are making it harder for many to get pregnant. As a result, businesses from China to Australia, and even California are lining up to help — and profit from — the growing market of hopeful prospective parents. Families in the world’s most populous country are willing to pay top dollar for fertility therapies with some paying up to 100,000 yuan ($14,700) for each round. China’s market for IVF alone was worth $670 million in 2016 and is expected to surge to $1.5 billion in 2022, according to BIS Research

Source

Hyperloop One Has Successful Test

Hyperloop One recently completed its first test of its system.  The experiment, on a test track in Nevada, saw a sled magnetically levitated inside a full-scale tube and reach a speed of 112km/h in under six seconds. When Hyperloop One is operating at full capacity, it promises to deliver speeds of up to 1,125km/h. Hyperloop One announced in June that it plans to connect cities in Europe, with cross-country journeys set to take a fraction of the time of traditional train and car trips.

Source

Indicators : Oil 47.39 . Rand/USD 13.17 . Rand/GBP 16.99 . Rand/EUR 15.02

Advertisements

Bird Flu In Gauteng

The Highly Pathogenic Avian Influenza (HPAI) H5N8 virus – commonly known as bird flu – has been confirmed on two new locations on farms in Gauteng and Mpumalanga, the department of agriculture, forestry and fisheries said on Tuesday. The export of raw meat, eggs and live birds from South Africa to some trade partners was disrupted, as one of requirements for the certification is country freedom from HPAI, which cannot be provided since June 22.

Source

Mkhwebane Opposes Zuma On State Capture

Public Protector Busisiwe Mkhwebane said an inquiry into state capture must take place urgently, and President Jacob Zuma cannot decide which judge must hear it. Mkhwebane made these calls in her answering affidavit to a court application Zuma made in December to set aside former public protector Thuli Madonsela’s State of Capture report.

Source

Foreign Firms Make R550m From E-Tolls

Two overseas companies have earned more than R550m for providing e-tags to and printing and distributing invoices for South Africa’s loss-making e-toll system. Kapsch TrafficCom (a subsidiary of Austrian company Kapsch) received R167.2m (exclusive of VAT), while Q-Free got R58.3m (exclusive of VAT) for providing e-tags. The amounts reflect the total that Sanral paid for e-tags upon delivery since the inception of the e-toll system in December 2013. Sanral told Fin24 that the amounts paid to the two companies are exclusive of value-added tax (VAT), as it is claimed back by the companies.

Source

Trump Junior Reveals Explosive Emails

Donald Trump’s eldest son released e-mails on Tuesday showing that he embraced Russian efforts to support his father’s presidential campaign — a shocking disclosure likely to further fuel speculation over Moscow’s suspected role in the election. The revelation puts the US president’s son at the centre of a burgeoning scandal involving multiple US investigations into whether Trump associates colluded with Moscow in its efforts to tilt the 2016 election in the Republican’s favour. In a string of e-mails released on Tuesday, Donald Trump Jr was told by an interlocutor that he could get “very high level and sensitive information” that was “part of Russia and its government’s support for Trump.”

Source

Road Accidents Cost SA R143 Billion In 2015

Road accidents and fatalities in South Africa cost the economy a staggering R143billion in 2015. This was revealed at the 2017 Southern African Transport Conference and Exhibition being held in Pretoria. Road deaths cost the country’s gross domestic product (GDP) 3.4%, the gathering heard. Human casualty costs accounted for 69.3percent of the total crash cost, while vehicle repairs accounted for 14.9% and related incident costs 15.8%

Source

Dangote Aims To Double Africa Plants

Dangote Cement plans to invest about $4-billion in the next two to three years to nearly double its production capacity in Africa. Dangote, Africa’s biggest cement producer, has an annual production capacity of 45-million tonnes and in 2015, Dangote signed $4.34-billion worth of contracts with China’s Sinoma Engineering to build cement plants across Africa. At the time Dangote projected to reach 100-million tonnes production capacity by 2020.

Source

IndicatorsJSE 52’712 – Oil 48.38 – Rand/USD 13.46 – Rand/GBP 17.27 – Rand/EUR 15.40

Mkhwebane Backtracks On Reserve Bank

The Reserve Bank intends continuing its legal action against Public Protector Busisiwe Mkhwebane, despite her backing off from an attempt to rewrite the Constitution. The central bank said it had noted Mkhwebane’s statement released on Monday, but would nevertheless “proceed with a separate application for the review of the public protector’s report [on the bailout of failed bank Bankorp 30 years ago] and evidential factual inaccuracies therein”. On Monday, Mkhwebane said that on the advice of her senior counsel, she had decided not to oppose the Reserve Bank’s application to the high court for the urgent review of her remedial action directing Parliament to effect a constitutional amendment to the Reserve Bank’s powers.

Source

SAP Implicated In R100m Gupta Leaks Scandal

An investigation by investigative journalism units amaBhungane and Scorpio, which draws on information contained in the so-called “Gupta Leaks” e-mail trove, claims to show that in August 2015, SAP signed a “sales commission agreement” with the Gupta-controlled CAD House, a small company that sells 3D printers. “The terms suggest a thinly disguised kickback arrangement: if the Gupta company were the ‘effective cause’ of SAP landing a Transnet contract worth R100m or more, it would get 10%,” the report stated.

Source

Eskom To Take Action Against Koko

The board of Eskom will on Tuesday announce disciplinary measures against its former acting CE in a bid by the power utility to clean up its corruption-tainted image. The disciplinary measures stem from an investigation into allegations of conflict of interest involving hundreds of millions or rand on the part of Matshela Koko. The investigation found substantial evidence of wrongdoing and irregularities in contracts involving a company in which Koko’s stepdaughter has an interest.

Source

SASSA To Engage SAPO On Grants Payments

The South African Social Services Agency has scrapped the advisory groups that were set up to plan for the future of the country’s more than $11 billion of annual welfare payments. Letters were sent to the so-called “work streams” last week informing them of their termination. The government is pushing to find a new system to pay welfare grants to more than 17 million recipients after the Constitutional Court in March allowed for a 12-month extension to the contract with Net1 UEPS Technologies Inc., after earlier finding the deal was invalid. The Post office has come up as the only bidder for the project.

Source

SA Banks To Set Up National Blockchain

The South African Financial Blockchain Consortium (SAFBC), comprising 22 industry heavyweights, the South African Reserve Bank and the Financial Services Board as observers, is currently exploring the technology powering the US$41bn bitcoin market. Blockchain technology is widely expected to up-end the global economy by revolutionising the way in which companies and consumers transact with each other. SAFBC is examining the technology with a view to make the current system more efficient and give rise to significant cost savings over the long term.

Source

Indicators : JSE 52’427 – Oil 46.54 – Rand/USD 13.56 – Rand/GBP 17.46 – Rand/EUR 15.4

Volvo To Abandon Combustion Engines

Electricity will power every new Volvo model starting in 2019, the Chinese-owned automaker making it the first major car manufacturer to pledge to leave the traditional combustion engine behind. Volvo said it will launch five fully electric vehicles between 2019 and 2021. Volvo said it will also introduce a host of new gas and diesel plug-in hybrids down the line. The company has yet to provide details on any of the models.

Source

Gupta’s To Delist From JSE

Oakbay, which earned Atul Gupta a spot on the 2016 Sunday Times Rich List with a paper fortune of R10.7bn based on the company’s market capitalisation, has applied for the voluntary suspension of trading in its shares from the JSE after failing to secure a sponsor.

Source

JSE Announces Job Cuts Due To Recession

The JSE says it will cut its workforce by 14% as part of a cost cutting programme which will include reducing its technology operating expenditure by a minimum of R70 million over a two-year period. Nicky Newton-King, CEO of JSE said: “globally, securities exchanges and other players in the financial services industry are adjusting the way in which they operate in response to changing regulatory requirements and the fast-pace of technological developments.

Source

Zim Considers Legalising Marijuana Production

Zimbabwe is considering legalising the production of cannabis for medical purposes to lure investors keen to grow the drug, a cabinet minister says. Investment Promotion Minister Obert Mpofu says a Canadian firm has applied to the government for a permit to produce the drug, known locally as mbanje, in one of the country’s soon-to-be-set-up Special Economic Zones (SEZs).

Source

Tesla Rolls Out First Model 3 Tesla

The Model 3, Tesla’s $35,000 electric gamechanger. A single black Model 3 rolled off the production line Friday with a serial number all its own, kicking off a company-defining six months is here. Tesla has already taken in roughly half a billion dollars in Model 3 deposits, at $1,000 apiece, and its proposed ramp-up schedule would have it rivaling well-established U.S. market peers like BMW and Mercedes by year’s end. The only thing standing between Tesla and being the world’s first mass-market electric carmaker is proving it can build, deliver, and service enormous numbers of these vehicles—without sacrificing quality.

Source

Indicators : JSE 51’800 – Oil 46.66 – Rand/USD 13.33 – Rand/GBP 17.09 – Rand/EUR 15.16

ANC Wants Reserve Bank Nationalised

The rand was wobbly on Thursday morning, suggesting that the market was still unsettled over the ANC’s proposal to nationalise the Reserve Bank. The local currency fell as much as 2% to the dollar following the proposal, which analysts said cast a shadow on the independence of the central bank.

Source

Popeyes To Open In Sandton Next Week

A new chicken has come to roost in the richest square mile in Africa. Popeyes Louisiana Kitchen is set to open its doors in Sandton next week, but feathers are set to fly as the New Orleans-based brand muscles in on territory ruled by KFC and Chicken Licken. Group CEO Jaye Sinclair said there was more than enough interest from consumers to sustain another fried-chicken brand in the country. “The quick-service restaurant market is showing positive growth. Chicken makes more than 50% of the QSR [quick-service restaurant] market, so there is scope for Popeyes to enter. “Popeyes is also the second-largest chicken player in the world. From a brand perspective, it has a strong and proven record,” he said.

Source

Taxi Strike Called Off

Taxi operators on Thursday suspended plans to strike on July 12, pending the outcome of talks with Transport Minister Mkhacani Maswanganyi. The South African National Taxi Council wants licenses to be made indefinite, which will enable operators to obtain finance for their vehicles from banks at more favorable rates. Last month, minibus taxi operators blocked many of the main roads and highways in the country’s Gauteng province, bringing transport to a near standstill in parts of the country’s main commercial hub of Johannesburg.

Source

H&M To Open Six More Stores

Swedish retailer H&M plans to open another six stores in SA before the end of 2017 as it extends its reach in the country. The news follows on the group’s interim results, which showed a 32% rise in sales in rand terms in SA. The rise came at the expense of local retailers such as Mr Price and Edcon.

Source

Indicators : JSE 52’667 – Oil 48.49 – Rand/USD 13.40 – Rand/GBP 17.29 – Rand/EUR 15.21

Kgosana Loses Alex Forbes Job Over Gupta Leaks

Former KPMG Africa lead, Moses Kgosana, has announced he will be resigning as a non-executive director at Alexander Forbes, following media reports implying he turned a blind eye to dodgy Gupta dealings during his time at the auditing firm. In a statement on Monday, Kgosana said that since becoming aware of recently published allegations in respect of KPMG which related to his previous position, he believes resigning is the correct course of action for himself, the company, its clients and shareholders.

Source

Pre-Gordhan Insider Trading Probe Dropped

The FSB said its directorate of market abuse (DMA) had concluded that currency futures contract trades done before March 27, when Gordhan was ordered back from London, “were undertaken in the normal course of business by institutional investors who at the time that they traded had no prior knowledge that Mr Gordhan would be recalled from the roadshow”.

Source

Eskom Secures R20bn Loan From Chinese Bank

Eskom will sign a $1.5bn (R19.78bn) loan agreement with China Development Bank on Thursday. Last week, new acting Eskom CEO Johnny Dladla revealed that Eskom had secured 77% of its funding requirements for the 2017/18 financial year. He said that for the 2016/17 financial year, Eskom increased its borrowings by over R60bn.

Source

Maths May Be Scrapped As Pass Requirement In Schools

The Department of Basic Education is considering amending promotion requirements that could result in key subjects such as mathematics being removed as a compulsory requirement in the progression from lower to senior grades. To minimise the effect of the higher promotion requirements in the senior phase, the department issued a national assessment circular in 2015 to allow for the adjustment of marks. In 2016, “given the adverse impact” of the maths pass requirement of 40%, a special condonation dispensation for maths was applied, Mhlanga said.

Source

Tax Season Open

Tax Season 2017 officially opened on Saturday, 1 July 2017 for eFilers, and on Monday for branch filers. Taxpayers can now commence completing and submitting their 2017 personal income tax returns for the 2016/17 tax year

Source

Britian Headed For Recession

Here’s the evidence: Brits are saving the smallest share of disposable income in over 50 years. Credit card borrowing is at record high. Wages are stagnating and consumer confidence is crashing. Data published on Friday confirmed the economy grew just 0.2% in the first three months of the year, cementing Britain’s position as the slowest growing economy in the European Union.

Source

Mazda Sales Grow 16% In Last Year

South Africa’s domestic new-vehicle market declined by 11.4% in 2016 over 2015, while Mazda SA managed to grow sales by 33%, from 9 067 units in 2015, to 12 049 units in 2016. (Consider also that the company sold 4 939 units in 2014.)

Source

Indicators : JSE 51’756 – Oil 49.46 – Rand/USD 13.18 – Rand/GBP 17.03 – Rand/EUR 14.98

SAA Gets R2.b Billion Bailout

National Treasury has announced that it has come to South African Airways’ aid, by bailing the failing airline out of a R2.2 billion debt payment that it could not get an extension for. The payment was made to Standard Chartered, which refused to extend a loan facility, and has been made in terms of section 16 of the PFMA which makes provision for the use of funds in an emergency situation as follows:

Source : https://goo.gl/Tgyj32

KPMG Deny Ignoring Gupta Wedding SPlurge

Auditing firm KPMG has refuted an amaBhungane report that claimed the group effectively turned a blind eye to the Gupta family using proxy companies to launder millions of rands received by the Free State government. Reports citing many emails from the Gupta leaks, showed how the Gupta businesses took money meant for an agricultural project in the Free State, and ran it through bank accounts in India belonging to businesses owned by the family. Two different Gupta-linked companies – Linkbay Trading and Accurate Investments – were then billed for and paid the tune of R30 million for wedding services

Source : https://goo.gl/KJxHft

68c Drop In Petrol Price Expected

The Retail price of 93 octane unleaded petrol (ULP) and lead replacement petrol (LRP) will drop by 69c/* with effect from midnight on Tuesday, the energy department has announced. The retail price of 95 octane ULP and LRP will drop by 68c/* , it said. The wholesale price of both grades of diesel – 0.05percent sulphur and 0.005percent sulphur – would decrease by 60c/* . The wholesale price of illuminating paraffin would drop by 57c/* and the single maximum national retail price by 76c/* . The maximum retail price for LP gas would drop by 91c/kg, due to the average international product prices decreasing during the period under review

Source : https://goo.gl/k2efBD

Tesla To Release Model 3 This Month

Tesla’s first mass market electric car will start rolling off the production line this week.
“Model 3 passed all regulatory requirements for production two weeks ahead of schedule,” Tesla CEO Elon Musk tweeted on Monday. The first one is expected to be finished Friday, he said. The automaker is aiming to dramatically ramp up output of the eagerly awaited vehicle in the coming months. After throwing a “handover party” for the first 30 customers in late July, Tesla (TSLA) plans to produce 100 Model 3 cars in August, 1,500 in September and 20,000 in December, according to Musk.

Source : https://goo.gl/jaoLAj

13 Funeral Schemes Under Investigation

The Financial Services Board (FSB) warned the public against illegal funeral policies amid a probe of thirteen entities. Funerals are important occasions in South Africa and are often lavish and costly affairs. In some instances, families incur large debts to fund a decent send-off. To avoid this, people are increasingly turning to funeral plans, but this could turn out to be a money making scheme, cautioned the FSB in a statement on Wednesday. It urged the public to be wary when purchasing such policies. “The FSB investigates and takes action against entities who sell funeral policies to the public whilst such policies are not underwritten by a registered long-term insurance company.”

Source : https://goo.gl/vB17HS

Indicators : Oil 48.71 – Rand/USD 13.15 – Rand/GBP 17.03 – Rand/EUR 14.97