KZN Death Toll Rises To 32

The KwaZulu-Natal Co-operative Governance Department has on Tuesday confirmed the death toll from flooding has risen to 32. Children number among those who died in mudslides and round 10 people are still missing. Hundreds have been displaced by the recent heavy rains. eThekwini residents have been urged to move to higher ground and seek safety amid persistent flooding in the province.

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Nedbank Writes Off Poor Bond Holder Debts

The Gauteng department of human settlements wants South Africa’s major banks to write off millions in debt owed by indigent homeowners on bond repayments. This comes after the department managed to convince Nedbank – one of the nation’s top-five banks – to write off R14 million in bond debt and hand over 33 title deeds to beneficiaries in a joint initiative with the cities of Johannesburg and Ekurhuleni. Department deputy director-general Keith Khoza said the initiative was sparked by scores of bankrupt bond payers approaching them for help to thwart eviction and homelessness.

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SABC Fires COO Chris Maroleng

The SABC board has terminated the contract of employment of its Chief Operations Officer, Chris Maroleng, with immediate effect. This announcement followed “due consideration of the findings and recommendations of a disciplinary process”. According to the SABC, Maroleng was found guilty of breaching his fiduciary duties as well as negligence.

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Oil Prices Jump As America’s Iranian Oil Sanctions Bite

The United States on Monday said it will eliminate in May all waivers granted to eight economies allowing them to buy Iranian oil without facing U.S. sanctions, as it ratcheted up pressure to choke off all oil revenues of the Islamic Republic. Brent crude has rallied around 38% this year as OPEC and its partners embarked on a mission to cut output and avert a global glut, while disruptions in Venezuela, Nigeria and Libya have further squeezed supplies.

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Google Drone Deliveries Get Govt Approval

An offshoot of Alphabet Inc.’s Google has become the first drone operator to receive government approval as an airline, an important step that gives it the legal authority to begin dropping products to actual customers. The subsidiary, Wing, now has the same certifications that smaller airlines receive from the U.S. Federal Aviation Administration and the Department of Transportation. It plans to begin routine deliveries of small consumer items in two rural communities in Virginia within months, the company said.

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King Price Wants To Buy Alex Forbes Insurance Business

Fledging insurer King Price is preparing an audacious bid of up to R2 billion to buy Alexander Forbes’s short-term insurance business and will submit its formal bid for the asset next week. King Price chief executive Gideon Galloway said yesterday that he was confident the insurer would emerge victorious, despite expecting fierce competition.

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Coca Cola Making Move Into Coffee Business

Coca-Cola isn’t new to coffee, but the global beverage giant is planning on making a big push into the industry this year. The company is releasing Coca-Cola Coffee in more than 25 markets around the world by the end of 2019. “Coke Coffee was designed to reach consumers during specific occasions and channels like the mid-afternoon energy slump at work,” CEO James Quincey told analysts Tuesday.

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Philip Morris Goes into Life Insurance

Philip Morris International, the tobacco company that sells Marlboro cigarettes, is getting into the life insurance business. Called Reviti, the wholly owned subsidiary will initially sell life insurance in the U.K. with plans to expand into more markets overseas. Smokers will receive discounts if they stop, quit or switch to a possibly less carcinogenic product, like Philip Morris’ vaping devices. On average, people who switch to e-cigarettes will receive a 2.5% discount on premiums, people who switch to Philip Morris’ heated tobacco product iQOS for three months will receive a 25% discount, and people who quit smoking for at least a year will receive a 50% discount, the company said.

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Currencies : Rand/USD 14.32 – Rand/GBP 18.52 – Rand/EUR 16.08

Shocking Revelations From PIC Inquiry

Evidence heard so far from past and present employees has painted a bleak picture of the quality of PIC’s internal governance standards. It has also shone a light on claims of undue influence wielded by the asset manager’s former head, Dan Matjila.Two senior PIC executives were suspended in the first week of the inquiry – the group’s Head of Listed Investments, Fidelis Madavo and its Assistant Portfolio Manager, Victor Seanie. The pair learnt of their suspensions on the morning of the same day that Madavo testified. They were suspended following a probe of their roles in the PIC’s R4.3bn investment in AYO Technology Solutions in 2017. AYO is linked to businessman Survé. Survé has denied there was anything wrong with the deal.

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Boeing Admits Fault Caused Crashes

Boeing has admitted a key sensor malfunctioned on an Ethiopian Airlines flight which crashed, killing all 157 people on board. An investigation found the pilots complied with procedure but “were not able to control” Ethiopian Airlines Flight ET302 after it nosedived on March 10.

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Facebook To Be Fined For Terrorist Content

Technology firms including Facebook, Instagram and Twitter face “substantial” fines or a U.K. ban under a new law if they don’t act swiftly enough to remove content that encourages terrorism and child sexual exploitation and abuse. The companies’ directors could also be held personally liable if illegal content is not taken down within a short and pre-determined time-frame, the Home Office said. The exact level of fines will be examined during a 12 week consultation following the legislation’s launch on Monday. The spread of fake news and interference in elections will also be tackled.

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Eskom Power Situation Set To Get A Lot Worse

An electricity-supply crisis is looming in South Africa that could make intermittent outages in the past few months seem trivial by comparison. Eskom, which supplies almost all the nation’s power, will lose more than a quarter of its current generating capacity over the next decade as it shuts ageing coal-fired plants. Replacing that output and adding capacity needed to meet rising demand will take years and cost more than R1 trillion, according to government estimates. The problem is likely to worsen exponentially after 2030 as more plants reach retirement age.

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Zimbabwe To Compensate White Farmers After Land Grabs

Zimbabwe plans to complete land valuations by the end of May to determine the level of compensation to be paid to former white commercial farmers who lost their properties during the government’s land reform programme. “Given the significant progress made to date, it is anticipated that that this comprehensive farm improvements valuation exercise will be completed by end of May,” the government said in a statement on Sunday.

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Currencies : Rand/USD 14.17 – Rand/GBP 18.52 – Rand/EUR 15.91

No Salary Increases For Ministers

“President Ramaphosa has determined that there will be no annual salary increase for the Deputy President, Ministers, Deputy Ministers, the Speaker of the National Assembly, the Chairperson of the National Council of Provinces, the Deputy Speaker of the National Assembly and the Deputy Chairperson of the National Council of Provinces,” the presidency said. Members of provincial legislatures will, however, receive a 2.5% salary increase. This is a great move but in my view, there should be no bonuses either but there was no mention of what will happen in that regard.

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Shivambu’s R1.46 Million VBS Home Loan

Despite not qualifying for a loan, VBS Mutual Bank gave Brian Shivambu’s company Sgameka a R1,46m home loan after his brother Floyd Shivambu had private discussions with VBS chair and kingpin in the bank robbery Tshifhiwa Matodzi, leaked emails show. This VBS home loan was given to Sgameka Trading on top of the illicit R16,1-million that Brian Shivambu received in a fronting scheme on behalf of his brother, EFF president Julius Malema and the Economic Freedom Fighters. When asked about the home loan, Floyd Shivambu had this to say, “Fraudulent activities are dealt with by the criminal justice system and not some imaginations of a lousy journalist… I think your narrative is bullshit and pure drivel driven by narrow obsession. Please give me the proof that I received R10-million from VBS.” Personally, i think there is a lot for Shivambu to answer for and these allegations keep piling up. Thus far he hasn’t provided any evidence to clear himself and its getting worse.

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Crunch Brexit Vote Looms

With less than 48 hours to go before May faces the reckoning of her MPs, few of the 100-plus rebels who have vowed to vote against her deal showed any sign of altering their positions. The prime minister is under intense pressure from aides and senior ministers to considering pulling the vote on Tuesday, a move Downing Street has emphatically denied will happen, though a final decision is unlikely to be made until the 11th hour.

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National Minimum Wage Of R20 From 1 January

The national minimum wage will kick in on January 1, meaning no South African worker will earn less than R20 an hour in the new year, President Cyril Ramaphosa announced on Friday. My hope is that there will be minimal job losses but the fact is that the economy is struggling and businesses are feeling the strain. There will most definitely be more job losses.

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House Prices Down 21% Since 2007

In real terms, including the impact of inflation, house prices have declined by 20.8% since August 2007, the peak of the pre-2008 boom period. This is according to November’s FNB House Price Index, published by John Loos, now property sector strategist at the bank’s commercial property finance division. Property intelligence outfit Lightstone reports even lower house price inflation, at just 3.5% in its latest report (for October). FNB saw (downwardly) revised growth of 4.1% in October.

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America Opens Case Against Huawei CFO

On Friday, the U.S. began a market-shaking case against the Chinese telecoms giant in a Vancouver courtroom, alleging that Meng had hidden ties between Huawei and a company called Skycom that did business in Iran, said a lawyer representing Canada during the court hearing. Canada is presenting the case on behalf of the U.S., which wants to extradite Meng. Meng, 46, daughter of Huawei’s founder, spent the weekend in jail after a decision on whether to grant bail was not reached. The case will continue today.

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China Retaliates To U.S Sanctions

China announced that it will impose additional tariffs on some American goods in retaliation for the latest increase of U.S. duties on $200 billion of Chinese imports. The tariffs will take effect on June 1, according to a statement on the Ministry of Finance’s website. The year-long trade frictions between the world’s two biggest economies re-escalated last week when the Trump administration announced a 25% punitive tariff on thousands of Chinese products.

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Warning Of Extreme Climate Events

More extreme weather events and a rise of 6°C in average temperatures across the country could be possible by the end of the century. That’s according to an official government report released this week, which has pulled no punches in summarising just how climate change has already ravaged South Africa, with the worst yet to come. Over the past few years, we have seen droughts cripple entire provinces. Then, when the rain does come in certain regions, the intensity of the storms often lead to displacements and deaths.

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Uber IPO A Disaster

The ride-hailing giant, which went public on Friday, six weeks after its rival Lyft, sputtered to a 7.6% loss in its stock market debut, wiping out $655 billion of investor wealth. When the dust settled, it was the biggest first-day dollar loss in US IPO history, according to an analysis from Jay Ritter, a professor at the University of Florida. Prior to Uber’s loss, the largest first-day dollar loss was during the dot-com bubble of two decades ago. Genuity, an internet company spun out of Verizon, lost $277 million its first day.

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Net1 Suffers 72% Profit Decline

Financial services group Net 1 UEPS Technologies has reported a 72% decline in their bottom line since their Sassa contact came to an end during the first quarter of 2019. The decrease in segment revenue and operating income was primarily due to the substantial decrease in the number of Sassa grant recipients paid under our Sassa contract as the contract ended at the end of Q1 2019,

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MTN Share Price Up 36% In Two Months

Between March 6, the day before MTN announced its results for the year to December, and Thursday (May 9), when it published a first-quarter trading update, its share price has increased by 36% from R76.06 to R103.45. This performance, which should be viewed against MTN’s steady decline from a high of over R260 in September 2014, reflects the outcome of a clearly-communicated plan to deal with issues that have not sat well with investors for some years. In March the group defined its position and outlined its future direction, and a flurry of activity since then – including board changes, positive quarterly update, imminent Nigerian listing and asset disposal programme – has hit the right notes with investors as the price continues its upward trajectory.

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Ethekwini Mayor To Appear On Corruption Charges

eThekwini mayor Zandile Gumede is expected to hand herself over to the Hawks and appear in the Durban Commercial Crimes court on Tuesday on a raft of corruption charges. In May last year it emerged that Gumede, a strong ally of former president Jacob Zuma, was being investigated by the Hawks for facilitating money laundering‚ fraud and corruption, allegedly to pay back cronies who helped her political ambitions. In December a City Press article reported that a forensic report by Integrity Forensic Solutions named Gumede and Mondli Mthembu‚ a councillor who chairs the human-settlements committee in council‚ and three other officials who allegedly orchestrated a corruption and money laundering “scam” which saw eThekwini pay R25m to hire about 800 chemical toilets for six months.

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Zimbabwe Starts Loadshedding

Zimbabwe has started rolling power cuts lasting up to eight hours that will also hit mines, a schedule from the State power utility showed on Monday, after reduced output at both the largest hydropower plant and ageing coal-fired generators. The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) said power cuts, known locally as load-shedding, would start on Monday and will last up to eight hours during morning and evening peak periods.

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Trump Increases China Tariffs

Emerging-market equities saw their worst rout since October 2018, while currencies extended a four-week losing streak as trade clashes intensified between the world’s two largest economies. The US ratcheted up tariffs on $200bn of goods from China, which vowed to retaliate. American officials gave China a month to reach a deal or face tariffs on all its exports to the US.

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Over R2 Billion Spent On Electioneering

Political parties spent about R2 billion combined this year’s general elections, and the cost of politics is only projected to increase. Madlala, founder and director of ZOE PR Communications Managers, has estimated that over R2 billion was collectively spent by political parties on campaigns, with the ANC, which emerged triumphant, having spent more than R1 billion – a boost for public relations and marketing companies.

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Zim Turns TO Eskom To Avoid Loadshedding

Zimbabwe will turn to electricity imports from South Africa and Mozambique to ensure that the country does not resort to load shedding following a significant reduction of power generation from its anchor power station Kariba Dam, said a senior government official. Commenting on the latest development where the country is set to lose 33% of power generation capacity, Energy and Power Development Minister Jorum Gumbo said on Friday the southern African country will look at other means to make sure that “the nation doesn’t go dark”.

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More Ford Models At Risk Of Security Breaches

Ford South Africa has been testing various models within its line-up to understand potential security vulnerabilities around the key lock barrel. Through this process, Ford said that its Focus ST and Focus RS appear to be unaffected by the particular modus operandi being used – however certain Focus Ambiente and Trend models (built from September 2015 to date) could be the target of opportunistic thieves. In a statement, Ford said “Our dealer network is now able to assist Focus customer with a security upgrade for the nominal cost of R155.25 (including VAT). The replacement lock will cost R1,199 (incl VAT) providing there is no additional damage to the door that requires repair.”

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DSTV Now Crashes 

DStv Now subscribers who tried to use the service on Sunday were greeted with the message “Error 500 – There is a problem with the page you requested”. The DStv Now service was unavailable for hours on Sunday which prevented users from viewing high-profile sporting events like the Premier League’s final matches. The company said on Twitter that their technical teams are aware of performance issues on DStv Now and have been working round the clock to resolve these problems.

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IEC Strike Averted

A potential strike by permanent Electoral Commission of South Africa (IEC) workers belonging to the National Education, Health and Allied Workers’ Union (Nehawu) has been averted. Nehawu and the commission reached an agreement after two days of marathon negotiations to resolve the outstanding issues. Workers had threatened not to report for duty on Wednesday, which may have disrupted voting on election day.

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Steinhoff To Present Restated 2017 Financials

Steinhoff is set to release its restated and audited financial results for 2017 on Tuesday, giving investors insight into how a yearlong forensic probe by PwC has altered the multinational retailer’s financial position. The Stellenbosch-headquartered retailer has not made the full PwC report public, but published an 11-page overview stating that a “small group” of former executives inflated the group’s profit and asset values for years.

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Boeing Admits 737 Max Mistakes

Boeing on Sunday said that a key alert system linked to faulty sensors was sold as an optional feature on Boeing 737 MAX planes. Boeing has taken heat in recent months, following the crash of Lion Air Flight JT610 and Ethiopian Airlines Flight ET302, which both featured Boeing 737 MAX planes. Investigators have linked the crashes to a sensor called the angle of attack (AOA), which delivered faulty readings and triggered a mechanism on the MAX planes to automatically push the nose of the plane downwards, causing them to plummet.

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System Crash At OR Tambo Causes Chaos

Passengers boarding international flights subsequently queued behind the check-in desks of Terminal A, with the line of passengers stretching all the way to Terminal B. Airport staff moved throughout the line attempting to get passengers onto their flights on time, while others took the opportunity to ask people for tips in return for helping them make it through immigration in time for their flights. At the time of reporting on this issue, Airports Company South Africa (ACSA) did not provide comment on the problem, but OR Tambo management has subsequently released a statement on the issue.

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New R1.2 Billion Pretoria Mall Gets Green Light

McCormick Property Development (MPD) has announced that it will begin moving ahead with Capital Mall, a R1.2 billion mega-development in Pretoria West. The development has been stuck in limbo, but an appeal to halt the development was overturned during a sitting of the City of Tshwane’s Municipal Appeals Tribunal (MAT) in April, the developers said. The development node includes a 150-bed private hospital, value retail centre, motor dealerships, affordable housing, student housing, schooling and community facilities

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Currencies : Rand/USD 14.46 – Rand/GBP 18.96 – Rand/EUR 16.21

China Withholds Eskom Loan

China is withholding a R7-billion payment meant to help Eskom combat its current financial issues due to fears that the power utility will not complete its power station construction projects. According to a report in the City Press, the Chinese Development Bank (CDB) has become wary of Eskom’s promises and is concerned that it will not complete the construction of Medupi and Kusile. The R7-billion payment is part of a R33-billion loan which was meant only to aid in the construction of the two ongoing power station projects, and the CDB is reportedly concerned that these funds will be used on salaries and diesel instead of developing these projects.

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SABC Close To Total Shutdown

The SABC is potentially facing a total broadcasting blackout because of spiraling debt woes and lack of relief funding, the Sunday Times reports. SABC CEO Madoda Mxakwe told the Sunday paper that the public broadcaster cannot pay its creditors and while the company’s application for a R6.8 billion bailout was approved, the funds have not yet arrived. National Treasury agreed to provide the SABC with interim financial relief in March, to prevent the broadcaster from collapsing. It was declared technically insolvent at the end of January 2019. If it is unable to secure sufficient funding, the SABC will be forced to cut its national broadcast due to the inability to continue operations, the Sunday Times said.

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Congo Ebola Deaths Top 1000

The death toll from the Ebola epidemic in the Democratic Republic of Congo has passed 1,000, the health ministry says. DRC’s Ebola outbreak began in August and is the second deadliest in history. World Health Organization deputy director Dr Michael Ryan said mistrust and violence was harming efforts to tackle the disease as it spread through the east of the country.

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Trump Threatens More China Tariffs

President Donald Trump intensified pressure on China to strike a trade deal in Washington this week by threatening to more than double tariffs on $200bn of the Asian nation’s sales to the world’s largest economy. In an abrupt shift from the White House after both sides had indicated negotiations were going well, Trump tweeted on Sunday he’s not satisfied with the pace of progress and that the duties would increase Friday. He had twice delayed increasing tariffs to 25% from 10% after agreeing to a December 1 truce with President Xi Jinping to give their negotiators time to work out a comprehensive agreement.

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Amazon Robots TO Unload / Load Trucks

Siemens AG and Honeywell International have built machines that pull packages from the back of a tractor-trailer and place them on conveyor belts, whizzing the parcels off for sorting. Making robots that can load trucks is more complicated, although clearing that hurdle isn’t far off. The devices, unveiled at a recent automation conference in Chicago, hold out the promise of increasing productivity while reducing the need for one of the most grueling jobs in logistics. Couriers are relying on automation to grapple with the rise of online shopping, which is fueling record demand but pressuring profit margins. Amazon’s plan to handle more of its own shipping and offer more one-day deliveries is only upping the ante.

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Transnet On The Stand At State Capture Inquiry

ransnet is set to take the stand at the Commission of Inquiry into State Capture this week to shed light on how the Guptas and their allies gained access to the freight rail and transport logistics company’s lucrative contracts. Board chairperson Popo Molefe is expected to give details on how billions in kickbacks ended up with the controversial family. Investigations thus far have revealed that Transnet paid more than R5billion in advisory services on the purchase of 1064 locomotives from China that the utility spent more than R50bn on.

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Duarte’s In Tender Kickback Scandal

A company that scored tenders worth millions of rands from state-owned enterprises diverted money meant to fund supplier development programmes to ANC deputy secretary-general Jessie Duarte’s family members in return for them assisting it to snatch more state business. Combined Private Investigations (CPI), a company that was previously found to have spied on journalists and politicians, among them Peter Bruce, Rob Rose and Trevor Manuel, has told law-enforcement agencies that it paid more than R40m in two years to a group led by Gupta associate Salim Essa. The group included Malcolm Mabaso (a former adviser to former minister of mineral resources Mosebenzi Zwane), Duarte’s son Yusha and her ex-husband John Duarte

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Currencies : Rand/USD 14.47 – Rand/GBP 18.99 – Rand/EUR 16.20

Huawei Overtakes Apple – Begins

Huawei Technologies Co. overtook Apple Inc. to claim the No. 2 spot in smartphones in the first quarter, moving a step closer to its avowed ambition of displacing Samsung at the top of the market. It was the only name in the top 4 that managed to expand volumes as the overall market slid for the sixth consecutive quarter. Huawei’s been steadily gaining on Apple and Samsung Electronics Co. with an increasingly high-end line-up of devices, particularly in its home market of China.

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Standard Bank Accused Of Double Dipping

In a case due to come before the Eastern Cape High Court this month, Standard Bank is accused of double charging the arrears amount owed by a mortgage client, resulting in a guest lodge being repossessed and sold at auction for a fraction of its market value. The bank concedes in its court papers that it made an error in calculating the arrears due to a computer glitch. Legal consultant Leonard Benjamin, who is advising Homewood, says this is an explosive admission by the bank, and urges home owners to carefully interrogate their monthly statements if they have been sued by the banks after falling into arrears.

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Ramos R30 Million ABSA Farewell Bonus

Retired Absa CEO Maria Ramos earned a total pay package of R29.7 million in her final year at the financial services company, topping off her decade as chief executive of the group. Ramos announced her retirement from Absa in January 2019, with her plan to leave the company after her 60th birthday in February.

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Lesotho Broke – Needs R203.73m For Food

Lesotho needs about R203.73m for food aid for almost half a million people. Crop production in the mountainous country that’s surrounded by South Africa declined by 21% and the sale of livestock products dropped by 70% due to drought. The number of people who will need food will increase to about 640 000 from July until June next year unless production is boosted by intensive agriculture practices

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Newsroom Afrika Launches

Newzroom Afrika’s new 24-hour service goes live on DSTV channel 405 on Thursday, just in time to cover Wednesday’s elections. The channel replaces the controversial Gupta-owned ANN7, which was taken off air last year despite an attempt to rebrand it under “new ownership” (supposedly Mzwanele Manyi, who bought the channel from the Indian business family using their own money).

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US Pharma Boss Convicted In Opiods Case

The founder of Insys Therapeutics John Kapoor has become the first pharmaceutical boss to be convicted in a case linked to the US opioid crisis. A Boston jury found Kapoor and four colleagues conspired to bribe doctors to prescribe addictive painkillers, often to patients who didn’t need them. The former billionaire was found guilty of racketeering conspiracy for his role in a scheme which also misled insurers. Tens of thousands of deaths have been caused by opioid overdoses in the US. Indian-born Kapoor founded drugmaker Insys Therapeutics in 1990 and built it into a multi-billion dollar company.

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Pig Ebola Virus Decimates Hog Numbers

What started with a few dozen dead pigs in northeastern China is sending shock waves through the global food chain. Last August, a farm with fewer than 400 hogs on the outskirts of Shenyang was found to harbor African swine fever, the first ever occurrence of the contagious viral disease in the country with half the world’s pigs. While official estimates count 1 million culled hogs, slaughter data suggest 100 times more will be removed from China’s 440 million-strong swine herd in 2019, the Chinese zodiac’s “year of the pig.” The U.S. Department of Agriculture forecast in April a decline of 134 million head — equivalent to the entire annual output of American pigs — and the worst slump since the department began counting China’s pigs in the mid 1970s.

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Currencies : Rand/USD 14.53 – Rand/GBP 18.95 – Rand/EUR 16.24

iPhone Sales Drop At Record Pace

Sales of Apple’s iPhones fell at their steepest-ever rate, according to data for the three months to the end of March. The firm said revenue from the iPhone dropped by 17%, compared with the same period a year earlier, to $31bn. However, Apple chief executive Tim Cook said sales were stronger towards the end of March, including in China where it cut iPhone prices to boost demand.

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Most State Owned Companies Show Improvement

A Moneyweb analysis on the latest results of South Africa’s state-owned enterprises (SOEs) shows that most performed satisfactorily in the year to March 2018, but 13 of the 30 are still performing dismally. Nine of these – Eskom, SAA, SA Express, the SABC, the Post Office, Denel, roads agency Sanral, PetroSA and passenger rail agency Prasa – continue to bleed so much cash they dwarf the positive results from the rest. The nine struggling companies posted total losses of nearly R20 billion over the 12 months.

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MTN Plans To Sell Jumia Stake

MTN Group Ltd. plans to sell at least half of its $655 million interest in newly listed Jumia Technologies AG as Africa’s biggest wireless carrier looks to pay down debt and enter new markets. A selldown of the 19 percent stake in the online retailer could happen before the end of the year, said the people, who asked to remain anonymous as the deliberations are private. Johannesburg-based MTN first needs to wait out a half-year investor lock-in period that followed Jumia’s successful share sale in New York, they said.

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Congestion Tax And Other Road Taxes Planned

The Department of Transport plans to introduce a number of regulatory changes in an effort to cut down on South Africa’s greenhouse gas emissions. The Department of Transport said that it will prepare the following regulatory actions targeted at encouraging the modal shift from road to rail and from private vehicle use to public transport: Congestion tax, Environmental levy, Car life limits etc

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Putin Signs Russia Private Internet Law

Russian President Vladimir Putin has signed the law on providing stable operation of the Russian Internet (Runet) in case it is disconnected from the global infrastructure of the World Wide Web. Under the legislation, assuming it actually works in practice, the government would deal with “threats to the stable, safe and integral operation of the Russian Internet on Russian territory” by centralizing “the general communications network.” Put more simply, the law sets in train plans for an alternative domain name system (DNS) for Russia in the event that it is disconnected from the World Wide Web, or, one assumes, in the event that its politicians deem disconnection to be beneficial. Internet service providers would be compelled to disconnect from any foreign servers, relying on Russia’s DNS instead.

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Druglords Mistakenly Send Elderly Couple R100m In Meth

An elderly couple in Australia were the surprise recipients of an illegal drug shipment after signing for a wrongly delivered parcel containing millions of dollars’ worth of methamphetamine, police said Thursday. The Melbourne couple immediately called police when they discovered bags containing the white powder in the parcel on Wednesday, a police spokesman said. The package contained what police said were 20 kilograms of methamphetamine with an estimated street value of AU$10 million (R100 million).

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Currencies : Rand/USD 14.44 – Rand/GBP 18.85 – Rand/EUR 16.18

 

 

Women The Real Labour Winners After Apartheid

South African women have benefited more than men from changes in the labour market and education opportunities since the end of apartheid, according to a study published by the United Nations University. While in 1993, a year before the end of apartheid, women in low-paying jobs such as domestic work or unskilled farm labour were paid 21% less than men in equivalent positions, the wage gap narrowed to 7% in 2014, she said. Across the workforce, the proportion of women with tertiary education doubled to 20% in 2015 from 10% in 1993, compared with a more modest rise to 15% from 11% for men. “The post-apartheid government has been successful in improving the human-capital characteristics of women,” Mosomi said. “This has led to an increasing number of women in high-skilled occupations.”

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ICASA Takes Minister To Court Over Funding

ICASA has instructed its attorneys to launch legal action to force the Department of Communications (DoC) to release funding allocated to it by Parliament. Keabetswe Modimoeng, the acting chairperson of ICASA, told media about the situation at an emergency press briefing. The briefing was called after the City Press published an article which said that ICASA and the Minister of Communications, Stella Ndabeni-Abrahams, are “at war”. Modimoeng confirmed that there was a dispute and said ICASA has not received any of its annual allocation of funding, around R400 million.

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KZN Floods To Cost R1.1 Billion In Damages

Devastating floods last week in KwaZulu-Natal will cost Durban over a billion rand in damages to infrastructure, according to the province’s premier, Willies Mchunu. The floods destroyed houses, roads and other bulk infrastructure, and killed many people in various communities in the eThekwini, Ilembe, Ugu, and King Cetshwayo municipalities. Mchunu’s estimation of R1.1 billion in damages follows an earlier estimate of R658 million by the Thekwini metro in an interim report following an emergency meeting with the executive committee of the municipality.

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Ford Promises To Fix Security Risk Problems

Ford South Africa says it will fix potential security risks to certain Fiesta and EcoSport models, specifically around manipulating the driver’s door, which can ultimately provide access to the cabin if deliberately targeted. Ford said in a statement said that its older EcoSport and Fiesta were at risk, but stressed that newer models are not affected. It said that it is in the process of finalising solutions which it will communicate to customers as a matter of urgency.

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Lack Of Artisans Hurting Economic Growth

While South Africa’s unemployment rate of 27.1% in the fourth quarter of 2018 reflected a figure of 6.14 million jobless people – with youth unemployment above 50% – lack of skilled artisans has been singled out by experts as a major barrier to job creation and economic growth. According to the Quarterly Labour Force Survey for the third quarter, jobs in the construction industry increased by over 10% from 1.36 million to 1.5 million – on an annual quarter-on-quarter basis. With a gross domestic product (GDP) for this year standing at $349.3 billion (about R5 trillion), South Africa – the second largest African economy after Nigeria, with a $376.3 billion GDP – faces a challenge of lack of growth in the artisan economy. Deepening the dilemma of government and business in finding required qualified artisans is the fact that few young people take up training in the 13 key critical areas of the artisan economy, compared to many who prefer going to university after high school.

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Consumers Resorting To Credit For Food

Many people are deep in debt and some are defaulting on payments and resorting to loans to feed themselves, in an ever-deeper spiral. Neil Roets, CEO of Debt Rescue, said yesterday there was “clear evidence” consumers were now resorting to credit just to put food on the table. A Stats SA report recently found the average salary-earning individual in SA earned around R21,000 a month. Of this, wrote economist Francois Stofberg of the Efficient Group, they paid about 20% (R4,200) in personal income taxes (PIT). “However, and here is where government claims their pound of flesh, indirect taxes account for almost 19% of the average individual’s salary.” “In the end, an average salary-earning South African only takes home R14,700 each month. Such an individual might receive R21,000 cost to company, but pays R6,300 (30%) to government for the privilege of living in SA.

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Currencies : Rand/USD 14.34 – Rand/GBP 18.56 – Rand/EUR 16.05

SARS Goes After Top ANC Officials

Top officials, politicians and businessmen of the ANC are facing tax claims of more than R250m on income earned from Bosasa, the services company at the heart of a widespread corruption scandal, the Johannesburg Sunday Times reports. Those on the list include Dudu Myeni, Nomvula Mokonyane, Vincent Smith and Zack Modise. Angelo Agrizzi, Bosasa’s chief operating officer from 1999 to 2016, is set to continue his testimony at the state capture commission and it’s alleged that he has more explosive evidence to provide which could take down more people. It’s a tough time being an ANC member

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DA and ANC In Election Trouble According To Polling Data

The poll, conducted between March and April 2019 using a demographically representative sample of over 3,600 people, continues a trend seen in many other pre-election polls – showing a drop in support for the DA and ANC, while support for the EFF rises. According to the latest results, published by the City Press, the ANC’s support has dropped from around 61% in its March poll to 56.9% in April. This is down from a 62.2% share of the vote in the 2014 national election. The DA has dropped even further from 18% in March to just 15% in April. The DA secured 22% of the vote in the 2014 elections, so should these snapshots carry through to the election, it would represent a significant drop in support.

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54c/l Petrol Price Jump For May

The price of petrol will increase by 54c/l at midnight on Tuesday, the department of energy confirmed on Sunday. The price was adjusted on the basis of local and international factors. “International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs,” the department said in a statement. Petrol will increase by 54c/l, diesel with 0.05% sulphur will increase by 1c/l, while the price of diesel with 0.005% sulphur will remain unchanged, the department said.

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Uber Set For Year’s Biggest IPO

Over the past decade, Uber Technologies Inc. proved itself to be one of the most prolific young fundraisers ever. It pulled together more than $20 billion from private investors. After burning through more than half that amount in just the last three years, Uber will soon see whether it can recreate that magic on the stock market. The ride-hailing company entered the final stretch of the ultimate capital-raising exercise on Friday, when it disclosed details of an initial public offering expected to net the company and its backers another $8 billion or more. Executives and bankers plan to hit the road next week to promote the stock to public investors and then ring the bell on the New York Stock Exchange floor on May 10, when the shares start trading, according to a plan obtained by Bloomberg.

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Pick n Pay Earnings Up 26.1%

Retailer Pick n Pay said on Friday its diluted headline earnings per share were up 26.1% during the 53 week weeks to March 3 and declared a final dividend of 192 cents per share. The company also said Aboubakar Jakoet would be retiring as group chief finance officer of the Pick n Pay but had agreed to remain in the post until a successor was appointed. Pick n Pay said its South Africa performance mitigated some operating challenges experienced outside its borders, with earnings from the Rest of Africa division down 16.2% year-on-year, reflecting difficult economic conditions in Zambia and the once-off impact of currency devaluation in Zimbabwe.

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Military Spending Around The World Booming

 

THE WORLD is arming itself to the teeth. That is the conclusion of a new report published on April 29th by the Stockholm International Peace Research Institute (SIPRI), a think-tank. Global military spending last year rose to $1.8trn, says SIPRI—the highest level in real terms since reliable records began in 1988, during the cold war, and 76% higher than in 1998, when the world was enjoying its “peace dividend”. Military spending as a share of global GDP has fallen in recent years, but that offers little reassurance in a world of rising geopolitical tension.

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Currencies : Rand/USD 14.38 – Rand/GBP 18.60 – Rand/EUR 16.04

 

 

Microsoft Hits $1 Trillion Valuation

Microsoft shares jumped to record levels on Thursday, with the company’s stronger-than-expected March quarter results lifting its market capitalisation “to $1trn and beyond,” Analysts were broadly positive on the results, with most pointing to the rapid growth in Microsoft’s Azure cloud-computing business. UBS wrote that the results suggested that “there’s lots more opportunity ahead,” while Evercore ISI raved that Microsoft “should remain a stock for all seasons.” Shares climbed as much as 5.1%, allowing Microsoft to regain the title of largest US stock.

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Cyclone Kenneth Makes Landfall In Mozambique

Cyclone Kenneth hit the north coast of Mozambique in Cabo Delgado province after swiping the Comoros. The UN warned of flash flooding and landslides. Some parts of the city are in darkness, and strong winds have felled trees and destroyed boats. “The Cyclone is expected to bring heavy rains in the area for several days, with over 600 millimetres rainfall expected.” That volume of rain would be nearly double the 10-days accumulated rainfall that caused flooding in Beira during Cyclone Idai. Forecasters at Meteo-France warned that Kenneth could trigger waves off Mozambique’s northeastern shore as much as five metres (16 feet) higher than usual.

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Glencore Under Investigation For Corruption

Glencore said it’s under investigation by the US Commodity Futures Trading Commission for possible corrupt practices, the latest legal headache for the world’s biggest commodity trader. The probe comes after the London-listed company was subpoenaed last year by the US Justice department for documents relating to its dealings in Nigeria, the Democratic Republic of Congo and Venezuela since 2007.

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New R50 And R500 Coins Launched

The South African Mint has unveiled a set of new R50 and R500 collector coins, celebrating the country’s 25 years of democracy. “This week 25 years ago, South Africans went to the polls in the country’s first democratic elections following the end of apartheid rule. To commemorate this milestone, the SA Mint has issued new collectable coins in base metal, sterling-silver and pure gold,” the group said. The new collector coins feature a R50 sterling silver, R50 bronze alloy and R500 pure gold coin, all of which feature designs from South Africa’s young designers.

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Ombudsman Releases Companies Blacklist

The Consumer Goods and Services Ombudsman Office (CGSO) has decided to name and shame companies that have failed to cooperate with its office in relation to monies being paid and goods or services not being delivered or provided. The CGSO warned that consumers should be cautious when dealing with these companies.

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Currencies : Rand/USD 14.39 – Rand/GBP 18.57 – Rand/EUR 16.03

AMCU Faces De-registration

The Labour Department has said it intends to deregister one of the country’s biggest mining unions, just weeks before crucial platinum-industry wage talks are expected to begin. The Association of Mineworkers and Construction Union (AMCU) “has ceased to function in terms of its constitution,” and “is not a genuine trade union,” the registrar of labour relations said in a notice published in the Government Gazette. It didn’t provide further details.

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Cyclone Kenneth Rolls Into Moz And Tanzania

Cyclone Kenneth is also predicted to hit Tanzania, bringing winds of up to 200km/h (124 mph) and torrential rain. Authorities in Tanzania have advised people in southern coastal regions to move to safer ground. Residents have been told to expect damage to their houses and farms. Cyclone Idai made landfall near the Mozambican port city of Beira on 14 March, packing winds of up to 177 km/h and bringing torrential rain which caused extensive flooding.

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Brian Molefe Loses Third Appeal Bid

Former Eskom CEO Brian Molefe has lost his third appeal regarding R11m he received from Eskom, part of a R30m pension agreement that was paid to him when he left the state-owned entity. According to a statement issued by trade union Solidarity, one of the respondents in the matter, Molefe’s application for leave to appeal was dismissed for the third time with a punitive cost order.

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Competition Commission Blasts Networks Over Data Prices

The Competition Commission has released a provisional report on its Data Services Market Inquiry, in which it prescribed new rules for mobile networks. In its preliminary findings, the commission said international benchmarking confirmed that South African data prices are high – particularly for mobile prepaid data. Notably, the commission found that South Africa’s data prices are higher than other BRICS and SADC countries. It also found that Vodacom and MTN charge higher prices in South Africa than other countries in which they operate.

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Mashaba Announces R20 Billion Inner City Investment

Herman Mashaba on Wednesday announced a R20-billion investment which he said was the single biggest property investment the city had ever made through private sector development. “Through the release of city properties to the private sector for redevelopment, the city expects to realise R20-billion in expected investment value, which will soon be visible in the inner-city with 24 developments set to start within six months,” Mashaba said in a statement.

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Currencies : Rand/USD 14.41 – Rand/GBP 18.61 – Rand/EUR 16.09