Ramaphosa Wins ANC Presidency Race

Ramaphosa’s victory was announced at the ANC’s elective conference in Gauteng after he nosed ahead of his opponent‚ Nkosazana Dlamini-Zuma. Ramaphosa received 2‚440 votes and Dlamini-Zuma got 2‚261. Gwede Mantashe is the new national chairperson and Paul Mashatile the new treasurer general. Mpumalanga Premier David Mabuza was elected deputy president‚ Ace Magashule is the incoming secretary general and Jessie Duarte retained her position as deputy secretary general.

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Rand Rallies On Ramaphosa Win

The rand cheered as the ANC announced the new president of the politic party following the election process that kicked of on Saturday (16 December 2017). The rand firmed 2% on Friday as the ANC prepared to elect its new leader. At 10am on Monday, the rand was trading at R13.09 against the dollar and shortly after the announcement; the rand firmed to R12.59 against the US dollar.
DA Files Criminal Charges Against Koko

DA) says it has filed criminal charges against the reinstated acting Eskom CEO Matshela Koko following what it calls the sham of a disciplinary hearing. Koko was found not guilty of all charges relating to misconduct during disciplinary procedures which led to his reinstatement.

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Biggest IPO In History 

The markets are awaiting what is expected to be the biggest public offering in history. An IPO so big it will likely make any Silicon Valley unicorn look like a blip in the market. The Saudi’s plan is to offer up to 5% of Aramco in the flotation at a currently predicted price of $100 billion. This would give Aramco a valuation of $2 trillion, making it the largest IPO ever. Initially, the sale was expected to take place in early 2018, but the anticipated date is now late 2018 or early 2019.

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Micro Insurance Closer To Reality

The long-awaited Insurance Bill was among a number of pieces of legislation passed by the National Council of Provinces at its final scheduled plenary sitting for 2017 last week – good news for lower-income South Africans, because it brings access to micro-insurance one step closer.

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New Minimum Wage For Domestic Workers

The department of labour has released the sectoral determination for domestic workers, showing the new minimum wages for domestics across South Africa – at least until the national minimum wage comes into effect. According to the latest determination, domestic workers must get paid a minimum of R1,641 up to R2,545, depending on which area you live in. This is a 5% increase from 2017’s rates.

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Currencies: R305,693. Ether R13,552. R/USD12.78 . R/GBP17.08 . R/EUR15.08

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Australia Exchange To Use Blockchain

Australia’s main stock exchange has said it will use blockchain, the technology behind cryptocurrency bitcoin, to process its equities transactions in a shift touted as a world-first for a major financial institution. The Australian Securities Exchange (ASX), the eighth-largest share market in the world, will replace its current system Chess with the distributed ledger technology to manage the clearing and settlement for buying and selling stocks. ASX chief executive Dominic Stevens said the move “will put Australia at the forefront of innovation in financial markets”, in a statement.

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Matsela Koko Wants His Job Back

Suspended Eskom executive Matshela Koko yesterday claimed the power utility had failed to prove wrongdoing against him and wants to be reinstated to his old job immediately. In his closing submission to the chairperson of the disciplinary hearing Mzungulu Mthombeni, Koko said Eskom had dismally failed to establish a strong case on any of the six charges he faced.

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California Fires Cause Billions Of Damage

Wildfires in California have caused insured losses of more than $3.3 billion, based on claims reported by 15 insurers, and the figure will rise. The number includes claims for 10,016 partial residential losses, 4,712 total residential losses, 728 commercial property losses, and 3,200 personal auto losses. California is the largest U.S. insurance market, where insurers collect about $289 billion in premiums per year. The $3.3 billion total is more than three times the $1.05 billion preliminary estimate. It’s also more than an estimate of $2 billion to $3 billion made last week by Boston-based AIR Worldwide.

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Russia Signs $30bn Nuclear Deal With Egypt

Egypt and Russia have signed a $30bn deal to build North Africa’s first nuclear power plant as the Kremlin moves to expand its influence in the region. The project increases Russia’s economic presence and political influence in the Middle East, already on the rise since Putin intervened in Syria’s war in 2015 and began a more active role in Libya, conflicts where he and El-Sisi see eye to eye. The Cairo visit comes less than two weeks after the countries said they were in talks to use each other’s military air bases.

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Russian Hackers Steal $10 Million From US Banks

A previously unknown ring of Russian-language hackers has stolen as much as $10 million from U.S. and Russian banks in the last 18 months, according to a Moscow-based cyber-security firm that runs the largest computer forensics laboratory in eastern Europe. The MoneyTaker group broke into 20 systems, which includes 15 U.S. lenders, targeting ATMs with “mules” and Russia’s interbank money-transfer system

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Blue Label Telecom’s Acquisition Of 3g Approved

Blue Label has completed its acquisition of 3G Mobile through its subsidiary The Prepaid Company. Blue Label successfully completed the initial acquisition of 47.37% of the issued share capital of 3G Mobile for R900 million in August. It has now received permission to acquire the remaining 52.63% of the issued share capital of 3G Mobile for R1 billion.

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Currencies: Bitcoin RR245,478 . Ether R7,664 . R/USD13.64 . R/GBP18.16 . R/EUR16.05

 

Mandela Funeral Fraud Report Expected Today

Former public protector Thuli Madonsela announced in 2016 that her office was investigating allegations of maladministration, corruption and misuse of public funds relating to the procurement of service providers for the former statesman’s memorial services and funeral. Various Eastern Cape municipalities allegedly spent nearly R65m without following proper procurement procedures. A report in May 2016 revealed that R22m was used for T-shirts, food and transport. The full report is set to be released today.

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FIFA Struggling For World Cup Sponsors

Teams from 32 countries learned Friday who they will play at the soccer showcase, but with just six months until kick off, FIFA is struggling to find companies that are willing to spend millions of dollars on ads and logo placement. Brands have been scared off by the 2015 corruption scandal that ensnared top FIFA officials, including former general secretary Joseph “Sepp” Blatter. Political controversies involving Russia, sanctioned in 2014 following the annexation of Crimea and accused of meddling in the U.S. presidential election, haven’t helped.

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Eskom Says Loadshedding Is Unlikely

On Thursday investigative news outfit AmaBhungane reported Eskom may be forced into nationwide electricity cuts after a coal mine linked to the Gupta family threatened to halt supply. Eskom has been at the heart of allegations of illegal contracts and undue influence in awarding tenders to the Gupta family, friends of South African President Jacob Zuma. Spokesman Khulu Phasiwe confirmed Eskom had held an emergency meeting last Friday to determine whether strategic coal stockpiles at Hendrina and other stations were sufficient after Tegeta Exploration and Resources threatened to halt supply to Hendrina.

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Gauteng To Build Five Mega Cities

Gauteng is currently undergoing massive infrastructure development with over a R100 billion being invested in more than 800,000 houses within 30 residential developments, across five designated development corridors. According to the Gauteng Department of Human Settlements’ (GDHS), these developments form part of a new mandate to shift away from sporadic and uncoordinated developments to purposely planned and developed “Mega Cities” that are completely self-sufficient in providing for the housing, economic and social needs of the community.

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Germany Offering Migrants Money To GO Back Home

Germany wants to support rejected asylum-seekers who voluntarily move back to their home countries with a one-time payment of 3,000 euros ($3,570). The Interior Ministry says those who qualify can apply by a Feb. 28 deadline and they would get the money once they return home. Migrants who agree to go back even before their asylum request is rejected have already been offered 1,200 euros per adult and 600 euros per child under a different program for almost a year. They are now eligible to apply for both programs.

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AdvTech Fraud Drops Share Price

Private education group ADvTECH’s share price dropped by 7.06% on the JSE after the group said on Friday it had uncovered incidents of fraud in the schools division. ADvTECH shares closed 3.99% lower on the JSE at the end of the day at R15.65. The group said that the fraud was perpetrated by a financial manager in the schools division head office and took place over a period of three years, beginning in 2015.

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MTN Launches Data Saver Option

MTN has launched a simple way for subscribers to block out-of-bundle (OOB) data usage, with its new “Out of Bundle Barring” service. Out of Bundle Barring is available to users via the USSD menu, by dialing *141*0# and selecting the relevent option.

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Currencies: Bitcoin R170,013 . Ether R6,942 . R/USD13.78 . R/GBP18.51 . R/EUR16.35

 

Koko Claims Eskom Bosses Were Bribed

Suspended Eskom executive Matshela Koko on Thursday accused some of his colleagues of taking bribes from suppliers and said that they had started leaking damning allegations against him in retaliation when he dealt with corruption. The allegations against him, said Koko, started surfacing when he dealt with corruption on becoming interim CEO. For instance, France Hlakudi, the former Kusile power station project manager, was paid a R61m bribe, Koko said. He produced a document that showed another R400,000 was paid to Hlakudi Interpretation and Translation — owned by Hlakudi — by Tubular Construction Projects on the day that Eskom’s tender committee approved a tender for Tubular. The money was transferred into Hlakudi Interpretation and Translation’s bank account in 2015, said Koko.

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Gigaba Says Ignore Economic Gloom

Speaking in the National Assembly on Thursday during a debate on the Medium Term Budget Policy statement he delivered last month‚ the Finance Minister chose to look on the bright side of life. “South Africans should brush aside the message of despondency and doom. Even at our bleakest moments we must not drown ourselves in our own message of doom and gloom. The difficult decisions are being taken now‚ but our economy will turn around. A brighter day beckons.” he said.

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Taxman Going After US Bitcoin Traders

The Internal Revenue Service (IRS) has won a US court case which will force Coinbase to disclose customer information. Coinbase must now share the data of users who have bought, sold, sent, or received over $20,000 through their accounts in a single year, between 2013 and 2015. This is estimated to be 14,355 individuals.

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Firstrand To Drop State Capture Implicate Companies

Outgoing FirstRand chairman and cofounder of the group Laurie Dippenaar expressed extreme disappointment on Thursday with “the number of large corporations that have been complicit” in state capture, saying that some would lose FirstRand’s business. Commenting on state capture, he said: “I’ve been bitterly disappointed. We have expressed our disdain and disappointment [to these companies] and some of them will not get business from FirstRand again.

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NPA Panel Convened For Zuma Corruption Charges

Controversial KwaZulu-Natal director of public prosecutions Moipone Noko will lead the National Prosecuting Authority’s (NPA’s) team that considers President Jacob Zuma’s representations on corruption charges. NPA boss Shaun Abrahams gave Zuma until Thursday to argue why he should not be charged after the Supreme Court of Appeal upheld a high court judgment that the 2009 decision to drop charges had been irrational. The president is facing 783 counts of fraud, corruption, racketeering, money laundering and tax evasion.

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Guptas Hijacked Lesotho Mine

In August 2014 Lesotho Prime Minister Tom Thabane appointed Atul Gupta as an “economic investment envoy”. Thabane said ANC president Jacob Zuma had introduced him to the Gupta family and he had enlisted them “to help scout for investment” for the country. Now new evidence is emerging that the main “investment” the Guptas were touting – apart from in Thabane himself – was their takeover of a Lesotho diamond mine.

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PWC Does First Major Commercial Bitcoin Transaction

PricewaterhouseCoopers (PWC), one of the world’s largest accounting firms, has accepted its first ever bitcoin payment for its advisory services. PwC in Hong Kong revealed it is working with a number of startups involved in bitcoin and the wider cryptocurrency industry, prompting the firm to accept the world’s most widely-known cryptocurrency. Notably, PwC also confirmed its advent into advising clients about crypto funds and investments, cryptocurrency exchanges and initial coin offerings –  a radical new form of fundraising powered by cryptocurrencies.

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Currencies: Bitcoin R156,949 . Ether R6,934 . R/USD13.73 . R/GBP18.54 . R/EUR16.36

Free Education Plan Blocked by Treasury

President Jacob Zuma’s budget-busting plan for free higher education set off a flurry of panic among senior government officials this week‚ even prompting threats by a senior National Treasury official to resign should the proposal go ahead‚ the Sunday Times reports. It said the president had planned to announce the R40-billion free education plan on Tuesday last week ‚ but held off amid warnings from officials that such a move would plunge South Africa into an economic crisis.

Source: https://goo.gl/UXbFgg

Bitcoin Rollercoaster Erases $38bn Off Market

Bitcoin plunged as the cancellation of a technology upgrade prompted some users to switch out of the cryptocurrency, spooking speculators who had profited from a more than 800% surge this year. The cryptocurrency has dropped 9.5% since late Friday, extending its slide from last week’s record to as much as 29%, according to data compiled by Coinmarketcap.com and Bloomberg. Bitcoin cash, a rival that split from the original bitcoin in August, has jumped nearly 40% since Friday.

Source: https://goo.gl/1NuCxX

Eskom Cash Dries Up

Eskom’s latest report to its shareholder representative, Public Enterprises Minister Lynne Brown, showed that the state utility’s liquidity is fast drying up, as it struggles to raise funds in an unsympathetic market. In the report, Eskom tells Brown that its governance issues are having a negative impact on financial sustainability and the utility’s ability to keep going. Several key Eskom executives, including suspended chief financial officer Anoj Singh, ex-Eskom boss Brian Molefe and suspended executive Matshela Koko are being investigated for their role in state capture at the state utility, while parliament has heard shocking revelations of how looting took place at Eskom with the assistance of key executives.

Source: https://goo.gl/HhxHcp

Nigeria Rejects Moody’s Downgrade

Nigeria has rejected the downgrading of Nigeria from a B1 stable to a B2 stable rating by Moody’s Investors Service Research. In a statement, the Nigerian authorities said the downgrade was not a true reflection of the current state of the country’s economy, which government said has improved. “The attention of the Federal Ministry of Finance (FMF), Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) has been drawn to today’s announcement of the decision by Moody’s to downgrade Nigeria from a B1 stable to a B2 stable rating. “While we respect the right of Moody’s to make this decision, we strongly disagree with the premise and must address some of the conclusions upon which the decision rests,” the statement said.

Source: https://goo.gl/Rqg8L9

Uber Loses Employee Rights Case In Britian

Uber on Friday lost a landmark case in Britain that would give drivers the right to paid holidays and the national minimum wage, lawyers representing the claimants said. The London employment tribunal rejected Uber’s appeal against an October 2016 ruling in a case that is being closely watched for the wider implications for Britain’s booming “gig economy”.

Source: https://goo.gl/gU2VC3

Vodacom Hits 40 Million Subscribers For First Time

Vodacom has released its results for the six months ended 30 September 2017. The company said it gained 2.9 million local customers during the period, taking the network to 40 million South African subscribers for the first time. Vodacom said it defines a customer as a user using any service during the last three months. This includes customers paying a monthly fee.

Source: https://goo.gl/wJLjCD

Hlaudi Sues SABC For Pension

Former SABC chief operating officer Hlaudi Motsoeneng has filed another court application to force the SABC pension fund to pay him R8-million in pension benefits. Motsoeneng, through his attorneys Majavu Incorporated, filed an application in the South Gauteng High Court on Monday asking for an order to compel the public broadcaster’s pension fund to release the millions he is claiming.

Source: https://goo.gl/3wTzCw

Currencies : Bitcoin R99,205 – Rand/USD 14.41 – Rand/GBP 18.85 – Rand/EUR 16.77

 

 

 

 

Petro SA Board Asks For Business Rescue

The board of state-owned oil company PetroSA has asked its holding company, the Central Energy Fund (CEF), to place it under business rescue, raising questions over its status as a going concern. PetroSA has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year. Despite these losses, PetroSA paid out large performance bonuses to its executives at the end of 2016, linked to the Ikhewzi project, responsible for a near R15bn impairment in financial 2014-15

Source : https://goo.gl/3Co6f1

SAA Gets Court Order Against Strike

The Labour Court granted South African Airways (SAA) a final order against the South African Cabin Crew Association (Sacca) and its members. This was after the court had granted an interim order in favour of the airline on 26 April. The order interdicts Sacca and its members from embarking on industrial action and declares the industrial action an unprotected strike.

Source : https://goo.gl/sC23kh

ABInBev To Launch Budweiser In South Africa

Anheuser-Busch InBev plans to launch Budweiser in SA, it said in its March quarter results on Thursday morning. The group’s overall revenue grew 3.7% to $12.9bn from the matching quarter in 2016.

Source : https://goo.gl/0Leykf

Eskom Ready To Report On CEO Nepotism Scandal

Eskom has finalised the report on its investigation into allegations that a stepdaughter of acting chief executive Matshela Koko benefited from contracts worth at least R1 billionFollowing reports that Koketso Choma, Koko’s stepdaughter, had scored the contracts, there were also allegations that the board had proposed to pay Molefe R30 million after he was at the helm of the power utility for about 18 months.

Source : https://goo.gl/SjbPq9

Whatsapp Blackout Causes Havoc

WhatsApp experienced downtime around the world, leaving many users unable to send and receive messages over the app for over two hours. Africa, Europe, South America and the US experienced downtime with WhatsApp hashtags #WhatsAppDown and #WhatsAppisDown trending on the social network.

Source : https://goo.gl/hr3CFn

indicators : Oil 50.36 – Rand/USD 13.50 – Rand/GBP 17.36 – Rand/EUR 14.73

Joemat-Petersen Lies Exposed By Kubayi

The government has admitted for the first time that the secret disposal of 10.3-million barrels of SA’s strategic oil reserves by the Strategic Fuel Fund (SFF) in December 2015 had indeed been a sale and not a “rotation of stock”, as former energy minister Tina Joemat-Pettersson repeatedly had asserted to justify her approval of the deal. Newly appointed Energy Minister Mmamoloko Kubayi apologised to MPs and Parliament on Tuesday for their having been misled about the nature of the transaction. This was after DA energy spokesman Gordon Mackay expressed concern that the energy portfolio committee had been misled.

Source : https://goo.gl/7qiwSZ

S.A May Appeal Court Ruling On Nuclear

South Africa’s government may appeal last week’s court judgment declaring a cooperation pact with Russia’s state-owned nuclear company Rosatom unlawful, the energy minister said on Tuesday. South Africa and Russia signed an Intergovernmental Agreement (IGA) in 2014 for cooperation between Rosatom and South African utility Eskom, which aims to build 9 600 MW of nuclear capacity to wean the African nation off coal.

Source : https://goo.gl/cTKcIb

McDonalds Accused Of Overcharging Franchisees

McDonald’s should be investigated for gouging franchisees on rents and deceiving them about how the amounts are calculated, a labour union said in letters to two state attorneys general. US franchisees paid the world’s biggest fast-food chain more than $3bn in rents last year, a rate of return on McDonald’s real-estate investments that’s as much as triple the industry average. McDonalds has denied the allegations.

Source : https://goo.gl/gDDkhG

MTN Releases Encouraging Revenue Numbers

MTN has released its quarterly update for the period ended 31 March 2017. The company stated that it currently serves approximately 237 million people in 22 countries across Africa and the Middle East. Group total revenue increased by 7.1%, with data revenues up 29.4% year-on-year. Data revenue contributed 20% to total revenue, said MTN.

Source : https://goo.gl/j0W4In

Look & Listen To Close Final Store

The Look & Listen at Hillfox Value Centre – the last one in South Africa – will soon close, marking the end of an era. Look & Listen was started nearly 50 years ago by Rob Ziegler. In February 2013, Look & Listen halted its online purchases, and in June 2014, the company was placed under business rescue.

Source : https://goo.gl/Rjzy4x

Indicators : Oil50.87 – Rand/USD 13.32 – Rand/GBP 17.16 – Rand/EUR 14.56