Steinhoff Paid Wiese €325m Before Collapse

On Tuesday, Steinhoff stunned investors and corporate governance analysts when it confirmed media reports that the company had prepaid Wiese €325m during October and November 2017 for Shoprite shares, just weeks before Steinhoff collapsed. Unlike South African company law, there is no provision in the Dutch law requiring oversight of the provision of loans or financial assistance to directors. Section 45 of the South African Companies Act requires a board resolution and also requires that shareholders agree to any payments made to directors.

Source

KPMG Under Fire Over VBS Scandal

KPMG has suspended one of its top executives who was the lead partner on VBS Mutual Bank which has been accused of severe mismanagement and fraud. The South African Reserve Bank has red flagged the bank, saying that nearly R1 billion cannot be accounted for. KPMG has now taken action against Sipho Malaba who signed off the independent auditors’ report on the bank’s accounts until July 2017

Source

McKinsey & Trillian To Repay Eskom

Global consulting firm McKinsey and Gupta-associated Trillian Capital Partners have both agreed to repay the R1.6bn they received from Eskom and will not oppose Eskom’s court application to get them to pay back the money.

Source

JSE Pulls Sagarmatha Listing

Sagarmatha’s failure to submit its annual financial statements to the Companies and Intellectual Property Commission (CIPC) was behind the JSE’s decision not to allow it to go ahead with a proposed listing on Friday. On Wednesday, the company was due to announce the results of a private placement ahead of the Friday listing. However, instead of this announcement, shortly after 6pm the company released a Sens statement, saying that the JSE had decided the listing could not go ahead.

Source

Facebook To Incentivise Whistleblowers

Facebook yesterday launched a data abuse bounty program to incentivise anyone who can prove the misuse of Facebook data. In an effort to clean up its tattered reputation, the online social media company which has been criticised for its data breach and exposed the information of millions of Facebook users has launched a bounty program.

Source

Burgh Group To Run Gupta Mines

South Africa’s Burgh Group Holdings won a temporary contract to keep mines linked to the Gupta family afloat, according to a business-rescue manager for the assets. Other parties offered financing, but Burgh “came without conditions,” Louis Klopper, a bankruptcy-proceedings manager at Coronado Consulting Group, said Wednesday. Burgh is “an ideal partner” to provide technical expertise and banking facilities, he said, without disclosing financial terms.

Source

Currencies: Bcoin R84,874 . Ether R5,300 . R/USD11.98 . R/GBP16.99 . R/EUR14.81

Advertisements

SARS Misses Tax Collection Target

The South African Revenue Service was a fraction of a percentage off its estimates in tax collection for the 2017/18 financial year, collection R1.216 trillion – 0.06% lower than the estimate of R1.217 trillion. Despite the slightly lower collection, revenues were up 6.3% from the 2016/17 financial year, with the taxman collection R72.4 billion more.

Source

Ramaphosa Concerned By Gigaba Lying Ruling

President Cyril Ramaphosa has expressed concern at a recent court ruling that found Home Affairs Minister Malusi Gigaba violated the Constitution by lying under oath. Fireblade Aviation had sued Gigaba for allegedly going back on his undertaking to make officials available to Fireblade to staff its customs and immigration facility. Gigaba denied that he had approved the terminal, but the court found against him. The court stated that Gigaba had violated the Constitution and denied him the right to appeal.

Source

Pam Golding Dies

Residential real estate business leader Pam Golding has passed away at the age of 90. She has been lauded for building one of the largest estate agencies on the continent, Pam Golding Properties. Pam Golding Properties boasts a network of more than 300 offices in sub-Saharan Africa as well as offices in the UK, Germany, Mauritius and Seychelles. The group also facilitates property sales and residency in Spain and Portugal, as well as property sales in the US.

Source

Mark Lamberti In Sexism And Racism Scandal

The High Court in Johannesburg is yet to quantify the amount of money payable to a former Imperial Holdings manager after it found she was racially discriminated against. The court found that Lamberti and Imperial’s actions impaired Chowan’s dignity and that she was “extremely upset, humiliated, degraded and objectified in terms of being a female empowerment equity candidate” without recognition of her status as a professional qualified chartered accountant with extensive experience.

Source

New DSTV Prices Up By Up To 6%

Broadcaster MultiChoice have adjusted their DStv prices which taken effect from the 1st of April 2018. MultiChoice promised that the company had tried its best to keep subscription fees down in 2017, despite the tough economic climate. The company added that it did not hike its prices in accordance with the VAT increase from 14% to 15%.

Source

Spotify Lists On Wall Street

It took more than three hours on Tuesday morning to get Spotify trading publicly, in a stock sale as unorthodox as streaming digital music once seemed. Spotify Technology SA’s shares — sold via a direct listing rather than a traditional IPO — finally opened well after midday at $165.90 apiece in New York, with 5.6 million shares changing hands at that initial price, according to data compiled by Bloomberg.

Source

Steinhoff Slashes Value Of European Property Portfolio

Steinhoff has announced that the true value of real estate interests owned by one of its European subsidiaries may be €1.1bn (about R16bn) less than previously calculated. The Stellenbosch-headquartered conglomerate said in a market announcement on Tuesday evening that commercial real estate advisory group CBRE had valued the real estate portfolio of its subsidiary Hemisphere International Properties at “approximately €1.1bn”. This is half the company’s previous estimate of €2.2bn.

Source

Currencies: Bcoin R89,984 . Ether R4,953. R/USD11.84 . R/GBP16.65 . R/EUR14.52

Ramaphosa Suspends Tom Moyane

SARS commissioner Tom Moyane has been suspended with immediate effect. According to the presidency, President Cyril Ramaphosa has cited among his reasons the “deterioration in public confidence in the SARS and public finances being compromised” due to the ongoing controversy at the tax agency under Moyane’s leadership. Earlier Business Day reported that Moyane had refused to step down after he was asked to resign by President Cyril Ramaphosa. Mark Kingon has been appointed as Acting Commissioner

Source

Deloitte Disciplinary Hearing On ABIL Conduct Begins

Public disciplinary hearings into Deloitte’s audit of African Bank Investments Limited (Abil) began on Monday, in what is the biggest case the Independent Regulatory Board for Auditors (IRBA) has handled since its formation in 2006. IRBA is also reviewing Deloitte’s audit files on Steinhoff for 2014 to 2016.

Source

Busses And Taxis Suspended In Ekhurhuleni

Public transport will grind to a halt in Ekurhuleni on Tuesday as the taxi industry will go on strike over the planned roll-out of the bus-rapid transport (BRT) system. As a result of the anticipated protest, the City of Ekurhuleni said that Harambee bus services will be suspended as a precautionary measure for the day following a threat of violence.

Source

Tiger Brands Sets Aside R425Million For Class Action

Tiger Brands is recalling yet another batch of products, a move that could cost it up to R800m, twice the R324m in operating profit generated by its snacks, treats and beverages division for the financial year to end-September. About R377m of the costs arising from the listeria crisis are attributable to the sales value of contaminated products and the destruction of the items returned. This includes the reimbursement for the recall of products produced at the Germiston, Clayville and Polokwane sites. The remainder of the costs could serve as a payout of an estimated R425m that could be sought in a looming class action case.

Source

Third Of SA’s Water Lost To Poor Infrastructure

Over a third of SA’s water supply is being lost due to aged and leaking infrastructure before it can be used. That’s according to CSIR principal researcher and research group leader for resource-specific scientific measures Marius Claassen. Claassen, speaking during a panel discussion on Thursday ahead of World Water Day, said countrywide an average of 37% of SA’s water supply was lost before it reached users due to leaks.

Source

Pick n Pay and Absa Launch New Stokvel Product

The Grocery Stokvel account is the product of a collaboration between Absa Bank and Pick n Pay stores. The aim is to give communities or groups with a common savings goal an opportunity to make purchases of better value and earn interest on their savings at the same time. With the new Grocery Stokvel Account, stokvels are able to earn a very competitive interest rate on balances of as little as R50, and spend their money safely and conveniently at Pick n Pay, where they receive further savings on groceries.

Source

Currencies: Bcoin R106,602 . Ether R6,763 . R/USD11.99 . R/GBP16.85 . R/EUR14.82

 

Day Zero Wont Happen In 2018

DA leader Mmusi Maimane believes that the City of Cape Town and the wider region of the Western Cape may avert ‘day zero’ in 2018, thanks to the measures put into place to conserve water over the past several months. Maimane said that consumption now sits at between 510 and 520 million litres per day – down from almost 1.2 billion litres in February 2015.

Source

State Capture Inquiry Team Announced

Deputy Chief Justice Raymond Zondo on Wednesday announced key appointments to the inquiry, which included former auditor general Terence Nombembe. Nombembe, who is now chief executive of the South African Institute of Chartered Accountants, will head a team of investigators. Other key appointments are legal eagles Leah Gcabashe, Vincent Maleka, Thandi Norman and Paul Pretorius as part of the legal team.

Source

Nehawu To Strike At Water Departments Countrywide

The National Education, Health and Allied Workers Union (Nehawu) announced on Wednesday that its 3,000 members would lead a strike at the Department of Water and Sanitation’s 53 workplaces across the country after negotiations collapsed at the General Public Service Sector Bargaining Council.

Source

Eskom To Undergo Major Budget Restructuring

Eskom will hold a strategic session next week as part of an effort to address flaws that forced it to take a 5 billion rand ($422 million) loan for the month of February to maintain essential liquidity levels. “Our cost structure is definitely not right,” Jabu Mabuza, Eskom’s chairman, said in Cape Town, where he attended a Bloomberg conference. “We have to have to help the organization to be structured with people, assets, funding in a manner that is appropriate.”

Source

BSI Awarded SAPO Tender

Technology firm Altron said yesterday its subsidiary, Bytes Systems Integration (BSI), had been awarded tenders worth nearly R220million to support the SA Post Office (Sapo) with biometric technology as it prepares to take over the payment of social grants. Altron said the system would verify beneficiaries’ identities through biometric technology connected to the Home Affairs National Identification System.

Source

Blackberry Sues Facebook And Whatsapp Over IP

BlackBerry Ltd has filed a patent infringement lawsuit against Facebook Inc and its WhatsApp and Instagram apps, arguing that they copied technology and features from BlackBerry Messenger. Litigation over patent infringement is part of BlackBerry Chief Executive John Chen’s strategy for making money for the company, which has lost market share in the smartphone market it once dominated.

Source

Johann Rupert Wants To Buy Vumatel

Remgro is in advanced talks to buy fibre provider Vumatel as South Africa’s richest man seeks to consolidate the country’s expanding broadband infrastructure industry, according to people familiar with the matter. A deal by billionaire Johann Rupert’s investment vehicle would give an equity value of closely-held Vumatel of about R1.1 billion ($93 million), said the people, who asked not to be identified as the talks are private.

Source

Regulation Announcements Cause Bitcoin Crash

Bitcoin slumped for a third day amid fears of a regulatory clampdown on cryptocurrency exchanges in Japan and the U.S., the world’s most active markets for digital assets. Bitcoin declined more than 3% in early Asia trading, extending its slump below $10,000, after Japan’s Financial Services Agency ordered two exchanges to halt operations for a month and penalized four others.

Source

Currencies : Bcoin R122,999 . Ether R9,378 . R/USD11.84 . R/GBP16.46 . R/EUR14.69

 

VAT And Excise Duty Hikes In Budget 2018

64% of the R36bn of extra revenue is coming from a 1% VAT hike to 15%, 12% is from excise duty hikes and 19% coming from personal income tax adjustments and 3.4% from fuel levy hike. There will be R57billion allocated for free higher education for students from households earning less than R350 000 a year.

Source

Zwane To Face Own State Capture Inquiry

Mineral Resources Minister Mosebenzi Zwane will be subjected to a full-scale state capture inquiry by the parliamentary portfolio committee on mineral resources and could be summonsed to answer questions after his repeated failure to appear before the committee. Zwane has been linked to dodgy interactions with the Guptas as a Free State MEC when R150m was stolen in a failed dairy project.

Source

Strike At Optimum Coal Mine

Work at the Gupta-owned Optimum Coal Mine in Mpumalanga came to a standstill on Wednesday as workers marched to hand over a memorandum of grievances to CEO George van der Merwe. The mine supplies coal to power utility Eskom for its power generation.

Source

Michael Jordaan To Launch Bank Zero

Bank Zero, which in January said it got a provisional license from the central bank and has 10 staff, isn’t going to lend out money. Instead it’s going to encourage South Africans to save through attractive interest rates. With a mutual bank structure, which is funded by its members, the Johannesburg-based Bank Zero is entirely backed by its founders and will offer customers with smartphones an app and a card.

Source

Uber Teams Up With Toyota On Self Driving Cars

The world’s largest car maker and the world’s biggest ride-hailing company plan to team up on autonomous driving as technological changes sweep through the transportation industry. Uber and Toyota have given few details of their collaboration on autonomous technology before, though both have been active in the field separately. Toyota bought a stake in Uber in 2016, without disclosing the size or the reason for the investment.

Source

Currencies: BCoin R134,999 . R10,766 . R/USD11.67 . R/GBP16.23 . R/EUR14.32

R1.4 M Reward For Duduzane and Ajay

One of the country’s richest women Magda Wierzycka is offering R900 000 of her own money to help authorities track down and arrest Ajay Gupta and Jacob Zuma’s son Duduzane who are understood to be fugitives. An additional R500 000 has been offered as top-up for the the initial R500 00o by Forensic for Justice reward “for Gupta and Duduzane.” She is offering a further R200 000 “for the first bodyguard to Ajay Gupta who phones in”. She said the bodyguard will still receive the money even if the person who made the call is the “wife or girlfriend.”

Source

Ramaphosa Intervenes On Mining Charter

Mineral Resources Minister Mosebenzi Zwane was sidelined in talks between President Cyril Ramaphosa and the Chamber of Mines to open talks around the Mining Charter and to postpone a court case to review and set aside the document. Statements were issued by the Presidency and the chamber on Sunday regarding the agreed postponement of the court case and agreement between the industry body and the Department of Mineral Resources for the delay.

Source

Transnet Tries To Absolve Executives Of Wrongdoing

An unusual disagreement has arisen between state-owned transport company Transnet and corporate law firm Werksmans following Transnet’s statement last week that there was no cause “at this stage” for disciplinary processes or suspensions of any of its officials in connection with alleged impropriety in the R54bn procurement process of 1,064 locomotives from four original equipment suppliers in 2014.

Source

Mkhwebane Could Pay Own Legal Fees

Public Protector Busisiwe Mkhwebane could soon be R900,000 poorer, following a judgment that left the door open for a further order that she abused her office in her handling of the Absa-Bankorp matter. In Friday’s judgment, Pretorius ordered that Mkhwebane pay 15% of the Bank’s costs from her own pocket. The remaining 85% was to be paid by her office, which was also ordered to pay Absa’s legal fees.

Source

Matshela Koko Resigns

Eskom head of generation Matshela Koko on Friday became the latest executive to leave the power utility. In December, an Eskom disciplinary hearing failed to prove another set of misconduct charges against him. These included alleged failure to declare the interests of his daughter-in-law in Impulse International, a company that was doing business with Eskom.

Source

Cartrack Offers R9.99  Car Theft Insurance

Cartrack has launched a R9.99-a-month theft-only insurance product. The JSE-listed group on Friday said the “first-to-market innovative insurance offering for vehicle theft” targeted the uninsured market in South Africa.According to the Automobile Association of South Africa, around 70% of the more than 12-million registered vehicles in the country are uninsured.

Source

Currencies: Bcoin R130k . Eth R11,369 . R/USD11.66 . R/GBP16.35 . R/EUR14.47

Rand Soars As Jacob Zuma Resigns

Jacob Zuma said he had served at the behest of the ANC, that he still believed he should be removed via Parliamentary processes, but that he was resigning anyway. The rand strengthened to R11.66 against the dollar while Zuma addressed the nation, but weakened marginally to about R11.70 by the time he finished speaking.

Source

Morgan Tsvangirai Dies

Morgan Tsvangirai, who led Zimbabwe’s main opposition party for almost two decades has died. He was 65. A former labor union leader, Tsvangirai helped found the MDC in 1999, the first party since independence in 1980 to pose a major threat to the rule of Mugabe’s Zimbabwe African National Union-Patriotic Front.

Source

Hawks Hunt Duduzane Zuma And Atul Gupta

The hunt is on for Jacob Zuma’s son Duduzane after the Hawks swooped on his Saxonwold mansion on Wednesday in a pre-dawn raid, but couldn’t find him. Duduzane is being sought for his alleged role in the fraud scandal at the Estina dairy farm at Vrede in the Free State, which saw politicians and businesspeople pocketing millions from the project earmarked for emerging black farmers. Atul and Ajay – the eldest of the three Gupta brothers – were negotiating to hand themselves over to the elite crime-fighting unit.

Source

Exxaro Disputes Eskom Coal Claims

Exxaro Resources CEO Mxolisi Mgojo has disputed claims by former Eskom executives that the power utility had an established practice of making prepayments for coal supplies. Mgojo described the way in which Eskom “unlawfully pushed Exxaro out of the coal-supply space and contracted with Tegeta at a considerably higher cost to the fiscus”.

Source

Viceroy Takes Fresh Swipe At Capitec

Viceroy Research says it has evidence the bank’s loan book is not reflective of its true lending practices – and has accused the lender of abusing South Africa’s debit order systems. Capitec’s stocks traded 2.5% lower on Wednesday following the publishing of the report, down to R822 from an opening of R849

Source

Takealot Guilty Of Fake Prices

The Advertising Standards Authority of South Africa (ASA) has found Takealot guilty of selling products at higher prices than what it advertises the goods for. In a recent sponsored Facebook promotion, Takealot advertised DKNY perfume at R369 – a saving of 62% on the normal price. When a consumer tried to purchase this product, however, they had to pay over R200 more than the advertised price.

Source

Currencies: Bcoin R119,995 . R111,542 . R/USD11.72 . R/GBP16.43 . R/EUR14.61