Zuma Must Give Gordhan Recall Reasons

The High Court in Pretoria has given President Jacob Zuma until next Thursday to submit all documents containing his reasons for dismissing former finance minister Pravin Gordhan and his deputy, Mcebisi Jonas. Initially, he cited an alleged fake intelligence report claiming Gordhan and his deputy were not acting in the best interests of the country and were trying to effect regime change.

Source : https://goo.gl/UBMcrp

Pioneer Profits Drop 40-45%

Pioneer Foods has cautioned its shareholders to expect a decline in earnings for the six months to end March. The company said it anticipated that its operating profit for the period to ease between 40 percent and 45 percent, down from R1.24 billion reported in 2016. The group said it attributed the decline to an impact of the Phase1 B-BBEE share-based payment charge and merger and acquisitions costs during the period.

Source : https://goo.gl/o5lJtP

China Launches First Major Commercial Jet

China’s first large jetliner has successfully completed its maiden flight, a key moment in the country’s push to challenge the U.S. and Europe as a global manufacturer. With the flight, China joins the ranks of the few nations that have developed homegrown large airliners: the U.S., Russia, Brazil, Canada, the U.K., France and Germany. Made by the Commercial Aircraft Corporation of China (Comac), the 168-seat C919 is roughly the same size as Airbus’s A320 and Boeing’s 737-800, which are the most popular airliners in the world.

Source : https://goo.gl/7tBFG2

Gauteng To Spend R46bn On Infrastructure Projects

The Gauteng provincial government will spend R46-billion on infrastructure over the next three years, Premier David Makhura said on Thursday. Makhura said it was important to note that the Gauteng Infrastructure Master Plan estimates that R1.8-trillion is needed to meet the province’s infrastructure needs over the next decade-and-a-half. Makhura pointed out that between 2013 and 2016, the Gauteng government spent R30-billion on infrastructure project developments.

Source : https://goo.gl/2VIx1S

Mugabe Defiant At WEF

Mugabe was a panellist on a debate about fragile states in the main hall at the International Convention Centre that included diverse voices from former AFDB head Donald Kaberuka to Hollywood actor Forest Whittaker. The first question went to Mugabe about whether he thought Zimbabwe, with its economic troubles, is a fragile state. “We are not a poor country, you can’t call us a fragile state, you can call America a fragile state,” says Mugabe to chuckles from the hundreds in the audience. Mugabe pointed to his country’s vast resources, 14 universities and 90 per cent literacy rate.

Source : https://goo.gl/XdcPxj

Oil Price Collapses Below $45

Oil slid below $45 a barrel for the first time since OPEC agreed to cut output in November as US shale confounds the producer group’s attempts to prop up prices. Prices are still more than 50% below their peak in 2014, when surging shale output triggered crude’s biggest collapse in a generation and left rival producers such as Saudi Arabia scrambling to protect market share.

Source : https://goo.gl/wIinzC

CurrenciesRand/USD 13.64 – Rand/GBP 17.63 – Rand/EUR 14.98

 

 

 

More Money Needed For Nkandla

Government is set to spend “millions” in taxpayers’ money on president Jacob Zuma’s Nkandla homestead, according to a report by the Sunday Times. The Department of Public Works said that plans were in place to refurbish the property, repair “shoddy workmanship”, and address security concerns. While the assessment is not complete, the cost of additional upgrades and repairs could run into millions of rand.

Source : https://goo.gl/93Iv7s

PetroSA Board Told To Resign

Central Energy Fund (CEF) chairman Luvo Makasi has told the board of troubled state-owned oil company PetroSA to resign with immediate effect. Leadership and management instability have plagued CEF subsidiary PetroSA, which has suffered huge financial losses over the past three years. In a letter sent to the board at the end of March, Makasi said the CEF had been concerned for some time about the strategic direction, financial standing and management of PetroSA.

Source : https://goo.gl/WMuVx5

Cyril Ramaphosa Launches Presidential Bid

“Corruption must be rooted out” and anyone found guilty must be dealt with severely, Ramaphosa said at a memorial for the late ANC leader Chris Hani in South Africa’s Eastern Cape province. Allegations of families and people unduly influencing government appointments and contracts should be “of great concern” to the ANC, he said, adding that he supports a judicial commission of inquiry into charges of state capture.

Source : https://goo.gl/gLnXFY

Lynn Browne Blocks Brian Molefe Payout

The Sunday Times reported a fortnight ago that Molefe was due to get a R30.1-million golden handshake from Eskom. He told the newspaper that he was to be paid what was due to him but refused to give a figure. Brown said yesterday she could not support the payout because there was no justification for it. “I found the argument presented by the board lacking in legal rationale and it cannot be substantiated as a performance reward because Molefe has already been granted a performance bonus for his contribution to the turnaround of Eskom,” said Brown.

Source : https://goo.gl/xL5nZf

Net1 Denies Wrongdoing In Sassa Payments Saga

Net1 has come out with guns blazing in a bid to “set the record straight”, releasing a Sens announcement and links to 23 documents that it claims prove that accusations against the group have no merit. The documents, which include court rulings, relate to its controversial South African Social Security Agency (Sassa) contract to distribute social grants to 11-million recipients.

Source : https://goo.gl/MDbtPl

Venezuela Down To $10bn In The Bank

Venezuela only has $10 billion in reserves — the cash that’s intended to keep an economy stable and weather tough times. What’s worse: most of those reserves aren’t in hard cash. About $7 billion is in gold bars, which doesn’t make it easy to make payments. Venezuela has a lot of bills to pay soon. It owes $6 billion in debt payments for the rest of this year. There’s also no sign that the country’s lone source of revenue – oil exports – will be able to pay down those debts. Venezuela is running the risk of defaulting on its debt this year, meaning it wouldn’t be able to get more loans to pay for basics like food and medicine

Source : https://goo.gl/iIZHQC

Indicators : Oil 52.25 – Rand/USD 13.00 – Rand/GBP 16.59 – Rand/EUR 14.12

Gupta’s v Gordhan In Court

Finance Minister Pravin Gordhan’s legal team will on Tuesday face off with 14 Gupta-owned companies over the blacklisting of their bank accounts by South Africa’s top four banks. Meanwhile President Jacob Zuma has asked to intervene as an “interested party” in the matter. Zuma argued that Standard Bank had sought relief that affected the president directly, but failed to join him into the legal proceedings as a party

Source : https://goo.gl/OkEwD1

Judge Dismisses Zuma’s Application To Join Pravin Case

The High Court in Pretoria has told President Jacob Zuma’s legal representatives that he is not formally part of the process and so cannot be added as an “interested party”. Zuma made an 11th-hour application on Monday asking to be added in Finance Minister Pravin Gordhan’s application against Gupta-linked Oakbay Investments as an “interested party”. Gauteng Judge President Dunstan Mlambo said on Tuesday that because Zuma was not a party in the matter, his legal team could only observe.

Source : https://goo.gl/w0KuDU

Zuma Recalls Pravin Gordhan From Investment Roadshow

The rand plummeted about 52c against the dollar on Monday after President Jacob Zuma ordered Finance Minister Pravin Gordhan home from a global investor road show, while banks and property stocks retreated on the JSE in similar fashion to Nenegate in December 2015. The rand’s retreat was directly attributable to Zuma’s action despite a weaker dollar, which usually supported an appreciation in the rand, analysts said..

Source : https://goo.gl/r5mIwj

Brian Joffe To Step Aside

Bidcorp executive chairperson Brian Joffe has announced that he will be stepping down from this position to launch a new JSE-listed company. “Brian (Joffe) has informed the board that he will be launching a new listed JSE investment vehicle which will not focus on activities competitive with the current Bidcorp’s foodservice business,” Bidcorp said on Tuesday.

Source : https://goo.gl/eEhQy0

SAA Losses Climb Significantly

Losses of the already cash-strapped South African Airways (SAA) has rapidly increased to R4.5-billion, documents submitted to Parliament’s standing committee on Finance revealed. “This new figure of R4.5-billion is significantly higher than the R3.5-billion revealed ten days ago and the R1.7-billion estimated in September 2016.

Source : https://goo.gl/PW0Od7

Fake TV’s Recalled From Massmart Stores

Massmart has quarantined TVs which are being sold as Full HD (1080p), but have HD Ready panels (720p) in them and has initiated a product recall for the units. The recall follows an investigation by MyBroadband and ISACA member Abu-Huraira Oman Abdalla, which showed that a “Full HD” 32-inch Telefunken TV sold at Game stores sported an HD Ready panel.

Source : https://goo.gl/jPHbmL

Indicators : Oil 50.99 – Rand/USD 12.87 – Rand/GBP 16.24 – Rand/EUR 14.03

 

 

E-Toll Fees Quietly Increased By 6%

Sanral has announced increases for Gauteng e-toll gantries and other national toll roads in South Africa, which take effect as of 3 March. Some Sanral users – not all – received notification of the increases via e-mail on Friday (3 march), the day of the adjustments. The new tariff prices also do not provide any historical data of the prices, and their increases over a period of time. Sanral’s only justification was that the adjustments were published in the Government Gazette on 16 February. The e-toll tariff hikes are around 6% across the board, in line with inflation.

Source : https://goo.gl/iGrOM6

SAA Internal Investigations Have Cost Over R21m In 4 Years

Between the period 2013 and 2016 SAA have spent more than R21m on forensic and internal investigations, Finance Minister Pravin Gordhan said in a parliamentary response. The investigations are among other things into the irregular awarding of tenders, the leasing back of aircrafts, procurement transactions and allegations by whistle-blowers.

Source : https://goo.gl/ZmBMhE

Ascendis Buys Cipla Units For R375 Million

Ascendis is buying Cipla Agrimed and Cipla Vet for R375 million as it sees the deal as an “excellent strategic fit” for its Phyto-Vet division. Ascendis says its strategy is to create a synergistic group of health product brands that cover the value chain from imports of raw materials, manufacturing and distribution to consumers via retail and direct selling channels, spanning across human, plant and animal health.

Source : https://goo.gl/pioeby

Record Number Of Americans Forfeiting Their Citizenship

As the White House engages in a fierce fight to restrict travel into the U.S. by citizens of some Muslim-majority countries, a record number of Americans are voluntarily renouncing their citizenship. Last year, 5,411 people “expatriated” by renouncing their U.S. citizenship or terminating long-term residency in the U.S. This marks a 26 percent jump from the record set in 2015, when 4,279 individuals expatriated.

Source : https://goo.gl/a2nFm2

Ford Recalls More Kuga’s Over Brake Issue

Ford South Africa has issued new warning letters to owners of its 2.0-litre diesel-powered Kuga SUVs for to resolve a potential “brake problem”. The brake issue is said to affect 848 Kuga models, manufactured in Spain, built from 2014 to 2015, said Ford in an official statement.

Source : https://goo.gl/EHVccg

Cybercrime Could Cost The World R78 Trillion In 4 Years

The cybercrimes industry is expected cost business up to $6trn (R78trn) by 2021. The statistic was mentioned by Paolo Passeri, Cisco’s consulting systems engineer for cloud security, at the Cisco Connect South Africa conference currently being held in Sun City. He mentioned a recent case where a smart TV, powered by the Android operating system, was taken hostage by cybercriminals.

Source : https://goo.gl/mKAp5m

Indicators : Oil 55.86 – Rand/USD 12.98 – Rand/GBP 15.83 – Rand/EUR 13.73

 

Cosatu Officialy Accept Minimum Wage

South Africa’s main labor union federation accepted a government-proposed minimum wage of about 3,500 rand ($268) a month. While Cosatu favored a minimum monthly salary of 4,500 rand a month, the government’s proposal “is still a significant starting base towards a living wage,”. The government said businesses that aren’t able to afford the minimum wage for a 40-hour week will be able to apply for an exemption. Africa’s most-industrialized economy, which has an unemployment rate of almost 27 percent, has 6.6 million people earning less than 3,500 rand monthly

Source : https://goo.gl/s0ysIJ

Bank Of Baroda Closes Gupta Accounts

Bank of Baroda is set to close the Gupta family’s bank accounts by the end of March following pressure from its parent company in India. Between February and September 2016, First National Bank, Absa, Standard Bank and Nedbank closed the bank accounts of the Gupta family and their companies. The Bank of China followed suit.

Source : https://goo.gl/2YOY7Z

Country Bird To Close Local Abattoir 

Country Bird, South Africa’s third-largest chicken producer, is to close one of its three abattoirs as the local industry struggles to compete with cheap European imports, which it argues amount to dumping. South African farmers and labour unions say the EU is selling chicken legs, thighs and wings at below cost, pushing the local industry to the brink of collapse.

Source : https://goo.gl/u9r9sk

Standard Bank Denies Wrongdoing In Forex Collusion

Standard Bank’s CEO, Sim Tshabalala, says the bank is not setting aside any cash for a potential Competition Tribunal fine for alleged collusion by its currency traders as internal investigations have not revealed any wrongdoing. The investigation by the Competition Commission, which sought to prosecute 18 global and local banks for collusion among their currency traders to fix prices on rand to dollar trades, related to three people, he said. “We employ 55,000 people.”

Source : https://goo.gl/2voA7f

AB InBev Bosses Forfeit Bonuses

Anheuser-Busch InBev (AB InBev) has canned bonuses for most of its executive board because of the disappointing 2016 financial results. The move is expected to affect swathes of executives in the group which, after last year’s $103bn acquisition of SABMiller, now controls just more than 25% of the global beer market. South African executives will not be affected as the old SABMiller scheme will apply to them for the year.

Source : https://goo.gl/nk0zEm

Indicators : Oil 55.34 – Rand/USD 13.12 – Rand/GBP 16.01 – Rand/EUR 13.80

Tswane Truck Protests Cause Havoc

There were massive traffic jams on Gauteng’s N1 North, R21 North and the N14 routes leading into Pretoria in Tshwane this morning. Representatives of the Coal Transport Forum said that Eskom’s agreement with Independent Power Producers (IPPs) will see mining job losses and the truck drivers transporting the coal blocked the roads in protest of the looming IPP agreements. As part of diversifying its energy mix, Eskom is expected by government to roll out an IPP programme that allows for the likes solar and wind power to be fed into the national grid.

Source : https://goo.gl/CSyRSH

SASSA Begs ConCourt To Allow CPS Contract To Continue 

The social security agency approached the Concourt for an order “authorising Sassa to engage the respondent (‘CPS’) to provide services for the payment of social grants for the period 1 April 2017 to 30 March 2018. The Concourt had given Sassa about three years to sort out the illegal CPS contract for distributing social grants, but the agency is so unready that it is asking the court for another year’s grace. The question is why wasnt anything done since 2014 and why does the department insist on CPS being the provider? They cant tell us that only this company can do the job.

Source : https://goo.gl/LwWfA1

FICA Bill Gets The Green Light From Parliament

Opposition MPs on Tuesday urged President Jacob Zuma to sign the Financial Intelligence Centre Amendment Bill without delay after the National Assembly adopted minor changes to it aimed at answering his concerns that it may be unconstitutional. Zuma now has two choices. He can either sign the bill in the form in which the National Assembly approved it on Tuesday, or take it to the Constitutional Court.

Source : https://goo.gl/ufQa9u

Curro To List University Business Embury Later This Year

Curro is busy designing courses and degrees and getting them accredited, a process that will take two years. Curro believes that the tertiary-education component can reach more than 100,000 students over the long term and is keeping the school and tertiary education businesses separate, and plans to unbundle its tertiary offering and list it separately during the course of the year. Curro saw a significant leap in the number of learners attending its schools, adding over 7,200 learners during the course of 2016, and adding 4,400 more in the 2017 school year, taking it to a total of 47,589 learners by January 2017.

Source : https://goo.gl/93GiQo

Youtube Launches TV Streaming Service

Google launched YouTube TV on Tuesday, which will cost $35 a month and offer access to content from broadcast networks as well as YouTube. YouTube CEO Susan Wojcicki‏ said people around the world watch one billion hours of YouTube content each day, and younger generations don’t want to consume television through traditional channels. You’ll now be able to watch shows from over 40 networks including ABC, CBS, FOX and NBC, as well as Bravo, FX, ESPN and Fox Sports. Along with the cable channels, users can also watch shows previously only available on YouTube Red, the ad-free YouTube subscription service.

Source : https://goo.gl/YJAxxv

Fired Prasa Acting CEO Refuses To Leave

Collins Letsoalo‚ the disgraced acting CEO of the Passenger Rail Agency of SA‚ is going nowhere.  Letsoalo claims he did nothing wrong. “I am still the acting CEO; there is nothing wrong that I have done‚ I have not appointed myself and would never give myself an increase‚” he said. “I am seconded by the shareholder and appointed by the board chairperson as acting group CEO and to date no one has informed me of this removal‚” he said.

Source : https://goo.gl/OkhqRO

Eskom & Transnet Sponsored PPF Led By Mzwanele Manyi

Public Enterprises Minister Lynne Brown disclosed in a written reply to a parliamentary question on Tuesday by DA finance spokesman David Maynier that Eskom and Transnet had provided sponsorships of R440,000 and R400,000, respectively, to the forum.

Source : https://goo.gl/iRavfZ

Indicators : Oil 56.50 – Rand/USD 13.10 – Rand/GBP 16.17 – Rand/EUR 13.83

16 Letters Detail Gordhan & Moyane War

16 letters have emerged exposing the true extent of the war between SARS commissioner Tom Moyane and minister of finance Pravin Gordhan. In one letter Moyane accuses Gordhan of subjecting him to “horrible and intolerable working conditions through belittling, humiliating, denigrating, antagonising and disparaging persona” he goes on to say, “I ask  myself every day what have i ever done to you that has made you mistreat and beseige me as if i am a little boy”. In turn, Gordhan warned Moyane that approving his own performance bonus was unethical, immoral and illegal. In most cases Gordhan did not respond to the letters but it seems Moyane approached pres Zuma for help which the president didnt give him.

Source : https://goo.gl/VpRSBz

Xenophobia March & MTN Nigeria Attack

Thousands of people are expected to take part in an anti-immigration march in Pretoria where law Law enforcement officers will be deployed along the route and at venues where memorandums would be handed over. The anti-immigration march was organised by a group calling itself the Concerned Mamelodi Residents. Meanwhile, the MTN offices in Nigeria were attacked yesterday and vandalised in retaliation to what is going on here. This lead to police having to be deployed to protect the premises.

Source : https://goo.gl/CzE26j

SA Tops Global Equity Returns Since 1900

South African stocks have returned an average 7.2%, more than 2%age points above the global average and the most among 23 nations tracked by Credit Suisse and LBS. The nation is Africa’s biggest coal and iron-ore producer, and the world’s largest of platinum, manganese and ferrochrome. Denmark tops the list for bond returns with an average 3.3%, equities were the best-performing asset in every country, showing over the long run there has been a reward for higher risk.

Source : https://goo.gl/Ungikg

Discovery posts Encouraging Results

Shares in Discovery rose as much as 7.92% to R127.99, despite the group missing earnings forecasts. The share price closed 4.35% higher at R124.70. Delivering the group’s results for the six months to December 2016, CEO Adrian Gore said the group had more than R1bn to fund new business growth and operating losses in emerging businesses Ping An Health, Discovery Insure and the Vitality Group were substantially lower.

Source : https://goo.gl/7E41sQ

Swiss Firm hit By $100 Million Fraud

Swiss engineering group ABB on Wednesday said it fell victim to a “sophisticated criminal scheme” at its South Korean subsidiary, with the chief suspect an executive responsible for ethics training. The executive is suspected of forging documents and colluding with third parties to steal funds, ABB said, estimating it would take a pre-tax charge of about $100 million for the affair, which analysts said raised concerns about its corporate oversight. The company claimed that he embezzled a combined 35.7 billion won ($31.31 million) in 73 transactions, the official said, adding that police were investigating the man’s accounts.

Source : https://goo.gl/PTHKXE

Swedes Overpaying Their Taxes

Official figures published on February 22nd showed tax revenues poured in far faster than forecast last year. Sweden’s government got a budget surplus of 85bn kronor ($9.5bn) in 2016. Nearly half of that, 40bn Skr, was from overpayment by firms and individuals. This appears to be deliberate. Income tax rates, at least for the well-off, can be as high as 57% while we are crying about 45% in South Africa. then again, you get what you pay for in those countries while nobody really knows what we get here.

Source : https://goo.gl/D9ctDr

Indicators : Oil 56.43 – Rand/USD 12.90 – Rand/GBP 16.16 – Rand/EUR 13.66