Maputo the new Durban and Tongaat’s big business rescue problem

Here’s what is happening and affecting South Africa today:

• Durban woes pushing tourism to Maputo: Southern Sun has seen a boost in business tourism at its Maputo locations due to port delays in Durban, prompting companies to shift their operations to Mozambique. The hotel operator’s Durban facilities faced challenges due to the city’s negative image and port issues, according to their latest annual report. Despite setbacks in Mozambique’s oil and gas sectors, their Maputo hotels experienced a 37% growth. [Business Day]

• Tongaat business rescue plan in deep trouble: The Tongaat Hulett business rescue faces trouble due to a legal challenge filed in Durban High Court by small, unsecured creditor Powertrans. They’re contesting the business rescue plan approved on January 11, which favours the Vision consortium buying R8.5 billion of Tongaat’s debt, a plan previously endorsed by major lenders, including Standard Bank. Powertrans claims the arrangement is unlawful and improper. [amaBhungane]

• Home Affairs employee jailed for fraud: A Durban Home Affairs employee was sentenced to 12 years in prison for processing fraudulent passports and making R768,000 in less than three weeks. The employee, not the syndicate’s leader but not insignificant, pleaded guilty to 192 fraud counts, contravening the Identification and Immigration Acts, and attempted bribery. This case highlights a significant breach of integrity within the department. [TimesLive]

• Kidnapping rescue leads to R300 million drug bust: A police operation to rescue a kidnapped Gauteng businessman from a house in Lenasia led to the unexpected discovery of R300 million worth of tik in Johannesburg. The operation also resulted in the arrest of eight suspects for kidnapping and drug possession following a successful stakeout of the Eastgate City Lodge. [News24]

• Markets: The rand firmed on Thursday as investors bet on a September interest rate cut in the world’s biggest economy after dovish comments by the U.S. Federal Reserve. On Friday (2 August), the rand was trading at R18.28 to the dollar, R23.26 to the pound, and R19.72 to the euro. Oil is trading at $79.96 a barrel. [Reuters]