Justice Minister in hot water and Steinhoff 2.0 goes after Reserve Bank

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

• Justice Minister VBS investment controversy: A joint investigation by the Daily Maverick and News24 uncovered how Justice Minister Thembi Simelane took a loan of more than half a million rand from a company that brokered unlawful investments of R349 million into VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016. [Daily Maverick]

• Steinhoff 2.0 takes SARB to court: Ibex Group, previously Steinhoff, is suing the South African Reserve Bank for backing out of an approval that allowed R9 billion to repay foreign creditors, critical to avoiding a massive liquidation and saving 50,000 jobs post-Steinhoff’s 2017 crash. The bank’s decision has sparked fears of deterring foreign investment due to concerns about repatriation restrictions, a common issue in some African countries. [Business Day]

• SIU saves health departments R3 billion, Hawks yet to act: The Hawks have clarified that they’re not probing medical malpractice claims, despite the Special Investigating Unit’s (SIU’s) announcement of significant savings for health departments (over R3 billion). They said that they would act only upon identifying criminal behaviour, stressing collaboration, not competition, with the SIU. [Daily Maverick]

• Suspended officials from ‘crackdown on corruption’ return to work: Between September 2023 and January 2024, the Gauteng Department of Social Development suspended thirteen officials as part of an anti-corruption effort. Now, all have returned to work without undergoing disciplinary hearings. The turmoil coincided with the leadership of MEC Mbali Hlophe and head of department Matilda Gasela, who faced corruption allegations. Gasela departed in April, and Hlophe lost her position following the May elections. [GroundUp]

• Markets: The rand jumped on Friday after comments by the Federal Reserve Chair signalled an interest rate cut next month. On Monday (26 August), the rand was trading at R17.71 to the dollar, R23.42 to the pound, and R19.88 to the euro. Oil is trading at $79.52 a barrel. [Reuters]