Transnet’s R26 billion trade-off, and bungled multi-billion rand water project

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

• Bungled multi-billion rand water project: Deputy President Paul Mashatile reported that only nine of Giyani’s 55 villages receive water from the troubled Giyani Water Project. The project, initially started in 2014 and expected to be finished by 2017, has faced numerous issues, including a R1.9 billion loss due to tender irregularities. Despite a R4 billion investment and a recent revival in 2021, many villages still lack access to water. Mashatile and Water Minister Majodina, who visited the site, said they are working to address ongoing investigations into fraud and mismanagement. [GroundUp]

• Transnet’s R26 billion trade-off: Transnet will give up nearly R26 billion in profit over 25 years by partnering with the Philippines-based ICTSI to improve terminal efficiency. Former CEO Portia Derby argued for this move in an August 2022 memo, highlighting that Transnet would miss out on R68.8 billion in potential profit by not managing the terminal itself. [Business Day]

• Kodwa back in court: Former Minister of Sport, Arts and Culture, Zizi Kodwa, and former executive at Enterprise Outsourcing Holdings (EOH) executive, Jehan MacKay, are expected to appear in the Palm Ridge Magistrate’s Court today. They are charged with violating the Prevention and Combating of Corrupt Activities as well as the Prevention of Organised Crimes Acts. The charges relate to Kodwa allegedly receiving more than R1.7 million in kickbacks in exchange for government tenders. [SABC]

• Alleged extortionists arrested in Joburg CBD: Four alleged extortionists have been arrested at a construction site of a petrol station in the Johannesburg CBD. The Johannesburg Metropolitan Police Department (JMPD) said the suspects had allegedly been demanding daily payments of R1,000 from construction workers while obstructing access to the site. JMPD spokesperson Xolani Fihla said they were identified as part of a suspected construction mafia. [EWN]

• Markets: The rand slipped against a stronger dollar on Monday, with looming U.S. data likely to dictate currency moves this week. On Tuesday (10 September), the rand was trading at R17.85 to the dollar, R23.47 to the pound, and R19.76 to the euro. Oil is trading at $71.71 a barrel. [Reuters]