Serious misconduct at Absa, and warning to South Africans buying Chinese cars

The rand dipped slightly on Monday ahead of this week’s budget speech and a scheduled meeting between President Cyril Ramaphosa and U.S. President Donald Trump in Washington. 

In recent weeks, the rand has strengthened, a belief that the coalition government will remain stable despite ongoing budget disputes. 

This was been supported by speculation that the government will soon announce a lower inflation target.

However, the rand will be tested on Wednesday when Ramaphosa and Trump are set to meet, the finance minister presents a revised version of the 2025 budget in parliament, and new domestic inflation and retail sales figures are released.

The rand traded at 18.06 against the dollar on Monday, down approximately 0.2% from Friday’s close.

On Tuesday, 20 May, the rand was trading at R18.08 to the dollar, R24.17 to the pound and R20.33 to the euro. Oil was trading slightly lower at $65.32 a barrel.

Here are five other important things happening in and affecting South Africa today:

Misconduct at Absa: An independent investigation commissioned by Absa found prima facie evidence of serious misconduct, including the leaking of confidential information. The bank confirmed that the findings will be presented in a formal disciplinary enquiry chaired by independent senior counsel. It was reported that the alleged leaks may have contributed to the departure of former CEO Arrie Rautenbach. [Daily Investor]

Warning to Chinese car buyers: WeBuyCars CEO Faan van der Walt has warned South African car buyers to be cautious about new Chinese vehicle brands entering the market. Due to increasing competition, some brands may not last long-term, potentially impacting servicing and parts availability. [News24]

Alarm over 150,000 jobs: As South Africa shifts away from coal toward a more eco-friendly energy mix, many coal workers may struggle to transition to non-mining jobs. This poses a risk of them being left behind due to the global move to renewable energy, according to a TIPS policy brief. The coal sector directly employs around 150,000 people, with about two-thirds in mining and the rest in transport or consumption. [Business Day]

Ramaphosa hits back at NHI court order: In documents submitted to the Pretoria High Court, President Cyril Ramaphosa argued that the ruling requiring him to submit his decision on the National Health Insurance (NHI) Act was flawed on ten counts, including a lack of jurisdiction and an error in deeming his decision reviewable. [Mail & Guardian]

SABC on the ropes: The government must choose between investing billions to resolve the SABC’s financial issues or cutting back on its social responsibilities. Songezo Zibi, chairperson of the Standing Committee on Public Accounts, highlighted this dilemma during a hearing on the SABC’s audit and financial performance. [MyBroadband]