5 important things happening in South Africa today
·11 Oct 2017
Here’s what is happening in and affecting South Africa today:
- The Reserve Bank says that KPMG’s problems will not disturb or pose a risk to the financial stability of South Africa’s banking sector – however, there is a significant risk of further downgrades to the South African economy which definitely will. Ratings agencies will review SA’s ratings in November.
- A fresh investigation into the relationship between Eskom and Trillian has revealed exactly how the latter company was snuck-in through the back door of Eskom’s payments system, and given preferential treatment by the now-suspended CFO, Anoj Singh and his subordinates. Trillian was paid hundreds of millions of rands for contracts where little to no work was done.
- As the ANC’s leadership battle gets off the ground, deputy president Cyril Ramaphosa has again received backing from big names in the party – specifically, secretary general, Gwede Mantashe, who believes the deputy president should succeed the president, and former finance minister, Pravin Gordhan, who said Ramaphosa has the capacity to turn things around for South Africa.
- South African MPs voted to have an ad hoc committee set up to assess Public Protector Busisiwe Mkhwebane’s fitness to hold office, however, the ANC used its majority to shoot it down. Mkhwebane has faced criticism for her handling of the Absa/Bankorp issue, where she tried to change the mandate of the Reserve Bank in the Constitution.
- South Africa’s rand staged a late-session rally on Tuesday away from 6-month lows as investors took profits on the dollar’s recent rally and positioned for a run lower by the rand, while bonds were firmer and stocks traded sideways. On Wednesday the rand was trading at R13.67 to the dollar, R18.03 to the pound and R16.15 to the euro.
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