Finance

5 important things happening in South Africa today

Luke Fraser

 ·22 May 2023

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

• Luxe liquidation: In August 2022, Luxe, a jewellery company, was suspended from trading on the JSE for failing to submit its financial records on time amidst a series of accounting errors. This year, it placed its subsidiaries NWJ and Arthur Kaplan under liquidation in December 2022 and March 2023, respectively, but failed to tell the market. Arthur Kaplan and NWJ currently owe tens of millions to creditors. [BusinessDay]

• Law reform: The Organisation Undoing Tax Abuse (Outa) is calling on the National Anti-corruption Advisory Council to amend the Political Party Funding Act (PPFA), citing loopholes in the legislation’s wording. The PPFA states that political parties registered with the IEC must disclose donations above R100,000; however, Outa spokesperson Rachel Fischer said there are flaws in the legislation allowing for corrupt practices, with wealthy individuals buying influence in the political process. [EWN]

• Gupta compound sale: A lavish compound in Saxonwold, Johannesburg, used to house the controversial Gupta family, will be sold following a South Gauteng High Court ruling that said a lease agreement entered into by a Gupta associate is invalid. The judge noted that the initial rental price of R15,000 was peculiar for a three-mansion property worth well over R20 million. Occupants in the compound will have three months to vacate the premises. [BusinessDay]

• State capture win: Regiments Capital, a banking and advisory firm with allegations of involvement in state capture, will be liquidated. This Supreme Court of Appeal (SCA) application from SARS and its liquidators against a former order which set aside the liquidation. The firm owed SARS over R280 million, excluding understatement penalties, statutory penalties and interest, following income tax and VAT audits. [Moneyweb]

• Markets: The rand remains elevated at the start of the week – well above R19.00/$. However, there was some good news for the rand as rating agency S&P Global retained South Africa’s outlook as positive last Friday, which many economists expected. In the coming week, investors will shift their focus to domestic inflation data and possible further interest rate hikes. On Monday (22 May), the rand was trading at R19.44/$, R21.04/€, and R24.23/£. Brent crude is trading at $74.95 a barrel. [Nasdaq]