5 Things

Bad news for Sasol and mayor of Joburg’s fate

Seth Thorne

 ·23 Jul 2024

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

• ConCourt dismisses Sasol’s appeal in the gouge case: Sasol is reevaluating its options after the Constitutional Court dismissed its appeal regarding gas price gouging allegations. Over nearly a decade, Sasol has been accused of excessively pricing gas, with markups reaching 72%. Following a complaint to the Competition Commission in 2022, the Competition Tribunal recommended fining Sasol up to 10% of its revenue during the infringement period. Sasol’s argument that energy regulator Nersa’s pricing determinations exempted it from these excessive pricing laws was overruled. [SABC]

• Al Jama-ah accepts Joburg mayor’s fate: Johannesburg Mayor Kabelo Gwamanda, from Al Jama-ah, is set to resign next week amid a confidence-and-supply agreement between ActionSA and the ANC. This pact paves the way for Dada Morero from the ANC to potentially become mayor again after a brief 2022 tenure. Al Jama-ah’s leader, Ganief Hendricks, has voiced support for Morero, emphasizing that the leading party should govern the city. He also mentioned attending a meeting about city governance with the ANC. [News24]

• Tshwane mayor debacle and waste tenders: George Matjila, the ANC’s Tshwane regional secretary, has threatened to initiate a motion of no confidence to collapse the council. According to reports, this would be withdrawn if Jacqui Uys, Tshwane’s finance head, reversed plans to tighten control over the city’s multimillion-rand waste collection contracts. This follows years of mismanagement in Pretoria, leading to its decline in cleanliness. The city’s outsourced waste management has become a lucrative opportunity for connected tenderpreneurs through budgeted multi-million annual contracts. [Daily Maverick]

• Enyobeni Tavern inquest to resume: The inquest into the deaths of 21 minors at Enyobeni Tavern will finally get underway at the Mdantsane Regional Court this morning. This follows months of delays, leaving families without closure. Enyobeni Tavern owners are expected in court. They have been found guilty of selling alcohol to persons under the age of 18. On 26 June 2022, the pupils went out to celebrate the end of exams in what is called a “pens down party.” [eNCA]

• Markets:  The rand was stable on Monday as investors awaited inflation data later this week for hints on the country’s future interest rate path. On Tuesday (23 July), the rand was trading at R18.25 to the dollar, R23.58 to the pound, and R19.92 to the euro. Oil is trading at $82.42 a barrel. [Reuters]