Finance

5 important things happening in South Africa today

Staff Writer

 ·28 Jun 2017

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

• SAA and National Treasury have been criticised for not taking action when R1.9 billion worth of irregular tenders and contracts were brought to their attention. According to the South African Cabin Crew Association, at least 34 contracts at SAA have been red-flagged by investigations, but no one in charge had done anything about it. The union said it has no options left but to press criminal charges against the SAA board.

• South Africa’s Competition Commission has denied claims by Standard Bank that it will be dropping charges against some banks in the rand-rigging saga, saying the bank misunderstood events at a closed briefing held last week. Standard Bank said that the CC indicated it would drop charges against some banks, and lay new charges against others. The CC refuted this, saying that its charges against all previously named banks will continue.

• The South African Reserve Bank has again hit out at Public Protector Busisiwe Mkhwebane’s recommendations that the Bank’s mandate in the Constitution be changed, saying that her order is ill-informed, reckless, and a threat to the poor. Mkhwebane has said she was merely making a suggestion, but the Bank says the report reads as an order, and that simply cannot stand. It is asking the court to set aside the report. The matter will be heard in August.

• Former finance minister Nhlanhla Nene is perplexed about letters bearing his name and signature appearing in emails to and from Gupta associates. At least two letters have come to light, with Nene declaring one of them as fake or fraudulent. Directors of the Gupta-linked group in possession of the letters say that the “fake” document is in fact a draft letter that was for Nene’s consideration. However, Nene insists he would not have had a draft letter drawn up, externally.

• South Africa’s rand weakened on Tuesday after poor employment figures, with traders also cautious as they waited to see if U.S. Federal Reserve Chair Janet Yellen would stick to her positive economic outlook. On Wednesday the rand was trading at R13.00 to the dollar, R16.67 to the pound and R14.75 to the euro.