Business

5 important things happening in South Africa today

Staff Writer

 ·1 Jun 2017

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

• New investigations by amaBhungane and the Daily Maverick’s newly formed Scorpio investigative unit have revealed that the Gupta family scored a massive R5.3 billion kickback in securing multiple-billion rand locomotive contracts with Transnet for Chinese rail companies. Following the paper trail in the leaked Gupta emails as well as the contracts themselves, the groups found that Gupta companies scored 21% of the total value of the contracts in “advisory fees”.

• Former finance minister Nhlanhla Nene says that a report by Gupta media ANN7 alleging that there has been gross mismanagement in National Treasury is an attempt to destroy the institution – but he is sure that the truth will prevail. The report comes amid a request submitted to the Public Protector to investigation Treasury, purportedly signed by several known Zuma and Gupta supporters. However the validity of the request is in question, as at least one of the names signed – Malusi Gigaba – has denied signing the request.

• The Nelson Mandela foundation has called on President Jacob Zuma to save and protect the dignity of the republic of South Africa by stepping down. The trustees of the foundation said that the systemic looting of the country was causing unimaginable harm, and that network of patronage run by Zuma ran deep and was at the root of it all. It said it was not enough for just Zuma to go, but all those implicated, and those who allowed Zuma to run amok for so long, should also step down.

• Barclays has confirmed that it will selling off about 34% of its stake in the Barclays Africa business, taking its holding in the company down to 15%. The bank had initially targeted at 20% holding in the African business, but has now revised that down. The sale of the stake will be to pension funds and asset managers, and is said to be valued around R26 billion, according to reports.

• South Africa’s rand weakened on Wednesday with a combination of mixed trade data and a looming interest rate hike in the United States keeping traders cautious. The unit retreated from last week’s 2-month high after President Jacob Zuma over the weekend survived a second attempt in six months by members of the ruling African National Congress (ANC) to unseat him as leader. It has been on the back foot since. On Thursday the rand was trading at R13.11 to the dollar, R16.87 to the pound and R14.74 to the euro.