Here’s what is happening in and affecting South Africa today:
- Large South African corporates have been implicated in a new tax haven data leak dubbed the ‘Paradise Papers’, exposing ties to offshore law firm Appelby, which assists companies across the world to effectively avoid paying taxes. The leak contains 13.4 million documents, and names many South African companies and individuals.
- Despite claims to the contrary, insiders at global consultancy McKinesy say that the firm was happy to work with the Gupta-controlled Trillian for months after it learned about its ties to the controversial family. This contradicts claims from the group that it cut ties to the company in March 2016 when the state capture saga blew up.
- Deputy president Cyril Ramaphosa has named those who will be on his slate in the battle for the leadership of the ANC. He said he wanted scitech minister Naledi Pandor as his deputy, current SG Gwede Mantashe as chairman, former KZN premier Senzo Mchunu as secretary general, and Gauteng premier Paul Mashatile as treasurer general.
- While SARS’ second in command, Jonas Makwakwa has returned to work after being cleared of all wrongdoing in a matter of R1.6 million is questionable payments to private accounts, the Hawks have confirmed that there is still an ongoing investigation into the lead regarding allegations of money laundering. SARS said they would not suspend Makwakwa again.
- South Africa’s rand tumbled more than two percent on Friday, while bonds also weakened sharply as investors who had bought the assets cheap earlier in the week sold out, while firm U.S. data also added pressure. On Monday the rand was trading at R14.22 to the dollar, R18.59 to the pound and R16.51 to the euro.