Here’s what is happening in and affecting South Africa today:
- While the SAA strike may be over, the damage is done – and even if the airline got a R2 billion government bailout to pay salaries and keep running, it would not be enough. This is according to business rescue practitioners, who said that even if government made provision to pay SAA’s R9.2 billion in debt over the next three years, the company would still not be solvent. Union Solidarity is heading to court to force SAA into liquidation. [City Press]
- Aside from huge costs and worries over operational efficiency, healthcare experts warn that the NHI will simply be creating another state-run monopoly – which is doomed to follow the likes of Eskom, Transnet and other SOEs: a breeding ground for corruption. Government is already a mass purchaser of drugs and medication. The NHI will become a monopoly purchaser. [Moneyweb]
- The Public Protector’s play against Pravin Gordhan and President Cyril Ramaphosa will come to a head this week, as the parties head to the Constitutional Court to challenge the remedial action that seeks to have Gordhan fired. The ultimate court ruling will set a precedent on what happens in cases where the Public Protector’s findings are challenged – specifically what happens in the interim while her reports are being challenged. [Mail & Guardian]
- Two new reports from the investigative team at amaBhungane outline how Dan Majila, when he was head of the PIC, signed off buying a 29% stake in Iqbal Surve’s AYO Holdings for R4.3 billion without the consent of the PIC – while investigations involving Surve revealed a host of questionable share trades in the company led by the Sekunjalo head. The paper trail followed is part of a Financial Sector Conduct Authority affidavit. [Daily Maverick]
- Holding steady, the S&P’s downward adjustment to SA’s credit rating outlook didn’t seem to hinder the local currency over the weekend. The US-China trade war remains stagnant with Beijing aiming for another round of talks and Washington expressing concern over the Hong Kong protests. On Monday the rand was trading at R14.68 to the dollar, R18.87 to the pound and R16.18 to the euro.