5 important things happening in South Africa today

 ·23 Apr 2024

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

  • Municipal electricity tariff increases may be challenged: The National Energy Regulator of South Africa​ (Nersa) may need to request an extension from the court to lawfully approve municipal tariff increases by 1 July 2024. Without a new legal framework for these approvals, decisions may be challenged, potentially leaving municipalities facing Eskom’s 12.72% bulk purchase increase without the ability to adjust their own tariffs. [Moneyweb]

  • Denel suspends high-ranking officials: Denel, a state-owned arms manufacturer, has placed three senior executives in charge of finances and reforms on precautionary suspension due to potential misconduct. The individuals affected are two acting CFOs and the corporate finance head. This leaves Denel without key financial leadership amid efforts to recover from significant corruption issues. [Daily Maverick]

  • Court overturns dodgy Transnet tender: The North Gauteng High Court has reversed Transnet’s choice to grant a port equipment tender to Aqua Transport, a firm implicated in defrauding the KwaZulu-Natal provincial government. Despite the fact that a more cost-effective proposal was available, Aqua’s bid was selected. The court found Transnet’s justification for choosing the company troubling and ruled that the decision to proceed with the tender award should not be left to Transnet’s discretion. [News24]

  • Dispute resolution offered to corruption-accused firms: Companies involved in corruption in South Africa can now opt for alternative dispute resolution with law enforcement to avoid criminal charges, as introduced by the National Prosecuting Authority’s (NPA) new corporate alternative dispute resolution (C-ADR). This new directive guides prosecutors in deciding whether to prosecute or apply C-ADR, prioritising legality and rational decision-making within the law. Information collected may lead to prosecution of involved directors and employees. [Business Day]

  • Markets: The rand slipped on Monday after a week of volatile trading driven by tensions in the Middle East. On Tuesday (23 April), the rand was trading at R19.19 to the dollar, R23.69 to the pound, and R20.45 to the euro. Oil is trading at $87.43 a barrel. [Reuters]

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