Reserve Bank’s financial stability warning and RAF CEO dodges jail time

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

• SARB governor warns that climate change threatens financial stability: The South African Reserve Bank (SARB) has pointed out that government debt and the exposure of financial institutions to this debt are major risks to the nation’s financial stability, according to Governor Lesetja Kganyago. In his speech at the SARB’s 104th annual meeting, Kganyago highlighted plans to incorporate climate risk in future financial stress tests. [News24]

• RAF CEO avoids ‘coercive imprisonment’: A request for coercive imprisonment of Road Accident Fund CEO Collins Letsoalo due to non-payment of judgment debts was dismissed by the Pretoria High Court. It was argued that the RAF’s failure was deliberate and unconstitutional, seeking imprisonment as a remedy. However, this request was denied, with the court emphasizing the limited circumstances under which civil imprisonment is permissible. [Moneyweb]

• Suspended Gauteng officials return to work: Ten officials from the Gauteng Department of Social Development, suspended for an anti-corruption investigation, have resumed work due to the absence of disciplinary hearings. Additionally, three others who were suspended in September are undergoing arbitration, claiming they have not received the forensic audit that allegedly implicates them in misconduct. [GroundUp]

• 5 alleged Boko Haram construction mafia killed in extortion attempt: In Bronkhorstspruit, an attempted extortion of a road construction project led to the kidnapping, torture, and murder of five men allegedly linked to Boko Haram. The men, part of a larger gang, had sought a stake in the R120-million project but were ambushed and killed. Their bodies were found in Cullinan the next day. [News24]

• Markets: The rand gained on Tuesday as markets waited on the outcome of a U.S. Federal Reserve meeting on Wednesday, which could give hints on its rate-cut timeline. On Wednesday (31 July), the rand was trading at R18.30 to the dollar, R23.58 to the pound, and R19.80 to the euro. Oil is trading at $79.72 a barrel. [Reuters]