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Top business news of the day: Eskom, rand volatility and mining woes

Johannesburg - Eskom controversial chief financial officer Anoj Singh is finally "put on special leave" pending an investigation, while the rand's good day is abruptly ended.  Have a look at this and other top business reads on Fin24.

Eskom CFO Anoj Singh "on special leave"

Controversial Eskom Chief Financial Officer Anoj Singh has been put on special leave pending an investigation, Eskom announced on Thursday

Eskom's board of directors said it has taken a decision to grant Singh special leave until an investigation into his conduct had been concluded. The board fell short to say that Singh had been suspended, but his exit from Eskom follows month of pressure for the state utility to take action against him. 

Singh has been hounded by allegations that he was involved in irregularly awarding contracts to Gupta-linked businesses, while also receiving gifts and trips from the controversial family. 

Rand spurts over R13 as dollar makes comeback

The rand lost all its gains and more on Thursday, after the dollar staged a comeback from early losses on the back of data that indicated US durable-goods orders climbed more than expected. 

By 17:55 the rand was trading at R13.04 to the greenback after strengthening to R12.85 during Thursday's session.

The rand received a welcome boost after dovish comments by US Federal Reserve chairperson Janet Yellen placed the dollar on the back foot.

TreasuryOne dealer Phillip Pearce said the USD Fed unsurprisingly held rates steady, but signalled that inflation remains persistently low despite the economy picking up steam.

SA mining industry on its knees as woes grow

While global mining companies have seen an upswing in their market capitalisation and bottom lines on the back of a recovery in commodity prices, their South African counterparts are struggling to keep head above water amid regulatory uncertainty and an economy in decline. 

South Africa’s mining industry once contributed close to a fifth to GDP, but this figure has declined over the last five years from 7.7% in 2012 to 7.3% in 2016. Over the last five years, mining’s contribution to GDP has declined by 0.2% per year, while domestic input costs continue to rise due to higher energy prices and labour costs.

Gold miner hit with tax bill 70 times Google's record R35bn fine

It was supposed to mark a fresh start for the African business of the world’s biggest gold producer. In November 2014, African Barrick Gold would get a new name and new management to distance itself from a troublesome past and disputes with local politicians.

Less than three years later, things are worse than ever.

Acacia Mining, renamed after a local tree with pom-pom blossoms and finger-length thorns, has just been handed a spectacular $190bn tax bill and fine from the Tanzanian government. The figure is four times the size of the country’s gross domestic product or 70 times the record penalty that the European Union dished out to Google last month.

Telkom wins landmark case against Vodacom

Mobile and fixed-line operator Telkom has won a landmark case with costs against rival network Vodacom for unlawful use of its infrastructure.

Telkom said it brought an urgent application against Vodacom in court, relating to Vodacom’s unlawful use of its infrastructure in the Dennegeur residential estate in Cape Town. 

“Our concern was that Vodacom unlawfully accessed Telkom’s duct infrastructure and we requested the court to order Vodacom to remove its cabling from our ducts,” Telkom group communications executive Gugulethu Maqetuka said in a statement. 

Jonas, Gordhan question intent of state bank

The structure of capital in the country has changed significantly since the 1980s when it was dominated by white monopoly, said former Deputy finance Minister Mcebisi Jonas.

He was delivering an address alongside former finance minister Pravin Gordhan at the University of Johannesburg on Wednesday. The pair spoke out against state capture and perceptions of white monopoly capital and radical economic transformation.

Responding to a question about the need for developing a state bank, Jonas said: “The call for a state bank is another guise to achieve another objective.”


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