Publications
Partners
Cape Town - Wednesday's top economic and finance reads.
#StateCapture Parliament must act now to halt illegal Eskom deal with Guptas - EFF
Economic Freedom Fighters MP Floyd Shivambu wants Parliament to act now to halt what he said was an illegal deal between Eskom and Tegeta Exploration and Resources.
Shivambu was speaking during Parliament's inquiry into state capture.
While Gupta-owned Oakbay Investments announced they sold Tegeta (also part owned by Duduzane Zuma) to a Dubai businessman in August, Shivambu disputed this. “They have not disposed of it,” he said. “They have just put it into a different form.”
He said there is prima farcie evidence that deal was illegal. “This illegality is ongoing,” he said.
“Parliament should take a resolution to halt the crime now," said Shivambu. “All the other institutions which were supposed to stop the crime are not doing anything,” he said.
Read the full report of the day's events from our journalist on site.
READ: #StateCapture: Parliament must act now to halt illegal Eskom deal with Guptas – Shivambu
State irregular expenditure at R45.6bn - Auditor General
Despite "intensified contestations" by some state entities, Auditor General Kimi Makwetu has released the financial report for the country’s national and provincial departments, as well as SOE's for the 2016/17 financial year.
The report's findings showed that state-affiliated irregular expenditure had risen to some R45.6bn.However, this amount could be even higher, said Makwetu, as there were still ongoing audits for auditees like Prasa.
About 25% of auditees disclosed irregular expenditure, but did not specify the amount. Taking into account all these factors, total state irregular expenditure could be as high as R65bn.
READ: State irregular expenditure at R45.6bn - Auditor General
Mahlobo instructs officials to fast-track SA's energy plan
SA's new Energy Minister David Mahlobo has told his department to conclude the Integrated Resource Plan (IRP) - which will serve as South Africa’s blueprint for future energy needs - with “immediate effect”.
Mahlobo faced a grilling from members in the National Council of Provinces in Parliament on Tuesday, answering questions about the sale of South Africa’s strategic fuel stocks late 2015, and how government intended to proceed with its nuclear build programme.
“I directed my team (at the Energy Department) to conclude the IRP with Cabinet with immediate effect so that we have policy certainty and we can boost investor confidence,” Mahlobo said in one of his responses.
Mahlobo, who was appointed energy minister earlier this month, said SA's security of energy supply was paramount and that the IRP should continue to inform these security requirements.
READ: Mahlobo instructs officials to fast-track SA's energy plan
Old Mutual to reduce stake in Nedbank
Old Mutual has announced it will reduce its stake in the Nedbank Group from 54% to 19.9%.
This forms part of its "managed separation plan", first announced in March 2016, which will separate Old Mutual's four constituents - Old Mutual Emerging Markets, the Nedbank Group, Old Mutual Wealth and Old Mutual Asset Management – into standalone entities.
Nedbank said in a statement that the 19.9% investment would be held by Old Mutual Limited (OML), a new SA holding company that will also house Old Mutual Emerging Markets and what is left of Old Mutual after the unbundling.
Nedbank said OML expects to list on the Johannesburg Stock Exchange in 2018 “at the earliest opportunity”.
READ: Old Mutual to reduce stake in Nedbank
Sibanye saved 3 282 jobs as thousands of miners pack their bags
Sibanye-Stillwater preserved employment for 3 282 people and secured over 60 000 jobs in South Africa through its restructuring, according to the miner’s chief executive, Neal Froneman.
After concluding the process, Sibanye announced that in total 3 601 contractors have been displaced. About 2 025 employees will be retrenched and 1 350 have elected to take voluntary separation packages, the miner said in a statement.
The National Union of Mineworkers has criticised the rentrenchments.
“The decision to restructure was not taken lightly, but it is pleasing to note that we have managed to ameliorate job losses through the consultation process,” he said.
READ: Sibanye saved 3 282 jobs as thousands of miners pack their bags
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
