Top 5 on Fin24: State capture? it’s ‘fraud and corruption’ says Nene, Ill-prepared Eskom execs grilled and inflation hits 5.1%

Cape Town - A roundup of Wednesday's top economic and finance reads on Fin24.

State capture? In simple English it’s ‘fraud and corruption’ says finance minister

Finance Minister Nhlanhla Nene has told Parliament that, as the government works to rebuild state-owned companies (SOCs), there is a chance that too much focus will be placed on individuals and not enough on strengthening institutional capabilities. 

In his view, there was another way to refer to this term: "... in simple English [state capture] would be referred to as fraud and corruption".

• READ: State capture? In simple English it’s ‘fraud and corruption’ says finance minister

Ill-prepared Eskom execs grilled on tender processes

Members of Parliament wasted no time in trying to get to the bottom of questionable contracts at Eskom on Wednesday; however, executives at the power utility seemed less prepared - fumbling answers and even requesting time to regroup.

The Eskom team had prepared a presentation on the group’s expansions and deviations pertaining to contracts for the third and fourth quarter of the 2017/18 financial year. However, before they could get a chance to present, Scopa chair Themba Godi wanted the executives to address concerns about tenders.

• READ: Ill-prepared Eskom execs grilled on tender processes

Inflation hits 5.1% in July - Stats SA

Annual consumer price inflation increased to 5.1% in July, up from 4.6% in June, Statistics SA announced on Wednesday. This is the highest rate since September 2017.

Stats SA said that, among the contributors the CPI, the housing and utilities sector increased from 1 percentage point in June 2018 to 1.3 percentage points in July. The sub-index increased by 5.2% year-on-year (y/y).

• READ: Inflation hits 5.1% in July - Stats SA

Auditor General finds SARS overstated compliance figures

The Auditor General found that the SA Revenue Service in 2017 flouted the Income Tax Act by overstating its compliance figures in public documents. 

The findings, in an AG report dated March 2017, came to light Tuesday during public hearings in Pretoria for the Nugent inquiry. 

Tax compliance refers to making payments to the revenue service in full and on time in line with relevant legislation. 

• READ: Auditor General finds SARS overstated compliance figures

MPs object to briefing by Transnet CEO Siyabonga Gama, who is facing suspension

Parliament’s portfolio committee on public enterprises cut short a briefing by Transnet on Wednesday into forensic investigations and an internal audit, due to the threat of suspension hanging over one of the officials in the delegation. 

Officials from the state freight and port company were meant to brief the committee on the progress of forensic investigations into corruption allegations, the group’s internal audit report, and the status of its pension fund finances. In the end the board only received a briefing on the pension fund finances. 

• READ: MPs object to briefing by Transnet CEO Siyabonga Gama, who is facing suspension