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Cape Town - A roundup of Wednesday's top economic and finance reads on Fin24.
Big blow for rand as ANC vows to change Constitution on land expropriation
It is with uncanny ability that South Africa's politicians deal the beleaguered economy yet another blow just when it appears as though things are settling down.
This was the reaction of TreasuryONE head currency dealer Wichard Cilliers after President Ramaphosa announced late on Tuesday night that the ANC would be looking to change the constitution to more explicitly allow for expropriation of land without compensation.
"While the market was shaping up for a break below the R13.00 handle [against the US dollar], this news has dealt the ZAR a blow and in all likelihood the news will not be well received," he said in a note on Wednesday morning.
Ramaphosa announces yet another government stimulus plan after shock jobless increase
Government’s plan to ignite growth will see trade support for sectors such as sugar and others affected by import surges, increased investment in public infrastructure, and further support for entrepreneurs and small and medium business.
President Cyril Ramaphosa made the announcement on Tuesday night in his capacity as ANC president, following a two day party lekgotla, hours after Statistics South Africa released the Quarterly Labour Force Survey showing the official unemployment rate surged 0.5% to 27.2% in the second quarter of 2018.
The fight is about to begin, Team Moyane vows after objections rejected
The legal battle of suspended SA Revenue Service (SARS) commissioner Tom Moyane is about to heat up, his attorney, Eric Mabuza, told Fin24 on Wednesday.
This was after adv. Azhar Bham SC, chairing the disciplinary committee, rejected objections by Moyane's legal team to his disciplinary inquiry.
Bham ruled that Moyane must deliver his substantive response to the charges against him by 20 August 2018. He will thereafter convene a further procedural hearing between the parties to facilitate the hearing of the disciplinary inquiry as soon as possible.
Uber makes deal with insurer to protect SA drivers
Uber is partnering with global insurance company Chubb Insurance South Africa Limited to cover its South African drivers in case of death or injury amid several incidences of violence.
The new deal will pay out a lump sum to the family in case of death, or to the driver if he or she is permanently disabled, the US cab-hailing company said by email on Wednesday.
Transnet overpaid by R509m for locomotives - report
Transnet, state-owned rail and ports operator, paid R509m more for 100 locomotives after switching a supply contract to a Chinese rail company from Mitsui & Co of Japan, according to a report commissioned by the National Treasury.
Transnet’s decision to buy locomotives from China South Rail also resulted in the vehicles being imported rather than made in South Africa, according to the draft report compiled by Fundudzi Forensic Services, seen by Bloomberg.
In June, a probe by law firm Mncedisi Ndlovu & Sedumedi Attorneys found that Transnet didn’t follow proper bidding and evaluation procedures for contracts, and some executives were “negligent” or took “unlawful decisions.”
