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ICYMI: Thursday's top 5 reads on Fin24:
SAP reports its Gupta-linked accounts to US
German software giant SAP SE has reported its Gupta-linked accounts to US authorities for further investigation.
SAP said it had disclosed the situation in its South African business to US authorities, and also initiated disciplinary procedures against three employees. It said it was, however, not currently working with South African authorities.
The firm said it had also removed commissions on public sector deals in higher-risk countries including South Africa, and made changes to its global sales deal processes.
SAP’s internal investigation, which has not yet been completed, uncovered indications of misconduct in issues relating to the management of Gupta-related third parties.
READ: SAP reports its Gupta-linked accounts to US
Following the news, questions were asked about why the US, and not South Africa, appeared to be taking the lead in the investigation.
READ: Why the US and not SA, critics ask SAP on state capture probe
Fitch has little faith in SA post mini budget
Fitch Ratings has revealed its disappointment with Finance Minister Malusi Gigaba's maiden mini budge, which has caused the rand to remain increasingly shaky.
Fitch, which downgraded both South Africa's local and foreign ratings to junk status following March's Cabinet reshuffle, said the dire economic picture painted "suggests that the change in direction of policy making away from a focus on fiscal consolidation that we anticipated as a consequence of March's Cabinet reshuffle is under way and occurring faster than we had expected".
It said Gigaba's mini budget forecast a “sharp fall in fiscal revenue, but has no measures to contain the impact on deficits and debt".
READ: Fitch has little faith in SA post mini budget
The rand, meanwhile, continued trading weaker on Thursday, reaching an intra-day low of R14.29 to the dollar, before recovering somewhat. At 17:30, it was trading at R14.19 to the greenback
READ: Rand hits 11-month low as rating downgrade fears intensify
Task team to tackle Mining Charter impasse - Gigaba
A team from the Departments of Mineral Resources, Trade and Industry and National Treasury has been tasked to try to resolve the deadlock in the mining industry, following the release of the third Mining Charter in June, said Finance Minister Malusi Gigaba.
Addressing journalists at a media conference ahead of the tabling of his mini budget on Wednesday, Gigaba said the impasse in the mining sector needed to be resolved urgently.
“The slow progress (with legislative certainty) and poor cooperation has given rise to lack of trust between stakeholders and policy contestation that has compromised the economy and confidence in the mining industry,” he said.
READ: Task team to tackle Mining Charter impasse - Gigaba
For the latest news, analysis and reaction to Gigaba's mini budget, visit Fin24 Mini Budget Hub.
OUTA takes on PRASA over locomotive deal
OUTA has laid charges of corruption and fraud against the former board of the Passenger Rail Agency of South Africa. or PRASA, for awarding a controversial contract for 70 locomotives in March 2013 to Swifambo.
In a statement on Thursday, OUTA – which has in the past laid corruption charges against suspended Eskom chief financial officer Anoj Singh, Public Enterprises director general Mogokare Richard Seleke and others – said it lodged its complaint at the Randburg police station on Wednesday.
In response to a request for comment, PRASA spokesperson Nana Zenani said: "PRASA does not have a comment in this regard."
“PRASA was supposed to be replacing the trains for inter-city services. They’ve paid Swifambo R2.65bn but received locomotives unfit for purpose,” said OUTA chief operating officer Ben Theron in a statement.
READ: OUTA takes on PRASA over locomotive deal
New CEO, CFO for Denel
Zwelakhe Ntshepe has been appointed the new group CEO of Denel, the Department of Public Enterprises announced on Thursday. Odwa Mhlwana is the new group chief financial officer.
Ntshepe joined the state-owned arms manufacturer 21 years ago and prior to acting as group CEO he was the Denel group executive responsible for business development and corporate affairs.
READ: New CEO, CFO for Denel
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