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ICYMI: A roundup of Friday's must-read financial and economic news.
Christo Wiese quits board as Steinhoff scandal deepens
Steinhoff International Holdings chairperson and largest shareholder, South African billionaire Christo Wiese, is stepping down from the supervisory board after an accounting scandal engulfed the retail giant.
The board accepted Wiese’s resignation to resolve questions of conflict of interest, the owner of furniture chains such as Mattress Firm in the US and Conforama in France said in a filing on Thursday. Heather Sonn, a member of the board and its independent subcommittee, will take the role of acting chairperson.
The resignation comes a day after Steinhoff said its accounting errors stretch back into 2016, highlighting the extent of wrongdoing at the retailer that’s led to a more than 80% stock slump since the beginning of last week.
READ: Christo Wiese quits board as Steinhoff scandal deepens
Traders expect the Stellenbosch-headquartered retail giant to have a "incredibly challenging" week ahead.
Jordan Weir, a trader at BayHill Capital, pointed out that Steinhoff's board will meet with creditors on December 19 and the Enterprise Chamber of the Amsterdam Court of Appeal will rule on the decision whether or not to probe the company's accounts on December 22.
At least six organisations have so far announced they are investigating Steinhoff after CEO Markus Jooste quit last week and the company's share price plunged dramatically.
READ: Steinhoff heading into incredibly challenging week - traders
Finance Minister Malusi Gigaba, meanwhile, held a crisis meeting with the JSE, SA Revenue Service, Public Investment Corporation and Financial Service Board, and others over the Steinhoff scandal.
Nersa grants Eskom's tariff hike (but not the 20% it asked for)
South Africa's National Energy Regulator (Nersa) has declined Eskom request for a 20% hike, instead granting Eskom a 5.2% hike.
The regulator is due to publish a document outlining the decision in the next couple of days, Nersa chair Jacob Modise announced on Friday.
The regulator conducted country-wide hearings at the end of November on whether the state utility should be granted a 19.9% hike.
Nersa received more than 23 000 submissions on the subject.
READ: Nersa grants Eskom's tariff hike, but not 20%
Markus Jooste earned R121.8m from Steinhoff in 2017
Former Steinhoff CEO Markus Jooste banked a total of R121.8m in earnings in 2017 for services he provided to Steinhoff International, the audited results of Steinhoff Africa Retail (STAR) have revealed.
The financial statements of STAR (where Jooste was a non-executive director) for the financial year ended September 30 were published on Friday.
The audited financial results of Steinhoff International Holdings, meanwhile, have been delayed after the company redflagged "accounting irregularities requiring further investigation".
The remuneration report shows that Jooste was paid R121.8m for services he provided to Steinhoff International Holdings. This was up 35% from the R90.1m he received in 2016.
He received R35.6m as basic remuneration, R356 000 in company and pension fund contributions, R39.9m as an annual bonus, R8.3m as a strategic bonus and R36.7m as a deferred bonus.
READ: Markus Jooste earned R121.8m from Steinhoff in 2017
Business and civic bodies welcome Fuzile's Standard Bank appointment
Standard Bank’s appointment of former National Treasury director general Lungisa Fuzile as the CEO of its South African operations has been welcomed by a number of business and civic bodies.
Business Leadership South Africa said it is excited that Fuzile’s skill set would be retained within the SA financial services sector.
“One of the key pillars of BLSA's contract with South Africans is the empowerment of black leadership. This appointment aids that goal,” it said in a statement.
Cas Coovadia, head of the Banking Association Of South Africa said Fuzile's appointment imparts "additional strong leadership and world-class credentials to the banking sector and is wholeheartedly welcomed".
READ: Business and civic bodies welcome Fuzile's Standard Bank appointment
Brown slams greater scrutiny of public sector execs over private sector peers
Serving as board members of state-owned companies in the present contested political and business environment is not for "softies", Minister of Public Enterprises Lynne Brown said at a special general meeting of Eskom on Friday.
She added that she is a bit of a "softie" sometimes.
"Unlike those who serve on the boards of private companies, such as Steinhoff, [you] will be regarded with suspicion and mistrust. They make 'accounting mistakes', while you are susceptible to corruption, capture, greed and malice," Brown told the Eskom board.
"Who they associate with is inconsequential, they call it lobbying - you must be careful who you play golf with because it will be used as evidence against you."
Despite media speculation, Brown did not provide an update on whether Matshela Koko would be reinstated by the board of Eskom, possibly in the CEO role.
READ: Brown slams greater scrutiny of public sector execs over private sector peers
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