The week that was: Fin24’s top 5 stories
From the debate raging around the proposed nationalisation of the Reserve Bank, to President Cyril Ramaphosa lobbying for investment in Davos, and the start of a commission of inquiry into state asset manager the Public Investment Corporation, catch up on the week’s best read stories.
1. Accounting body to investigate two members implicated by Agrizzi
The SA Institute of Professional Accountants will probe two accountants implicated by former Bosasa COO Angelo Agrizzi in his affidavit submitted to the Zondo commission of inquiry into state capture.
SAIPA said this was in the interest of transparency, as these accountants would fall under its jurisdiction.
SAIPA told Fin24 on Friday afternoon that at this point of time it will not provide the names of the accountants plans to investigate. It has given them an opportunity to respond to SAIPA’s internal processes.
2. Top PIC executive suspended over AYO Technology Solutions investment
The Head of Listed Investments at state asset manager the Public Investment Corporation, Fidelis Madavo, has been suspended following a probe into the corporation’s controversial investment in AYO Technology Solutions.
The PIC controversially decided to underwrite AYO’s entire private share placement before its listing in late 2017 with a R4.3bn injection, despite internal concerns that it was overvalued.
3. Ferial Haffajee: Can Ramaphosa manage R1.2trn investment and expropriation without compensation?
The ANC election manifesto is like the biriyani of political documents: it is a mix of many things. But, unlike the perfect symphony of flavours in the Indian rice dish, many of the ANC’s plans do not combine well together.
Take the big deals: the manifesto promises to mobilise R1.2trn in investments from 2019 to 2023 and it promises land expropriation without compensation. At an October investment summit, Ramaphosa and his economics’ advisor, Trudy Makhaya, clocked up promises of R256bn.
So, ANC and country president Cyril Ramaphosa has possibly clicked that R1.2trn over four years is possible. But is it possible with another pledge in the manifesto – that of land expropriation without compensation?
4. Ramaphosa’s ‘nine lost years’ speech impresses Old Mutual CEO at Davos
When President Cyril Ramaphosa spoke out about South Africa’s “nine lost years” at a dinner in Davos this week, Old Mutual CEO Peter Moyo said the cost of the period crystallised for him.
“The President spoke about nine wasted years and it was the first time I heard that phrase. It made me think about how the country had been run in the last nine years.
5. Mabuza reaffirms ANC’s Reserve Bank nationalisation plan
Deputy President David Mabuza has reaffirmed the ANC’s intention to nationalise the SA Reserve Bank and place “public interest and development” at the centre of central bank’s existence.
The ANC resolved at its 2017 national elective conference – where President Cyril Ramaphosa was elected as the party’s leader – that it would work to nationalise the Reserve Bank and do away with its private shareholder structure.
The ANC moved to initiate a motion in Parliament to debate a change in ownership of Reserve Bank early last year, but did an unexplained about turn.