Governance & Politics - 29 January 2024

29 Jan 2024

GOVERNANCE & POLITICS

• Elections 2024. South Africa’s stagnating and, in some cases, declining living standards spell disaster for the ANC in the 2024 national election, as its electoral support correlates strongly with the material circumstances of South Africans. This is feedback from the head of the Social Research Foundation, Dr Frans Cronje, who said the ANC did a lot more in restoring economic stability and raising living standards than it was given credit for. (Read More Here)

• The ICJ ruling on a case brought by South Africa. By securing a ruling by the United Nations’ top court to order Israel to prevent killings in Gaza, South Africa bolstered its credentials as a voice of the Global South and played to a sympathetic gallery at home. At the same time, it risks deepening a rift with its biggest investors. In its interim ruling, the International Court of Justice told Israel to take all measures to prevent deaths and injuries in Gaza and ensure residents get access to urgently needed services and aid. Israel has to submit a report on how it is adhering to the directive within a month. The judges stopped short of ordering an immediate cease-fire. (Read More Here)

• Repo rate remains steady. In a unanimous decision, the SA Reserve Bank’s monetary policy committee left the repo rates unchanged for a fourth consecutive decision. Governor Lesetja Kganyago stated it requires more sustainable evidence that inflation will anchor at the 4.5% target, suggesting borrowing costs will be higher for longer. The decision to keep the repo rate at 8.25% yesterday was in line with forecasts. (Read More Here)

• Voter registration abroad. South Africans living abroad will be permitted to register to vote in the forthcoming national elections at the 120 high commissions, embassies and consulates at the weekend starting on Friday. For the first time, South Africans abroad may also register using the online self-registration portal by visiting and capturing their details and uploading a scanned image of their identity document. (Read More Here)

• Controversial multi-billion rand PetroSA deal. State-owned PetroSA has signed a R21.6 billion deal with politically connected businessman Lawrence Mulaudzi, giving him the mandate to fund and rebuild critical gas infrastructure that is at the heart of government’s multi-billion rand gas development ambitions. Mulaudzi was a key person of interest in the Mpati Commission’s investigations into corruption and malfeasance at the Public Investment Corporation and has been accused of channelling money to EFF and ANC connections. The deal gives Mulaudzi’s company, Equator Holdings which has no experience in the gas industry, the rights to fund and execute refurbishing of the FA offshore platform, and the gas portion of PetroSA’s Mossel Bay refinery. Absa previously seized Mulaudzi’s Bentley and last year obtained two debt judgements against him totalling R2.8 million, while his former landlord Aucap recently tried to repossess his Camps Bay home over unpaid rent. (Read More Here)

• Companies fail to report on empowerment. B-BBEE commissioner Tshediso Matona has called for stronger legislation akin to that which the Competition Commission uses to have better oversight in tackling and implementing economic redress in South Africa. Matona says noncompliance, fronting and incompetence were at a record high and the B-BBEE commission did not have enough powers to remedy the situation. He said only a third of JSE-listed companies and 95 of South Africa’s hundreds of public entities submitted reports on B-BBEE performance to the commission. (Read More Here)

• Sars fails to recoup R1bn from PetroSA. The SA Revenue Service has failed in its attempt to recoup about R1 bilion from state-owned oil company PetroSA in a court case that shows the tax agency allowed companies to export fuel from unlicensed depots for nearly a decade without raising any issues. Tax law makes provision for Sars to refund excise duties, fuel levies and Road Accident Fund levies paid on fuel manufactured in South Africa but ultimately exported elsewhere. (Read More Here)