Governance & Politics - 04 March 2024

04 Mar 2024

GOVERNANCE & POLITICS

• Change Starts Now out of the election. Former FirstRand Group chair Roger Jardine’s new political party, Change Starts Now, will not contest in the 2024 national and provincial elections, the leader announced yesterday. Jardine said Monday’s Constitutional Court decision not to hear a matter relating to signature requirements for unrepresented political parties, and the barriers it imposes on newly established parties, creates a prejudicial, logistical timetable to qualify for the ballot. (Source)

• Prescribed assets. The ANC plans to introduce prescribed assets legislation to compel pension fund managers to invest in government stock as part of its plans to grow the economy and put greater investment into infrastructure development. This would require an amendment of regulation 28 of the Pension Funds Act, which sets the maximum level that pension funds and life insurers can hold in the various asset classes, such as property, government bonds and listed shares, but does not prescribe minimum investments in asset classes. Asset managers have again warned that if the ANC carries through its manifesto pledge to force retirement and other funds to invest in state-owned enterprises and government-led infrastructure projects, it could increase risk for savers and result in lower returns. The governing party defended its 2024 elections manifesto pledge to “engage and direct financial institutions to invest a portion of their funds in industrialisation, infrastructure development and the economy, through prescribed assets”. The move would require an amendment to Regulation 28 of the Pension Fund Act. (Source)

• Justice Mandisa Maya nominated as Chief Justice. South Africa is almost certain to get its first female Chief Justice when the term of the incumbent, Chief Justice Raymond Zondo, ends on 31 August. In the released statement the presidency announced that Deputy Chief Justice Mandisa Maya would be President Cyril Ramaphosa’s nomination to succeed Chief Justice Zondo. President Ramaphosa invited the leaders of political parties represented in the National Assembly to make submissions on the suitability, or otherwise, of Deputy Chief Justice Maya to hold the office. (Source)

• SA could be off grey list in 2025. Though it would be difficult, South Africa should get off the Financial Action Task Force greylist by the scheduled date of June 2025, Treasury deputy director-general Ismail Momoniat said. Momoniat, who is technical adviser and head of the SA FATF delegation, attended the task force’s plenary meeting in Paris last week. He said it was a constructive meeting even though the FATF had identified several aspects of South Africa’s regime for combating money-laundering and terrorist financing that remained deficient. (Source)