BizNews Radio

News headlines:

*SARS whistleblower Johann van Loggerenberg’s house was burgled this week – marking the second state capture witness to have their home invaded in a week.

*US biotech billionaire Patrick Soon-Shiong on Wednesday launched a plant that will produce a billion Covid-19 vaccine doses in Cape Town by 2025, fulfilling a longtime plan to help bring greater health equity to the country of his birth.

*Consumer inflation rose to its highest level in five years in December, backing the case for a potential increase in interest rates as soon as next Thursday when the Reserve Bank’s monetary policy committee (MPC) sits down for its first scheduled meeting of 2022.

In this episode of the BizNews Power Hour, PMB's organised business CEO Melanie Veness explains why her chamber, in partnership with its NMB counterpart, has drawn a very distinct line in the sand on electricity prices. The chambers are tackling the National Energy Regulator in court in an attempt to force it to rein in profilate municipalities. BizNews investigations editor Martin Welz explains one of the most bizarre challenges to ever hit SA's legal system - and one that's headed for the highest court in the land. Plus independent analyst Marius Strydom takes us behind the scenes to explain why so many companies are cancelling the listing of their shares on the Johannesburgh Stock Exchange.

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Analyst and whistleblower Dave Woollam has once again questioned the need for Tongaat’s highly dilutive capital raise. The main issue surrounds the underwriter, Magister, whose investments and past business dealings are largely unknown. Magister – which is tied to Zimbabweans, the Rudland family – will underwrite R2bn of the R4bn rights issue, meaning that in all likelihood they will take control of the business post rights issue. Existing shareholders will be expected to cough up to six or seven times the existing value of their shares to keep their pro rata shareholding in the company. If not, they face being diluted by more than 90%. A sad state of affairs for long-suffering shareholders. 

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UK-based fund manager Sean Peche shares his views on two very topical investment themes; the growth to value rotation and China as an investment destination. The growth to value rotation seems to be in full swing, with a 7% differential between the MSCI Value Index compared to the MSCI Growth Index in the first two trading weeks of 2022. Peche puts this down to interest rate hike and inflation concerns, as investors are searching for ways to make a real return (gross return less inflation) on their money. Peche outlines the risks of China as an investment destination, with Tencent’s recent corporate actions dominating the conversation. Tencent’s value should be of concern to many South African savers, with Naspers and Prosus deriving its value from the Chinese tech titan. 

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This episode of the BizNews Power Hour features an in-depth interview with ANC insider turned outsider Themba Maseko, one of the key whistleblowers at the Zondo Commission. Maseko was frozen out because he refused to agree to President Zuma's directive to turn over government's R600m advertising spend to the Guptas. His struggles continue, with Maseko needing to use his firearm to drive off two intruders over the weekend. Also in this episode, Tongaat whistleblower David Woollam shares what went down at the company's EGM today after which shareholders who have already lost 95% of their investment will be required to pony up six times their current stake or be further diluted.

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News headlines:

*Jacob Zuma has launched yet another legal challenge against the State Capture Commission, attacking acting chief justice Raymond Zondo’s appointment.

*The multiparty coalition governing the City of Johannesburg has decried the behaviour of ANC and EFF councillors in the municipality, after they collapsed council and brawled, resulting in injuries.

*Facing backlash for its involvement in the erosion of the SA Revenue Service (Sars) under state capture, US-based management consultancy firm Bain has withdrawn its membership from Business Leadership SA (BLSA).

When former GCIS chief executive Themba Maseko, as the holder of the purse strings of government's significant advertising budget, refused to bow to the demands of the Gupta brothers, he was tossed into the political wilderness. Former President Zuma had Maseko fired after his refusal to abide by his instruction to assist the Guptas access R600m in ad spend. Maseko is the only ANC member to ever provide the party with an affidavit detailing the Gupta's attempts to capture the state's entire advertising budget for its new media venture, The New Age newspaper.

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Mergence Corporate Solutions mining director Peter Major shared his insight on the broad commodity rally over the festive period. Major – who is neither bullish nor bearish on commodities in 2022 – says that despite elevated prices across the board, mining companies are trading at relatively cheap historic multiples, making him neutral on resources going into 2022. Major comments on Impala’s proposed takeover of Royal Bafokeng Platinum, with the mid-tier mining subject to a bidding war between of the JSE’s precious metals juggernauts: Impala and Northam Platinum. 

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In tonight's episode of the BizNews Power Hour, we follow up on last week's explosive disclosures of the ANC's Deployment Committee's involvement in the appointment of SA's judges. The DA's Dr Leon Schreiber explains why he has been "like a dog with a bone" on the issue; and in the first of weekly discussions on the practical effects of SA's Constitution, advocate Erin Richards warns that politicising the Judiciary is a dangerous exercise with potentially debilitating unintended consequences. Also in this episode, SA's top performing fund manager Piet Viljoen shares ideas on the stocks to own in 2022 and the FT unpacks the State Capture role of global services firm Bain & Co.

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The DA wants President Cyril Ramaphosa charged with perjury for allegedly lying under oath while testifying at the State Capture Inquiry. Dr Leon Schreiber, DA Shadow Minister of Public Service and Administration, says Ramaphosa was less than candid about the level of influence and involvement of the ANC's Cadre Deployment Committee in the appointment of the country's judges. Schreiber claims the minutes of the shadowy committee's meetings, that took him two years to get his hands on, prove Ramaphosa has a case to answer to.

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