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  • Reserve Bank's MPC keeps rates on hold
    For its final decision of the year, the Monetary Policy Committee (MPC) left South Africa's key interest rate unchanged at 8.25% for a third consecutive meeting, in line with economists' expectations.
    This comes after annual consumer price inflation leaped to 5.9% in October from 5.4% in September, closing in on the upper end of the SA Reserve Bank's targeted band of 3% to 6% and marking a third month of increases. That figure was higher than economists expected.
    "Risks to the inflation outlook still are still assessed to the upside," Reserve Bank Governor Lesetja Kganyago said in Pretoria on Thursday. The decision to keep interest rates on hold was unanimous, but the committee stands ready to act should risks materialise, Kganyago said.
    Inflation has been accelerating over the past three months, the opposite of what the MPC would like to see - and there is the added risk of what South Africa's latest round of port challenges could do to prices in the coming weeks, said Angelika Goliger, EY Africa Chief Economist, referring to Transnet's delays at various harbours. Kganyago also noted the lengthy delays and said the operation of ports and rail "have become a serious constraint".
    For consumers, their loans won't cost them more over the festive season, but rates are at 14-year highs and most economists don't expect any chance for cuts until at least March next year. HSBC was less optimistic than others and said the MPC may only cut rates from September.
    "The near-term risk is for interest rates to edge higher, should the SA Reserve Bank's inflation projections start to deteriorate, lowering the real policy rate and delaying the return to the 4.5% midpoint target,'" HSBC said.
    The Reserve Bank's gross domestic product outlook improved, with it forecasting 0.8% growth this year, up from 0.7%, and increased it to 1.2% next year. This was after spending by firms, households, public corporations and general government remained positive in real terms on an annual basis; the disposable income of households being expected to grow, albeit slowly; the investment forecast for the year was revised up to 7.7% in September and credit growth to households and corporates slowed, but remained positive.
    "At the current repurchase rate level, policy is restrictive, consistent with the inflation outlook and elevated inflation expectations. Decisions will continue to be data dependent and sensitive to the balance of risks to the outlook," Kganyago said.
    3 min
  • Parliamentary justice committee recommends that Hlophe and Motata be removed
    The Portfolio Committee on Justice and Correctional Services will recommend to the National Assembly that retired Judge Nkola Motata and suspended Western Cape Judge President John Hlophe be removed from the Bench.
    The African National Congress (ANC) and Democratic Alliance (DA) agreed that both judges, who have been found guilty of gross misconduct by the Judicial Service Commission (JSC), should be removed, but Economic Freedom Fighters (EFF) MP Busisiwe Mkhwebane, who was found guilty of misconduct by Parliament, opposed their removal.
    Motata, who was convicted of drunk driving and falsely accusing the person whose wall he crashed into of racism, was found guilty of gross misconduct by the JSC after a protracted and litigious process.
    In his case, Mkhwebane said, "Where is Ubuntu? To deal with Africans like this is not proper."
    The rest of the committee was not swayed.
    DA MP Werner Horn said MPs all swore allegiance to the Constitution, which includes non-racialism. The suggestion by "the honourable Mkhwebane, let me say Ms Mkhwebane," that an African judge must be treated differently flies in the face of that.
    ANC MP Nomathemba Maseko-Jele, while expressing sympathy with Motata's family, said ubuntu cannot be used "loosely".
    "Now, we cannot be made to feel guilty by the statement of honourable Mkhwebane," she said, adding that they had looked at the facts and the circumstances of the matter.
    The gross misconduct finding against Hlophe dates back to 2008, but it took a route with many legal detours before reaching the point where his removal from the Bench was before Parliament.
    In May 2008, justices of the Constitutional Court laid a complaint with the JSC about Hlophe's attempt to convince Justice Chris Jafta and Justice Bess Nkabinde to rule in favour of former president Jacob Zuma in his bid to overturn warrants used to seize 93 000 pages of corruption trial evidence against him.
    After much legal wrangling, the JSC found Hlophe guilty of gross misconduct in August 2021.
    The commission, in a majority ruling, found that Hlophe seriously threatened and interfered with the independence, impartiality, dignity and effectiveness of the Constitutional Court.
    The JSC ruled that Hlophe improperly attempted to influence Nkabinde and Jafta to violate their oaths of office.
    This brought the matter to the portfolio committee's attention for the first time, but Hlophe reverted to the high court to review the JSC's decision, and the parliamentary process was put on ice.
    In May 2022, Gauteng High Court judges Aubrey Ledwaba, Roland Sutherland and Margaret Victor shot holes in Hlophe's arguments as to why the misconduct allegations against him should either be referred back to the JSC "to deal with the issues as required by law" or should be decided through a new parliamentary inquiry.
    The judges dismissed Hlophe's application, stating that his challenges to the JSC process, if applied, would render judges untouchable.
    The full Bench also rejected Hlophe's arguments that four of the JSC members who voted in favour of him facing impeachment - Judge Boissie Mbha, Justice Sisi Khampepe, Western Cape Premier Alan Winde and Gauteng Judge President Dunstan Mlambo - were all conflicted and had demonstrated perceived bias against him.
    Hlophe then appealed to the Supreme Court of Appeal. However, in June, Hlophe's appeal against the gross misconduct finding lapsed because he didn't file the court record by the deadline.
    The portfolio committee has previously received a legal opinion that there is no legal impediment for it to continue with its work.
    But Mkhwebane refused to accept this.
    "I would still plead with this committee, let's give this matter an opportunity to be completely ventilated to court," she said.
    Mkhwebane, whose defence against her impeachment proceedings cost the taxpayer more than R30-million, also wanted the committee to intervene to help Hlophe get funding from the Department of Justice.
    She also called Hlophe "the chief ...
    6 min
  • SoNA disruption: Malema, EFF top brass must apologise to Ramaphosa, have one-month salary docked
    Economic Freedom Fighters (EFF) leader Julius Malema and the party's top brass will have to apologise to President Cyril Ramaphosa, give up a month's salary, and will not be allowed to attend the State of the Nation Address (SoNA) next year as punishment for storming the stage during the president's address this year.
    On Wednesday, Parliament's Powers and Privileges Committee deliberated on the sanctions for Malema, EFF deputy president Floyd Shivambu, the party's secretary-general Marshall Dlamini, Vuyani Pambo, Mbuyiseni Ndlozi, and spokesperson Sinawo Thambo, after the six were found guilty of contempt of Parliament.
    During this year's SoNA on 9 February, EFF MPs started raising several points of order and National Assembly Speaker Nosiviwe Mapisa-Nqakula ordered them to leave the chamber.
    As they walked out, some of them stormed the stage, prompting an instant reaction from heavily armed police.
    All the African National Congress (ANC) MPs agreed that the six should apologise and be docked a month's salary.
    The Democratic Alliance (DA) wanted the affected MPs to be suspended for the month of February.
    Advocate Anton Katz SC, the initiator appointed by Parliament, recommended that the MPs be suspended with effect from 6 February 2024 to 16 February 2024.
    This means that they will miss SoNA next year, which will be held on 8 February.
    DA MP Annelie Lotriet proposed that the suspension be for a month, and not 10 days as suggested by Katz.
    Sanctions
    She also cautioned the committee to clarify how exactly the apology should read. This suggestion was supported by the ANC.
    "I have been a member of this committee since 2014. I have to be honest that just giving a fine does not have the desired effect. I would propose that, given the type of behaviour that we witnessed, we combine the apologies with a fine and impose a suspension on those members for a period of a month," Lotriet said.
    The ANC, which enjoys the majority on the committee, didn't seem to be in favour of the suspension.
    ANC MP Doris Dlakude proposed a docking of salaries and a public apology. This was also supported by other ANC MPs on the committee.
    "I think the apology and the one-month salary dock will be a better sanction," she said.
    But after deliberations behind closed doors, committee chairperson Violet Siwela said all the affected MPs would apologise for their actions and be suspended.
    "The penalty with respect to Mr Malema is an order to apologise to Parliament, the President and the people of South Africa in terms of Section 12, sub section 5 (C) physically in person in the House. Another order is the suspension of the member without remuneration for a month starting from 1 February to 29 February 2024 in terms of Section 12 subsection 5 (G) and read with sub section 9," she said.
    The same sanctions will apply to the other five MPs.
    According to Chapter 4, Section 12 (G) of the Powers, Privileges and Immunities of Parliaments and Provincial Legislatures Act, 2004, a member may be suspended, with or without remuneration, for a period not exceeding 30 days, whether or not the House or any of its committees is scheduled to meet during that period.
    Section 10 of the act stipulated that a member who has been suspended under subsection 5 (G) must leave the precincts, and may not, during the period of suspension, without the written permission of the Speaker or the Chairperson enter the precincts for whatever purpose or participate in any activity of Parliament or any committee.
    These and other provisions of Section 12 are used in disciplinary action against members for contempt.
    'We're innocent'
    Meanwhile, Malema wrote to the committee explaining their conduct on the night of 9 February.
    In his submission, on behalf of all the effected MPs, he said:
    The sole evidence relied upon is video evidence. It has not been authenticated in any manner. And it is clear that it presents a slanted picture and does not show the entire proceedings. It could only have been so sl...
    5 min
  • Shock inflation increase makes for a tough interest rate decision this week
    Annual consumer price inflation (CPI) climbed to 5.9% in October from 5.4% in September, edging closer to the outside of the SA Reserve Bank's (Sarb's) targeted band of 3% to 6%, marking a third consecutive increase. The figure was higher than economists expected.
    "South African headline inflation jolts the market by printing much higher than the consensus had expected in October. Although fuel price pressures were widely anticipated, no-one had forecast a spike back in year-on-year headline inflation, almost to the upper end of the Sarb's inflation target," Razia Khan, managing director and chief economist for Africa and Middle East at Standard Chartered Bank, said.
    The main contributors to the increase were food and non-alcoholic beverages, which rose 8.7% year-on-year, housing and utilities, transport, and miscellaneous goods and services.
    CPI is now at its highest level since May this year and will be one of the factors the Monetary Policy Committee (MPC) meeting will have to consider as it makes its final decision on interest rates on Thursday afternoon. The consensus among economists before the CPI number was that the MPC will keep rates on hold at 8.25%, a 14-year high, with relief only coming in the second or third quarters of next year.
    The month-on-month change in CPI was 0.9%.
    Earlier this month, Elize Kruger, an independent economist, said a large drop in the cost of petrol due in December may mean the Reserve Bank will "look through'" any blip in inflation numbers.
    2 min
  • SA Jewish Board of Deputies labels ANC and SA govt 'bullies' following Israeli ambassador recall
    "Bullying and demonisation" is how the South African Jewish Board of Deputies (SAJBD) described Israeli ambassador Eli Belotserkovsky's recall by his government following South Africa's recall of its Israel-based diplomatic staff.
    SAJBD chairperson Karen Milner chastised the African National Congress (ANC) and the South African government after Israel's foreign ministry called Belotserkovsky back to his native land on Monday for "consultation".
    The Israeli government's move follows the 6 November announcement by its South African counterpart that the latter's diplomatic staff in Israel would be recalled for "consultation" with Minister in the Presidency, Khumbudzo Ntshavheni, asserting that Belotserkovsky's "position … in South Africa is becoming very untenable".
    It was Ntshavheni's comments - echoed by International Relations and Cooperation Minister Naledi Pandor's views on the same day that Belotserkovsky was "disrespectful" - that drew the SAJBD's ire, with Milner accusing the South African government of "hostility" towards Belotserkovsky.
    "This takes place against the background of a sustained campaign of demonisation and bullying of the Israeli ambassador by the ANC ... and the South African government in a way that was unconducive to dialogue and engagement," Milner charged in a statement to News24 on Tuesday.
    Last week, the ANC and the SAJBD met in what the former called "a frank and robust dialogue" related to the resurgence of the 75-year-old Israel-Palestine conflict, which flared up again after the 7 October attack by military and political organisation Hamas - which controls Gaza, one of three Palestinian territories - on Israel.
    Following that attack, Israel retaliated by carpet-bombing Gaza, flattening hospitals, schools and refugee camps.
    Following the ANC meeting with SAJBD, the governing party said, "The engagement with the SAJBD is aligned with the ANC's approach of consulting broadly and advocating for a just, peaceful and humane world."
    On Tuesday, Milner said it was "a great pity that the situation in South Africa has deteriorated to the degree that Israel decided to recall its ambassador".
    "We hope and trust that both the Israeli ambassador to South Africa and the South African ambassador to Israel will return to these respective countries [at the] conclusion of these consultations in a way that will contribute to continued dialogue and engagement in the interest of peace."
    Meanwhile, MPs will this afternoon in the National Assembly vote on the motion that was introduced by Economic Freedom Fighters leader Julius Malema to close the Israeli Embassy in South Africa.
    The motion was debated last week in a mini-plenary and the ANC supported it.
    3 min
  • Court strikes Koko Eskom graft case off the roll, finds there were unreasonable delays
    The Middelburg Specialised Commercial Crimes Court on Tuesday struck the case against former Eskom boss Matshela Koko and others from the roll.
    The court found that there had been unreasonable delays in the R2.2-billion corruption case against Koko and his co-accused.
    This, however, is not a pronouncement of the innocence or guilt of the accused. The matter can be re-enrolled at a later stage.
    Koko was accused of being "at the centre of a corrupt scheme" which sought to help Swiss engineering firm ABB secure a lucrative R2.2-billion contract at the Kusile Power Station in Mpumalanga.
    With Koko allegedly wielding his influence at the power parastatal to swing the contract in their favour, an elaborate network of actors received kickbacks, and millions were ploughed into companies connected to his daughters.
    1 min
  • Ramaphosa urges 'just and peaceful' resolution of conflict in Gaza at Brics meeting
    President Cyril Ramaphosa noted on Tuesday that the Extraordinary Joint Meeting of Brics (Brazil, Russia, India, China, and South Africa) leaders and leaders of invited Brics members must stand as a clarion call for countries to combine efforts and strengthen actions to end the Israeli-Gaza conflict.
    Ramaphosa was speaking virtually, when he said that since Hamas' attack in Israel on October 7 and since the responding attacks from Israel in Gaza, over 11 000 innocent civilians in Gaza, many of whom are women and children, have been killed.
    Many thousands more have been injured. Infrastructure, homes, hospitals and other public facilities have been destroyed. More than half of Gaza's population has been displaced, Ramaphosa added.
    He urged the international community to agree on immediate and concrete actions to end the suffering in Gaza and to establish a path towards a just and peaceful resolution of the conflict.
    He said South Africa calls for an immediate and comprehensive ceasefire and the opening of humanitarian corridors so that aid and other basic services reach those in need.
    Ramaphosa highlighted that the actions by Israel are in clear violation of international law, including the United Nations Charter and the Geneva Convention read together with its protocols.
    "In its attacks on civilians and by taking hostages, Hamas has also violated international law and must be held accountable for these actions. The collective punishment of Palestinian civilians through the unlawful use of force by Israel is a war crime. The deliberate denial of medicine, fuel, food and water to the residents of Gaza is tantamount to genocide," he stressed.
    South Africa also wants countries to exercise restraint and to desist from fuelling the conflict, including by ceasing the supply of weapons to the fighting parties, and to also release all civilian hostages.
    South Africa is calling for the resumption of a comprehensive dialogue led and owned by Palestinians and Israelis themselves and facilitated by the United Nations.
    Ramaphosa called for the deployment of a United Nations Rapid Deployment Force in Palestine, with a mandate to monitor the cessation of hostilities and protect civilians.
    He noted that the atrocities that have been witnessed are the latest chapter in a painful history of suffering, oppression, occupation and conflict going back more than 75 years.
    He said South Africa wants the International Criminal Court to urgently initiate prosecutions against those responsible for the perpetration of war crimes.
    "As an important voice of the Global South representing a large part of humanity, we believe that Brics has a vital role in a widespread international effort to achieve a just and lasting peace. As individual countries, we have demonstrated our grave concern at the death and destruction in Gaza," he said.
    4 min
  • South Africa's quest for energy security threatens climate goals
    South Africa is likely to prioritise energy security over its decarbonisation aspirations to avoid further damage to its economy, said James Mackay, the chief executive officer of the Energy Council of South Africa.
    That would involve extending the life of some of state power utility Eskom's coal-fired plants. The cost may be reduced access to concessional climate finance and a decline in the competitiveness of South African exports as the European Union ramps up levies on imported products that have carbon-heavy production processes, he said.
    "Energy security is fundamental to economic growth and activity," Mackay, whose organisation's members include Anglo American and Glencore, said in a November 16 interview.
    "The problem is that we are not solving decarbonisation, we are actually going to be pushing out our decarbonisation targets because we are going to live with extended, recapitalised coal."
    South Africa is the world's 14th-biggest source of climate-warming greenhouse gases. While the government has set an ambitious target to reduce its emissions by 2030, it's contending with recurrent power outages that are dragging down economic growth.
    The quickest way to end blackouts is to repair Eskom's old and poorly maintained coal-fired plants. Private companies are being encouraged to build renewable energy plants, but there isn't sufficient transmission capacity to connect many planned projects to the grid.
    That means money is likely to be spent on extending the life of a number of Eskom's plants that use fossil fuels, and plans to close about a quarter of its coal-fired capacity by 2030 may be delayed, Mackay said. The government and Eskom have said this is being considered.
    "We are probably seeing anything from three to four years on some of the smaller stations to even up to 10 years on some of the mid-life stations," Mackay said.
    Eskom said it's still considering whether to extend the life of the plants and has yet to ascertain the cost or impact on emissions of doing so.
    South Africa last year secured a commitment from some of the world's richest nations to provide $8.8-billion in climate finance to help it transition away from the use of coal, which currently accounts for more than 80% of the power generated in the country. The funding pledge came with the understanding that some coal-fired plants would close.
    If the plants are kept open for longer, a clear decommissioning plan will be needed to attract the finance required to add renewable energy capacity and bolster the transmission grid, Mackay said. He sees progress being made toward easing outages, known locally as loadshedding.
    "We are closing that gap quite rapidly and I think that we will see loadshedding substantially being reduced over the course of next year to the end of 2024," he said. Still, growth in renewable energy is too slow and needs to double to about seven or eight gigawatts a year, he added.
    "Everyone understands that the energy transition is lumpy, it's difficult, it's challenging, it's not a linear programme," Mackay said. "As long as we are robust and transparent around why the plans are potentially not working, what is being done to get those plans back on track and where are the areas of support that could try and accelerate closing those gaps, that is probably the best we could do."
    4 min
  • Unisa welcomes Nzimande's withdrawal of notice to place institution under administration
    The University of South Africa (Unisa) welcomed the decision taken by Higher Education, Science and Innovation Minister Dr Blade Nzimande to withdraw the notice to place the university under administration.
    Last week the Gauteng High Court ordered the Minister to overturn his decision following Unisa's court interdict against the move.
    The university believes that this decision by Nzimande affirms the "sacrosanctity of the courts" and the rule of law.
    Last month, Nzimande notified the university of his intention to place it under administration, after the Unisa Council failed to present written representations by the September 4 deadline.
    Nzimande's intention to place Unisa under administration followed reports on the management of the institution by Independent Assessor Professor Themba Mosia and the Ministerial Task Team (MTT) on Unisa chaired by Dr Vincent Maphai.
    Nzimande previously said that the Independent Assessor's report revealed financial and other maladministration of a serious nature and serious undermining of the effective functioning of Unisa.
    The report also revealed that the appointment of an administrator was in the best interest of Unisa and of higher education in an open and democratic society.
    The MTT on the other hand, conducted an Independent Review of Unisa, and looked at the issue of 'Unisa's mission drift', which had massive implications for the financial sustainability and future of Unisa.
    2 min
  • IEC records over 1m voter registrations over first registration weekend
    The Independent Electoral Commission of South Africa (IEC) has applauded the more than one-million South Africans who have used its online platform or who have visited voter registration stations to confirm their personal details and register to vote.
    The Commission held its first voter registration weekend over the weekend to allow all eligible voters to register to vote for the 2024 national general elections.
    The IEC noted that at the close of day one of the registration weekend, over a million registrations at 23 296 voting stations and an all-time milestone of over 100 000 online registrations were recorded.
    On Sunday, day two, the figure for online registrations stood at 40 000.
    The IEC said that at 12:30 on Sunday, a total of 609 447 registration transactions had been recorded at voting stations.
    The Eastern Cape recorded 118 574 registrations, the Free State recorded 38 860, Gauteng recorded 120 294, KwaZulu-Natal noted 108 878 registrations, Limpopo counted 82 408, Mpumalanga had 44 694, Northern Cape had 15 443 registrations, North West stood at 42 375 and the Western Cape recorded 37 921 registrations.
    2 min

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