The powers of Johannesburg's Group Forensics and Investigation Services (GFIS) have been given to the City manager, Floyd Brink.

This came after a behind-closed-doors report at the 13th Ordinary Sitting of Council on Wednesday.

The report was item 17 of 19, which took council until 21:00 to get through.

It said the "investigations conducted by the GFIS were neither compliant with the local government disciplinary regulations for senior managers, nor compliant with the approved GFIS delegations of authority".

The report was adopted by the Government of Local Unity, the name given to the African National Congress (ANC), Economic Freedom Fighters (EFF), Patriotic Alliance and minority party coalition. The GFIS was created by the Democratic Alliance (DA), when they took over in 2016, as Johannesburg's anti-fraud and corruption service.

It is also responsible for investigating the theft of assets, vandalism, maladministration, illegal connections, breach of security, and hijacked properties.

In 2022, the GFIS commissioned the law firm, ENSafrica, to investigate irregularities related to the approval of a R320-million public safety transaction.

The ENSafrica report found Brink did not act when he discovered the multimillion-rand transaction had been pushed through without following due process. Brink was voted in as the City manager in February.

On Tuesday, the DA approached the Gauteng High Court in Johannesburg to reverse this decision.The DA's Belinda Kayser-Echeozonjoku said the conflict of interest in Wednesday's decision was "surreal in its irregularity".

"The highly irregular adoption of the report also creates the unacceptable and illegal situation where the current City manager... whom the DA is litigating to have declared unlawfully appointed, is responsible for making key decisions even where he himself is the subject of possible investigation," she said in a statement on Thursday.

She said the report on GFIS was "devoid of truth and riddled with error", adding, "This report... effectively reverses all the work done by the GFIS taskforce by giving the City manager the power of prosecutor, investigator, judge and jury over matters of corruption and criminality."

Kayser-Echeozonjoku said the DA was seeking urgent legal advice on the matter.

Responding to queries by News24, the mayor, Kabelo Gwamanda, welcomed the resolutions and said it strengthened the GFIS by "regularising its operations and investigations".

Gwamanda said the report "laid bare serious irregularities in how GFIS conducted allegations and investigations against senior City officials and councillors".

He claimed the previous administration, led by the DA, had abused the department by using it to harass officials.

"Several investigations of allegations against councillors were undertaken without following the due and legal process requirements."

He said the allegations against the City manager and senior managers must be approved by council, which he said was following the requirements of the Disciplinary Regulations for Senior Managers, issued in terms of the Municipal Systems Act.

On Wednesday, Brink was mandated to handle any litigation which stemmed from investigations into these "rogue investigations".

Brink has also been mandated to appoint a senior counsel "in cases where there are cases of litigation against the City, and for senior counsel to advise on any other actions which must be taken to remedy the prejudice caused by the abuse of investigative powers and unlawful investigations".

Gwamanda said the City was committed to accountability and consequence management, but in a lawful manner.

Parliament has strongly objected to the public criticisms made by Chief Justice and former head of the Judicial Commission of Inquiry into Allegations of State Capture Raymond Zondo for suggesting that Parliament would be incapable of preventing another bid to capture the State.

Zondo has bemoaned Parliament’s progress in implementing the recommendations of the State capture commission report. Parliament also noted his criticism of the policy position regarding the existing electoral system.

Parliament said it would have been permissible for the Chief Justice to use appropriate channels to address his concerns over the implementation of the State capture report recommendations.

“It is not the place of a Chief Justice to make such public remarks unless and until he is required to adjudicate on a matter with impartiality,” said Parliament spokesperson Moloto Mothapo.

“The principle of separation of powers is important to our democracy, and it requires each branch of government to respect the roles and responsibilities of the others. Chief Justice Zondo’s public attack on Parliament encroaches on this doctrine,” he argued.

Mothapo has highlighted the important steps Parliament is taking to improve accountability and strengthen oversight within its ranks.

Parliament says it is currently developing rules and guidelines that strengthen oversight and the cooperation between Parliament and the executive.

Further, it is conducting research on international best practices focused on the enhancement of oversight and accountability within the executive. Quarterly reports on the progress of these initiatives have been tabled.

Parliament has alluded to the importance of the Chief Justice fostering an environment of mutual respect and cooperation.

The national legislatures of South Africa and the United Arab Emirates are ready to host the parliaments of Ukraine and Russia to find possible avenues of convergence amid the conflict between the two nations.

This emerged in a parliamentary report detailing the work South African MPs had undertaken at the 146th Inter-Parliamentary Union (IPU) Assembly in March.

A delegation from South Africa participated in the assembly under the theme of promoting peaceful coexistence and inclusive societies and fighting intolerance.

The IPU Task Force for the peaceful resolution of the war in Ukraine met with high-level delegations of MPs from Russia and Ukraine separately to keep parliamentary diplomatic channels open for future peacebuilding.

During the meeting, the United Arab Emirates and South Africa announced their readiness to host the parliaments of each country for further discussion on the ongoing war.

National Assembly Speaker Nosiviwe Mapisa-Nqakula delivered the report and noted that the parliaments of Ukraine and Russia welcomed the work of the task force.

The next step involves engaging the two parliaments on the following:

sending a letter detailing avenues to mitigate the humanitarian consequences of the war in four areas: nuclear safety, food security, protection of environmentally vulnerable sites, and access to and exchange of prisoners of war;

engaging with other parties to help bring about positive change in the ongoing escalation of the conflict; and

endeavouring to find possible avenues of convergence and inviting both delegations to convene in a suitable venue for discussion.

News24 previously reported that, to spare itself from having to comply with the ICC warrant of arrest for Russian President Vladimir Putin, the ANC had instructed its ministers to consider moving the summit.

As per talks in the party, suggestions were that India, despite having hosted the summit in 2019, and China, despite having hosted it in 2011, 2017 and last year, could be the hosts this year, given that they are not member states of the ICC, and have never signed its core treaty, the Rome Statute.

News24 understands that what further exacerbated the situation was a legal opinion the BRICS-appointed technical team sought, which was presented to the inter-ministerial committee, headed by Deputy President Paul Mashatile.

The legal opinion was said to have discouraged the government from having Putin attend the summit.

Last month, a political firestorm erupted when US Ambassador to South Africa Reuben Brigety accused the country of supplying weapons to Russia.

President Cyril Ramaphosa appointed former Supreme Court Judge Phineas Mojapelo to chair a three-member independent panel to probe the veracity of allegations related to the docking of the Russian vessel, the Lady R, in Simon's Town in December last year.

Recently, Putin and his Ukrainian counterpart, Volodymyr Zelensky, received a peace mission, led by six African heads of state, in their respective capitals. Ramaphosa pleaded with both heads of state to end the war.

Eskom has placed its acting head of security Karen Pillay on precautionary suspension.

This is related to a R500-million emergency security contract awarded to Fidelity Services to investigate coal theft last year, News24 understands.

According to senior Eskom sources, pressure came from the board to suspend her. She continues to co-operate with a probe into the contract, according to the sources.

The accusation is that Eskom did not follow proper procurement processes. But Eskom said the contract was awarded in line with its procurement procedure and National Treasury directives for emergency procurement of services.

Eskom said Fidelity was hired after its management received information about a potentially serious security risk to its operations and assets.

While the initial contract price was R500-million, in the end it paid only R250-million.

Pillay joined Eskom in 2004 from the Special Investigating Unit. She started her career in the police.

Chief Justice Raymond Zondo argued on Thursday that changing rules and regulations is not an essential requirement for State capture to occur, admitting that the capturing of the State has placed South Africa’s democracy at risk.

June 22 marks a year since Zondo handed over the commission’s last Judicial Commission of Inquiry into State Capture Report to President Cyril Ramaphosa.

Zondo was speaking at the Human Sciences Research Council’s colloquium on the post-Zondo commission and the future of democracy on Thursday, where he said that State capture in South Africa, whether by the Guptas, Bosasa or Bain & company did not include that any rules or regulations be changed.

He explained that the country’s version of State capture entailed having great influence or control over government officials, which included the head of State.

“I do not think the changing of rules and regulations is an essential requirement of State capture. I cannot see why, if instead of asking that the rules be changed, one uses illicit payments with government officials in order to ensure that existing rules are bridged while they should not be State capture, seems to me that there are different forms of State capture but one must recognise the essential elements,” said Zondo.

He explained that the capturing of State does not require that all three arms of State be captured.

“If a group of individuals has a strong influence on a head of State, such as the Guptas [did], and that influence is used not for the head of State to make decisions that are lawful and serve the interests of the people but serve the interests of only some of the individuals or group, or entities that is still State capture, notwithstanding the fact that not all three arms of the State are involved,” he added.

Zondo believes that there is no doubt that when one goes through the commission’s evidence that the Guptas and their allies had planned the State capture project in good time and worked on it for quite some time.

“You will remember that in 2009 we had general elections and after the election President Jacob Zuma became the President of the country but the Guptas had been close to the [President] before for quite a few years, but where they started was with Transnet. Now that was 2009, so for about two years President Zuma did not want the position to be filled, that is the position of the CEO of Transnet because he wanted Siyabonga Gama and this was the time Gama had gone through a disciplinary process,” Zondo highlighted.

He explained that evidence from the commission might not be strong enough to determine why Zuma insisted on Gama being the CEO of Transnet and that it was at the behest of the Guptas. But, he believes what came after suggested very strongly that it was at the request of the Guptas.

Retired Judge Kathleen Satchwell found that the State freight rail entity initially tried to cut corners to get rid of Gama, but eventually found the legitimate contractual grounds to achieve the goal.

Zondo said nevertheless Zuma wanted Gama to be the CEO of Transnet. Over two years the vacancy was not filled.

Popo Maja, the director of communications at the national Department of Health, has appeared in court on corruption charges related to a tender awarded to Digital Vibes.

Maja appeared in the Pretoria Specialised Commercial Crimes Court on Wednesday morning after handing himself over to the police.

He has been charged with two counts of corruption for his alleged role in awarding a contract worth more than R140-million to Digital Vibes to provide communication services to the department for the National Health Insurance (NHI) programme.

According to the charge sheet, Maja was part of the bid evaluation committee, which assessed the different bids for the tender.

It's alleged that he was paid two bribes amounting to R15 000 during this process.

According to the charge sheet, the money for the alleged bribes flowed from a Digital Vibes bank account into another account owed by Tahera Mather.

From there, the money was allegedly deposited into Maja's bank account.

The State has accused Mather of being the true owner of Digital Vibes.

Maja was sanctioned by the department last July for his involvement in awarding the tender to Digital Vibes.

One of the charges he faced in an internal disciplinary hearing was gross misconduct as a member of the bid evaluation committee, City Press reported.

Maja was found guilty of two charges against him, including initiating the request to extend the service-level agreement with Digital Vibes.

He was subsequently demoted as the department's spokesperson.

He was issued a final written warning and demoted one salary level. Both sanctions were made valid for 12 months.

Former health minister Zweli Mkhize resigned over the Digital Vibes scandal after it was claimed that he was linked to the company's alleged owners, Mather and Naadhira Mitha.

The Special Investigating Unit is probing the matter.

Maja's case is the second investigation linked to Digital Vibes that has come before the court.

Lizeka Tonjeni, an employee of the Municipal Infrastructure Support Agent (MISA), is on trial for allegedly accepting a bribe from Digital Vibes to help the company bag a R3.9-million contract from the state organisation.

MISA falls under the Department of Cooperative Governance and Traditional Affairs..

Mkhize was the department's minister at the time the contract was awarded.

No allegations have been levelled against Mather, Mitha or Mkhize in the Tonjeni case.

A Dutch court has confirmed Steinhoff's plan to switch from a publicly listed company owned by shareholders to a delisted group under the control of its creditors.

The decision was handed down shortly after news broke that a German court had issued an arrest warrant for Steinhoff's former CEO, Markus Jooste.

Once one of South Africa's largest and most successful companies, the furniture retailer never truly recovered from the financial shock of a fraud scandal, which has dogged its every step since Jooste resigned in late 2017.

While it sought to keep afloat by selling shares in its subsidiaries and selling off some of its prize assets, its debt burden kept growing larger. After finally facing the reality that it would never be able to pay off its €10.2-billion (R200-billion) debt burden by the due date of 30 June this year, it changed tack to seek out a deal with financial creditors to forestall a messy liquidation.

The deal, which has the group's financial creditors taking over 80% of its equity in exchange for a three-year debt repayment holiday, has now been upheld by a Dutch court. The matter was heard in Amsterdam where Steinhoff is registered.

"[Steinhoff] and its subsidiaries will now proceed to implement the ... restructuring plan, which is expected to close on or before 30 June 2023," Steinhoff said in an update to shareholders on Wednesday.

The court rejected a petition by a shareholder body that had asked for the deal to be blocked on the basis that it discriminated against shareholders, who would not get paid out for their shares.

May's annual consumer price inflation slowed to 6.3% from 6.8% in April, with food prices finally cooling.

May's inflation rate, which was also slowed by an easing in fuel prices, is the lowest since April 2022, Statistics SA said. It was also cooler than economists expected. The median expectation among economists in a Bloomberg survey was 6.5%.

The consumer price index (CPI) increased by 0.2% between April and May.

Food inflation – the prices of food and non-alcoholic beverages - eased to 11.8% from 13.9% in April, which was close to the hottest level in fourteen years.

Food inflation only increased by 0.3% between April and May – the smallest increase since November 2021.

Meat prices fell by 0.4% from April to May and were 7.1% higher than a year before – from 9.5% in April. Bread and cereals inflation slowed to 18.1% in May from 20.8% in April.

Prices for oils and fats are now 2.4% cheaper than a year before.

But sugar, sweets and desserts grew more expensive - increasing by 11.9% in the year to May – from 10.7% in April.

From April to May, the price of white sugar increased sharply by 2.7% and slabs of chocolate by 2.9%.

In the 12 months to May, the average price of a 2.5 kg bag of white sugar increased from R49.68 to R53.00. The average price of a slab of chocolate (80 grams) rose from R17.11 to R20.26 over the same period.

Prices of cold beverages were 10.5% higher in May from a year before – the highest rate since 2019.

Statistics SA also reported that restaurant prices increased by a sizeable 1.2% between April and May – taking the annual rate for restaurants to 7.4%.

Fish and seafood dishes were 11.3% more expensive, followed by pizza (up 9.3%) and red meat-based products (up 9.0%).

Between April and May, the prices of pies were hiked by 2.3%, followed by hikes of around 2% for hot beverages, poultry-based products, hamburgers and red meat-based products.

While diesel and petrol prices were hiked in May, fuel prices were only 3.5% higher than a year before - from 5.0% in April. However, vehicle prices increased to 7.5% - the highest increase since 2017.

Statistics SA also noted sharp monthly price increases for pain killers (+3.0%) and vitamin and mineral supplements (+6.6%).

Impact on rate hikes?

The latest CPI number will reassure the Reserve Bank's monetary policy committee, which has already hiked interest rates by 475 basis points in an effort to cool inflation.

Last month, interest rates were increased by 50 basis points. This came in the wake of a rand crash triggered by US allegations that Russia received arms in South Africa has raised inflation risks. A weaker rand fuels inflation.

South Africa imports almost all its fuel (in dollars). Other imports will also be more expensive, but also locally produced maize and wheat. Their prices are determined by international prices, usually in dollars.

In addition, loadshedding is pushing costs and prices higher.

Reserve Bank Governor Lesetja Kganyago took a less hawkish stance about rate hikes at the last meeting.

He said monetary policy had now reached "restrictive territory" (hurting the economy).

"We have got to see the effects of this policy stance and what it means."

Some economists expect the first interest rate cut only at the start of next year.

President Cyril Ramaphosa outlined the country’s challenges and stressed the importance of partnerships in his opening remarks during official joint working visit of the Netherlands and Denmark, in Pretoria, on Tuesday.

The dignitaries included the Netherlands Prime Minister Mark Rutte and Danish Prime Minister Mette Frederiksen.

Ramaphosa opened his address by highlighting the country’s energy challenges and the impact on the local economy.

“Renewable energy forms an increasingly important part of our energy mix and it is vital to both the achievement of a just transition and greater energy security. We hope to benefit from closer cooperation with your countries in this regard, ”Ramaphosa told Rutte and Frederiksen.

He commended South Africa’s longstanding relationship with the Netherlands and Denmark, and has called for increased co-operation towards shared objectives.

The President stressed the importance of building mutually beneficial partnerships between regions of the Global North and South to bridge growing divides and addressing common challenges.

“Given the current challenges in Africa and Europe, it is important that we broaden our dialogue to include regional issues,” Ramaphosa added.

This sentiment follows on from Ramaphosa’s recent visit to Kyiv and St Petersburg for meetings with Ukrainian President Vladimir Zelenkskyy and Russian President Vladimir Putin, alongside a delegation from seven African countries.

The delegation called for a de-escalation of the conflict and the release of children and prisoners of war. Further, it highlighted the devastating effects the war is having on African economies, such as food shortages and a rise in the cost of living.

“We believe that our mission was successful in registering the willingness of African leaders to contribute to a negotiated peace and to highlight the broader effects of the conflict. We hope that it will contribute in some way towards international peace efforts,” Ramaphosa opined.

Petrol prices currently still look set for a small cut at the start of July. Diesel, however, may be hiked.

Based on the current oil and rand prices, the latest data from the Central Energy Fund shows that diesel prices may be increased by 10c to 15c a litre, depending on the grade. Petrol 95 and 93 unleaded may be lowered by 6c a litre and 15c, respectively.

However, there is still some time to go before the final prices are set. Fuel prices will only be adjusted on 5 July.

South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.

Brent crude oil has strengthened slightly since the beginning of the month, from $74 to $77 a barrel. But oil remains under pressure owing to a strong supply flow from Russia – as well as concerns about the Chinese economy, which is not rebounding as fast as expected.

After crashing to close to R20/$ last month amid continuing worries about South Africa's close relationship with Russia, the rand has since recovered and is currently trading around R18.17/$.

At the beginning of June, the petrol price was cut by 71c a litre, while diesel was lowered by around 80c.

This brought the price of a litre of 95 unleaded petrol to R22.63 in Gauteng, compared to R24.17 a year before – and a record price of R26.74 in July last year.

The wholesale diesel price is currently R19.31 per litre in Gauteng. As recently as in November last year, diesel cost close to R25.50. Diesel is back to levels before the invasion of Ukraine caused a big spike in oil prices.