The rand closed at R14.38 on Wednesday.
Here's how the day ended: 
USDZAR 14.3794
EURUSD 1.1357
EURZAR 16.3225
GBPUSD 1.3195
GBPZAR 18.9480
AUDZAR 10.1870
CADZAR 10.7630
CNYZAR 2.1462Z
ARJPY 7.7422
CHFZAR 14.3974
R186 8.75%
US 10 Year 2.59%
JSE -1.06%
FTSE -0.15%
S&P 500 -0.25%
  15:57
US stocks slip before fed announcement
US equities slipped Wednesday as cautious investors awaited the Federal Reserve policy decision and further news on U.S.-China trade talks.
Ten-year Treasury yields slipped.
The S&P 500 Index opened lower as FedEx tumbled after cutting its annual profit forecast. The dollar ticked higher after three days of losses, while two-year Treasury yields remained below the top of the Fed’s policy target range amid expectations of a dovish tone from the central bank. Apart from a hold on rate increases, markets will watch for any word on plans to end the Fed’s current bond-portfolio run-down.
“All eyes will be on the dot plot this afternoon, as most FOMC participants have signaled they are on board with the Fed’s new ‘patient’ guidance and those who have talked about it in terms of rates have indicated they expect no hikes or one hike this year,” Chris Low, chief economist at FTN Financial, wrote in a note to clients.
“The Fed is likely to reveal the end date for balance sheet runoff today, but may not yet be quite ready to reveal the disposition of maturing assets once runoff ends.”In Europe, a series of negative corporate news stories dragged down the Stoxx Europe 600 Index. Germany’s DAX Index led the retreat as BMW warned earnings would fall and chemical maker Bayer headed for the biggest drop in 15 years after losing the first phase of a U.S. trial over claims its weed killer caused cancer. In Asia, Japanese shares finished higher, while most other markets dipped.
The pound fell as UK Prime Minister Theresa May sought to extend the Brexit deadline to June 30, while the opposition called for the public to have the final say over the country’s EU exit. The euro held steady after German producer prices missed estimates. European sovereign bonds were mixed.
Elsewhere, emerging-market currencies and shares were steady. West Texas crude slid before the release of the weekly U.S. oil inventory report. - Bloomberg
  12:08
South Africa CPI came out at 4.1% YoY and 0.8% MoM which was in line with expectations.
TreasuryONE said this will likely support the decision that the SA Reserve Bank will keep rates on hold next week. 
The rand is currently trading at R14.51 to the greenback.
  09:26
Andre Botha, Senior Dealer at TreasuryONE said in a morning note to clients that the rand was in for a rough ride, particularly in terms of the impact of load shedding.
By 09:26, the rand was trading at R14.48 to the greenback.
“As we stated yesterday the rand is facing some tough headwinds which could lead to an interesting time for the rand in the short term," he said.
Botha said the rand lost about 15 cents on the back of Public Enterprises Minister Pravin Gordhan's briefing on Eskom yesterday and the news, revealed by Fin24, that the power utility and government was planning for Stage 5 and Stage 6.
"The rand closed around the R14.50 level after looking to push stronger in morning trade. The move lower was due to some positive sentiment in the market as we expect the US Fed to be dovish in tonight's press statement.
"Further headwinds that started to blow yesterday was the bump that the US-China trade talks suffered from China looking at not sticking to their commitment to buying several Boeing 737 aircraft. This has caused a little uncertainty in the market with the leaders of the two countries only meeting in April.
"Coupled with the uncertainty on whether the UK will get the desired extension from their March 29 deadline of Brexit has thrown more uncertainty into the market melting pot.
"The latest development in the load-shedding conundrum will make Moody's rating review at the end of the month a bigger event than we expected a couple of weeks ago.
"The headwinds faced by the rand will surely see the rand gain less ground than its EM peers should the Fed be dovish tonight, but in the same breath weaken more if the Fed surprises markets. Locally, we have CPI data out this morning but the main event will be the Fed later on this evening.”
Peregrine Treasury Solutions's Bianca Botes also said that the rand remained on the back foot as SA's electricity woes weighed heavily on the local unit.
"Local CPI data is expected to show an uptick in inflation as a weaker ZAR and increasing fuel prices take their toll. All eyes will be on the Fed later today with markets expecting the same dovish and patient tone with an unchanged federal funds rate.
"Any deviation will lead to some volatility in the currency markets. The rand opened at R14.50/$ today and the expected intraday range is R14.44 to R14.58," she said.
  08:06
Asian stocks mixed before fed
Asian stocks traded mixed early Wednesday as investors held back from making big changes prior to the Federal Reserve’s policy decision.
Treasuries and the dollar steadied.
Shares in Japan, South Korea and Australia edged lower. A rally in US stocks earlier sputtered out after a report that US and Chinese negotiators remain at odds on aspects of their current trade talks soured sentiment.
A rally in oil stalled. Money managers will be looking for clues on future policy from the Fed Wednesday after its dovish shift in recent months helped reboot global equities on bets that interest-rate hikes will be put on hold to support the economy.
News that the Trump administration is concerned that China is pushing back against US demands threatens to curb hopes of a deal.
Elsewhere, a senior European Union official said the bloc is likely to tell Theresa May that she must decide by mid-April whether to extend Brexit until 2020 or risk leaving in three months without a deal.
The euro edged higher as data showed German investor confidence rose for a fifth straight month.
  08:05
Palladium tops $1 600
Palladium topped $1 600 an ounce for the first time, and there’s little sign of the rally slowing as global supply tightens.
The price of the metal - mainly used in autocatalysts in gasoline vehicles - has almost doubled from a recent low in August. Demand has remained robust as manufacturers scramble to get hold of palladium to meet more stringent emissions controls, particularly in China, even as auto sales in key markets slow.
 
 
 
Credit: TreasureOne

Absa Group Ltd is restructuring its South African retail and business banking unit within months of reducing the division’s management team and rolling out a new strategy.

Finance labor union Sasbo was notified to begin consulting staff last week on the potential impact of the move, union representative Philip Landman said by phone Wednesday.

About 15 retail-banking executives exited their positions at the Johannesburg-based lender in June, after a similar process was followed to flatten the unit’s top structure.

Discussions between Sasbo, Absa and employees are still in their early stages, with 827 jobs potentially at risk, Landman cited a written notice from the company as saying, adding that 340 people might be employed through the process.

“At this point we are trying to figure out if what the bank is saying has merit, and prove that the restructuring is actually unnecessary.”

“It is only once the realignment is complete that the total number of people who have either been appointed to new roles or have left the organisation will be known with certainty,” Absa said in emailed comments.

The changes will result in “both new opportunities and redundancies across the business,” it said, adding that the steps aren’t a “retrenchment exercise, but a realignment effort aimed at enabling our new strategy.”

Tepid Growth

The shake-up comes as South African lenders contend with slow economic growth and a consumer base battered by tax hikes and rising fuel and utility expenses.

A stubborn unemployment rate of about 27% and declining business confidence is also curbing demand for loans, forcing banks to bring their costs down.

Retail and business banking accounts for more than half of Absa’s profit and is at the center of a group-wide push to grow revenue faster than its competitors after the lender’s former U.K.-based parent, Barclays Plc, sold down its controlling stake to below 15%.

The division’s chief executive officer, Arrie Rautenbach, who was appointed about a year ago, is focusing on boosting mortgage lending, lowering costs and expanding the number of products sold to its clients.

Rautenbach is implementing his strategy as South Africa’s banking sector becomes increasingly competitive with one new rival, TymeBank, launching in February and two more expected to follow this year.Absa will publish its annual financial results on Monday.

South Africa’s central bank says rising fuel and electricity prices posed a domestic risk to the inflation outlook and impact on its 2019 growth.

The apex bank governor, Lesetja Kganyago, gave the remarks on Wednesday after the latest fourth-quarter data showed an annualised growth of 0.8 per cent.

Besides, Kganyago said the impact of the volatile Rand currency and tightening global financial conditions were also being monitored for possible inflationary impacts.

The governor, however, maintained that he expected the economy to grow by 1.7 per cent this year and two per cent in 2020.

The South African government is forecast to be hit by a tax revenue shortfall of almost R43 billion for the tax year ending next month, Finance Minister Tito Mboweni indicated in his budget speech on Wednesday.
 
There were pronounced risks to the local economic outlook with the main risk of concern being power utility Eskom and its financial woes, the 2019 budget review report indicated.
 
The report indicated that government tax revenue for the 2019 fiscal year would come in at R43 billion under the target set at the 2018 budget speech.
 
“There are pronounced risks to the economic outlook. The main risk of concern is Eskom. Failure to fully implement the reconfiguration of Eskom could lead to a negative market reaction that would prompt capital outlflows, with greater pressure on the rand. It would also perpetuate weak investor confidence and reduce economic growth,” the report said.
 
In the worst case scenario, National Treasury is forecasting negative 1% growth this year while its best-case scenario is just over 2% growth.
 
Mboweni cut the National Treasury’s forecast for economic growth for this year from 1.7% to 1.5% due to “fragile recovery in employment and investment, and a less supportive global trade environment”.
 
By 2021, the National Treasury’s best-case scenario is growth of 3% and its worst-case scenario is 1%.
 
“The economic and revenue outlook has deteriorated since the October 2018 medium-term budgetary policy statement and funding pressures from state-owned companies have increased,” the medium-term budgetary policy statement said.
 
“Several other state-owned companies are also in financial distress and have requested government support. As a result, the contingency reserve has been revised up by R6 billion in 2019/20 and any funding provided will be offset by the sale of non-core assets. Additional reforms to strengthen the governance, finances and operations of state-owned companies will be announced in the months ahead,” the 2019 budget review report said.
 
State companies that are looking for bailouts include the South African Broadcasting Corporation (SABC) and Denel.
 
“Several state-owned companies face negative cash flows and are financing operations from debt, which has become increasingly difficult to raise. This moves them perilously close to default unless they receive some form of recapitalisation.”
 
In another worrying sign, debt owed to municipalities is increasing. At the end of March, debt owed to municipalities is forecast to climb to almost R159 billion from almost R99 billion at the end of March 2015.
 
Of debts owed by municipalities that are more than 90 days in arrears, Eskom is the major creditor – it is owed R12.8 billion – followed by water boards with R6.4 billion.
 
“From July 2018 to June 2019 municipal financial year, 113 municipal councils adopted unfunded budgets, up from 83 the prior year.”
 
The government is expecting to issue $2 billion (about R28 billion) in debt by the end of the 2019 fiscal year.
 
Over the next three years, the government will raise an additional $8 billion (about R114 billion) in global capital markets.
 
“This year’s budget underlines the National Treasury’s continued commitment to these requirements in a difficult environment in which economic growth remains weak, public debt and debt-service costs have accelerated and governance and operational concerns are manifest across the public sector,” the review report said.
 
“Weak economic performance and residual problems in tax administration have resulted in large revenue shortfalls,” the report said.
 
“The deteriorating financial position of state-owned companies has put additional pressure on the public finances,” the report added.
 
“The government’s efforts to reform state-owned companies and the launch of the infrastructure fund are expected to increase growth and investment in the year ahead,” the 2019 budget review report said.
 
For the 2020 fiscal year, consolidated government expenditure is forecast to R1.83 trillion.

The South African government is forecast to be hit by a tax revenue shortfall of almost R43 billion for the tax year ending next month, Finance Minister Tito Mboweni indicated in his budget speech on Wednesday.

There were pronounced risks to the local economic outlook with the main risk of concern being power utility Eskom and its financial woes, the 2019 budget review report indicated.

The report indicated that government tax revenue for the 2019 fiscal year would come in at R43 billion under the target set at the 2018 budget speech.

“There are pronounced risks to the economic outlook. The main risk of concern is Eskom. Failure to fully implement the reconfiguration of Eskom could lead to a negative market reaction that would prompt capital outlflows, with greater pressure on the rand. It would also perpetuate weak investor confidence and reduce economic growth,” the report said.

 
 

In the worst case scenario, National Treasury is forecasting negative 1% growth this year while its best-case scenario is just over 2% growth.

Mboweni cut the National Treasury’s forecast for economic growth for this year from 1.7% to 1.5% due to “fragile recovery in employment and investment, and a less supportive global trade environment”.

By 2021, the National Treasury’s best-case scenario is growth of 3% and its worst-case scenario is 1%.

“The economic and revenue outlook has deteriorated since the October 2018 medium-term budgetary policy statement and funding pressures from state-owned companies have increased,” the medium-term budgetary policy statement said.

“Several other state-owned companies are also in financial distress and have requested government support. As a result, the contingency reserve has been revised up by R6 billion in 2019/20 and any funding provided will be offset by the sale of non-core assets. Additional reforms to strengthen the governance, finances and operations of state-owned companies will be announced in the months ahead,” the 2019 budget review report said.

State companies that are looking for bailouts include the South African Broadcasting Corporation (SABC) and Denel.

“Several state-owned companies face negative cash flows and are financing operations from debt, which has become increasingly difficult to raise. This moves them perilously close to default unless they receive some form of recapitalisation.”

In another worrying sign, debt owed to municipalities is increasing. At the end of March, debt owed to municipalities is forecast to climb to almost R159 billion from almost R99 billion at the end of March 2015.

Of debts owed by municipalities that are more than 90 days in arrears, Eskom is the major creditor – it is owed R12.8 billion – followed by water boards with R6.4 billion.

“From July 2018 to June 2019 municipal financial year, 113 municipal councils adopted unfunded budgets, up from 83 the prior year.”

The government is expecting to issue $2 billion (about R28 billion) in debt by the end of the 2019 fiscal year.

Over the next three years, the government will raise an additional $8 billion (about R114 billion) in global capital markets.

“This year’s budget underlines the National Treasury’s continued commitment to these requirements in a difficult environment in which economic growth remains weak, public debt and debt-service costs have accelerated and governance and operational concerns are manifest across the public sector,” the review report said.

“Weak economic performance and residual problems in tax administration have resulted in large revenue shortfalls,” the report said.

“The deteriorating financial position of state-owned companies has put additional pressure on the public finances,” the report added.

“The government’s efforts to reform state-owned companies and the launch of the infrastructure fund are expected to increase growth and investment in the year ahead,” the 2019 budget review report said.

For the 2020 fiscal year, consolidated government expenditure is forecast to R1.83 trillion.

South Africa has disclosed that it turned down a request from Zimbabwe for an emergency loan of $1.2bn (£932m) in December.
 
Treasury spokesman Jabulani Sikhakhane said South Africa did not have "that kind of money".
 
Zimbabwe's government had hoped to use the cash injection to stabilise the ailing economy and resolve fuel shortages in the country.
 
Soon after the request was rejected, Zimbabwe's President Emmerson Mnangagwa was forced to announce a steep increase in the price of fuel - a move which has caused angry protests.
 
Police have violently repressed the protests that broke out mainly in the capital, Harare, and the southwestern city of Bulawayo, with some reports that they were conducting door-to-door searches and using of live ammunition.
 
Human rights groups say at least a dozen people have been killed, but there has been no official confirmation.
 
The UN called on the government to halt the "excessive use of force" by security forces.
 
President Mnangagwa tweeted that he was abandoning plans to attend the Davos economic summit and return home to deal with the crisis.
 
 
Source: BBC
 
The rand fell to a three-month low on Thursday but is slowly recovering against the dollar. Picture: iStock
The rand tumbled to its weakest in three months on Thursday, as emerging market currencies were hit by a wave of risk aversion as fears about global growth intensified.
 
At 9am the rand was 0.6 percent weaker at R14.55 to the dollar, recovering slightly after sliding to R14.89 in the overnight session, its weakest since October 9.
 
The rand was on the backfoot following weak factory data from China on Wednesday and saw losses deepen in tandem with a majority of global currencies after Apple said sales in China and other emerging markets fell last quarter.
 
Apple’s share price fell after chief executive Tim Cook warned shareholders that iPhone sales were slowing faster than expected. Cook said that the company did not foresee the magnitude of the “economic deceleration”, especially in China.
 
The news helped trigger a “flash crash” in currency markets, stoking nervousness about global growth already dampened by the ongoing trade wrangle between the United States and China.
 
Despite this early trade low, the rand gained momentum to trade 0.3% weaker against the dollar by midday. It sat at R14.50 to the dollar at the time.
 
The JSE All Share index, which suffered along with European and Asian stocks on Wednesday amid concerns around a possible slowdown in China, was up 0.8% by midday, with all major indices in positive territory.
 
The rand opened on Thursday at R14.46 to the dollar.
 
 
Source: City Express
In truth, the currency started from a very low base: the Nenegate crisis in 2015.
Its performance this year has not been stellar, but most experts expect it to remain below R15/$ in 2019.
Over the past three years, the rand has been the world's strongest major currency against the dollar.
 
The rand has strengthened by almost 6.3% against the dollar since mid-December 2015, according to data compiled by the independent analyst Johann Biermann. By comparison, the Mexican peso weakened by more than 16% and the Turkish lira lost an almighty 79% of its value. The UK pound fell almost 20% over the past three years as Brexit fears wreaked havoc.
 
Only the Russian rouble, which gained by 6% over this time,  the euro (+3%) and the yen (+6.2%) could keep up with the rand.
 
It is of course worth noting that three years ago the rand was in a very bad state amid the Nenegate crisis.
 
On December 9th 2015, former president Jacob Zuma fired then finance minister Nhlanhla Nene, replacing him with back-bencher Des van Rooyen. 
 
"After all is said and done, the rand has been one of the strongest currencies over the last three years - obviously benefiting from the low base created by Nenegate," Biermann said this week. "Still, not many would've predicted that the rand would outperform these majors in years to come."
 
Unfortunately, 2018 has been tough on the local currency: the rand has lost a painful 14.5% of its value against the dollar - on par with the rouble (-15%) and the Brazilian real (-17%). Even traditionally stable currencies - including the Australian dollar (-8%) and the euro (-6%) - took a hit.
 
The rand/dollar rate over the past five years. (So
The dollar/rand rate over the past five years. (Source: XE)
But most currency experts are not expecting the rand to take a massive hit in 2019.
 
The currency is expected to end 2019 between R12 to R15 a dollar, according to almost 70% of the 160 South African-based bankers, CEOs, CFOs, corporate treasurers as well as foreign exchange and hedge fund executives polled at the Bloomberg Foreign Exchange Summit last week. 
 
The rand will probably trade near R13.40 to the dollar by the end of next year, Standard Bank economist Elna Moolman said, according to a press report.
 
"The expectation is partly based on a dollar story, but also on the assumption that we will see political and policy improvements to support a stronger currency."  
 
Moolman said the next big local events that could influence the rand are the Budget in February, the response from Moody’s (the only agency that has not yet rated South Africa as "junk") and then the natonal elections, expected in May 2019.
 
If the US economy weakens and/or the equity markets fall apart, which means that the Fed won’t hike interest rates by as much as expected, the rand may benefit, according to Biermann.
 
“Also, sentiment towards emerging markets has been very negative in 2018. If it starts to turn, the rand will get a boost."
 
But there are risks – chief among them, Eskom’s R100 billion debt burden.
 
“If government took over the debt, our credit rating will be further downgraded – which will be negative for the rand.”
 
Ratings agencies have also been clear that further slippage in terms of property rights could prompt downgrades, Biermann said. 
 
 
Source: Bloomberg news 
JOHANNESBURG - The rand rose for a fourth straight session on Friday to end the week nearly 3% firmer, benefiting from political chaos in Britain and a revival of risk appetite linked to a thawing of United States (US)-Sino trade tensions.
 
Stocks ended slightly lower, with British American Tobacco taking the most off the benchmark index after the United States announced sweeping restrictions on flavoured tobacco products.
 
At 1530 GMT, the rand was 1.09% firmer at 14.0300.
 
Most of the gains were posted after the dollar wobbled as two Federal Reserve officials cautioned in separate television interviews about slowing global economic growth, raising doubts about the number of future US rate increases.
 
The rally followed Thursday’s strong gains, particularly against the pound, as Prime Minister Theresa May battled to salvage a draft Brexit deal.
 
Growing bets that the South African Reserve Bank (Sarb) may raise rates at its policy meeting on Thursday supported the already attractive carry yield offered by the rand.
 
It outpaced most other emerging currencies against the dollar on the day.
 
In a Reuters poll taken this week, 16 of 26 economists said the SARB would keep its repo rate at 6.50% while the rest forecast a 25 basis-point hike.
 
Bonds also rose, with the yield on the benchmark 2026 paper down 4.5 basis points at 9.115%.
 
On the bourse, the benchmark Top-40 index was down 0.17% at 45,851 and the broader All-share index lost 0.1% to 52,095.
 
BAT slumped 6% to R495.67, tracking falls in its London-listed shares. On Thursday the US Food and Drug Administration announced restrictions on flavoured tobacco products, including electronic cigarettes, in an effort to prevent a new generation of nicotine addicts.
 
Investment house Reinet Investment was also under pressure, falling 6.7% to R215.58 after the company reported a drop in net asset value, a key profitability measure for investment companies.
 
 
Source: The Routers

A former senior executive of the scandal-ridden VBS Mutual Bank has revealed that a branch manager was ordered to make a R3 million payment to fund the national congress held by the SA Communist Party (SACP) last year, allegedly in exchange for the party’s silence on the bank’s relationship with the controversial Gupta family.

City Press can reveal that Vele Investments, which is the majority shareholder of the soon to be defunct bank, used one of its subsidiary companies to pay the SACP’s R3 million bill for the use of facilities at the Birchwood Hotel & OR Tambo Conference Centre in Boksburg, Ekurhuleni.

The senior executive, who was at the centre of the bank’s activities and has requested anonymity, has told City Press how Vele Investments – VBS’s parent company – conspired to use a subsidiary company account to conceal the link to the SACP payment.

The senior executive’s revelations are the first to draw the SACP national office into the VBS saga after it fiercely denied any links to the bank.

 

The ANC has already admitted that it received R2 million from VBS, and has undertaken to pay the money back.

The senior executive alleged this week that a senior SACP official demanded a R3 million payment from former VBS chairperson Tshifhiwa Matodzi to stop making “noise” about VBS’s relationship with the Gupta family.

In January last year, almost a year after the country’s four major banks closed the accounts associated with the Guptas, VBS announced that it was following suit after discussions among the bank’s bosses.

Months later, the SACP learnt that VBS had allowed Gupta entities to open new business accounts.

The senior executive detailed how Matodzi ordered the branch manager to make a R3 million payment a day before the start of the SACP’s national congress.

“On July 6 2017, he [the branch manager] got a WhatsApp message from Matodzi saying that he must make a payment of R3 million for the SACP national congress.

"Matodzi told him that he was getting pressure from SACP leaders to have that payment done because the SACP congress was starting the following day.

“He was instructed to move R4 million from Vele Investments’ bank account to MML Food Services’ bank account.

"From there, R3 million was directly transferred into the Birchwood Hotel & OR Tambo Conference Centre’s bank account with the reference of the SACP. This was done to ensure that it cannot be traced.”

MML Food Services is a subsidiary of Vele Investments, which was a majority shareholder in VBS. Matodzi, who was the chairperson of both VBS and Vele, is the central character in the VBS scandal.

Matodzi and his associates have been positively identified as the main beneficiaries of the massive fraud at VBS.

In the explosive forensic report released by the SA Reserve Bank last month, which was authored by Advocate Terry Motau, MML Food Services is mentioned as one the companies that received a R19 million deposit and a R17.5 million facility from sister company VBS.

Matodzi declined to comment yesterday, saying: “I have no comment on anything that has to do with VBS.”

The chief executive officer of MML Food Services, Ronald Letsoalo, and Birchwood Hotel & OR Tambo Conference Centre director Jazzman Mahlakgane ignored repeated requests for comment.

The senior executive also revealed that the system had to be programmed to allow the R3 million to go off and be available in the next bank immediately.

“We had to make the payment with RTC [real time clearance]. The intention was to silence SACP leaders from exposing Gupta accounts with VBS,” the senior executive told City Press.

According to the senior executive, a branch manager has the authority to make a payment of up to R1 million.

Any amount above that has to be authorised by the senior executives at the corporate office level.

Another insider within VBS said it appeared that the SACP leaders and VBS executives reached an agreement that R3 million would be paid to cover the costs of the SACP’s national congress.

“It means that there was a prior arrangement. Delegates at the SACP congress enjoyed water and food paid for by VBS,” the insider said.

The senior executive said all the transactions done by the branch manager were ordered by Matodzi.

“He would say to the branch manager via WhatsApp or telegram [a secure communications mechanism]: ‘Pay this much to this account.’ All the things the branch manager had paid for were because he got an instruction from Matodzi.”

The senior executive said the branch manager told investigators about the payment that was made on behalf of the SACP.

“They interviewed him. He told them about the payment he was ordered to make on behalf of the SACP. They omitted to mention that SACP benefited from VBS in the report.”

However, SACP national spokesperson Alex Mashilo denied that the party received money from VBS or Vele Investments.

When asked yesterday about the sponsors of the SACP’s national congress last year, Mashilo said: “It comes across as a generally fishing question to ask who has ever made a donation to the SACP.

“At its special national congress held in July 2015, the SACP published a financial report for the period dating back to its 13th national congress held in July 2012.

"The report published a number of details, including an assessment of SACP membership fees and levies. It also identified a number of donors, of whom the core are trade unions.

"The next financial report, which was made available at the 14th national congress of the party in July 2017, categorised the sources of income received with due regard to the rights of all parties.”

Mashilo said that the party’s record spoke for itself.

“It is utterly unfair to make a sweeping allegation against SACP leaders. The SACP has many leaders. The allegation is obviously senseless 
and dismissed with contempt.

"The SACP is on record [as saying] that, should any incontrovertible evidence of corruption involving the complicity of its members emerge in any scenario, the party will take decisive against that member,” he said.

This week, the SACP in Limpopo suspended its provincial secretary and former Capricorn District Municipality mayor Gilbert Kganyago, whose council illegally deposited R60 million into VBS when he was in charge.

Mashilo said the party had been consistently vocal against the Guptas.

“It is common knowledge that the SACP has been consistently vocal and mobilising against the Guptas’ capture of state authorities in particular and capture of the state in general. The party will not stop, but deepen this just struggle,” Mashilo said.

Matodzi, along with his co-directors and his friend Robert Madzonga, stands accused of facilitating the looting of nearly R2 billion at VBS.

ANC leaders, notably ANC Limpopo deputy chairperson and Vhembe District Municipality mayor Florence Radzilani and treasurer Danny Msiza were also implicated in the Motau report into the VBS scandal.

Radzilani is mentioned in the Motau report as having complained that she “only” received R300 000 for ensuring that millions deposited by the Vhembe District Municipality into VBS were not withdrawn.

Radzilani wrote to ANC secretary-general Ace Magashule last week to deny any involvement in the VBS investment.

Msiza is challenging the report in court.

 

Source: News24

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