Top 5 on Fin24: Rupert on radical economic transformation, new bill for SAA bailout, and Bell Pottinger collapses
Cape Town - In case you missed it, here is a roundup of Wednesday's top 5 reads on Fin24:
Johann Rupert on radical economic transformation
One of South Africa's richest businessmen Johann Rupert, chair of luxury-goods company Richemont, said “radical economic transformation,” the policy championed by President Jacob Zuma to reduce racial inequality, was no more than theft.
“Radical economic transformation is just a code word for theft,” Rupert said on the sidelines of Richemont’s annual general meeting in Geneva on Wednesday.
Treasury drafts R10bn special appropriation bill for SAA bailout
National Treasury has drafted a special appropriation bill to recapitalise SAA with a R10bn bailout, which it hopes to table in a special parliamentary sitting.
As Parliament is set to go into recess until mid-October, National Treasury Director General Dondo Mogajane said Treasury will have to plead with parliament to vote on this on an urgent basis.
“We hope Parliament will accede to that,” he said. “We will have to appeal to Parliament for the possibility. If there is no possibility, we will have to look to Plan B.”
Bell Pottinger files for administration
Bad news continued to pile up for the scandal-hit PR company, which has now filed for administration.
Bell Pottinger named financial adviser BDO to oversee the process, the newly appointed accountant said in a statement on its website on Tuesday.
The PR company lost clients and staff over its controversial work for the Gupta family, and was expelled from the UK’s PR trade body last week.
Concern about impact of ANC election conference on economy
The growing risk of a postponement of the December 2017 ANC leadership election could be a significant negative event for South Africa's ratings outlook, confidence in the country and the rand, according to Gina Schoeman of Citi Research.
Schoeman commented after the the Pietermaritzburg High Court on Tuesday declared the 2015 KwaZulu Natal provincial ANC election of Sihle Zikalala as provincial chair null and void. Zikalala is allied to Zuma, making the ruling significant, in Schoeman's view.
Cabinet must decide on Myeni’s successor – Ramaphosa
It is up to Cabinet to decide who will be the new chairperson of the South African Airways board, Deputy President Cyril Ramaphosa said during a question and answer session in the National Council of Provinces on Wednesday.
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