A very happy Friday to all, today we are doing a bit of a writing style test. In some longer articles, we used a more professional tone while in others it was more chatty. Using the poll below, please let us know what you prefer as this will set the tone going forward.

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Market View

This Weeks Overview

National Headlines:

• Justice Minister Thembi Simelane faces scrutiny for a R575,600 loan from an accused VBS broker, raising conflict of interest concerns.

• Airports Company South Africa (ACSA) cancels R115 million biometric tender amid legal scrutiny and allegations of misconduct.

• Meteor explodes over South Africa's Eastern Cape, scattering fragments across a wide area.

• Western Cape's education department to cut 2,400 teacher posts by 2025 due to a R3.8 billion budget shortfall.

• President Ramaphosa reassigns oversight of key state-owned enterprises to relevant ministries as part of a restructuring plan.

• Former FNB employee sentenced to 15 years in prison for embezzling R5 million.

Business World:

• Discovery Bank hits 1 million customers in South Africa, achieving the milestone two years ahead of schedule.

• Steinhoff's successor, Ibex accuses the South African Reserve Bank of unlawfully blocking a R9 billion payment to creditors, disrupting its restructuring efforts.

• Constitutional Court tol review Vodacom's bid to overturn a multi-billion-rand compensation ruling for a former employee's please call me idea.

• Britbox is shutting down its South African operations this week, focusing on more profitable markets.

Interesting Internationally:

• An Italian thief was caught in the act after getting sidetracked and decided to read a book during a burglary.

• Worlds oldest man turns 112

• Telegram CEO Pavel Durov has been arrested and is under formal investigation in France

National Stories:

A Loan For Justice… Minister

South Africa's Justice Minister, Thembi Simelane, is under scrutiny after it was revealed that she received a R575,600 loan from Ralliom Razwinane, a broker accused of facilitating unlawful investments into the collapsed VBS Mutual Bank. The loan, which Simelane used to purchase a coffee shop in Sandton, was issued in 2016 while she served as the mayor of Polokwane.

Razwinane, currently on trial for fraud and corruption, brokered R349 million in investments from the Polokwane Municipality into VBS, allegedly receiving kickbacks in return. The revelation of Simelane's financial ties to Razwinane has raised serious questions about a potential conflict of interest, especially given her current role overseeing the prosecution of those involved in the VBS scandal.

Simelane has defended the transaction as a legitimate commercial loan, fully repaid, but has not provided documentation to substantiate her claims. The situation has intensified concerns about her ability to impartially fulfill her duties as Justice Minister.

Grounded: ACSA Pulls the Plug on R115 Million Tender

Airports Company South Africa (ACSA) has canceled a R115 million tender for a biometric and digital identity system after legal action was initiated over its tender process. The contract, awarded to French firm IDEMIA, came under scrutiny when IDEMIA excluded its local Black Economic Empowerment partner, INFOVERGE, from the project. This led INFOVERGE to take both ACSA and IDEMIA to court, claiming the exclusion violated BEE requirements. While ACSA initially denied any wrongdoing, further investigation revealed evidence of misconduct, prompting the cancellation. The matter remains unresolved as legal proceedings continue.

Its Raining Meteors

If you thought your Monday was explosive, try being the Eastern Cape. Residents were treated to a celestial spectacle on Sunday when a car-sized meteor blazed across the sky and exploded, leaving fragments scattered over 100 kilometers. According to Wits University researchers, the meteor made a thunderous entrance, causing streaks of light and a noise that had windows rattling across Gqeberha and St Francis Bay.

The South African Astronomical Observatory is on the case, but they’ve yet to confirm if this space invader was indeed a meteor or something more mysterious. Either way, fragments were spotted near Kirkwood and St Francis Bay, with one whale-watching skipper claiming debris splashed down just two miles off the coast.

Teachers on the Chopping Block

In a tough blow to education in South Africa, the Western Cape Department of Education has announced plans to cut 2,400 teaching posts by 2025 due to a staggering R3.8 billion budget shortfall. The province’s head of education, Brent Walters, broke the grim news to schools this week, explaining that severe budget constraints, exacerbated by a national funding shortfall, are forcing the department to make these drastic cuts.

Education MEC David Maynier emphasized that the province is fighting tooth and nail to protect its teachers, having already implemented sweeping cuts across administration, curriculum, and infrastructure. However, with the national department covering only 64% of the wage bill, Western Cape is left to shoulder the remaining 36%, creating an unsustainable financial burden.

The reduction in teacher posts is expected to hit schools hard, negatively affecting learning outcomes across the province. The department is now in discussions with teacher unions and has raised the issue with the Council of Education Ministers, urging for urgent action.

Cabinet Shake-Up: Ramaphosa Realigns State-Owned Enterprises

In a strategic reshuffle, President Cyril Ramaphosa has reallocated oversight of South Africa's major state-owned enterprises (SOEs) to specialized cabinet ministers. Transnet and South African Airways (SAA) will now fall under Transport Minister Barbara Creecy, while Eskom's fate is entrusted to Minister of Electricity and Energy Kgosientsho Ramokgopa. Other notable shifts include Gwede Mantashe overseeing Alexkor and Angie Motshekga managing Denel.

This move is part of a broader plan to streamline SOE management and eventually transition them into a new national holding company. This transition aims to bolster commercial viability and improve financial stability across these entities. Notably, the transfer of responsibilities will be phased, with the National State Enterprises Bill soon to be tabled in Parliament to facilitate this overhaul.

Despite these changes, many SOEs, including Eskom and Transnet, are still grappling with financial instability. The DPE will continue to operate until these entities are ready for the transition.

Bank Heist

In a dramatic turn of events, Sifiso Ndlovu, a former financial administrator at First National Bank (FNB), has been sentenced to 15 years in prison for embezzling R5 million. The Johannesburg Specialised Commercial Crimes Court handed down the sentence on Wednesday, condemning Ndlovu for his deliberate theft from June to July 2022. At just 22 years old, Ndlovu used his insider access to transfer the funds from a dormant account into his and his accomplices' accounts. Despite his plea of innocence, the court found him guilty on multiple counts, including corruption and fraud. Prosecutors emphasized that his actions deeply undermined the trust essential to banking, and the hefty sentence serves as a stern warning against financial misconduct.

Business World

One Million U$ers

Discovery Bank has reached a significant milestone, surpassing one million customers—two years ahead of its target. Since its official launch in 2019, the digital-only bank has rapidly established itself in South Africa’s financial sector, driven by its innovative ‘behavioral banking’ approach.

The bank’s strategy, which encourages positive financial behaviors, has led to impressive growth in both deposits and customer base. Discovery Bank recently expanded its offerings, introducing a Revolving Credit Facility and competitive home loan options, further enhancing its appeal.

With over 1,000 new clients joining daily, Discovery Bank’s growth trajectory underscores its success in the digital banking arena. The achievement of this one million customer milestone highlights the bank’s swift and impactful entry into the market, positioning it as a prominent player in South Africa’s banking landscape.

R9 Billion Blocked

In a high-stakes financial showdown, Steinhoff's successor, Ibex, is challenging the South African Reserve Bank (SARB) over a R9 billion payment freeze. The dispute began when Ibex claims the SARB initially greenlit the payment to international creditors in April, only to backtrack in July. The blocked funds were crucial for Ibex’s restructuring strategy aimed at settling debts and avoiding a chaotic liquidation.

According to Ibex, the SARB’s sudden reversal not only jeopardizes their financial recovery but also threatens South Africa’s reputation as a stable investment environment. The company’s CEO, Louis du Preez, has taken the matter to the Gauteng High Court, seeking to overturn the bank's decision. This clash highlights broader concerns about regulatory stability and investor confidence in the region.

The SARB has declined to comment, citing ongoing legal proceedings. Meanwhile, Ibex's broader restructuring efforts, including asset sales and debt repayments, hang in the balance.

Call Me Maybe

Vodacom's long-standing legal saga is set to hit a pivotal moment as South Africa’s Constitutional Court agrees to hear its appeal against a staggering compensation ruling. At the heart of the dispute is Kenneth Makate, who proposed the ‘Please Call Me’ idea in the early 2000s while working in Vodacom’s finance division. The Supreme Court of Appeal previously ruled that Vodacom owes Makate between R29 billion and R63 billion for his innovation. Vodacom contends that this ruling, if upheld, would have "devastating consequences" for its business and stakeholders. The Constitutional Court’s decision to review the case could reshape the legal landscape for intellectual property and compensation claims in South Africa. Stay tuned as this high-stakes legal drama unfolds.

Britbox Bids Adieu to South Africa: What’s Behind the Exit?

In a move that might disappoint a few fans, Britbox is pulling the plug on its South African service effective August 30, 2024. The UK-based streaming platform, a joint venture-turned-BBC-only venture, has decided to shutter its operations in the region after a successful yet modest run since its 2021 debut.

With roughly 3.75 million global subscribers, Britbox has struggled to gain a foothold in the South African market, where it only captured 5% of the streaming pie. The service’s limited content library of 50 titles pales in comparison to Netflix’s 6,655 and Amazon Prime’s 8,585 offerings.

This exit isn’t an isolated incident. Britbox joins a wave of international brands reassessing their presence in South Africa, including Shell, BNP Paribas, and Rolex. However, the landscape is not without its newcomers—expect to see Pret a Manger, JD Sports, and a new luxury hotel chain setting up shop later this year.

Interesting Internationally

Britbox Rome’s Literary Burglar

In an unusual turn of events in Rome, a 38-year-old alleged burglar found himself caught red-handed after he decided to take a literary detour. The man had broken into an apartment via the balcony, only to be distracted by a book on the bedside table. Intrigued by the tome, titled Gli Dei alle sei. L'Iliade all'ora dell'aperitivo (The Gods at Six: The Iliad at Aperitif Time), he sat down and began reading.

The 71-year-old homeowner awoke to find the intruder engrossed in the book, leading to a brief confrontation before the thief attempted to flee. Police apprehended him shortly after. In an unexpected twist, the book's author, Giovanni Nucci, expressed interest in connecting with the thief to gift him a copy, blending literary intrigue with a crime caper.

The Good Old Days

John Alfred Tinniswood is making headlines for hitting a milestone few can fathom: his 112th birthday. Born in 1912, the same year the Titanic sank, Tinniswood has weathered over a century of change and is currently recognized by Guinness World Records as the oldest living man.

Baguette me out of here

Telegram's founder and CEO, Pavel Durov, has been formally placed under investigation by French authorities. Durov’s arrest in Paris on Saturday has escalated the scrutiny on the responsibilities of app providers in combating criminal activity. The charges against him include aiding criminal offenses, failing to cooperate with investigations, and facilitating illicit activities on Telegram, such as drug trafficking and child abuse.

Durov, who is also a French citizen, is out on bail, having been required to post a €5 million deposit. He must check in with the police twice a week and is prohibited from leaving France. The investigation highlights the ongoing debate about the balance between digital freedom and legal enforcement, with Durov’s legal team calling the allegations “absurd.”

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