Cape Times 2021-05-05

Dineo Faku dineo.faku@inl.co.za ANGLO American’s tax and economic contributions in 2020 amounted to more than $25 billion (R363bn) across all its major jurisdictions, the group said in its seventh annual Tax and Economic Contribution Report, published yesterday. Chief executive Mark Cutifani said the positive contribution Anglo made to the countries in which it operated extended far beyond the taxes and royalties it paid. “The high quality of employment that we provide and the associated wages, the money we spend with local suppliers, our corporate social investment, and our capital investments all support the fabric of many economies. “In 2020, our contribution amounted to more than $25bn, demonstrating the extent to which we continued contributing to the communities and countries where we work – both economically and socially – staying…

EDWARD WEST edward.west@inl.co.za THE COMPETITION Commission has proposed the Competition Tribunal impose a fine of 10 percent of turnover, with a possible 30 percent discount and negotiation of staggered payments for the alleged collusion by Elliott Mobility with other furniture removal companies. The Competition Tribunal yesterday heard closing arguments in a case where Elliott Mobility was alleged to have colluded with other furniture removal companies on tenders to a number of government departments, including the SANDF and Eskom. The commission accused Elliott of having entered into agreements, or conducted a concerted practice to collude on furniture removal tenders with JH Retief Transport and Cape Express Removals, from about 2008 until at least 2010. The collusion was alleged to have occurred through the provision of cover quotes between…

Sandile Mchunu sandile.mchunu@inl.co.za MOMENTUM Metropolitan Holdings unveiled its new strategy during yesterday’s investor conference presentation that will take the financial services group into the 2024 financial year, with an expected surge in normalised headline earnings despite the disruptions caused by Covid-19 in last year’s results. The new strategy, “Reinvent and Grow”, will run from 2022 to 2024 and the group has targeted to achieve normalised headline earnings growth of R5 billion by 2024 and it has targeted a return on equity (RoE) of 20 percent. Addressing the investor conference yesterday, chief executive Hillie Meyer said the new strategy would focus on growing existing channels, establish new channels, accelerate digital growth and will also focus on product and service leadership. “The target for financial year 2024 is to reach normalised headline…

Siphelele Dludla siphelele.dludla@inl.co.za Public finances could come under further pressure this year due to the fight against Covid-19 pandemic, but economists have remained optimistic that there was plenty of room to absorb the extra spending. The National Treasury yesterday allocated more than R4 billion extra to purchase Covid-19 vaccines and to extend the special distress grant (SRD). Treasury director-general Dondo Mogajane yesterday tabled a Special Appropriation Bill to Parliament which would be enacted if passed by Members of Parliament. The Bill allocates an additional R1.25bn to the Department of Health to procure vaccines, and implement a related Covid-19 research project. Another R2.83bn was appropriated to the Department of Social Development to fund the extension of the special Covid-19 SRD R350 grant. Mogajane said the National Treasury was “on track” to…

EDWARD WEST edward.west@inl.co.za EQUITES Property Fund had no defaults among the tenants of its logistics properties in the year to February 28, despite the devastating effects of Covid-19 lockdowns on the commercial property markets in the UK and South Africa. Equites chief executive Andrea Taverna-Turisan said yesterday in an interview the fact there were no rent defaults, and assistance was provided to tenants that occupied only a fraction of the gross letting area, indicated the defensiveness of the portfolio and the resilience of the company’s mainly blue-chip clients. The only vacancy related to a single logistics unit in the UK and the port- folio vacancy rate was 0.1 percent. The average collection rate over the past year was 99.3 percent in South Africa and 100 percent in the UK.…

“DIRECTORS need to understand and execute their legal duties effectively – and thus avoid potential liability.” The key to performing well as a director, and to being able to avoid liability, is to discharge one’s duties competently. This is particularly important, as the courts are now increasingly holding directors to account for breach of their duties. In South Africa, directors’ duties are primarily contained in the common law. Some of these have been codified into the Companies Act and are also covered in the King IV Report on Corporate Governance. Directors have a fiduciary duty (duty of trust) to perform their functions in good faith, for proper purpose and in the best interest of the organisation. Good faith is a concept we all instinctively understand but often find hard to…