Cape Times 2024-07-08

Bitcoin fell for a fourth-consecutive trading session, reaching the lowest since February, on concerns about potential selling by governments, creditors of a failed exchange and beleaguered crypto miners. The original digital asset fell as much as 8% to $53 602 (R974 276), before paring the decline by about half. Most cryptocurrencies fell broadly even as stock markets advanced, highlighting the array of challenges facing the industry. Bitcoin is now down about 25% from its March record, as the buzz around US exchange-traded funds investing directly in the token gives way to fears of higher-for-longer interest rates and political uncertainty. On top of this, administrators of the failed Mt Gox exchange are returning an $8 billion hoard of Bitcoin to creditors in stages. Uncertainty about how much of that…

Diversified resources firm Glencore is set to close its $6.9 billion (R125.7bn) acquisition of Canadian steel-making coal miner Elk Valley Resources (EVR) this week, after receiving regulatory approval at the beginning of this month. The acquisition of EVR from Teck Resources enhances Glencore’s coal-mining business, including its operations in South Africa. The company believes the Canadian EVR has “world-class assets” and “the experienced people that operate them are expected to meaningfully complement our existing thermal and steel-making coal production” in South Africa, Australia and Colombia, the company said. On Friday, the company confirmed that it had “received approval from the government of Canada under the Investment Canada Act (ICA) for the acquisition of a 77% interest in EVR” from Teck Resources. This was the final regulatory approval required for the…

The disbanding of the Department of Public Enterprises (DPE) to the Presidency might spell doom for South African Airways (SAA) as the detailed oversight it needed could be lost among the other portfolios. Also, it will only report to Parliament as a matter of process, an aviation analyst observed in the aftermath of the formation of the government of National Unity (GNU). Commenting on the heightened interest in South African skies noted from increased applications before the International Air Services Licensing Council (IASLC), aviation analyst Phuthego Mojapele said much as the industry had expected some changes, the disbandment of the DPE had dire consequences for the aviation space. “The Presidency is more of a watchdog and not a department that can answer in detail to Parliament. There might be questions…

Mr Price Group CEO Mark Blair’s remuneration increased markedly, by more than 300%, to R45.91 million in the year to March 31, from R10.67m the year before, after he benefited mainly from significantly higher long-term and short-term incentive share awards. Executive remuneration is closely watched by shareholders because it has an impact on the performance of the company, the direction that the company is going, if the pay is in line with the company’s peers, how the executive performed according to targets and it can also indicate how much the company is willing to spend to attract the right talent to a company. In the past year, Blair’s guaranteed pay increased by only 3% to R9.26m from R8.99m, but he received a R9.59m short-term incentive award versus nil the year…

THE 32 ministers in South Africa’s new government of national unity (GNU) are getting to grips with their portfolios, and the reality is that urgent action is required in multiple areas to address economic and social challenges. The Kagiso Trust, one of South Africa’s leading development agencies working for sustainable socio-economic change, is particularly invested in the future of basic education and agriculture, seeing that these as key areas for its mission to loosen the shackles of poverty that bind millions of citizens. It so happens that these two ministries are now headed by members of the DA – Siviwe Gwarube at basic education and John Steenhuisen at agriculture – but it is to be hoped that the political complexion of all ministers in the GNU will be less significant…

The South African Reserve Bank (SARB) has imposed administrative sanctions of R13 million on Safrican Insurance Company (Safrican) as a result of its non-compliance with the provisions of the Financial Intelligence Centre (FIC) Act, following a FIC Act inspection conducted in 2020. Safrican is a life insurer with a footprint in South Africa and a subsidiary in Swaziland, with over 2 million principle lives covered and more than 7 million lives assured. The SARB’s Prudential Authority (PA) is mandated to supervise and enforce compliance by accountable institutions with the provisions of the FIC Act or any order, determination or directive made in terms thereof. The Reserve Bank said on Friday that the administrative sanctions imposed on Safrican were as a result of its failure to comply with certain provisions of…