Cape Times 2025-04-29

The Prudential Authority (PA) has taken decisive action against Absa Bank, imposing administrative sanctions totalling R10 million following an inspection in 2022. This enforcement is part of the authority's ongoing mandate to ensure accountable institutions adhere to the Financial Intelligence Centre Act (FIC Act) of 2001. The PA on Friday said that the sanctions arose from serious breaches regarding compliance with customer due diligence regulations aimed at preventing financial crime. During its investigation, the PA identified significant shortfalls in Absa's adherence to essential provisions of the FIC Act. The violations included inadequate customer due diligence practices on certain client files, particularly concerning foreign prominent public officials (FPPOs) and politically exposed persons (PEPs) associated with state-owned enterprises. Specifically, the bank failed to conduct thorough reviews on four FPPO files and…

Nedbank has paid tribute to board member Errol Kruger who passed suddenly on 26 April 2025. Known for his strategic acumen and unwavering commitment to excellence, Kruger’s departure marks an immense loss for both the bank and the broader banking community. Daniel Mminele, chairman of the Nedbank board, said they were deeply saddened by the news of Kruger's passing. "Errol was not just a colleague, but a dear friend to many of us. Other than being a great pillar of strength on the Nedbank boards in recent years, Errol will also be remembered for his exceptional stewardship of the South African banking sector during the Global Financial Crisis of 2008," Mminele said. "His legacy will continue to inspire us, and he willbe missed. Our thoughts and prayers are with his…

Hundreds of companies are up in arms over a “mismanaged” audit process, worth R515 million, launched by the Department of Labour and Employment (DEL) to probe potential theft of benefits provided to workers across South Africa during Covid-19. The Temporary Employee Relief Scheme (TERS), administered by the Unemployment Insurance Fund (UIF), was implemented to assist employers to pay employees who were employed but not working because of the lockdown. The TERS program, administered by UIF, paid out R57 billion to 13.4 million workers through 1.1 million companies during the pandemic, according to minutes from a November 2021 Standing Committee on Public Accounts Parliamentary Committee Meeting. These benefits, research by UNU Wider states, saved at least two million jobs. However, Corruption Watch, summing up various investigations by law enforcement officials, stated…

The renewable energy sector in South Africa faces potential upheaval as the International Trade Administration Commission (ITAC) reviews 82 tariff codes, a move which has been flagged by industry experts as having more penalties than incentives. As various stakeholders await the final review, expected by the end of the year, the implications of the proposed changes could reshape the landscape for manufacturers and importers in the renewable energy value chain. XA Global Trade Advisors CEO Donald Mackay on Friday the review looked to increase tariffs on 82 tariff codes in the renewable energy value chain, which was a really big deal. “I am not proposing for a second ITAC. It will automatically increase tariffs on everything. But if they were to increase it to the rate they want to take…

IMF warning comes as South Africa is grappling with measures to raise revenue The International Monetary Fund (IMF) has warned that the spectre of escalating trade tensions, combined with rising financial costs in developed economies, will complicate the economic landscape for sub-Saharan Africa. IMF director of the African Department, Abebe Selassie, said on Friday the sentiment surrounding sub-Saharan Africa was cautiously optimistic six months ago, marked by the region's gradual recovery from the economic repercussions of past global upheavals. However, Selassie said a new wave of global policy uncertainty has emerged, posing serious threats to this fragile recovery just as policymakers began to see the fruits of their hard work. He said recent forecasts projected regional growth at a robust rate exceeding expectations, particularly for 2024 but external forces have…

Chinese equities entered 2025 with positive momentum. Years of policy overhangs were finally beginning to lift. The combination of renewed stimulus, stabilising property markets, and a tech-sector rebound had markets pricing in a turning point. That optimism was tested in March, when the United States imposed sweeping new tariffs on Chinese imports — with Beijing responding in kind. The tariff war rattled sentiment. But despite the trade war escalation, Foord remains cautiously optimistic. The Chinese policy stance has turned meaningfully pro-growth. Since September 2024, the Chinese government has rolled out significant fiscal and monetary support for the world’s second largest economy. The first quarter of 2025 saw record government bond issuance, targeted rate cuts, and renewed infrastructure investment — all designed to offset persistent domestic weakness and the growing drag…