Star 2021-07-16

Sandile Mchunu sandile.mchunu@inl.co.za TIGER Brands said yesterday that it estimated at more than R150 million the loss of stock because of civil unrest, looting and vandalism to its property in KwaZulu-Natal and Gauteng. The largest food manufacturer in the country said a number of its sites in KwaZulu-Natal have been affected by acts of looting and vandalism, resulting in damage to its rice and snacks and treats operations. “It is currently estimated that the loss of stock is in excess of R150m. The loss of profit due to business interruption is still being quantified. The situation in KZN remains volatile, presenting a further risk to other Tiger Brands facilities in the area,” the group said. It said its bakery operations and the distribution of bread have been suspended…

Sandile Mchunu sandile.mchunu@inl.co.za LIBERTY Holdings’ share price leapt to a year-high of R85 a share on the JSE yesterday morning after Standard Bank announced its intention to buy the shares that it does not already own in the financial services group for about R11 billion. Standard Bank owns 54 percent of Liberty Holdings. Standard Bank said the integration of the companies would create a strong and established, unified financial services powerhouse in Africa. The offer would be made through a combination of Standard Bank shares and a cash consideration, representing a premium of more than 32 percent to Liberty’s current share price. The deal is subject to shareholder and regulatory approvals, and it will lead to the de-listing of Liberty. If the transaction is implemented, Liberty’s minority…

Siphelele Dludla siphelele.dludla@inl.co.za Business Unity South Africa (Busa) has warned that the state-owned insurance company might not have enough resources to compensate businesses affected by the looting. Many companies have fallen victim to the widespread looting and vandalism of property and equipment after protests for the release of former President Jacob Zuma turned violent. Factories, warehouses, distribution centres and shopping malls were vandalised, looted and set alight by criminals over five days, leaving a trail of destruction running into billions of rand. The SA Special Risks Insurance Association (Sasria) has already indicated that it expected the insurance claims bill for the instability to cost up to R12 billion. Sasria’s current product range offered R500 million primary cover for classes of insurance, including material damage, business interruption, construction and…

South Africa is still reeling from the biggest fraud in our corporate history – the Steinhoff accounting scandal – and investors and shareholders who lost billions through the company’s fraud haven’t seen recompense or justice. The scandal has raised several questions for me: What are the ethical responsibilities of businesses beyond accounting and legal compliance? Should companies exist purely to turn a profit, or to what extent do businesses have a social responsibility to improve the lives of those within their broader communities? This month is Moral Regeneration Month and I do think we need to find our moral compass again. We can’t rebuild the capacity of the state or corporations without holding our political and private sector leaders to account. If we can’t hold our leaders accountable and responsible…

Sandile Mchunu sandile.mchunu@inl.co.za STEINHOFF International subsidiary, the Pepco Group, yesterday said trading performance in the third quarter to the end of June improved, compared to the same quarter last year, after the easing of trading restrictions. However, despite the improvement the group still lost 7.5 percent of its trading weeks in the quarter, due to trading restrictions as a result of Covid-19, but was much better than the 18.4 percent lost in the same quarter last year. Pepco Group chief executive Andy Bond said they made good strategic progress in the third quarter, with all three of their brands delivering a resili- ent trading performance as consumers continued to come back to Pepco, Poundland and Dealz, following the gradual easing of Covid restrictions. “We continued to invest in…

GIvEN MAJOLA given.majola@inl.co.za THE FUEL RETAILERS’ Association of Southern Africa (FRA) has warned its members about the risk of filling of containers with fuel at retail service station sites, because this encouraged more acts of criminality during this volatile period. FRA chief executive Reggie Sibiya said that this was because fuel had been used in fuelling fires and the destruction of properties. The local association’s members affected by the looting were said to have been left worse off than the last period of losses caused by the Covid-19 lockdowns. “Our members have been reporting daily such incidents of looting and destruction which are on record. It is also important to realise that our members are basically now at the mercy of communities as they cannot get access to the product…