Star 2025-02-10

Under the then Steinhoff CEO Markus Jooste, who apparently killed himself almost a year ago to avoid facing charges of fraud relating to the company’s failure, the company’s European unit claimed fake revenue of R6.4 billion while also engaging in some creative accounting to balance the books. Steinhoff, which had operations in about 30 countries through some 650 entities, was South Africa’s largest corporate scandal, collapsing after accounting irregularities were uncovered by then auditors, Deloitte, in 2017. In the 7 000-page PwC report into the wrongdoings at the company, which was officially liquidated on October 13, 2023, the consultancy firm details several accounting shenanigans. One of these included Steinhoff failing to reverse revenue for the sale of an entity that fell through. Towards the end of 2013, Steinhoff Group entity…

The Black Business Council (BBC) has successfully advocated for a crucial amendment to Transnet’s recently published Network Statement. The Transnet Network Statement outlines the terms and conditions for access to the national rail infrastructure by private sector players, including access conditions, capacity allocation and pricing structures. This initiative is a key milestone in the implementation of the National Rail Policy White Paper and the Freight Logistics Roadmap, which aim to position rail as the backbone of South Africa’s transport system. The document, originally issued in December, has been called into question due to the exclusion of black empowerment initiatives, leading to widespread concerns that Transnet’s rehabilitation efforts would disproportionately favour established, predominantly white businesses. The BBC’s insistence on including black empowerment provisions is a pivotal move in the ongoing struggle…

Expert says Trump is sending a strong message to South Africa and the ANC A foreign policy expert has warned that South Africa’s trade relations with the US, its second largest trading partner, could begin to deteriorate significantly ahead of handing over the G20 Presidency and the renewal of the African Growth and Opportunity Act (Agoa). This comes after US President Donald Trump on Friday signed an Executive Order to cut funding to South Africa over the government’s land expropriation policy and resettle white farmers whose land will allegedly be expropriated. Without providing any evidence, Trump accused South Africa’s government of “egregious actions”, saying the recently enacted Expropriation Act 13 of 2024 (Act) would seize ethnic minority Afrikaners’ agricultural property without compensation. Professor Michael Walsh, a senior fellow in the…

It’s been a long time since we have seen South African retailers talk about a positive outlook for the consumer in their trading updates. With the consumer having battled Covid-19, high interest rates, low wage growth, low gross domestic product growth and high inflation over the past five years or so. It was encouraging to see Mr Price in their 22nd January update for the 13 weeks to December 28, 2024 make the following outlook statement. “The 2025 economic growth outlook for South Africa is anticipated to improve in comparison to 2024. A steadily improving consumer environment, aided by decreasing inflation and lower interest rates, continues to build a solid platform for growth in comparison to recent years.” TFG on the rise or pension payouts and retail growth align This…

Davos is not merely an event; it is an altar of power, where the world's true presidents, ministers, billionaires, and corporate titans—converge to carve out the future of economies and nations. More than 3 000 delegates descend upon this Swiss stronghold, yet mere attendance is meaningless. Influence is not measured by credentials but by access, by the silent nods exchanged in the corridors of the Congress Centre, where only 500 of the chosen few are permitted entry. This is where the 0.1% of global decision-makers shape the future, away from the noise, with conversations that later set the course of industries, economies, and policies. There is one lunch, an event so exclusive it is barely spoken about even in the highest circles. To be invited is to be confirmed as…

Although President Cyril Ramaphosa, during his State of the Nation Address (Sona) last Thursday evening, tried to indicate the structural adjustment economic processes that the Government of National Unity is likely to introduce in the next three years, analysts, political commentators, and economists remain sceptical. Some of the strategies were already supposed to be introduced under the previous ANC government, but they did not materialise. These include: “Eskom is on course to complete its unbundling process by December 2022.” (2022 SONA); “Within 100 days, we will finalise a comprehensive social compact to grow our economy, create jobs, and combat hunger.” (2022 SONA); “Our economy today is three times larger than what it was 30 years ago.” None of these indeed succeeded. Eskom is not unbundled; the social compact is non-existent,…