Top 5 on Fin24: Full day of hearings into corporate scandals in Parliament

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Cape Town – A roundup of Tuesday’s top economic and finance reads on Fin24.

Moyane threatens Ramaphosa with legal action over suspension

Suspended SARS head Tom Moyane has threatened legal action over his suspension. 

In a letter that Moyane wrote to President Cyril Ramaphosa on March 19, he said that his suspension was part of an “unlawful process”. 

The letter, which appears to have been sent before his suspension was communicated to the press late on Monday evening, states that if Ramaphosa were to go ahead and suspend him, he would seek a court interdict. 

When contacted for comment by Fin24 on Tuesday morning about the possibility of legal action, Moyane said he could not comment.

Full day of hearings into corporate scandals in Parliament

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South African corporate scandals were the order of the day in Parliament, as the standing committee on finance rolled up its sleeves for a full day of hearings into the imbroglios at Steinhoff, KPMG, VBS Mutual Bank, Capitec and the SA Revenue Service.

The committee started by receiving briefings on Capitec Bank and VBS Mutual Bank. VBS has been placed under curatorship by the SA Reserve Bank over liquidity concerns related to withdrawals by municipalities from the bank, while Capitec was questioned on the Viceroy report.

SA consumer inflation eases to 4%

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South Africa’s headline consumer price inflation (CPI) eased to 4.0% in February, down from 4.4% in January 2018, according to official figures. 

On average, prices increased by 0.8% between January 2018 and February 2018, Statistics SA announced on Tuesday.

The SA Reserve Bank meanwhile also announced that the current account deficit has widened to 2.9% of GDP in the fourth quarter of 2017.

Gordhan plans sweeping changes for SOEs as SARS suspends Moyane

Extensive changes are in the offing at the troubled state-owned companies as new Public Enterprises Minister Pravin Gordhan moves to tackle their many management and financial failings.

“Virtually every entity that we are supervising, or are responsible for, is going to have changes as far as the board is concerned,” Gordhan said in a March 16 interview in Johannesburg.

“If you take out some of the negativity and some of the negative people, immediately your operations at that entity change. Your revenue changes, therefore your financial situation begins to actually improve. And then your financial credibility changes as well, so your ability to borrow changes.”

Mcebisi Jonas said to be considered for SA’s top tax post

Former deputy finance minister Mcebisi Jonas. (Pic

Mcebisi Jonas, the former South African deputy finance minister, is being considered for the the post of commissioner of the South African Revenue Service after Tom Moyane was suspended on Monday by President Cyril Ramaphosa, two people familiar with the situation said.

It’s unclear whether Jonas will accept the offer, the people said.

Jonas couldn’t immediately be reached for comment and the National Treasury, which oversees the tax agency, didn’t immediately respond to an e-mailed request for comment.

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