<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=6059809827001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>CNBC Africa brings you all the highlights from Day 2 of former President Jacob Zuma’s testimony at the Commission of Inquiry into State Capture, during which questions were raised over the unfair questions being asked, his relationship with the Guptas and cabinet reshuffles.</p>


Day 2 highlights of Jacob Zuma’s testimony at Zondo inquiry

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5976730843001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Ted Blom, Partner at Mining and Energy Advisory joins CNBC Africa to dig deeper into the problems at Eskom.</p>


Ted Blom urges radical restructuring to save Eskom

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5972165354001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Assets belonging to Gupta-linked media groups are set to be sold on auction tomorrow and will open with the sale of The New Age Media’s previous headquarters in the Midrand. CNBC Africa&#8217;s Lubabalo Mashiqana shares more details.</p>


Seized Gupta assets up for auction

<p>JOHANNESBURG (Reuters) &#8211; South African lender Nedbank said on Monday it would appoint Ernst &amp; Young as joint external auditors in May 2019, becoming the latest firm to drop the scandal-hit KPMG’s local unit.</p>
<p>The auditor’s South African unit has been under close scrutiny since 2017 over work done for a company owned by the Gupta brothers &#8211; who have been accused of using their links to former president Jacob Zuma to influence government decisions and the awarding of tenders &#8211; and more recently for small lender VBS Mutual Bank. The Guptas and Zuma have denied any wrongdoing.</p>
<p>KPMG sacked its South African leadership in September last year after it found work done for the firm owned by the Guptas “fell considerably short” of its standards.</p>
<p>KPMG said in a statement that Nedbank’s decision was part of efforts to introduce mandatory audit firm rotation.</p>
<p>“It is always disappointing to lose a client but we remain very proud of the work that we have performed for Nedbank over many years,” the firm’s executive chairman Wiseman Nkhulu said.</p>
<p>More than 10 clients across various sectors have severed ties with KPMG since last year, including South Africa’s auditor general, Barclays Africa and miner Sibanye Stillwater.</p>
<p>In June, KPMG said it would lay off 400 staff and close small regional offices in response to losing the clients.</p>
<p>A central bank investigation published this month said South Africa should seek damages from global auditor KPMG for the role it played in a corruption scandal that saw at least 1.9 billion rand($131 million) stolen from local bank VBS.</p>
<p>($1 = 14.5098 rand)</p>
<p>Editing by James Macharia and Emelia Sithole-Matarise</p>


KPMG dropped by South Africa’s Nedbank, what you need to know

<p>JOHANNESBURG (Reuters) &#8211; South African Finance Minister Nhlanhla Nene has asked President Cyril Ramaphosa to remove him after he admitted to visiting the home of the Gupta brothers, friends of scandal-plagued former leader Jacob Zuma, Business Day said on Monday, sending the rand lower.</p>
<p>Nene has become a divisive figure after testimony he gave at an inquiry into allegations of corruption by the Guptas, in which he admitted to the previously undisclosed visits. He made a public apology about the matter on Friday.</p>
<p>Zuma and the Guptas, who face numerous allegations of using their friendship for mutual self-enrichment, have consistently denied any wrongdoing.</p>
<p>Business Day cited unidentified government sources as saying that Nene made the request to Ramaphosa at the weekend. Nene did not answer calls for comment.</p>
<p>“Government sources said Nene approached Ramaphosa after the highly negative public reaction to his apology to South Africans on Friday for the meetings with the Gupta family when he served under Zuma,” the South African newspaper said.</p>
<p>It said the issue was likely to be raised at a meeting of the ruling African National Congress party later on Monday.</p>
<p>The rand fell more than one percent on the report.</p>
<p>Treasury spokesman Jabulani Sikhakhane referred Reuters to the presidency for comment. Ramaphosa’s spokeswoman Khusela Diko did not respond to phone calls.</p>
<p>Nene is a key ally of Ramaphosa, who reappointed him finance minister in a cabinet reshuffle shortly after he became president earlier this year.</p>
<p>Ramaphosa has made clean governance and the kick-starting of an economy mired in recession top priorities.</p>
<p>Several ministers and government officials have been implicated in the widening graft scandals around the Guptas.</p>
<p>One common theme that has emerged is visits to the family’s sprawling Johannesburg property, which is why there has been public anger regarding Nene’s revelations.</p>
<p>Nene has also been praised by commentators for standing up to Zuma.</p>
<p>He told the inquiry he was fired by Zuma in December 2015 for blocking deals that would have benefited the Guptas, particularly a $100 billion nuclear power deal with Russia that could have crippled Africa’s most developed economy.</p>
<p>But Nene’s opponents say he was involved in corrupt deals with the Guptas when he was deputy finance minister and head of the state pension fund. He denies ever helping the Guptas.</p>
<p>Opposition parties have called for his resignation.</p>
<p>Reporting by Ed Stoddard, Alexander Winning and Olivia Kumwenda-Mtambo; Editing by Joe Brock</p>


Rand drops as South Africa’s finance minister asks Ramaphosa to remove him

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5844932294001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Finance Minister Nhlanhla Nene has apologised to South Africans for meeting the controversial Gupta family between 2009 and 2014. Over and above the meetings, it was also reported that a business partner of Nene&#8217;s son had scored millions of rand in a questionable investment by the Public Investment Corporation in Mozambique. In his statement, Nene called on anyone with evidence to hand it to the commission of inquiry into state capture. CNBC Africa&#8217;s Karabo Letlhatlha shares more insight.</p>


SA FinMin Nene apologises for Gupta meetings

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Finance Minister Nhlanhla Nene said on Wednesday he was fired by former president Jacob Zuma for refusing to approve contracts that would financially benefit the Gupta family, friends of Zuma accused of corruption.</p>
<p>Nene, who was giving testimony at a judicial inquiry into influence-peddling, said the main reason he was he was sacked was for rejecting a proposed plan to build a fleet of nuclear power plants. The project could have cost up to $100 billion.</p>
<p>Zuma and the Gupta family deny allegations they colluded to inappropriately divert state funds.</p>
<p>Reporting by Mfuneko Toyana; Writing by Joe Brock; Editing by Toby Chopra</p>


#StateCaptureInquiry: Zuma fired me for refusing to approve Gupta deals – Nhlanhla Nene

<p>JOHANNESBURG (Reuters) &#8211; KPMG South Africa said on Wednesday it was looking for a new chief executive from outside the company to restore the auditor’s reputation after a corruption scandal that saw it lose several major clients.</p>
<p>Current Chief Executive Nhlamulo Dlomu, was promoted from within the company after a clear out of management last year due to work done for a company owned by the Gupta family &#8211; friends of former president Jacob Zuma who were accused of influencing the award of government contracts..</p>
<p>During Dlomu’s tenure KPMG South Africa has cut hundreds of jobs and shut regional offices to cope with the loss of business after South Africa’s auditor general, in April, said it would terminate all government contracts with the firm.</p>
<p>The Guptas and Zuma have denied any wrongdoing and KPMG has said it found no evidence it had acted illegally.</p>
<p>“Given the scale of the reputational challenges facing both KPMG and the industry, the board has decided that a new chief executive from outside the firm, with strong industry experience, will optimise prospects of rebuilding trust,” KPMG said in a statement.</p>
<p>Dlomu will remain at the company, taking on a newly created global role focusing on ethical leadership and organisational culture change.</p>
<p>The new CEO will be recruited externally, KPMG said, adding that in the interim, its South Africa Chairman Wiseman Nkuhlu will serve as an executive chair.</p>
<p>More than a dozen private companies, including Barclays Africa, one of KPMG’s biggest clients, have dropped the auditor after a public backlash in South Africa over the role of the auditor in the high-profile Gupta saga.</p>
<p>Reporting by Nqobile Dludla; Editing by Joe Brock and Elaine Hardcastle</p>


KPMG South Africa looks for new CEO to restore reputation after corruption scandal

<p>JOHANNESBURG (Reuters) &#8211; South Africa has signed an extradition treaty with the United Arab Emirates, the justice minister said on Thursday, raising the prospect of the Gupta brothers, friends of former president Jacob Zuma, returning to face corruption charges.</p>
<p>The Indian-born brothers &#8211; Ajay, Atul and Rajesh &#8211; have been accused of using their ties with Zuma to siphon off billions of rand in state funds and of inappropriately influencing cabinet appointments.</p>
<p>The Guptas are believed to be in Dubai where they own property and businesses and police have issued an arrest warrant for Ajay Gupta over a corruption case.</p>
<p>The Guptas and Zuma, who have repeatedly denied wrongdoing, could not be reached for comment.</p>
<p>Justice Minister Michael Masutha told Reuters that treaties on extradition and legal assistance had been signed with his counterpart Sultan Saeed Al Badi on Tuesday in Abu Dhabi.</p>
<p>“I will not at this stage comment on individual matters,” Masutha said when asked about the Guptas.</p>
<p>A long-awaited inquiry into allegations of inappropriately influencing government decisions, known locally as “state capture”, opened last month with witnesses testifying that the Gupta brothers tried to bribe or threaten them.</p>
<p>The Guptas left South Africa earlier this year around the time Zuma resigned under pressure from his own party.</p>
<p>Activists, opposition politicians and members of the ruling African National Congress have been calling for an extradition treaty to be agreed with the UAE so the Gupta brothers can be ordered to return to South Africa.</p>
<p>“This means the infamous Guptas are fast running out of places to hide as they can now face extradition to finally answer for state capture,” said Natasha Mazzone, Democratic Alliance shadow minister on state companies.</p>
<p>Reporting by Joe Brock and Ed Stoddard; Editing by Richard Balmforth</p>


South Africa signs extradition treaty with UAE that could target Gupta brothers, what you need to know…

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5832007011001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Which way will Deputy Chief Justice, Raymond Zondo rule? Who gets to cross examine whom and from where? CNBC Africa’s Karabo Letlhatlha has been tracking the commission and filed this report.</p>


#StateCaptureInquiry: Which way will Zondo rule on the cross examination of witnesses?

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5831495431001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>It&#8217;s Day 10 of the commission of inquiry into state capture, where the Guptas&#8217; counsel Mike Hellens SC is presenting. He told the commission under what circumstances his clients would testify and why.</p>


Guptas’ terms for testifying at State Capture Inquiry

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5812745659001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>South Africa’s embattled power utility, Eskom, released its annual results this morning at its headquarters in Johannesburg. With a debt that’s rocketed by nearly 50 per cent in four years, the company is set in cleaning up the power utility, with 10 executives, who have been implicated in corruption, having left the company already. CNBC Africa’s Aviwe Mtila filed this report.</p>


Is there a pathway to recovery for embattled power utility, Eskom?

<p>Africa&#8217;s largest electricity supplier, Eskom has finalised a settlement agreement with the world’s largest management consultancy, McKinsey for R1 billion ($74 million).</p>
<p data-reactid="39">As Trillian, was not party to the settlement, Eskom said it will continue to pursue the recovery of the remainder of the payments made to Trillian through a legal review process launched earlier this year.</p>
<p data-reactid="39">Eskom asked the consultancy firms McKinsey and Trillian to pay it back 1.6 billion rand ($117 million), last year after an internal inquiry found that the state power utility’s decisions to make the payments were unlawful.</p>
<p>http://cnbc.africa/news/southern-africa/2017/10/06/south-africas-eskom-asks-mckinsey-trillian-return-117mn/</p>
<p>Last year South Africa’s political opposition party, the Democratic Alliance alleged McKinsey steered funds to Trillian, a company which at that time was connected to the Guptas, a trio of Indian businessmen who South Africa’s anti-graft watchdog has alleged used their links with than President Jacob Zuma to win government contracts.</p>
<p data-reactid="46">The Guptas denied any wrongdoing, saying they were pawns in a plot against Zuma, who  also denied any wrongdoing.</p>
<p>McKinsey ended up earning around 1 billion rand and Trillian 564 million rand for a “Turnaround Plan” carried out at Eskom between January and July 2016.</p>
<p>McKinsey says it stopped working with Trillian after the company failed due diligence in March 2016.</p>
<p>The size of the contract &#8211; $120 million for six months of advice &#8211; was heavily-criticized.</p>
<p>U.S. business advisory Oliver Wyman found in a December 2016 report commissioned by Eskom that McKinsey’s contract with the utility was “very unusual” and charged fees at more than double market rates.</p>
<p>In a media statement, on Friday Eskom said &#8220;the process has taken longer than what would have been ideal however it was of importance that we ensure that an appropriate and transparent legal process is followed&#8221;.</p>
<p>“This is a significant milestone for the Board as we seek to fulfil what we see as our non-negotiable mandate to root out financial mismanagement and malfeasance as a critical foundation to restoring transparent and effective governance” said Jabu Mabuza, Eskom Board Chairman.</p>
<p>“We are thankful that this hard and difficult journey has yielded positive results. We are equally appreciative of the support and cooperation we have received from McKinsey and the AFU. This for us further demonstrates that we are serious about consequence management and achieving a renewed culture of accountability and good governance which is key to our sustained success,” said Eskom Group Chief Executive Phakamani Hadebe.</p>
<ul>
<li>With additional reporting by Reuters</li>
</ul>


McKinsey to pay back R1bn to Eskom, Trillian not part of deal

<p>South Africa’s High Court ruled on Monday that a luxury jet leased by the Gupta family, friends of ousted president Jacob Zuma, should be grounded after the Canadian credit agency that financed the lease canceled its loan to the Guptas.</p>
<div id="attachment_264503" style="width: 1375px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-264503" class="wp-image-264503 size-full" src="http://cnbc.africa/wp-content/uploads/2017/08/law-and-justice-concept_public-domain-pictures.jpg" alt="" width="1365" height="1024" /><p id="caption-attachment-264503" class="wp-caption-text">Photo: Public Domain Pictures</p></div>
<p class="">The three Gupta brothers are at the center of graft and influence-peddling allegations surrounding Zuma, who was forced from office last month by the ruling African National Congress.</p>
<p class="">Zuma and the Guptas, whose relationship will be the focus of a corruption inquiry led by a top South African judge, have denied any wrongdoing.</p>
<p class="">Canadian export credit agency EDC, which supports Canadian firms doing business abroad, lent a Gupta company $41 million in 2015 to lease the Bombardier jet.</p>
<p class="">But it canceled that loan agreement last year after the Guptas missed loan repayments. EDC applied to a South African court to have the jet grounded.</p>
<p class="">A registrar at the High Court said it had ruled that the Bombardier jet should be stored at Johannesburg’s Lanseria airport pending the outcome of a legal dispute in Britain, where the Guptas are disputing EDC’s cancellation of the loan agreement.</p>
<p class="">The Guptas, officials from their companies and their family representatives could not be reached for comment.</p>
<p class="">The exact whereabouts of the Gupta brothers and the Bombardier jet they had leased are not publicly known after the tracking device on the jet was switched off.</p>
<p class="">Ajay Gupta has been declared a “fugitive from justice” and is known to have left South Africa for Dubai in February.</p>
<p class="">Phil Taylor, spokesman for the Canadian firm, said it was “pleased with the favorable ruling and expects an orderly handover of the aircraft pursuant to the court order.”</p>
<div class="container_28wm1">
<div class="attribution_o4ojT">
<p class="content_27_rw">Reporting by Alexander Winning; Editing by James Macharia and Richard Balmforth</p>
</div>
</div>


South African court grounds Gupta jet in case brought by Canadian credit agency

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5751322521001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>The on-going political fallout from the awarding of the controversial Gupta family&#8217;s South African citizenship is distracting us from Home Affairs&#8217; true failure.</p>


The state of SA’s Home Affairs

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5742095645001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>The Vrede Dairy Farm in the Free State was supposed to cattle to the poor but very little of the money came through. CNBC Africa’s Aviwe Mtila is joined by Roy Jankielsohn, DA Leader, Free State Province for more insight into the case.</p>


Political heads should fall in the Vrede Dairy Farm scandal – DA

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5741203879001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Thousands of jobs are risk as the Gupta mining empire collapses.</p>


Guptas

Day 2 highlights of Jacob Zuma’s testimony at Zondo inquiry

Ted Blom urges radical restructuring to save Eskom

Seized Gupta assets up for auction

KPMG dropped by South Africa’s Nedbank, what you need to know

Rand drops as South Africa’s finance minister asks Ramaphosa to remove him

SA FinMin Nene apologises for Gupta meetings

#StateCaptureInquiry: Zuma fired me for refusing to approve Gupta deals – Nhlanhla Nene

KPMG South Africa looks for new CEO to restore reputation after corruption scandal

South Africa signs extradition treaty with UAE that could target Gupta brothers, what you need to know…

#StateCaptureInquiry: Which way will Zondo rule on the cross examination of witnesses?

Guptas’ terms for testifying at State Capture Inquiry

Is there a pathway to recovery for embattled power utility, Eskom?

McKinsey to pay back R1bn to Eskom, Trillian not part of deal

South African court grounds Gupta jet in case brought by Canadian credit agency

The state of SA’s Home Affairs

Political heads should fall in the Vrede Dairy Farm scandal – DA

Workers face bleak future as Gupta empire unravels

News Tips

Advertise With Us

Guptas

Day 2 highlights of Jacob Zuma’s testimony at Zondo inquiry

Ted Blom urges radical restructuring to save Eskom

Seized Gupta assets up for auction

KPMG dropped by South Africa’s Nedbank, what you need to know

Rand drops as South Africa’s finance minister asks Ramaphosa to remove him

SA FinMin Nene apologises for Gupta meetings

#StateCaptureInquiry: Zuma fired me for refusing to approve Gupta deals – Nhlanhla Nene

KPMG South Africa looks for new CEO to restore reputation after corruption scandal

South Africa signs extradition treaty with UAE that could target Gupta brothers, what you need to know…

#StateCaptureInquiry: Which way will Zondo rule on the cross examination of witnesses?

Guptas’ terms for testifying at State Capture Inquiry

Is there a pathway to recovery for embattled power utility, Eskom?

McKinsey to pay back R1bn to Eskom, Trillian not part of deal

South African court grounds Gupta jet in case brought by Canadian credit agency

The state of SA’s Home Affairs

Political heads should fall in the Vrede Dairy Farm scandal – DA

Workers face bleak future as Gupta empire unravels

News Tips

Advertise With Us

Newsletters