Company news in brief

08 August 2019 | Business

Moody’s: Eskom urgently needs turnaround plan

South Africa's state power utility Eskom urgently needs a turnaround plan as its capital structure is unsustainable, credit ratings agency Moody's said on Tuesday in a report which sent the rand to a two-month low.

A week ago Eskom reported a mammoth R20.7 billion annual loss, and its outgoing chief executive said the firm needs to change its outdated business model to escape a "death spiral".

"The company's operational and financial performance has deteriorated, indicating the extent of the challenges facing Eskom in meeting its debt obligations absent government support," Moody's said in a note.

Moody's said the cash injections from the state were credit positive for Eskom but would do no more than stabilise the company's debt burden, and a long-term solution would still be needed.

Eskom is regularly cited by ratings agencies as one of the main threats to South Africa's creditworthiness and economic growth. – Nampa/Reuters

SA regulator punishes Bank of Baroda

A South African regulator has imposed a reduced penalty of R400 000 on the local unit of India's Bank of Baroda for non-compliance with certain provisions of the Financial Intelligence Centre Act (FIC).

The Prudential Authority (PA) said the penalty follows an on-site inspection in 2014 that found deficiencies relating to compliance, as well as weaknesses in controls to counter potential money laundering and terrorist financing.

In 2016, the PA conducted a follow-up inspection, which found that some deficiencies in controls remained.

Following that, the Bank of Baroda was slapped with administrative sanctions, including a combined financial penalty of R11 million for non-compliance with the FIC Act and deficiencies in respect of money laundering controls, the PA said.

Baroda's South African division was thrust into the spotlight three years ago when it started working with the Indian-born Guptas after corporate South Africa, including all four major banks, turned its back on the family's businesses due to reputational risks. – Nampa/Reuters

Glencore to halt production at Mutanda

Glencore Plc will halt production at Mutanda mine, the world's largest cobalt mine, from the end of this year after a slump in prices for cobalt, Financial Times reported on Tuesday.

The company will shut the mine in the Democratic Republic of Congo because it is "no longer economically viable", the FT said, citing a letter to employees of the mine.

Glencore declined to comment on the report.

Glencore said last week it faced a US$350 million hit after cobalt prices halved and has begun an overhaul of its under-performing Africa business. – Nampa/Reuters

HSBC agrees to settlement of Belgian tax fraud

HSBC's Swiss private banking arm has agreed to pay nearly 300 million euro (US$336 million) to settle a tax fraud case in Belgium, Belgian prosecutors said on Tuesday, the latest blow for the Alpine state's banking sector from the EU.

The settlement comes after a French court in February ordered UBS, another Swiss lender, to pay 4.5 billion euro in penalties for illegally soliciting clients and laundering the proceeds of tax evasion. UBS, which is under investigation in Belgium for a similar case, denies the charges.

Swiss banks have been exposed to such legal challenges since 2004, when Bern agreed to apply a European Union tax on the savings income of its lenders' EU clients.

The Belgian prosecutors said in a statement that HSBC was "charged by a prosecutor in 2014 for serious and organised tax fraud, forgery and falsification of records, money-laundering and illegal use of financial intermediaries."

They alleged that HSBC helped and encouraged the avoidance of the EU savings tax by creating off-shore companies in Panama and other tax havens in the Caribbean for wealthy Belgian clients "with no other purpose but to hide money". A spokesman for HSBC declined to comment. – Nampa/Reuters

Delhi rejects AB InBev plea to lift ban

Authorities in New Delhi have rejected a plea by Anheuser-Busch InBev to temporarily lift a 3-year ban while it hears the global brewer's appeal, a senior government source told Reuters.

AB InBev, the world's largest brewer, has been barred from selling its products in the critical New Delhi market for allegedly evading local taxes, Reuters reported last week. The company has denied the allegations.

A three-year investigation by authorities in India's capital found that SABMiller - acquired by AB InBev in 2016 for around US$100 billion - used duplicate barcodes on beer bottles supplied to retailers that year, allowing it to pay lower levies.

AB InBev has appealed against the ban to the Commissioner of Excise in the Delhi city government, two government sources with direct knowledge said. The ban order was passed by a deputy commissioner of the division.

AB InBev, which counts popular beer brands such as Budweiser, Hoegaarden and Stella Artois in its portfolio, said the city's allegations dated back to 2016 before its takeover of SABMiller and it looked forward to receiving a "fair hearing". – Nampa/Reuters

Similar News

 

Tough times for mines in Nam

1 day - 14 August 2020 | Business

Jo-Maré Duddy – Of the 16 operating mining companies included in the latest annual review of the Chamber of Mines of Namibia, six last year...

Street vendors return to normal

1 day - 14 August 2020 | Business

Street vendors that sell fruit and vegetables at Outjo and Khorixas said that business has returned to normal and customers are received in numbers as...

SA drops court challenge on mining BEE

1 day - 14 August 2020 | Business

JOHANNESBURG - South Africa’s mines minister has withdrawn an appeal of a court ruling that held that mining companies did not have to maintain at...

COMPANY NEWS IN BRIEF

1 day - 14 August 2020 | Business

Oil major Chevron invests Oil major Chevron Corp said it is investing in Zap Energy Inc, joining Italy's ENI and Norwegian state oil company Equinor...

Jaguar ready to seduce SA

1 day - 14 August 2020 | Business

The new Jaguar F-TYPE has arrived in South Africa with an even more dramatic design, improved dynamics and increased focus on driver engagement.Available in both...

Business for vendors return to normal

2 days ago - 13 August 2020 | Business

KHORIXAS – Street vendors selling fruit and vegetables at Outjo and Khorixas say business has returned to normal and customers are received in numbers similar...

Fuel prices, virus brake taxi industry

2 days ago - 13 August 2020 | Business

Long-distance drivers in the south of Kunene say their business has been negatively affected by the recent increases in fuel prices and by the current...

COMPANY NEWS IN BRIEF

2 days ago - 13 August 2020 | Business

Tesla sets 5-1 stock split Tesla Inc on Tuesday announced a five-for-one stock split, sending the electric carmaker's recently high-flying shares up 7% in extended...

COMPANY NEWS IN BRIEF

3 days ago - 12 August 2020 | Business

Nutrien cuts profit forecast Canadian fertilizer maker Nutrien Ltd cut its annual adjusted profit forecast as weaker-than-normal industrial demand held back prices for ammonia and...

Boost business to boost growth

4 days ago - 11 August 2020 | Business

Erongo governor Neville Andre-Itope has called on business owners to explore new ways in order to reignite their respective businesses and the country’s economy.Andre-Itope made...

Latest News

Thought leadership

1 day - 14 August 2020 | People

NDANGI KATOMAIn a very short time, the coronavirus has changed so much about our lives.It is easy to think you’ll never get ahead when you...

Marketing through the lens of...

1 day - 14 August 2020 | People

ESTER KAMATIAs part of the DOLOLO group of entrepreneurs and a 2019 alumnus of the Africa Pathfinders Leadership initiative, Andreas Elifas’s objective is to attain...

Price monster hungry

1 day - 14 August 2020 | Economics

Although annual overall inflation in Namibia last month stayed unchanged at 2.1%, annual overall food inflation increased to 6.2% - up from 4.9% in June...

Tough times for mines in...

1 day - 14 August 2020 | Business

Jo-Maré Duddy – Of the 16 operating mining companies included in the latest annual review of the Chamber of Mines of Namibia, six last year...

Fishing quota auction storm grows

1 day - 14 August 2020 | Fishing

OGONE TLHAGEWINDHOEKGovernment's decision to auction off its fishing quota, and then use the proceeds to finance its efforts to fight the Covid-19 pandemic is continuing...

Samherji begs for release of...

1 day - 14 August 2020 | Fishing

OGONE TLHAGEWINDHOEKIcelandic firm Samherji, which is at the centre of the Fishrot bribery scandal, has asked Namibian authorities to release its fishing vessel Heinaste, which...

Education kneecapped by shortage of...

1 day - 14 August 2020 | Education

KENYA KAMBOWERUNDUEducation minister Anna Nghipondoka says Namibia has a backlog of over 5 000 classrooms, which has made it a challenge to comply with the...

Growing hip-hop in the north

1 day - 14 August 2020 | Art and Entertainment

MICHAEL KAYUNDE WINDHOEKSkipper Wills' breakthrough came in 2017 when he was selected to take part in the Old & New hip-hop documentary. He has since...

Kay-Z Bearens on his 2020...

1 day - 14 August 2020 | Art and Entertainment

MICHAEL KAYUNDE WINDHOEK Rapper Kay-Z Bearens released his first single in 2015, and though on the underground scene, he's pushed his music over the years.In...

Load More