Five things making headlines in South Africa today

Zuma ready for day two, EOH execs resign, GEPF mulling offshore investments, axed Peter Moyo to appear in court.
Two CEOs of EOH subsidiaries and a non-executive director resign. Picture: Moneyweb

Here’s what caught our attention on Tuesday:

1. Zuma testifies: Day two 

Former president Jacob Zuma is taking the long route as he testifies at the Zondo commission of inquiry into state capture. On day one, the former president told the inquiry that he had been the victim of conspiracy. He admitted to having a business relationship with the infamous Gupta family, adding that both Nelson Mandela and Thabo Mbeki knew the family prior to his meeting them. Zuma also made efforts to unpack his history and path into the ANC. Zuma will take the stand for a second day on Tuesday, although lawyers representing him say ‘he did not have sufficient time to prepare for the questions he is facing’.

Read: Zuma warns – ‘I have been provoked!’

2. Three top-level EOH execs resign

Two CEOs of EOH subsidiaries and a non-executive director have resigned.

In a Sens announcement on Monday, EOH revealed the resignations of Zunaid Mayet, the CEO of EOH subsidiary, Nextec and Rob Godlonton, executive director and CEO of EOH’s ICT business. Both resignations came into effect on July 12, 2019. Additionally, EOH will see the departure of non-executive director, Pumeza Bam, who resigned from the EOH board and various other subsidiary boards and trusts, also effective from July 12, 2019. EOH did not cite reasons for resignations, but says both former CEOs will assist with a handover of their businesses by October 31, 2019.

On Tuesday EOH will release the findings of an independent probe into alleged corruption involving the group’s contracts with public sector entities.

Read: EOH rocked by top-level resignations

Departing EOH executives were not implicated in corruption – Van Coller

3. GEPF looks to invest more offshore

The Government Employees Pension Fund, which has more than 92% of its assets invested in JSE-listed companies and which holds a significant amount of government bonds, is mulling whether to take some of its money offshore. Bloomberg is reporting that the fund is planning to invest more than R2 trillion outside the country and in unlisted assets, in a bid to reduce the risk of overexposure to locally traded companies. The announcement was made by the GEPF’s principal executive officer, Abel Sithole at the PIC inquiry on Monday. He added that the matter still needs to be discussed with the finance minister, Tito Mboweni. 

Read: GEPF looks to invest more offshore

4. Axed Old Mutual CEO to appear in court

Axed Old Mutual CEO, Peter Moyo is due to appear in the South Gauteng High Court on Tuesday, as he fights to reclaim his position as head of the insurer. Moyo was first suspended and later dismissed as Old Mutual’s CEO on the basis of a breakdown in trust and over a conflict of interest over NMT Capital. Moyo says his dismissal was unlawful and on unfair grounds.

Old Mutual’s board chair, Trevor Manuel and now the executive chairman of Rothschild & Co, Martin Kingston have also been dragged into Moyo’s battle to be reinstated as CEO.

Read: Moyo drags Rothschild’s Kingston into Old Mutual battle

5. Anglo American Platinum trading statement

Mining company Anglo American Platinum published a trading statement for the six months ended June 30, 2019, in which it flags revisions from its previous statement dated June 25, 2019. The company says it now sees headline earnings increasing by between 108% and 128% or by between R7.00 billion and R7.67 billion. It sees headline earnings per share also increasing by between 108% and 128% to between 2 671 cents and 2 924 cents per share. Both basic earnings and basic earnings per share are also expected to increase by between 224% and 224%. Results are due on July 22, 2019.

Read: Amplats expects half-year earnings to double

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