
SACP: Response to the ANC’s extended NWC allegations (05.04.2017)



The Republic of South Africa’s economy is in free-fall after the sacking of Finance Minister Pravin Gordhan on Thursday 30th March 2017, which has given way to Malusi Gigaba. So the Republic and Cabinet has gone away from a man with financial experience to an inexperienced minister. After the decision of the sacking the rand has fallen in value and the response on the stock exchange as also been reported less sale.
Today the international response to the sacking happen, but the junk-status has to be explained and I will do so by the words of InvestigationAnswers: “If a bond is downgraded to a level below investment grade (aka, “junk”), there is often a serious sell off of those bonds, because most institutional investors are forbidden from owning junk bonds” (http://www.investinganswers.com/financial-dictionary/investing/downgrade-96).
So the bond-status will lead to currency funds trading away the South African Rand and the Republic’s bonds that are traded internationally on the Financial Markets, as the Republic’s traded bonds to fill the budget will be downgraded, means the amounts of investment and interest will drop. That is a circle of trouble for the economy. The lack of international trade of the needed currency exchange will give less circulation and also stagnate the economy.
Here is the terrible news:
“S&P on Monday placed South Africa’s credit rating to speculative grade (commonly referred to as “junk”), a one-notch reduction to BB, and the ratings agency said “the economic crises President Jacob Zuma plunged the country into with his midnight cabinet reshuffle” prompted it to hold an emergency review at the weekend instead of June 2, as was scheduled, according to Business Day” (Mail & Guardian, 2017).
So the Standard and Poor’s rating will really make changes and reactions to the change of the steady hands of Pravin Gordhan, instead of the rookie and cookie Gigaba, a loyalist to Zuma and his presidency. Certainly Gigaba as a Finance Minister will not stop a nuclear trade involving the Gupta Empire, that would Gordhan if he didn’t believe it was for the good of the economy. Therefore, the financial instruments of S&P says something of the current state.
Parts of the Official Statement from S&P:
“The downgrade reflects our view that the divisions in the ANC-led government that have led to changes in the executive leadership, including the finance minister, have put policy continuity at risk. This has increased the likelihood that economic growth and fiscal outcomes could suffer. The rating action also reflects our view that contingent liabilities to the state, particularly in the energy sector, are on the rise, and that previous plans to improve the underlying financial position of Eskom may not be implemented in a comprehensive and timely manner. In our view, higher risks of budgetary slippage will also put upward pressure on South Africa’s cost of capital, further dampening already-modest growth” (…) “The negative outlook reflects our view that political risks will remain elevated this year, and that policy shifts are likely which could undermine fiscal and growth outcomes more than we currently project. If fiscal and macroeconomic performance deteriorates substantially from our baseline forecasts, we could consider lowering the ratings. We could revise the outlook to stable if we see political risks reduce and economic growth and/or fiscal outcomes strengthen compared to our baseline projections” (Fin24, 2017).
So the Capture of State report has together with the all the Financial market, Economic analysis and the forecasts has been overshadowed by the reaction to the decisions of President Zuma and the ANC. That the government changed the cabinet and the deficits of the budget. When the volatile economy needs strong leadership, instead the Finance Minister is a newbie who the international business world doesn’t seem to trust. That is a key thing to the matter, the businesses and financial market needs trust to the leaders, that is not in the ANC and Zuma crony.
The trust in the Financial Market is dwindling, they are not seeing signs of trust to President Zuma and his cabinet. The ANC does not have the stability or credibility to be trusted by one of the world most famous ratings systems of the financial market. When it is like this, that should be motivation to change, as the South African values and currency loses value. The price of the reckless acts of power shows what the price for the change of ministers can do. President Zuma has work to do! Zuma needs to change, though I doubt he care, he eats no matter what happens and seems like he thinks he can get get away with everything, even getting his economic policies called JUNK! Peace.
Reference:
Fin24 – ‘FULL STATEMENT: S&P cuts SA to junk status, fears political risks’ (03.04.2017) link:http://www.fin24.com/Economy/full-statement-sp-cuts-sa-to-junk-status-fears-political-risks-20170403
Mail & Guardian – ‘S&P downgrades South Africa’s credit rating to junk status’ (03.04.2017) link: https://mg.co.za/article/2017-04-03-sp-downgrades-south-africas-credit-rating-to-junk-status
Mullen, Jethro & Petroff, Alanna – ‘South Africa’s currency plummets after finance minister fired’ (01.04.2017) link: http://money.cnn.com/2017/03/30/investing/south-africa-finance-minister-pravin-gordhan-ousted/

“It becomes more necessary to see the truth as it is if you realise that the only vehicle for change are these people who have lost their personality. The first step therefore is to make the black man come to himself; to pump back life into his empty shell; to infuse him with pride and dignity, to remind him of his complicity in the crime of allowing himself to be misused and therefore letting evil reign supreme in the country of his birth” – Steven Biko
Henceforth the tries to silence and stop President Jacob Zuma will either be futile or be for show, as the first time to vote “No Confidence” failed in November 2016. This after the failing show in the National Assembly as the Capture of State Report revealed the knitted connection between the investor family of Gupta and the Zuma Administration. Still, the African National Congress stood by like gullible stooges to the charade of progress. ANC have played a fool by the Zuma clan and the Gupta empire. This to a stage where the involvements of Gupta in changes of government really occurred this week.
Yet after the State of Caputre report and of all the cases involved corruption, together with the questionable back-payment on the Nkandla Village Project. There been enough to impeach the South African President. Not like he has tried to be innocent, the cases has been pilled up and the connections to the Oakbay Resources and other enterprises of the Gupta Empire is evident. It is like he stopped caring, because in his heart. He believes he can get away. But first, take a look!
DA’s New Motion against President Zuma:
“That the House resolves, in terms of section 102(2) of the Constitution of South Africa, 1996, that it has no confidence in Mr Jacob G Zuma as President of the Republic of South Africa on the grounds of his continued irrational, irresponsible and reckless leadership. President Zuma’s decision to recall Minister of Finance Pravin Gordhan and his deputy, Mcebisi Jonas from an international roadshow aimed at increasing investor confidence, had the exact opposite effect which was seen in the plummeting of the rand. Furthermore, the President’s continued reckless and irrational behavior surrounding the position of the Minister of Finance has resulted in an economic crisis. Such a crisis was seen previously when Minister Nene was summarily fired from the same position in December 2015. That President Zuma has chosen to deliberately repeat his actions is evidence that he has lost all sense of rationality and sound judgement. These actions will result directly in job losses and will thus be most profoundly felt by the poor and most vulnerable citizens in South Africa. President Zuma’s derelict leadership has resulted in a collapse of public confidence in the President of the Republic of South Africa, has created a government at war with itself and ultimately has undermined efforts to restore confidence in the South African economy. There can be no confidence in such a President” (DA, 30.03.2017).

That the President uses an Intelligence reports for his actions to fire all of the ministers and reshuffle the cabinet, without any for-warning. That the Finance Minister had a ploy called ‘Operation Check Mate’ that was already in the works, like a John Grisham spy-novels. There haven’t been any clues or evidence of it, it is just as if the President needed a final nail in coffin to sack Pravin Gordhan. As he again, questioned the certain investment that would in effect give a massive bonus to one of the Gupta companies. So that a Bank owned by Gupta’s could get sold and the profits made quickly. The same efforts as the revealed nuclear energy deal in 2015. So the pattern is crystal clear.
The Constitution is just a doormat to the Zuma Presidency, he couldn’t care less, unless he and his cronies get paid or hired. What matter isn’t the delivery to the commoners, neither is the service due diligence, as long as the Gupta Companies get wealthy. Because the profits of Gupta’s will benefit the Zuma administration.
IT doesn’t matter if the Democratic Alliance with Mmusi Maimane or Economic Freedom Fighters with Julius Malema wants to vote on ‘No Confidence’ motion again. The ANC who benefits from the inside trading and co-operative efforts with Gupta’s. If so the ANC wouldn’t give way and give in to the President. The favors tend to happen in collected effort, as the loyalty of the ANC cronies and the leadership shelved the cases and has distorted the works to get rid of Zuma. Therefore, the run to stop his Executive role has stopped.
The North Gauteng Court and Constitutional Court cases has clearly not played the way of law should do, as the guilty of crimes and use of power to gain personal wealth is walking the streets. The misuse of public funds is clearly evident. The massive amount of counts of misconduct on the Zuma Presidency shouldn’t be possible, but it has been. Therefore, the “No Confidence” vote is needed. Even if it fails again. Because if it fails, it proves that the State is really captured by men with ill-intent. That the ANC under Zuma has become iconic in the sense of belligerent statutes of justice. The sense of commoner and citizens towards the ANC and Zuma must be strange.
Zuma acts as if the National Assembly, the Constitution and the Republic is beneath him. That he is above it and cannot be touched. It is not strange he believes it, he has run a nation and crossed the courts so many times, had so many affidavits and minutes explaining his position concerning bad behavior. So, there are enough times he could have seen it as baseless character assassination, instead it has proven as his Modus Operandi. Where the crimes and collective corrupt acts has transpired in a fashion of business as usual and if they get caught, who cares? None will serve for the crime anyway.
The reality is that the first step of falling from the pedestal will be damaging and hurtful. The need for the wisdom of Steven Biko is more potent than ever. The silent words: “The first step therefore is to make the black man come to himself; to pump back life into his empty shell; to infuse him with pride and dignity, to remind him of his complicity in the crime of allowing himself to be misused and therefore letting evil reign supreme in the country of his birth”.
TO not ‘letting evil reign supreme in the country of his birth’, the evil letting the powers and the representatives, under the banner of the liberation party, the ANC steal the nation as a service for foreign investors. That the Republic of South Africa, not taken for granted and used by the former liberators, as they drive flashy cars through the townships and ghettos without care for the citizens who is not taken care of. That the newly rich on the investors and the misuse of state coffers can be contributed to the ANC elite and the clientele getting licensed to operate businesses.
The ANC need ‘to pump back life into his empty shell’, they have forgot to pump it into the citizens for while, they forgotten their mission and the reasons it was created. The ANC and Zuma doesn’t care about the proud legacy, but using it as tools of oppressive business enterprises into wealth. Not caring for service delivery. ANC under Zuma isn’t the people’s party or the liberation party, but instead the ruling elite who only care about keeping power.
We could wish that the “No Confidence” of the DA works, but don’t expect it. The ANC has sold it’s past and the present isn’t what it should be. They have forgotten where they came from and the purpose of their liberation. Zuma has traded and doesn’t care, he uses all sorts of manipulation to stay. It starts with thieving something small, than stealing medium and later running away with the whole bank reserves. Peace.
Reference:
Claymore, Ezra – ‘DA tables new motion of no confidence as ANC breaks ranks with Zuma’ (30.03.2017) link: https://www.thesouthafrican.com/da-tables-new-motion-of-no-confidence-as-anc-breaks-ranks-with-zuma/


President Jacob Zuma of the African National Congress doesn’t like making things easy or to say the proper way. His affairs and his acts as a leader is Stalinisque and authoritarian, not acting as a democratic leader. That can be said the way he stifled the courts, used private business connections and used his role as President to get-a-jail-free-card. That is just the way of Zuma and his close friends. They buy and trade on government contracts and get favors. Certainly been the way since the Anglo-Leasing scandal and that one should still hunt President Zuma, but the cases that has followed it since, it must seem like a life-time ago.
In December 2015, there was enough chaos within the Finance Ministry as Nhlanhla Nene we’re fired and for a few days David Van Rooyen was appointed, that lead to a melt-down and shock of the economy. Therefore the President was forced to let it go and he hired Pravin Gordhan. That happen within a week in December in 2015. So Finance Minister Gordhan has been in position for 16 months. Other candidates for the position came forward to the media and said they had been at the Gupta family estate and we’re offered the Ministry at the time, before Gordhan was appointed. Therefore, the Gupta family control of Zuma Administration is easy to see.
The scandals involving companies run and owned by the Gupta family is happening frequently, as Eskom contracts and Tegeta agreements that overpays for bad coal-quality and empties the state coffers. This is sort of arrangements that the RSA government have accepted when doing business with Gupta associates. Therefore, that the Finance Minister get into hot water.
This can be said with the sudden axing when the Ministry of Finance didn’t accept the takeover of Habib Overseas Bank from the Vardospan Bank. Today the South African Reserve Bank (SARB) and Finance Minister said to the purchase today and the bank buying the other is by all means connected to the businesses of the Gupta. Therefore, the Zuma Administration wants to facilitate it. Just like they have done with Energy businesses and all the other Gupta involved scandals following the ANC and Zuma.
Zuma has enforced and ensured transactions that is profitable and traded so he could get cuts and jobs for family members through the Gupta businesses. Not through merit, but by the knowledge that Zuma will be payed off if he gets a grand deal to the Gupta Empire. That is now the Modus Operandi of his government to facilitate the Gupta Family. If not, why would Ministers fall for acting against Gupta owned property?
That has happen before and the reasons for stopping Nene Nhlanhla hand in the Finance Ministry was for his act to stop another financial transaction of a nuclear deal between Gupta companies, South African Companies and the Russian counterparts. That wasn’t something the then Finance Minister Nhlanhla wanted to see or believed would be plausible to happen without corrupt behavior.
Now today, the third Finance Minister of December 2015 Pravin Gordhan has also faced the axe and it follows a pattern. When the Ministry question Financial Transactions and Contracts involving the Gupta Empire and Gupta Family, than it should just nod and wave; not stop and say “no”. If you say no than the Zuma administration will replace you, their loyalty isn’t to accountability or transparency, it is to the Gupta’s. That is the State of Capture in South Africa. That the South African President is so weak that he has traded his soul for silvers from investors instead of good governance and due diligence.

That is why this is happening now:
“Johannesburg – President Jacob Zuma fired Finance Minister Pravin Gordhan and eight other cabinet members in a high-stakes power play that may threaten his own presidency and place the nation’s investment grade credit rating at risk. Gordhan was replaced by Home Affairs Minister Malusi Gigaba, who has no financial or business experience, while ANC MP Sfiso Buthelezi takes over from Mcebisi Jonas as deputy finance minister” (CPR Worldwide Media – SA, 30.03.2017).
So if you wonder what South African government is passing through, they are going through the 2015 on rewind, as the Zuma Administration put another Gupta stooge as Finance Minister; instead of David Van Rooyen, it is now Malusi Gigaba. Hon. Gigaba would never question any deal that the Gupta’s need or Zuma orders. He will follow the orders and acts upon the trust he got by Zuma. Therefore, don’t expect that the RSA government will be accountable or have stable economy for a while. Especially when a they finally got their Gupta stooge as a Finance Minister. It took 16 months, but is now achieved and the Oakbay Resources execs must feel like their high. Peace.


Today, the Competition Commission has filed with the Competition Tribunal, a settlement agreement reached with Citibank N.A. for being part of the forex trading cartel.
The Commission found that from at least 2007, Citibank N.A. and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US Dollar/Rand currency pair. Further, the Commission found that Citibank N.A. and its competitors manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times.
Citibank N.A. will pay an administrative penalty of R69 500 860 (Sixty Nine Million Five Hundred Thousand Eight Hundred and Sixty Rands). This figure does not exceed 10% of Citibank N.A.’s annual turnover in the Republic of South Africa. Citibank N.A. undertook to cooperate with the Commission and avail witnesses to assist the prosecution of the other banks that colluded in this matter.
On 15 February 2017, the Competition Commission referred a collusion case to the Competition Tribunal for prosecution against Bank of America Merrill Lynch International Limited, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank, Credit Suisse Group; Standard Bank of South Africa Ltd, Commerzbank AG; Australia and New Zealand Banking Group Limited, Nomura International Plc., Macquarie Bank Limited, Citibank N.A., ABSA Bank Limited (ABSA), Barclays Capital Inc, Barclays Bank plc (Respondents).
“This settlement was done to encourage speedy settlement and full disclosure to strengthen the evidence for prosecution of the other banks,” said the Commissioner, Tembinkosi Bonakele.
Ends.
For more information or for media enquiries, please contact:
Sipho Ngwema, Head of Communications
012 394 3493/ 078 048 1213/ SiphoN@compcom.co.za

Public Protector’s preliminary report found that ABSA illegally benefited from apartheid cash injections from the South African Reserve Bank.
JOHANNESBURG, South Africa, February 19, 2017 – On Friday, the Black First Land First (BLF) movement marched to the South African Reserve Bank (SARB) (APO.af/JsJaEi) to demand that the institution act on the Public Protector’s preliminary report which found that ABSA illegally benefited from apartheid cash injections from the SARB.
BLF joined the ANC Youth League (ANCYL) recently in a march to ABSA headquarters (APO.af/Y21xVq) to demand that #ABSAmustPay. The Public Protector, Adv Busisiwe Mkhwebane, found that ABSA should pay R3.2 billion.
BLF said they wanted the SARB to take seriously and act on findings of the CIEX report, which investigated money stolen during the late stages of institutionalised apartheid. The report found that R26 billion could be immediately recoverable.
The aim of the march was to also implore the SARB to punish corrupt banks, ABSA, Standard Bank and Investec, which the Competition Commission found (APO.af/VsZ1A9) had manipulated and fixed the rand/dollar price.



In the nation under President Jacob Zuma and African National Congress (ANC) there been done some shady dealings between government and private industry, this has been happening over years. Now the Financial Market and Banks have internally been agreeing on values and exchange rates on the South African Rands (ZAR), this is a luxury where the banks have set fixed prices and values. That in the end has given profits and sold the Rand on the open market. This in mind with the fixing and securing more profits for the banks as they we’re trading the currency on the open market. Also, to foreign investors and currency traders that try to make a profit on exchange and selling currency back again at a later date.
So this sort of financial manipulation has made sure for the 17 banks that have made agreements between the banks and communication that most likely paid more for the rand or more used more dollars for getting the South African currency. As proven with the statements of the Competition Commission and the South African Reserve Bank, however, the trial and the review will continue to shed light on the possible internal-trade in the financial business of the Republic.
The opening of review of Forex exchange of the Rand:
“The Competition Commission has today referred a collusion case to the Tribunal for prosecution against Bank of America Merrill Lynch International Limited, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank, Credit Suisse Group; Standard Bank of South Africa Ltd, Commerzbank AG; Australia and New Zealand Banking Group Limited, Nomura International Plc., Macquarie Bank Limited, ABSA Bank Limited (ABSA), Barclays Capital Inc, Barclays Bank plc (Respondents). The Commission has been investigating a case of price fixing and market allocation in the trading of foreign currency pairs involving the Rand since April 2015. It has now referred the case to the Tribunal for prosecution. The Commission found that from at least 2007, the respondents had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US Dollar / Rand currency pair. Further, the Commission found that the respondents manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times. Traders of the respondents primarily used trading platforms such as the Reuters currency trading platform to carry out their collusive activities. They also used Bloomberg instant messaging system (chatroom), telephone conversation and had meetings to coordinate their bilateral and multilateral collusive trading activities. They assisted each other to reach the desired prices by coordinating trading times. They reached agreements to refrain from trading, taking turns in transacting and by either pulling or holding trading activities on the Reuters currency trading platform. They also created fictitious bids and offers, distorting demand and supply in order to achieve their profit motives” (CompCom, 2017).
South African Reserve Bank statement:
“The South African Reserve Bank (SARB) has noted today’s announcement by the Competition Commission South Africa (Competition Commission) that it has completed its investigation initiated in April 2015 and has referred to the Competition Tribunal for prosecution a case of price fixing and market allocation in the trading of foreign currency pairs involving the South African Rand (ZAR)” (…) “The rand is a globally traded currency. Some 30.0% of daily turnover in the ZAR takes place in South Africa, and turnover with non-residents accounts for 57.5% of domestic turnover. Figures published by the Bank for International Settlements indicate that for the month of April 2016, the daily average worldwide turnover in the foreign exchange market involving the ZAR was approximately USD49.0 billion. This represented 1% of total turnover in the international foreign exchange markets” (…) “The SARB sees the allegations in a serious light. The SARB will allow the legal processes now initiated to run their course, and will continue to monitor developments closely to inform any action that we may need to embark upon in accordance with our mandate and jurisdiction” (SARB, 2017).
So we can now wait and see what the efforts and effects. If this can hit the currency and its value, if this has been a fix to juice it up or even put in a bubble where the banks has earned profits on illegitimate transactions as the communications between the banks has set standards of the prices and expenses, so the costumers and businesses has overpaid for the currency in trading. This proves that the greed and coins goes together. The banks of South Africa ceased an opportunity and grasped it.
We have to see when the Competition Commission of South Africa releases their report and their conclusions as the review and the findings of colluding will be put in court. However, the world gets to see the internal trading and agreements between the banks to fix the prices of currency, especially the value of the South African Rand (ZAR). Therefore the release of information on how they fixed it and how they speculated on it, will show how banks did this. Trust this, the report and the papers on this financial transactions and agreements will be juicy and show the inner-works of the banks. That is knowledge that the Republic of South Africa deserves, as these people and professionals are the ones making sure the monies are used and taken care off. Peace.
Reference:
South African Reserve Bank – ‘SA Reserve Bank Notes Competition Commission Decision’ (15.02.2017) link: https://www.resbank.co.za/Lists/News%20and%20Publications/Attachments/7681/SARB%20statement%20on%20Competition%20Commission%20announcement.pdf
The Competition Commission South Africa (CompCom) – ‘Breaking News: Competition Commission prosecutes banks (currency traders) for collusion’ (15.02.2017)