AS IT HAPPENED: Rand was much weaker year after Nenegate, Treasury economist tells #Statecaptureinquiry

2019-02-19 10:03

The commission of inquiry into state capture has concluded with the testimony of National Treasury economist Catherine MacLeod.

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Last Updated at 02:42
19 Feb 11:20

Commission to resume with Eskom leg tomorrow.

Zondo: Before we adjourn, there is a need this week to use 2pm onwards for meetings.

Therefore, we may need to start earlier/finish later. We can finalise tomorrow.We adjourn.


19 Feb 11:19

19 Feb 11:18

Mokoena: What would you say to a comment that... if the rand falls we will pick it up?

MacLeod says that's a statement of somebody who neither appreciates the impact of asset price on ordinary citizens.


19 Feb 11:14

Zondo asks MacLeod to arrange ammendment for document for reference to Nene as only 'Nhlanhla'.

Zondo: "It's Mr Nhlanhla Nene".

Zondo excuses MacLeod. 


19 Feb 11:09

19 Feb 11:08

MacLeod explains that the country's borrowing costs was affected by the Nenegate. 

She says a large part of political uncertainty that generated market movement could have been avoided.

Nothing is ever 100% certain, but the levels of uncertainty as a result of Nenegate could have been avoided.


19 Feb 11:06

19 Feb 11:03
MacLeod confirms that the Nenegate effects were felt even a year after.  

19 Feb 11:01

19 Feb 10:55

19 Feb 10:55

2015/16: Debt rising by R26 billion, overall debt service costs would be R3 billion higher in MTBPS (Medium Term Budget Policy Statement).

2016/17: Overall debt service costs R5 billion higher than expected. (11.4% of total spend)


19 Feb 10:49

19 Feb 10:49

MacLeod: People were worried about State capture before Nenegate.


19 Feb 10:46

19 Feb 10:45

Zondo: Would the market have reacted the same way had Mr Nene been replaced by Trevor Manuel?

The question of who he was replaced behind made them think it was somebody who was unlikely to do what was the right thing.


19 Feb 10:39

19 Feb 10:34

MacLeod says what made Nenegate different is that there were concerns about the manner in which Nene was replaced and it wasn’t clear if there were good reasons for firing him.

It was the context in which it happened, MacLeod explains.


19 Feb 10:28

19 Feb 10:27
Investors' perceptions change when a country borrows a lot from banks, as Changes in ministers signal change in perceptions around what we do to change growth. All factors come into consideration, MacLeod explains.

19 Feb 10:24

19 Feb 10:24

19 Feb 10:24
Nhlanhla Nene was removed as finance minister in Dec 2015. He was replaced by Des van Rooyen who in turn, was replaced by Pravin Gordhan (now public enterprises minister) just days later.

19 Feb 10:23

19 Feb 10:22
MacLeod: Also saw the price of bonds falling. Explains that when the yield goes up, prices go down. Investors view this as more risky.Equity markets fell sharply. 

19 Feb 10:18
Nenegate refers to 9 December 2015. Financial market impacts were immediate. The Rand, at R14.59 went to R15.27 on 10 December, reaching R15.90 on 15 December, MacLeod explains.

19 Feb 10:15

19 Feb 10:13

19 Feb 10:12

INFOGRAPH: The rand since Nenegate

This infographic tracks the movements of the rand since President Jacob Zuma announced that Des van Rooyen will replace Nhlanhla Nene as minister of finance.


19 Feb 10:11
MacLeod will corroborate DG Dondo Mogajane's testimony relating to Nenegate.

19 Feb 10:08

19 Feb 10:05
Inquiry chair deputy chief justice has arrived. Proceedings now underway.

19 Feb 10:05

19 Feb 10:04

Des van Rooyen wants to cross-examine former Treasury DG Lungisa Fuzile

Des van Rooyen, who was appointed finance minister by former president Jacob Zuma for a calamitous weekend in December 2015, wants to apply for leave to cross-examine former Treasury director general Lungisa Fuzile at the state capture commission of inquiry.

Van Rooyen has also indicated his interest in testifying before the commission.


19 Feb 10:04

Changes in ministers were meant to weaken Treasury – Lungisa Fuzile

Former treasury director general Lungisa Fuzile has told the commission of inquiry into state capture that changes in finance ministers in recent years were not meant to strengthen the National Treasury but to weaken it.

"Frequent changes to ministers...one made the point [that] it takes a lot to learn to work with each politician because each one of them has different styles."


19 Feb 10:04

AS IT HAPPENED: Changes in ministers were meant to weaken National Treasury - Fuzile concludes testimony at #Statecaptureinquiry

Former director-general of National Treasury Lungisa Fuzile has concluded his testimony before the judicial commission of inquiry into allegations of state capture in Parktown, Johannesburg.


19 Feb 10:04

Bosasa goes bust as state capture inquiry lifts lid on bribery, corruption

FNB and Absa have informed facilities management group Bosasa that their accounts would be closed, following the arrests of company execs and correctional services officials in the wake of state capture revelations at the Zondo commission.

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