UIF commissioner suspended after fraud probe; power cuts to worsen; Massmart; Tesla

By Claire Badenhorst

• Unemployment Insurance Fund (UIF) commissioner Teboho Maruping has been placed on "precautionary suspension" following a probe by Auditor-General Kimi Makwetu. In August, President Cyril Ramaphosa instructed Makwetu to audit government interventions meant to provide relief for the economic impact of Covid-19 restrictions. Minister of Employment and Labour Thulas Nxesi, said on Wednesday that the Auditor-General has now released the first audit report into Covid government expenditure – including UIF Covid-19 TERS transactions. These transactions indicate fraud and violations, including overpayments, underpayments and inflated claims. Among the fraudulent claims were those submitted on behalf of dead South Africans. The UIF's Temporary Employer/Employee Relief Scheme (TERS) payments are intended for workers who have been affected by the pandemic.
• American CEO of Massmart Mitch Slape has bought over R8m in shares in the company. US giant Walmart bought Massmart in 2010 but has since seen the value of its investment decline by 80%. Slape joined Massmart a year ago, and in three transactions, his family trust bought 300,000 shares. The owner of Makro, Game and Builder's Warehouse suffered a headline loss of more than R1bn in the past six months.
• Prices for Tesla's traditional bond due in 2025 reached just over 104 cents on the dollar. This just after the electric-car maker announced it would sell up to $5bn in stock to boost its balance sheet. According to the Wall Street Journal, it marks a significant come back from lows around 79 cents during the worst of the pandemic's market turmoil. Since the car-making company announced a 5-for-1 stock split that made it more accessible to retail investors, Tesla's shares have risen about 80%. The company's shares have climbed more than 7% this week alone, powering the company to a market capitalisation of around $442bn.
• On Wednesday, embattled power utility Eskom sent out a statement warning the public that rolling blackouts could worsen as it struggles to deal with debt and unplanned breakdowns. Eskom's debt grew to R488bn in March 2020, and it warns that power cuts will continue until after it has completed an 18-month maintenance programme. Loadshedding was increased to Stage 4 from 3pm on Wednesday.