Top 5 on Fin24: Gordhan appoints Phakamani Hadebe as Eskom CEO, SARB keeps interest rates unchanged

Cape Town - A roundup of Thursday's top economic and finance reads on Fin24.

Gordhan appoints Phakamani Hadebe Eskom CEO in sweeping SOE board changes

Cabinet has approved a recommendation by Eskom's board to appoint Phakamani Hadebe as CEO of Eskom.

This is according to Public Enterprises Minister Pravin Gordhan, who announced changes to boards of state-owned enterprises (SOEs) in his portfolio.

In his budget vote last week, Gordhan unpacked measures the department is taking to clean up and reform SOEs. He spoke about changing the way boards are appointed, as they played a critical part in the strategy of state capture, Fin24 previously reported.

• READ: Gordhan appoints Phakamani Hadebe Eskom CEO in sweeping SOE board changes

SA interest rates unchanged

The monetary policy committee of the South African Reserve Bank has decided to keep the repo rate unchanged at 6.5%, in line with the expectations of economists. 

At its previous meeting in March the MPC decided to cut interest rates by 25 basis points to make the repo rate 6.5%, and the prime lending rate 10%. 

The repo rate is the benchmark interest rate at which the central bank lends money to commercial banks, and the prime rate the rate at which commercial banks lend money to borrowers.

• READ: SA interest rates unchanged

Tax inquiry to probe if SARS officials were coerced to quit

A major new commission of inquiry into the South African Revenue Service has been given a wide mandate to investigate the tax agency’s corporate governance, including whether tenders were correctly awarded, whether criminal investigations were covered up, and if any former employees of the agency had been coerced to leave. 

The commission, first mentioned by President Cyril Ramaphosa in his maiden State of the Nation Address in February, is investigating the functioning and corporate governance of the tax agency in the wake of repeated revenue shortfalls, delays in VAT refunds and allegations of mismanagement and corruption among top staff.

• READ: Tax inquiry to probe if SARS officials were coerced to quit

INFOGRAPHIC: Twelve products costing you over 6% more than a year ago

Statistics South Africa released the April Consumer Price Inflation (CPI) index on Wednesday, showing that costs increased 4.5% year-on-year, compared to 3.8% in March.

Fin24 reported that the big culprits behind the rise in inflation were price increases in product groups that attract specific taxes, namely alcohol, fuel and sugary drinks.

Fin24 takes a look at what you’re paying more, and less, for.

• READ: Twelve products costing you over 6% more than a year ago

Five banks ranked among SA's strongest brands

Five South African commercial banks are among the top 10 strongest brands in the country.

Brand Finance, a business valuation and strategy consultancy company, mentioned ABSA, Capitec, FNB, Nedbank and Standard Bank among the top 10 strongest brands in its report.

“Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation,” said the company.

• READ: Five banks ranked among SA's strongest brands

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