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<p>According to McKinsey, the African electronics payment industry generated approximately $19.3billion in revenues in 2019, of which approximately $10 billion was from domestic electronic payments. Kennedy Mubita, Ventures Lead Africa Middle East at Standard Chartered Bank joins CNBC Africa to unpack emerging payment trends and the opportunities for Kenyan customers to embrace digital payments.</p>


Tracking emerging payment trends on the African continent

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<p>Rwanda’s Minister of Finance and Economic Planning, Uzziel Ndagijimana is today reading the final 2020/2021 budget, 60 per cent of which will be sourced domestically. Economic Analyst, Ted Kaberuka joins CNBC Africa for more.</p>


How can African governments cushion the agricultural sector from COVID-19 shocks?

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<p>Statistics indicate that women make up over 40 per cent of African business owners yet a trivial 2 per cent are able to access finance according to figures from Mckinsey. Director of Macroeconomics, Forecasting and Research at African Development Bank (AfDB), Hanan Morsy joins CNBC Africa to discuss women economic participation and empowerment.</p>


Global Gender Summit: AfDB’s Hanan Morsy on how to improve economic participation for women in Africa


<p><strong> By Akinyi Ochieng and Gregory Thwaites*</strong></p>



<p>With over <a href="http://siteresources.worldbank.org/EXTDECPROSPECTS/Resources/476882-1157133580628/DfD_FullReport.pdf">30 million Africans living outside of their home countries</a>,
migration will play a big role in shaping Africa’s future. While the vibrant
and growing diaspora communities in countries such as the United States, United
Kingdom and France are gaining in visibility, it is communities of Africans <em>within </em>Africa that will have the most
transformative impact on the region’s future. In 2012, the African Union
proclaimed the African diaspora as the continent’s sixth region. This
population, often presumed to be in the West, is likely to grow quickly as more
Africans put down roots in countries beyond their own.&nbsp; The social, economic, and cultural capital
they bring will be vital to ensuring Africa’s demographic boom yields dividends
as the continent’s share of the global population doubles by 2050. </p>



<p>Today, 34 million
Africans live outside the country of their birth, with over 55% staying within
the region. By 2050, we forecast that the African diaspora will have tripled to
100m people. If African countries achieve the good governance necessary for
strong economic growth, around 70m of this diaspora will live elsewhere in
Africa. The early signs are already there: in Ghana, for example, a thriving
Nigerian diaspora has emerged. In Kenya, you’ll find a growing number of Ugandans.
Countries like Ivory Coast and South Africa, home to some of the<a href="http://www.obsmigration.org/en/2018/10/ivory-coast-a-country-of-hospitality/"> largest numbers</a><a href="http://www.obsmigration.org/en/2018/10/ivory-coast-a-country-of-hospitality/"> </a>of migrants from other parts of Africa, are
set to have their populations expand even further.</p>



<p><strong>Tapping
into the Skills of Regional Diaspora Communities </strong></p>



<p>Although traders and
temporary workers tend to draw the most attention in Africa’s inter-regional
migration story, growing numbers of skilled professionals now seek professional
opportunities in other regions of the continent. The “brain gain” is not always
to the Western world &#8212; these migrants sometimes move to neighboring nations.
Zimbabwe’s brain drain, for example, skews more towards South Africa rather
than the United Kingdom. </p>



<p>If governments are to
effectively harness the&nbsp; valuable
knowledge and skills these communities offer, it is critical that they
recognise these phenomenon and cultivate ties with these “regional diasporas”.
In some ways, these&nbsp; “regional” re-pats
have an advantage over diaspora returnees from North America and Europe — by
living in Africa, they might benefit from increased proximity to the cultural
contexts of their countries of origin. Networks like CDC-backed <a href="http://theafricalist.com/">Africa List</a>
and <a href="http://theboardroomafrica.com">TheBoardroom Africa</a>,
for example, highlight the vast pool of talent that lies within the continent
if governments and companies are willing to tap the countryman who might be
just a country-or-two away. Some companies are already seizing these
opportunities. Ade Ayeyemi, CEO of Togo-based Ecobank, for example, is from
Nigeria. Similarly, Acha Leke, a Senior Partner at McKinsey <a href="https://www.ozy.com/rising-stars/is-he-the-most-connected-man-in-africa/86184">often touted</a> as Africa’s most
“well-connected man” hails from Cameroon. </p>



<p>Immigration has been
fundamental to economic success in the Western world, but for Africa nations to
tap into the talent pools just a few borders away, countries must be more
accepting of migrants. Although Rwanda ranks 8.16 out of 10 on the Gallup <a href="https://news.gallup.com/poll/216377/new-index-shows-least-accepting-countries-migrants.aspx">Migrant Acceptance Index</a>,
South Africa hovers at 4.98. If immigrants are not sufficiently integrated into
the labour market and everyday life, the next new wave of African migration
could generate significant friction. </p>



<p><strong>Growing
Inter-African Remittances and Investments </strong></p>



<p>The most obvious impact
of the regional diaspora communities is perhaps most visible in remittances and
investments. Remittances to Sub-Saharan Africa grew almost 10 percent to $46 billion
in 2018, with significant inflows coming from within the continent. Benin, for
example, receives over $133 million each year from Nigeria. Nearly $60 million
flows from Congo to Rwanda, eclipsing remittances from North America and
Europe. It isn&#8217;t just person-to-person flows we are
seeing—these intra-Africa exchanges are happening at the business level as well.
Earlier this year, mPharma, a digital health startup that manages prescription
drug inventory for pharmacies and their suppliers, purchased Kenya’s
second-largest pharmacy chain, Haltons. Ethiopia-based Apposit is the chief
technical partner of Nigeria&#8217;s leading mobile payment systems Paga, with its
former company’s founder Eric Chijioke also acting as the Chief Technical
Officer of the latter. The growth of these inter-regional remittance flows and
investments underscores the growing importance of inter-African trade and the
economic opportunities that exist if Africa trades more with itself. To take
full advantage of the benefits of remittances, governments must work closely
will money transfer organisations to introduce progressive monetary policies if
technology is to bring down the cost of cross-border payments and investments. </p>



<p><strong>Culture
as Connective Tissue</strong></p>



<p>Migration within Africa
has re-shaped the cultural fabric of many sub-regions as more and more people
become exposed to culinary, artistic, and linguistic influences that previously
might not have spread beyond geographical borders. Improvements in Internet
connectivity and regional transportation infrastructure means that more
Africans are exposed to cultures across the region than ever before. In North
Africa, Algeria, Morocco, Mauritania and Tunisia have launched a joint bid for
UNESCO heritage status for couscous. In West Africa, pidgin has emerged as the <em>lingua franca</em> from The Gambia to
Cameroon — with the BBC even<a href="https://www.bbc.co.uk/news/world-africa-40975399">
launching</a> a Pidgin-language service in 2017. One of the
most visible examples of the influence of diaspora communities can be seen in
the musical crossovers of Ghanaian highlife and Nigerian afrobeats which has
produced a unique blend of contemporary Afropop that Nigerian musician Mr. Eazi
has <a href="https://www.vogue.com/article/mr-eazi-nigeria-ghana-style">described</a> as “banku music” in
homage to one of the Ghana’s most famous dishes. </p>



<p><strong>Unlocking
the Potential of Inter-regional diaspora communities </strong></p>



<p>From Ghana’s “Year of
Return” to Ethiopia’s recent Diaspora Trust Fund, more governments across the
continent are initiating new efforts to effectively engage their diaspora&nbsp; in the development agenda. These efforts have
traditionally concentrated in Western-based diaspora communities; however, the
rapid growth of regional diaspora communities calls for more engagement within
Africa as well. To maintain ties with inter-African migrants with valuable
social, economic, and cultural capital to share with their home countries,
countries should undertake mapping exercises within the African continent to
better identify these regional diaspora communities, their ideas, capacities
and relationship with their countries of heritage. To reduce the costs of
sending and receiving remittances, governments should likewise adopt a progressive
approach to licensing of money transfer options. Finally, to encourage cultural
exchange fuelling creativity, transportation and Internet infrastructure must
be improved to facilitate the free flow of ideas. </p>



<p><em>Akinyi Ochieng</em> is<em> Communications Manager at WorldRemit and Gregory Thwaites, Research Director</em></p>


Op-Ed: The Future of Africa’s diaspora is in Africa

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<p>Ghana Revenue Authority has set a tax revenue target of 58.9 billion Ghana Cedi in its 2019 budget, which is about 25.9 per cent higher than the 46.8 billion cedis targeted in 2018. Meanwhile, the GRA says contracting the services of consulting firm Mckinsey accounted for the improved revenue collection for the year 2018. William Demitia, Senior Associate Consultant at Ali-Nakyea and Associates joins CNBC Africa from Ghana to assess Ghana’s tax strategies.</p>


Assessing Ghana’s revenue collection strategies

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<p>Today’s event at GIBS entitled McKinsey on Eskom: Learning from the past – looking to the future drew the who’s who of investigations into corruption in South Africa.</p>


Paul O’Sullivan calls for a criminal investigation into McKinsey

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<p>CNBC Africa also had its own questions on why the consultancy settled with Eskom on Friday to pay a billion rand to it for consultancy payments of which were found to be irregular. We asked Kevin Sneader, Global Managing Partner of McKinsey &#038; Company for more details and whether it would pay interest on the billion.</p>


McKinsey speaks on US probe, Eskom and Transnet

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<p>CEO of Business Leadership South Africa, Bonang Mohale outlined the cost of McKinsey’s shenanigans for Eskom.</p>


This is the cost of McKinsey’s shenanigans for Eskom

<p>Kevin Sneader, global managing partner of McKinsey &amp; Company speaking at a GIBS discussion entitled: <em>McKinsey on Eskom: Learning from the past &#8211; looking to the future </em>said the world’s largest management consultancy is open to interest discussions with Eskom on the R1 billion it was paid for its turnaround plan, which it will repay today.</p>
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<p>Sneader also apologised for McKinsey&#8217;s involvement in state capture and said Mckinsey would hand over all information it had to Judge Zondo to assist in his inquiry on state capture.</p>
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<p>On Friday Africa’s largest electricity supplier, <a href="http://cnbc.africa/zdnl-mc/2018/07/06/mckinsey-to-pay-back-r1bn-to-eskom-trillian-not-part-of-deal/">Eskom finalised a settlement agreement</a> with McKinsey for R1 billion ($74 million).</p>
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<p data-reactid="39">Eskom asked McKinsey to pay back the R1 biilion, last year after an internal inquiry found that the state power utility’s decisions to make the payments were unlawful.</p>
<p data-reactid="39">McKinsey together with Trillian were paid R1.6 billion for a “Turnaround Plan” carried out at Eskom between January and July 2016.</p>

McKinsey is open to discuss interest repayments with Eskom

<p>Africa&#8217;s largest electricity supplier, Eskom has finalised a settlement agreement with the world’s largest management consultancy, McKinsey for R1 billion ($74 million).</p>
<p data-reactid="39">As Trillian, was not party to the settlement, Eskom said it will continue to pursue the recovery of the remainder of the payments made to Trillian through a legal review process launched earlier this year.</p>
<p data-reactid="39">Eskom asked the consultancy firms McKinsey and Trillian to pay it back 1.6 billion rand ($117 million), last year after an internal inquiry found that the state power utility’s decisions to make the payments were unlawful.</p>
<p>http://cnbc.africa/news/southern-africa/2017/10/06/south-africas-eskom-asks-mckinsey-trillian-return-117mn/</p>
<p>Last year South Africa’s political opposition party, the Democratic Alliance alleged McKinsey steered funds to Trillian, a company which at that time was connected to the Guptas, a trio of Indian businessmen who South Africa’s anti-graft watchdog has alleged used their links with than President Jacob Zuma to win government contracts.</p>
<p data-reactid="46">The Guptas denied any wrongdoing, saying they were pawns in a plot against Zuma, who  also denied any wrongdoing.</p>
<p>McKinsey ended up earning around 1 billion rand and Trillian 564 million rand for a “Turnaround Plan” carried out at Eskom between January and July 2016.</p>
<p>McKinsey says it stopped working with Trillian after the company failed due diligence in March 2016.</p>
<p>The size of the contract &#8211; $120 million for six months of advice &#8211; was heavily-criticized.</p>
<p>U.S. business advisory Oliver Wyman found in a December 2016 report commissioned by Eskom that McKinsey’s contract with the utility was “very unusual” and charged fees at more than double market rates.</p>
<p>In a media statement, on Friday Eskom said &#8220;the process has taken longer than what would have been ideal however it was of importance that we ensure that an appropriate and transparent legal process is followed&#8221;.</p>
<p>“This is a significant milestone for the Board as we seek to fulfil what we see as our non-negotiable mandate to root out financial mismanagement and malfeasance as a critical foundation to restoring transparent and effective governance” said Jabu Mabuza, Eskom Board Chairman.</p>
<p>“We are thankful that this hard and difficult journey has yielded positive results. We are equally appreciative of the support and cooperation we have received from McKinsey and the AFU. This for us further demonstrates that we are serious about consequence management and achieving a renewed culture of accountability and good governance which is key to our sustained success,” said Eskom Group Chief Executive Phakamani Hadebe.</p>
<ul>
<li>With additional reporting by Reuters</li>
</ul>


McKinsey to pay back R1bn to Eskom, Trillian not part of deal

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<p>A study by management consulting firm McKinsey and Company says Africa has emerged as the world’s number two banking market in terms of growth and profitability.</p>


African banking the ‘most exciting and profitable in the world’

<p class="MegaArticleBody_first-p_2htdt">Africa has emerged as the world’s No. 2 banking market in terms of growth and profitability, according to a study by management consulting firm McKinsey and Company.</p>
<p><div id="attachment_106420" style="width: 810px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-106420" decoding="async" loading="lazy" class="wp-image-106420 size-full" src="http://cnbc.africa/wp-content/uploads/2017/03/Africashutterstock_110973782.jpg" alt="" width="800" height="600" /><p id="caption-attachment-106420" class="wp-caption-text">Photo: Shutterstock</p></div></p>
<p class="">Low banking penetration and income levels, as well as economies that are largely cash-based and viewed as a high credit risk, have long been considered major obstacles to the development of the continent’s banking sector.</p>
<p class="">But the McKinsey report released on Wednesday &#8212; drawing on performance data from 35 of Africa’s leading banks and surveys of banking executives and customers &#8212; said the number of banked Africans grew from 170 million in 2012 to nearly 300 million last year.</p>
<p class="">That figure is expected to rise to 450 million in the next five years, with banking revenue rising to $129 billion from about $86 billion now.</p>
<p class="">“Globally, the banking industry is facing disappointing returns and sluggish growth,” the report said. “Africa’s banking sector provides a refreshing contrast. Its markets are fast-growing and nearly twice as profitable as the global average.”</p>
<p class="">However, that growth is by no means evenly spread, either geographically or among income groups.</p>
<p class="">Only five countries &#8212; South Africa, Nigeria, Egypt, Angola and Morocco &#8212; currently account for 68 percent of Africa’s total banking revenue.</p>
<p class="">And about 60 percent of the total retail revenue growth of nearly $18 billion expected over the next five years will be concentrated in South Africa, Egypt, Nigeria, Morocco and Ghana.</p>
<p class="">“Where you are in Africa matters &#8211; in a big way,” the report said. “About 65 percent of African banks’ profitability and 94 percent of their revenue growth are attributable to their geographical footprint.”</p>
<p class="">And though only 15 percent of Africans had annual income above $5,000 last year, McKinsey’s research indicated that nearly 70 percent of retail banking revenue growth through 2025 will come from customers earning between $6,000 and $36,000.</p>
<p class="">Meanwhile, heavy staff costs and labor-intensive, paper-dominated processes hold back productivity, the report said.</p>
<p class="">Credit risk also remains a concern, with non-performing loans accounting for more than 5 percent of African banks’ portfolios.</p>
<div class="Attribution_container_28wm1">
<div class="Attribution_attribution_o4ojT">
<p class="Attribution_content_27_rw">Reporting by Joe Bavier; Editing by David Goodman</p>
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Africa has world’s second-fastest banking growth and profitability: McKinsey

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<p>The Asset Forfeiture Unit says it is hoping to seize at least R50 billion in 17 cases it is currently investigating related to state capture.</p>


NPA won’t act yet on Guptas

<p>A South African court has authorized the freezing of 1.6 billion rand ($130 million) in assets earned by global consultancy McKinsey and a firm linked to friends of President Jacob Zuma, a source at the state prosecutors’ office told Reuters.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-286362 size-full" src="http://cnbc.africa/wp-content/uploads/2017/10/McKinsey_Flickr.jpg" alt="" width="1024" height="768" /></p>
<p data-reactid="43">The Pretoria High Court made the decision in December after a request by the National Prosecuting Authority (NPA) to freeze the fees earned by McKinsey and local consultancy Trillian for advising South African power utility Eskom.</p>
<p data-reactid="44">Privately-held McKinsey, one of the world’s largest management consultancies, has already lost several clients over the contract.</p>
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<p data-reactid="46">This month Zuma agreed to set up a commission of enquiry into allegations of influence peddling by the Gupta brothers, who controlled the firm McKinsey partnered with on the 1.6 billion rand contract to advise Eskom in 2016.</p>
<p>Separately, parliament is investigating whether McKinsey knowingly let funds from Eskom be diverted to Trillian as a way of securing the contract.</p>
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<p data-reactid="48">“On Dec. 14, 2017, the NPA obtained a preservation order from the Pretoria High Court to preserve assets worth around 1.6 billion rand relating to Trillian and McKinsey,” said the NPA source, who declined to be identified.</p>
<p data-reactid="49">“Tomorrow parties in the case will be served with the order,” the source said. The order allows prosecutors to freeze assets pending the outcome of an investigation.</p>
<p data-reactid="50">A spokesman for McKinsey said on Monday it had not received formal communication about the preservation order.</p>
<p data-reactid="51">“As we have said before &#8230; we will return the fee we earned from the Eskom turnaround programme (R1.028bn) no matter what,” the spokesman said in an email to Reuters.</p>
<p data-reactid="52">McKinsey will cooperate with South African authorities in their investigations into the case, he added.</p>
<p data-reactid="53">McKinsey launched its own investigation into its handling of the partnership with Trillian and says it ceased work with the firm in March 2016 after due diligence showed links to the Gupta brothers.</p>
<p data-reactid="54">Trillian did not respond to a request for comment from Reuters on Monday. When contacted in November by Reuters, Trillian denied wrongdoing relating to the Eskom contract.</p>
<p data-reactid="55">Both Zuma and the Guptas deny wrongdoing. Zuma’s spokesman did not reply to a Reuters request for comment.</p>
<p data-reactid="56">The court decision is one of the first instances in which authorities have acted on allegations of wrongdoing by three Gupta brothers, Ajay, Atul and Rajesh, who South Africa’s anti-corruption watchdog accuses of siphoning off public funds.</p>
<p data-reactid="57">Deputy President Cyril Ramaphosa was elected last month to replace Zuma as leader of the ruling African National Congress, putting him in pole position to become South Africa’s next president.</p>
<p data-reactid="58">He ran on a pledge to root out cases of corruption in government and on Saturday he said the judicial enquiry which Zuma agreed to set up should be given top priority.</p>
<p>($1 = 12.3221 rand)</p>
<div class="Attribution_attribution_o4ojT" data-reactid="59">
<p class="Attribution_content_27_rw" data-reactid="60">Editing by Matthew Mpoke Bigg</p>
</div>


South African court authorizes freezing of $130MN in McKinsey case: source

<p>*Story updated with emailed comment from Hogan Lovells</p>
<p>Lord Peter Hain who has made it his business to expose the Guptas and institutions he alleges assisted them capturing the South African state, accused Hogan Lovells on Monday during a speech to the House of Lords of &#8220;propping up state capture, corruption, cronyism and money laundering in South Africa.&#8221;</p>
<p>He also referred the international law firm headquartered in London, to the Solicitors Regulation Authority for allegedly enabling Jonas Makwakwa to return to his post as &#8220;second-in-command of the critically important South African Revenue Service (SARS)&#8221;.</p>
<p>Hain alleges Hogan Lovells spared what he alleges are &#8220;two of the most notorious perpetrators of state capture in South Africa – Tom Moyane, head of SARS and his deputy, Jonas Makwakwa – from accountability for their complicity in, and cover up of, serious financial crimes. In so doing, Hogan Lovells was complicit in undermining South Africa’s once revered tax-collection agency, and thereby effectively underpinning President Jacob Zuma and his business associates, the Gupta brothers and others, in perverting South Africa’s democracy, damaging its economy and robbing its taxpayers&#8221;.</p>
<p>Hogan Lovells describes Lord&#8217;s Hain&#8217;s accusations as unfounded &#8220;<em>reflecting a lack of understanding of the work we were asked to carry out for the South African Revenue Service.  </em><em>We are disappointed that he ignored the evidence which we provided to him and the other committee members earlier today. He did not </em><em>contact us in advance of making his statement to the House of Lords and instead appears to have relied on inaccurate press reports in South Africa.”</em></p>
<p><em> </em><em>&#8220;We have fully reported the details of our engagement with SARS to the independent South African Parliament Standing Committee on Finance and we are very confident in its accuracy and probity.  Anyone who wants to take the time to understand our limited role in this matter can very easily read about it on the Parliament’s website or our own.” </em></p>
<p><em> </em><em>“We have a fundamental duty to uphold the rule of law with integrity and professionalism, and have been strong advocates of that in South Africa. If Lord Hain does have evidence of corruption then that should be reported to the appropriate authorities in South Africa.  We look forward to working closely with the SRA on any complaint made to them by Lord Hain.”</em></p>
<p>Hain has called on the SRA to withdraw &#8220;Hogan Lovells’ authorisation as a recognised body; and to examine what other disciplinary action can be taken against its leading Partners including withdrawing their permission to practise as a solicitors&#8221;.</p>
<p>In a previous statement sent to CNBC Africa by SARS it expressed its deep concern at media reports spreading the allegation that there has been impropriety on the part ofMoyane in dealing with the disciplinary investigation into Chief Officer: Business &amp; Individual Taxes, Makwakwa.</p>
<p>In its statement SARS said:<br />
<em>Firstly, it is not true that Hogan Lovells did not investigate the Financial Intelligence Centre (FIC) suspicious transactions. Neither is it true that Hogan Lovells issued a media statement to that effect.</em></p>
<p>All transactions as per the FIC suspicious report were put to Mr Makwakwa to respond and he did. It was those responses which lead to Hogan Lovells concluding that an act of misconduct could not be found from the transactions and their sources.</p>
<p>SARS wishes to assist with a factual and chronological account of events. Mr Moyane received the Financial Intelligence Centre (FIC) Report in May 2016.</p>
<p>After seeking advice, he placed Mr Makwakwa on precautionary suspension on 15 September 2016 so as to investigate whether or not any possible misconduct may have been committed by Mr Makwakwa relating to the FIC report.</p>
<p>The firm Hogan Lovells, an international and renowned law firm, was appointed to conduct this investigation.</p>
<p>In essence, their mandate which clearly reflects in their terms of reference was to determine whether any misconduct had been committed by Mr Makwakwa and/or Ms Kelly-Anne Elskie in their capacity as SARS employees.</p>
<p>Whilst on suspension, Mr Makwakwa committed what SARS believed to be a breach of his suspension conditions. This arose from a telephone call he made on 13 January 2017 to a SARS employee regarding an active tax matter.</p>
<p>On 20 January 2017, whilst the main investigation was still ongoing and whilst on suspension, disciplinary charges were served on Makwakwa relating solely to this breach of his suspension conditions.</p>
<p>Hogan Lovells concluded its investigation based on the mandate stated above and delivered an investigation report to Mr Moyane in June 2017. The Hogan Lovells report concluded that there was no prima facie evidence that Mr Makwakwa had committed any misconduct in relation to the financial transactions emanating from the FIC report.</p>
<p>However, the recommendation was that Mr Makwakwa be charged for violating the SARS Conflict of Interest disclosure provisions as well as the SARS Code of Conduct.</p>
<p>A decision was then taken to expand the existing charges already served on Mr Makwakwa in January 2017 to include charges relating to the allegation of non-disclosure.</p>
<p>Mr Moyane appointed Advocate Terry Motau, SC, a senior counsel from the Johannesburg Bar, to chair the disciplinary enquiry with the guidance and assistance of Hogan Lovells.</p>
<p>The expanded enquiry concluded on 15 August 2017 and the outcome was received from the chairperson on 13 October 2017.</p>
<p>Accordingly, Mr Makwakwa was found not guilty of all charges. Contrary to media reports spreading the allegation that the processes were tainted and that Mr Moyane had a hand in allegedly tainting the processes, the above clearly demonstrates a patently fair, unbiased and independent process.</p>
<p>SARS is concerned that wide spread media reports seem to suggest that SARS erred by allowing Mr Makwakwa back into his employ given that there is a criminal matter pending. This assertion displays a lack of understanding of the difference between a misconduct investigation by an employer and a criminal investigation.</p>
<p>It is common knowledge that FIC – not SARS – referred the matter to the South African Police Service for an investigation on possible criminal acts.</p>
<p>Thus in September 2016, upon enquiry, Mr Moyane was advised by the Directorate for Priority Crime Investigation (DPCI) that an enquiry into Mr Makwakwa and Ms Elskie, arising from the FIC report, was on-going under enquiry number 03/06/2016.</p>
<p>In law, disciplinary proceedings and criminal proceedings are distinct and are governed by different legislation.</p>
<p>As an employer, Mr Moyane’s jurisdiction only goes as far as determining whether or not there is any misconduct related to the employment relationship. The responsibility to pursue criminal charges in a court of law lies with the National Prosecuting Authority based on investigations by the SAPS or DPCI.</p>
<p>Given the outcome of the SARS disciplinary process and the fact that no decision had been taken by DPCI on whether or not Mr Makwakwa should be criminally prosecuted at that time, Mr Moyane was advised that there was no legal justification for SARS not to lift Mr Makwakwa&#8217;s suspension.</p>
<p>As a result, he was allowed to resume his duties with effect from 1 November 2017. Any other action would have amounted to a violation of Mr Makwakwa’s legal rights as an employee.</p>
<p>It is important to be aware that SARS’s rights have been reserved to initiate possible new internal disciplinary proceedings should the outcome of the criminal process dictate so.</p>
<p>SARS notes that the media reports seem to insinuate incorrectly that SARS has refused to release the report by Hogan Lovells.</p>
<p>Mr Moyane has sought legal guidance regarding the release of the FIC and Hogan Lovells investigation reports. The advice he has received suggests that a crime would be committed should these reports be made public.</p>
<p>Similar observations were made by the chairperson of Standing Committee of Finance (SCOF), Mr Yunus Carrim in his letter addressed to the Commissioner Moyane dated 6 November 2017, in which he noted the possibility that legal reasons may exist for the non-release of the reports.</p>
<p>To reach consensus and ensure closure on this matter, Mr Moyane has written to SCOF chairman Mr Carrim, making the following proposal:</p>
<p>* That a team consisting of legal representatives from SARS, the National Assembly, Treasury and FIC meet urgently to collectively engage and agree on a seasoned Senior Counsel to deliver an opinion on the legal permissibility of disclosing the reports</p>
<p>* That the National Assembly facilitate the process bearing in mind the urgency to get clarity on this matter.</p>
<p>The above detailed background and the process we are requesting of SCOF demonstrate our willing to always be transparent to the public so that we are forever beyond reproach.</p>
<p>In previous speeches Lord Hain has accused companies headquartered in the UK – including Bell Pottinger, KPMG, McKinsey, SAP, and banks such as HSBC, Standard Chartered and Baroda – of aiding and abetting money laundering, corruption and state capture in South Africa</p>


Lord Hain accuses Hogan Lovells of propping up state capture

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<p>Acha Leke, Senior Partner at Mckinsey says there is need for Africans to travel more across the continent and able to sell and boost trade. He spoke to CNBC Africa&#8217;s Onyi Sunday at the Africa 2017 summit in Egypt.</p>


Boosting intra-African trade vital to Africa’s growth – Expert

<p>Barclays Africa and Standard Bank said on Monday they would stop working with McKinsey, a further blow to the global consultancy as it faces allegations of bribery for work done with friends of South African President Jacob Zuma.</p>
<p><div id="attachment_284103" style="width: 1034px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-284103" decoding="async" loading="lazy" class="wp-image-284103 size-full" src="http://cnbc.africa/wp-content/uploads/2017/09/McKinsey_Flickr.jpg" alt="" width="1024" height="768" /><p id="caption-attachment-284103" class="wp-caption-text"><em>McKinsey faces allegations of bribery for work done with friends of South African President Jacob Zuma.</em></p></div></p>
<p data-reactid="43">Privately-held McKinsey, the world’s largest management consultancy, has denied doing anything illegal but said this month that it was embarrassed by mistakes it made while working with South African state utility Eskom last year.</p>
<p>McKinsey said it regretted working on a 1.6 billion rand ($113 million) contract at Eskom alongside a company controlled by the Gupta family, wealthy friends of President Zuma who are accused of unduly influencing government contracts.</p>
<p data-reactid="46">Zuma and the Guptas deny wrongdoing.</p>
<p data-reactid="47">Barclays Africa and Standard Bank told Reuters in separate emailed responses to questions that they would terminate their relationships with McKinsey without giving reasons.</p>
<p data-reactid="48">McKinsey declined to comment.</p>
<p data-reactid="49">The Gupta brothers, who work with Zuma’s son, Duduzane, were accused by South Africa’s anti-corruption watchdog last year of using control over state agencies to siphon public funds.</p>
<p data-reactid="50">South Africa’s parliamentary committee on public enterprises is investigating whether McKinsey knowingly let funds from Eskom be diverted to Gupta-controlled firm, Trillian, as a way of securing the deal.</p>
<p data-reactid="51">Corruption Watch, a South African anti-graft NGO, is preparing a submission to the U.S. Department of Justice asking it to investigate McKinsey’s dealings with Trillian.</p>
<p>($1 = 14.0950 rand)</p>
<div class="Attribution_attribution_o4ojT" data-reactid="52">
<p class="Attribution_content_27_rw" data-reactid="53">Reporting by TJ Strydom; Writing by Joe Brock; Editing by Louise Heavens</p>
</div>


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