Major International Business Headlines Brief::: 10 March 2021
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Major International Business Headlines Brief::: 10 March 2021
<https://www.nedbank.co.zw/>
ü Cathay Pacific posts record $2.8bn loss for 2020
ü Money launderers 'prey on generation Covid'
ü Trader gets painted stones instead of $36m of copper
ü Trader gets painted stones instead of $36m of copper
ü EU seeks to supercharge computer chip production
ü Security firm probes hack of '150,000 cameras'
ü Liberty Steel boss Sanjeev Gupta warns over loss-making plants
ü Unilever drops word 'normal' from beauty products
ü Holidays: UK domestic cruises 'could restart in May'
ü Verkada surveillance cameras at Tesla, hundreds more businesses breached:
hackers
ü Asian stocks bounce off two-month low as bonds, China markets steady
ü Nigeria: Court Declines to Unfreeze Shell's Bank Accounts
ü Nigerians Ignore CBN Warning As Bitcoin Trading Crosses $50,000 Mark
ü Nigeria: Buhari Launches $3.2bn Port Harcourt-Maiduguri Railway Project
ü Mozambique: PGR Has Not Withdrawn Bribery Charges Against Privinvest
ü South Africa: GDP Shrinks By 7%
ü Kenya: New Twist in 'Secret' Nakumatt Store Operations
ü Tanzania Gears Up to Test SGR Power System
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Cathay Pacific posts record $2.8bn loss for 2020
Hong Kong’s Cathay Pacific Airways has reported a record annual loss of
$2.8bn (£2bn) for 2020.
Its poor results were due to a sharp downturn in travel during the pandemic
along with major restructuring costs.
Cathay Pacific had previously warned it expected its second-half losses to
be worse than the record first-half loss of $1.3bn.
Last year's loss compared with a profit of $220m in 2019, when profits were
hit by political turmoil in Hong Kong.
Cargo was the best performer for the airline, though it too saw a downturn,
because the reduction in passenger flights, which also carry cargo, caused a
reduction in capacity.
"Our short-term outlook continues to be challenging. However, we remain
absolutely confident in the long-term future and competitive position of our
airlines," the airline's chairman Patrick Healy said.
2020 was a bruising year for Hong Kong's flag carrier, which unlike some
other airlines, doesn't have a domestic travel market to fall back on.
In October, Cathay Pacific announced it would close its subsidiary Cathay
Dragon, a regional carrier flying mainly to mainland China and other Asian
destinations.
Cathay Pacific and its budget carrier Hong Kong Express took over Cathay
Dragon's routes.
The beleaguered carrier also announced it would cut an additional 8,500
jobs, amounting to about a quarter of its staff.
About 2,400 of those jobs were already unfilled because of a hiring freeze
and the closure of some overseas operations
The cost-cutting move came after the airline received a $5bn bailout from
the Hong Kong government in June.
Cathay Pacific had previously forecast that it expected to offer less than
half of its usual capacity in 2021, calling the forecast “the most
optimistic that we can responsibly adopt”.
In January, the airline carried a total of 30,410 passengers, a decrease of
99% compared to January last year.
The airline said new, stricter quarantine measures in Hong Kong could
further increase the airline’s cash burn by up to $52m per month, on top of
its current costs of up to $190m.
The entire industry has suffered during the pandemic. In fact the
International Air Transport Association (IATA) predicted in January that the
world's airlines need another $70bn-$80bn of government support to get
through the pandemic.
IATA has forecast that air travel won’t return to pre-pandemic levels until
2024.--BBC
Money launderers 'prey on generation Covid'
Criminals are seizing on young people's Covid-related financial troubles to
hire them to unwittingly launder money, experts say.
More than four in 10 cases of money mules involved victims aged 21 to 30,
with the numbers rising last year, fraud prevention service Cifas said.
Banks said criminals posted fake job adverts on social media, targeting
"generation Covid" struggling for work.
It is part of a wider trend of fraudsters exploiting the crisis.
'Fake job adverts'
Criminals want to move money through accounts to make it look less
suspicious to banks. Money mules are given a cut for allowing their account
to be used. Often they ask no questions over the source of the money.
Most are young men. Those who try to quit may be threatened with violence by
the criminals who recruited them.
If they are caught, they could face prison, as well as future difficulties
with their finances, such as having their bank account closed and finding it
difficult to apply for credit in the future, such as mobile phone contract.
There were 17,157 cases of suspected money muling activity involving 21 to
30-year-olds in 2020, a 5% increase on the previous year, according to the
latest figures from Cifas.
Katy Worobec, managing director of economic crime at UK Finance, which
represents banks, said: "Criminals are cruelly preying on 'generation Covid'
and those struggling to find work at this difficult time, by using fake job
adverts online to recruit people as money mules.
"We would urge everyone to remain cautious. At the same time, online
platforms must take swift action to detect and take down content being used
to promote money muling activity."
The figures also show that cases among the under 21s had dropped, possibly
owing to the fact teenagers have spent less time out and at school, where
they could have been recruited.
This helped to push down the total number of reported cases slightly
compared with 2019.
'I was a teenage money mule'
"Have you ever held £2,000 at once in your hand?" That was the line used to
tempt Holly into becoming a money mule.
At the age of 17 and still at school, Holly (not her real name) was
approached on Instagram, then Snapchat, by a person who promised to pay her
a decent sum, if she let him use her bank account to move money.
"I just eventually gave in," she said.
Other scams seen during the pandemic include impersonation fraud, in which
con-artists pretend to be from broadband providers, TV streaming services,
or energy suppliers to trick victims into handing over money.
Romance scams have exploited the lonely, scam adverts have had a Covid
theme, and fraudsters have posed as banks' fraud departments to gather
personal details, according to TSB, which has a guarantee to refund
blameless victims.
"Throughout the pandemic, we have seen an increase in sophisticated attacks
on the public. Banks and other businesses need to step up their efforts to
protect their customers and help catch the criminals," said Ashley Hart,
head of fraud at TSB.--BBC
Trader gets painted stones instead of $36m of copper
A commodities trader was given painted stones instead of $36m (£26m) of
copper from a Turkish supplier in a fraudulent deal last summer.
Geneva-based Mercuria Energy Group says it's been the victim of cargo fraud
following its purchase of 10,000 tons of copper blister.
When the cargoes started arriving in China, it found containers full of
painted stones instead.
The bizarre case happened despite security and inspection controls.
Last year, Mercuria agreed to buy the copper blister, an impure form of the
metal, for delivery to China. About 6,000 tonnes was loaded for shipment in
more than 300 containers on eight vessels.
But before its journey from a port near Istanbul, the copper was switched
with paving stones, spray-painted to resemble the semi-refined metal.
Mercuria, one of the five-biggest oil traders in the world, is seeking
redress in Turkish and UK courts against the copper supplier Bietsan Bakir.
Turkish police have taken a number people into custody in relation to the
fake copper scheme.
"Suspects have been taken under custody who are thought to be involved in
the various parts of this organised crime against Mercuria," the company
said in a statement while thanking the Istanbul Financial Crimes Department.
Seals broken
It appears the copper was initially loaded into the first shipment of
containers, before being surveyed by an inspection company. Seals used to
prevent fraud were fixed to the containers.
But the containers were opened and the copper replaced with paving stones,
Istanbul law firm KYB told media. The fraudsters switched between fake and
real container seals to avoid detection.
Once the vessels were at sea, Mercuria paid $36m over five installments.
The fraud wasn't discovered until the ships began arriving in the Chinese
port of Lianyungang later that month.
"There has been a criminal investigation petition by the buyer against the
seller and two intermediaries," Turkish police said in a statement. "It's
been determined that the incident is the outcome of fraud perpetrated in an
organised manner."
In cases of non-delivery a trader could make a claim against a cargo's
insurance policy. But Mercuria found that just one out of seven contracts
used by the Turkish company to insure the cargo was real. The rest had been
forged.
Bietsan Bakir, the Turkish firm which sold Mercuria the copper, did not
respond to requests for comment when contacted by Reuters. More hearings on
the case are expected this week.--BBC
Trader gets painted stones instead of $36m of copper
A commodities trader was given painted stones instead of $36m (£26m) of
copper from a Turkish supplier in a fraudulent deal last summer.
Geneva-based Mercuria Energy Group says it's been the victim of cargo fraud
following its purchase of 10,000 tons of copper blister.
When the cargoes started arriving in China, it found containers full of
painted stones instead.
The bizarre case happened despite security and inspection controls.
Last year, Mercuria agreed to buy the copper blister, an impure form of the
metal, for delivery to China. About 6,000 tonnes was loaded for shipment in
more than 300 containers on eight vessels.
But before its journey from a port near Istanbul, the copper was switched
with paving stones, spray-painted to resemble the semi-refined metal.
Mercuria, one of the five-biggest oil traders in the world, is seeking
redress in Turkish and UK courts against the copper supplier Bietsan Bakir.
Turkish police have taken a number people into custody in relation to the
fake copper scheme.
"Suspects have been taken under custody who are thought to be involved in
the various parts of this organised crime against Mercuria," the company
said in a statement while thanking the Istanbul Financial Crimes Department.
Seals broken
It appears the copper was initially loaded into the first shipment of
containers, before being surveyed by an inspection company. Seals used to
prevent fraud were fixed to the containers.
But the containers were opened and the copper replaced with paving stones,
Istanbul law firm KYB told media. The fraudsters switched between fake and
real container seals to avoid detection.
Once the vessels were at sea, Mercuria paid $36m over five installments.
The fraud wasn't discovered until the ships began arriving in the Chinese
port of Lianyungang later that month.
"There has been a criminal investigation petition by the buyer against the
seller and two intermediaries," Turkish police said in a statement. "It's
been determined that the incident is the outcome of fraud perpetrated in an
organised manner."
In cases of non-delivery a trader could make a claim against a cargo's
insurance policy. But Mercuria found that just one out of seven contracts
used by the Turkish company to insure the cargo was real. The rest had been
forged.
Bietsan Bakir, the Turkish firm which sold Mercuria the copper, did not
respond to requests for comment when contacted by Reuters. More hearings on
the case are expected this week.--BBC
EU seeks to supercharge computer chip production
The European Commission has set an ambitious target to boost production of
cutting-edge computer chips by the end of the decade.
It wants 20% of such chips, in terms of value, to be manufactured within the
EU by 2030. It was 10% in 2020.
The pledge comes at a time when supply has failed to meet demand, causing
problems for car-makers and others.
Part of the challenge will be that the US and mainland China are also
seeking to increase their own output.
At present, Taiwan's TSMC and South Korea's Samsung dominate, with the two
companies being the only ones capable of physically producing the very
latest in chip tech.
"We are in a sort of paradoxical situation where Europe is using a lot of
these different types of technology, but we're producing little," said
European Commission executive vice-president Margrethe Vestager.
"Yet [chip] production is reliant on machinery produced in Europe. So...
there is an interdependency here."
One observer suggested growing US-China tensions had prompted the commission
into action.
"Semiconductor chips are one of those overlooked but incredibly important
strategic components on which masses of technology are built," said Emily
Taylor from the Chatham House think tank.
"So this is a very interesting development, and it's welcome to see any
initiative that stimulates innovation."
Hard to master
Europe used to have a thriving chip-making industry.
But while the Netherlands is still home to NXP Semiconductors, and Germany
is the base of Infineon Technologies, they and others have outsourced much
of their production.
Setting up cutting-edge fabrication plants is a hugely expensive business.
A large plant can cost up to $20bn (£14.3bn) to build and kit out, according
to a report by the US's Semiconductor Industry Association (SIA) last year.
And it can take many years before the factories make a profit.
Moreover, costs have been going up over recent chip generations. And as the
US firm Intel has found to its cost, it is hugely challenging to master the
latest state-of-the-art processes required to manufacture the smallest
transistors possible.
EU Internal Market Commissioner Thierry Breton has previously made the case
for a major new fabrication plant to be built locally.
But he acknowledged at the report's launch that it was still unclear whether
this would involve offering tax cuts to woo TSMC, Samsung or another major
player to establish a new site within Europe.
He said a fabrication plant would be a very important investment.
"We have had some voluntary discussions with companies that have this
know-how.
"So we have opportunities to do this with a partner - it may be a good idea
- but nothing has been decided yet," he said.
Five-year plan
Being able to make the most advanced chips is taking on greater
geo-political importance.
The US has already taken steps to restrict China's access to chips and other
technologies involving American intellectual property on the grounds they
could be used by the Chinese military and/or to carry out surveillance of
its minority Uighur population.
And a recent report prepared for US President Biden advised him to take
steps to ensure China continues to remain at least two chip generations
behind.
"If a potential adversary bests the United States in semiconductors over the
long term or suddenly cuts off US access to cutting-edge chips entirely, it
could gain the upper hand in every domain of warfare," the National Security
Commission on AI warned.
Last week, Beijing announced fresh steps to help its domestic semiconductor
industry make advances of its own that could reduce the country's reliance
on imports.
The country's latest five-year plan lists "integrated circuits" as one of
seven frontier technologies that will benefit from a planned 7% annual boost
in overall R&D investment between now and 2025.
'Future shockwaves'
Part of the EU's concern is how it might get caught up in the crossfire of a
tech trade war between the two superpowers.
The Trump administration prevented ASML - a Dutch firm whose products use
special light to carve transistors in silicon wafers - from exporting its
most advanced machines to China's biggest chip-maker SMIC.
And it also imposed sanctions on Huawei, which prevented it from getting its
own chip designs manufactured. This led the UK government to bar the Chinese
telecoms equipment maker from future involvement in its 5G networks.
"Europe has woken up to the reality of the US-China technology 'war' [and]
should play on its strengths to reduce its vulnerabilities to future
shockwaves, and organise its long-term resilience as a key player of the
global supply chain," advised a recent report from the French think tank
Institut Montaigne.
Yearly review
The EU's new target was outlined within a wider plan called Digital Compass
2030.
Other goals included:
· developing the bloc's first quantum-accelerated computer by 2025
· ensuring all households have access to gigabit internet speeds
· employing ten million information and communications tech
specialists, up from 7.8 million in 2019, with a focus on bringing more
women into the industry
· The European Commission intends to nudge individual governments
into action by publishing an annual review of progress, but will have to
leave it up to others to take the steps required for a rise in chip
production output.--BBC
Security firm probes hack of '150,000 cameras'
A California firm is investigating a massive hack said to have affected
150,000 of its security cameras.
Hackers claim to have breached Verkada, a security company that provides
cameras to companies including carmaker Tesla.
Stolen footage includes the insides of hospitals, schools and companies,
Bloomberg reports.
Verkada told the BBC they were "investigating the scale and scope of this
issue".
The company also told the BBC they had notified law enforcement. However,
they did not confirm the size and scale of the hack, reported by Bloomberg.
It is claimed hackers were able to view videos from inside women's health
clinics, psychiatric hospitals, prisons and even the offices of Verkada
itself.
Companies whose footage may have been exposed include carmaker Tesla and
software provider Cloudflare.
Cloudflare told the BBC that they had been alerted to a "handful" of cameras
that may have been compromised.
In other footage, a Verkada camera inside a Florida hospital reportedly
showed what appeared to be eight hospital staffers tackling a man and
pinning him to a bed.
Another video showed officers in a police station in Stoughton,
Massachusetts questioning a man in handcuffs.
Another inside a Tesla warehouse in Shanghai showed people working on an
assembly line.
The BBC has not been able to independently verify these videos.
'Just too much fun'
The hackers also say they gained access to the security cameras of Sandy
Hook Elementary School in Newtown, Connecticut, where a gunman killed more
than 20 people in 2012.
Speaking to Bloomberg, Tille Kottmann claimed credit for hacking into
Verkada's systems.
The reasons for the hack, Kottmann said, were, "lots of curiosity, fighting
for freedom of information and against intellectual property, a huge dose of
anti-capitalism, a hint of anarchism - and it's also just too much fun not
to do it."
The attack was reportedly unsophisticated - they gained access to Verkada
through a "Super Admin" account.
Bloomberg says that after they contacted Verkada, the hackers lost access to
the video feeds and archives.
A spokesperson for Verkada told the BBC: "We have disabled all internal
administrator accounts to prevent any unauthorised access.
"Our internal security team and external security firm are investigating the
scale and scope of this issue, and we have notified law enforcement."
The company has also set up a support line for their costumers to address
their issues.
Meanwhile Cloudflare told the BBC: "This afternoon we were alerted that the
Verkada security camera system that monitors main entry points and main
thoroughfares in a handful of Cloudflare offices may have been compromised.
"The cameras were located in a handful of offices that have been officially
closed for several months."
Tesla has yet to comment.
The breach comes after further details of a hack on Microsoft Exchange are
beginning to emerge.
The attack used previously unknown flaws in the email software - and
sometimes stolen passwords - to steal data from targets' networks.-BBC
Liberty Steel boss Sanjeev Gupta warns over loss-making plants
The boss of the UK's third-largest steelmaker has said the collapse of its
main financial backer "creates a challenging situation".
Sanjeev Gupta said some of Liberty Steel's UK operations were loss-making
and this needed to be addressed.
He was speaking at crisis talks with unions concerned for Liberty's future
after specialist bank Greensill Capital went into administration.
The collapse puts 5,000 jobs at risk at Liberty Steel and other firms.
Mr Gupta said his group was taking "prudent steps" to manage cash and was
seeking new funding.
City's steel works jobs 'will be protected'
Greensill Capital was the main lender to Mr Gupta's sprawling empire, GFG
Alliance, which includes Liberty Steel.
Liberty owns 12 steel plants in the UK including in Rotherham, Motherwell,
Stocksbridge, Newport and Hartlepool.
In a joint statement issued after the talks, the Community, Unite and GMB
unions described the meeting as "positive and constructive".
"We recognise Mr Gupta's desire to see Liberty Steel succeed and recognise
also his personal contribution in giving distressed UK steel assets a new
lease of life," they added.
They described the company as "a strategic business for the UK" and called
on the government to take "an active role" in safeguarding its future and
protecting jobs.
It's the birthplace of modern steelmaking, but the UK now barely makes it
into the global top 30 of producers. For every tonne produced in Britain,
China turns out 100, at a far lower cost. The economics is against us
So why does an industry that makes up just 0.1% of the economy garner so
much government attention, particularly when other sectors such as retail
are also in crisis?
First, steelmaking provides highly skilled manufacturing roles, sometimes in
areas where they are otherwise in short supply, commanding a wage more than
25% above the national average. And it doesn't stop with the steel plant.
For every one person directly employed (there are more than 30,000 in
total), the industry supports two more livelihoods across the supply chain,
plus more jobs in the local economy.
Crucially, though, steel is seen as a strategic industry. It's integral to
our national security security and well-being, used in aircraft carriers,
railways and hospitals. So relying heavily on others such as China to
provide runs the risk of supply disruption, particularly if relations sour.
Steel remains the second most widely used man-made material. Successive
governments have struggled to keep the industry afloat - but the focus is
about far more than nostalgia.
After administrators were appointed on Monday, Greensill said in a court
filing that Mr Gupta's operations were in "financial difficulty" and
defaulting on debt.
But in his address to union representatives on Tuesday, Mr Gupta said: "We
have adequate funding for our current needs while we bridge the gap to
refinancing the business."
Mr Gupta said GFG Alliance as a whole was "operationally strong" and
benefiting from a 13-year high in steel prices.
But he added: "There are some exceptions and I'm sorry to say that includes
some of our UK steel businesses."
He said demand for some products had fallen as much as 60% during the
pandemic following "the severe downturn in the aerospace sector due to
Covid-19".
Putting staff on furlough and tightening cost controls were among the
measures being taken, he said.
It was impossible to ignore the rather ominous warning in Sanjeev Gupta's
letter to staff this morning.
While he insisted the wider GFG group had adequate funding for its current
needs and was benefiting from the highest steel prices in more than a
decade, some of its UK businesses faced particular challenges.
High energy costs and plunging demand from a Covid-stricken aerospace sector
meant its speciality steel business was under pressure. That will be heard
loud and clear in Stocksbridge and Rotherham, where this business is
concentrated.
The Community, Unite and GMB unions met with Mr Gupta via Zoom this morning
and described the meeting as positive and constructive.
Mr Gupta has been something of a hero in recent years, rescuing plants and
jobs that few thought could succeed. They are not about to go after him now.
But what the unions were keen to emphasise was not just the jobs, but the
strategic importance of these domestic steel works to sensitive industries
such as aerospace and defence. Mr Gupta has also been an evangelist for
lower-carbon steel production.
The message to government was clear: give this company, this man, these
workers all the help you can.
Mr Gupta said securing alternative long-term funding was "progressing well",
but would take "some time" to organise.
"We had been preparing to refinance the business to diversify away from
Greensill and broaden our capital base," he added.
Mr Gupta said he was working on securing working capital facilities to
support Liberty and "bridge the funding gap" while refinancing took place.
He also outlined longer-term measures to address the loss-making parts of
the business, including possible partnership opportunities.
The Community union has said the future of Liberty's strategic steel assets
"must be secured" and that it is ready to work with "all stakeholders to
find a solution".--BBC
Unilever drops word 'normal' from beauty products
Unilever will drop the word "normal" from its beauty products and ban
excessive editing of models' photos in a push for inclusivity.
Dove's owner said the editing ban would apply to "body shape, size,
proportion and skin colour" and "normal" would be removed from 200 products.
Its boss said it wanted to create a "more inclusive definition of beauty".
The firm has previously faced allegations that it promoted stereotypes
around dark skin tones.
The London-based firm, which also owns the Simple and Sure beauty brands, is
set to make the changes over the next year. The ban on editing will include
photos taken of models as well as social media influencers.
On the change to its marketing strategy, the firm's president of beauty and
personal care products, Sunny Jain, said: "We know that removing 'normal'
from our products and packaging will not fix the problem alone, but it is an
important step forward."
The word "normal" is typically used on shampoos, conditioners and face
products, such as for "normal or oily skin".
But Roshida Khanom of market research firm Mintel said: "'Normal' is such a
loaded term because it indicates that there is an 'abnormal' and it doesn't
actually describe anything, so it's about time that the term is dropped."
"Young people in particular are shifting the conversation - the traditional
notions of beauty no longer hold up for Generation Z, who see beauty as
accepting and owning your imperfections," she said.
Instead of the word "normal", Unilever will use different descriptors for
customers looking for particular qualities in their beauty products. Shampoo
for "normal to dry" hair, for example, will soon be labelled for "dry and
damaged" hair.
Unilever said on Tuesday it would also take a number of other steps in an
attempt to promote "a new era of beauty that's inclusive, equitable and
sustainable".
It committed to increase the number of adverts portraying people from
under-represented groups and use more natural and biodegradable ingredients
across its range of products.
Capitalising on consumer awareness?
Mr Jain added that consumers were increasingly "rewarding brands" that take
action on environmental and social issues. He said the personal beauty
campaign would make Unilever a "more successful business".
The FTSE 100 firm has, however, faced criticism in the past over its
advertisements and allegations that some products promote negative
stereotypes around dark skin tones.
Last year, it rebranded a skin-lightening cream sold across Asia from "Fair
and Lovely" to "Glow and Lovely", but it still continues to be sold despite
petitions calling on the firm to halt production.
"The product has never been and is not a skin bleaching cream," Unilever
says on its website.
The firm also apologised after it ran a Facebook advertising campaign in
2017 for Dove body lotion, which showed a series of three images, showing a
black woman peeling off her T-shirt to reveal a white woman underneath her
skin. The third image shows the white woman undressing to reveal an Asian
woman.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "The world's
consumer base is becoming increasingly aware of social issues, and the
threat of boycotts and backlashes means giants like Unilever are right to
try and avoid PR headaches."
Such fallouts can have negative consequences such as hitting sales or
damaging the brand, she said.
But she pointed out that given Unilever's enormous scale, with some 400
brands, "a tweak like this is unlikely to move the dial at the operating
level".
"What it does show, is a heightened awareness of the issues that matter to
consumers, and a proactive approach suggests management has its eye on the
ball," she added.
The firm has since taken a number of other measures to address social
issues. In January, Unilever said it would launch the Crown Fund UK, an
initiative aimed at stopping discrimination around black hairstyles, while
ice cream brand Ben & Jerry's has voiced support for the Black Lives Matter
protests.--BBC
Holidays: UK domestic cruises 'could restart in May'
Domestic cruises in the UK could resume from 17 May, according to the
maritime minister.
The All Party Parliamentary Maritime and Ports Group said that Robert Courts
MP made the announcement in a meeting on Monday.
Under the current "roadmap" for easing lockdown restrictions, 17 May is the
earliest date which could see foreign and domestic holidays resume.
The firm P&O Cruises said it was "delighted" by the acknowledgement.
Prime Minister Boris Johnson's "roadmap" says that indoor dining, hostels,
hotels and B&Bs could open in England from 17 May, depending on factors such
as the prevalence of coronavirus and how the vaccination rollout is going.
International travel could also resume at that date.
A statement from the Department for Transport said that restarting domestic
cruising in England "will be aligned with the wider resumption of the
domestic tourism and indoor hospitality sectors".
P&O Cruises president Paul Ludlow said: "We are delighted that the
government has acknowledged that UK domestic cruise holidays can begin from
17 May.
"While it will take some weeks after this date for us to restart our
operations, we are very much looking forward to welcoming guests on board
this summer".
Mr Ludlow said that further details on ships, itineraries and dates for
domestic cruise holidays will be announced by the firm later this month.
"We strongly welcome the announcement that cruise will be included alongside
the restart of other domestic tourism in the UK," the UK Chamber of Shipping
and Cruise Lines International Association said in a joint statement.
"The industry has been working with the government over the last year on
health protocols which put the safety of our passengers and crew first. Many
of these protocols have already been tested successfully where cruise has
been able to operate elsewhere in Europe."
Some cruise lines have, however, cancelled international sailings for the
summer.
P&O Cruises recently announced it would extend its ban on international
holiday voyages through until the end of September, while Princess Cruises
has also said it was looking into launching domestic cruise trips on its
Regal Princess and Sky Princess ships "departing in late summer".--BBC
Verkada surveillance cameras at Tesla, hundreds more businesses breached:
hackers
(Reuters) - A small group of hackers viewed live and archived surveillance
footage from hundreds of businesses including Tesla Inc by gaining
administrative access to camera maker Verkada over the past two days, one of
the people involved in the breach told Reuters.
Swiss software developer Tillie Kottmann, who has gained attention for
finding security flaws in mobile apps and other systems, shared screenshots
on Twitter from inside a Tesla warehouse in California and an Alabama jail
in messages to Reuters. Kottmann declined to identify other members of the
group.
Kottmann said they sought to draw attention to the pervasive monitoring of
people after having found login information for Verkada’s administrative
tools publicly online this week.
Verkada acknowledged an intrusion, saying it had disabled all internal
administrator accounts to prevent unauthorized access.
“Our internal security team and external security firm are investigating the
scale and scope of this issue, and we have notified law enforcement” and
customers, the company said.
Kottmann said Verkada cut off the hackers’ access hours before Bloomberg
first reported the breach on Tuesday.
The hacking group, if it had chosen, could have used its control of the
camera gear to access other parts of company networks at Tesla and software
makers Cloudflare Inc and Okta Inc, according to Kottmann.
Cloudflare said its security measures are designed to block a small leak
from becoming a wider intrusion, and that no customer data were affected.
Tesla and Okta did not respond to requests for comment.
A list of Verkada user accounts provided by the hacking group and seen by
Reuters includes thousands of organizations, including gym chain Bay Club
and transportation technology startup Virgin Hyperloop.
Reuters could not independently verify the authenticity of the list or
screenshots distributed by Kottmann, but they included detailed data and
matched other materials from Verkada.
Madison County Jail in Alabama, Bay Club and Virgin Hyperloop did not
respond to requests for comment.
Verkada says on its website it has over 5,200 customers, including cities,
colleges and hotels. Its cameras have proved popular because they pair with
software to search for specific people or items. Users can access feeds
remotely through the cloud.
In a 2018 interview with Reuters, Chief Executive Filip Kaliszan said
Verkada had deliberately made it easy for many users at an organization to
watch live video feeds and securely share them, such as with emergency
responders.
Verkada has raised $139 million in venture capital, with the latest
financing announced a year ago valuing the Silicon Valley startup at $1.6
billion.
Verkada drew scrutiny last year after Vice reported that some employees had
used company cameras and its facial recognition technology to take and share
photos of female colleagues. Kaliszan later described the behavior as
“egregious” and said three people had been fired over the incident.
Asian stocks bounce off two-month low as bonds, China markets steady
TOKYO/NEW YORK (Reuters) - Asian stocks bounced back from a two-month low on
Wednesday after bond yields eased following a well-received auction and as
Chinese shares found a footing after recent steep falls on policy tightening
worries.
MSCI’s ex-Japan Asia-Pacific shares index rose 0.4%, a day after it hit a
two-month low. The CSI300 index of mainland China’s A-shares rose 0.7% in
early trade.
The rebound came after Chinese shares had fallen to their lowest levels
since mid-December the previous day on the prospect of tighter policy and a
slowing economic recovery.
Japan’s Nikkei was little changed while e-mini futures for the S&P 500 shed
0.25%, erasing earlier gains.
“Markets are giving full attention to bonds. As earnings are not growing
that fast right now, the lofty stock prices we have now will become
unsustainable if bond yields rise further and undermine their valuation,”
said Hiroshi Watanabe, senior economist at Sony Financial Holdings.
The yield on benchmark 10-year notes slipped to 1.539%, having peaked at
1.626% on Friday, after Tuesday’s auction of $58 billion in U.S. 3-year
notes was well received.
Yet, many market investors remained on edge, with the next tests of investor
appetite for government debt due later this week in the form of 10-year and
30-year auctions.
“Although the bond market has steadied a bit, pressures will remain,” said
Naokazu Koshimizu, senior rates strategist at Nomura Securities.
“It has priced in future normalisation of the Fed’s monetary policy, the
Fed’s policy becoming eventually neutral. But it has not yet priced in the
chance of its policy becoming tighter.”
Some investors see a real risk of an overheated U.S. economy and higher
inflation on the back of planned spending by the Biden administration,
including a $1.9 trillion stimulus and an even bigger initiative on
infrastructure.
On Wall Street, each of the major averages closed higher, led by a gain of
nearly 4% in the Nasdaq, giving the tech-heavy index its best day since Nov.
4.
The index has been highly susceptible to climbing rates, and Monday’s
retreat left it down more than 10% from its Feb. 12 close, confirming what
is widely considered to be a correction.
“Today the 10-year is down a bit, and that takes pressure off valuations, so
tech is performing well. The market is just about getting comfortable at
this level of rates,” said Kristina Hooper, chief global market strategist
at Invesco in New York.
The speedier rollout of COVID-19 vaccines in some countries and the planned
U.S. stimulus package helped underpin a brighter global economic outlook,
the Organisation for Economic Cooperation and Development said, as it raised
its 2021 growth forecast.
In foreign exchange markets, the dollar index backed away from a 3-1/2-month
high of 92.506 to stand at 92.138.
The euro firmed to $1.1881, off Tuesday’s 3 1/2-month low of $1.18355 while
the yen changed hands at 108.76 per dollar, above a nine-month low of
109.235 set the previous day.
The offshore Chinese yuan strengthened to 6.5235 per dollar from Tuesday’s
three-month low of 6.5625.
Oil prices backed off on easing concerns over a supply disruption in Saudi
Arabia.
U.S. crude futures slipped 0.3% to $63.72 per barrel, away from a near 2
1/2-year high of $67.98 touched on Monday.
Brent crude futures settled at $67.52 per barrel, down 72 cents or 1.06%.
Nigeria: Court Declines to Unfreeze Shell's Bank Accounts
A Federal High Court in Lagos yesterday declined to vacate its interim
Mareva injunction directing 20 banks to block Shell Petroleum Development
Company of Nigeria (SPDC) and its subsidiaries' bank accounts.
Justice Oluremi Oguntoyinbo, who made the ruling, also summoned three of the
banks' secretaries and chief financial officers for allegedly disobeying the
order made on January 25, 2021.
The affected banks and their officials are: Citi Bank Ltd, its Company
Secretary Sola Fagbure and Chief Financial Officer, Sharaf Mohammed; First
Bank of Nigeria Ltd, its Company Secretary Irene Netimah and Chief Financial
Officer, Patrick Iyamabo; United Bank For Africa (UBA) Plc, its Company
Secretary Bill Andrew Odum and Chief Financial Officer, Ebenezer Kolawole.
The court ordered the alleged contemnors to appear before it on the next
adjourned date of March 29, 2021.
Justice Oguntoyinbo warned that their failure to appear would result in a
warrant of arrest being issued against them.
The judge made the order in a ruling on three applications in a suit marked
FHC/L/CS/52/2021, filed by Aiteo Eastern E&P Company Ltd against SPDC and
four others.
Aiteo is claiming about $2.7 billion against SPDC over alleged problems with
the Nembe Creek Trunk Line (NCTL) pipeline it bought from the Anglo-Dutch
group in 2015 and over claims that Shell undercounted its oil exports.
Joined with SPDC as respondents in the suit are Royal Dutch Shell Plc; Shell
Western Supply and Trading Ltd; Shell International Trading and Shipping
Company Ltd; and Shell Nigeria Exploration and Production Company Ltd.
Justice Oguntoyinbo granted the Mareva injunction on January 25, 2021
directing 20 commercial banks to block SPDC and its subsidiaries' accounts
and barring Royal Dutch Shell's Nigerian subsidiaries from withdrawing money
at 20 banks until it "ringfences" potential damages in a lawsuit brought
against the firm by Aiteo.
Seventeen of the banks are said to have complied with the order.
The order was sequel to AITEO's bid to recover from Shell, the cash
equivalent of more than 16 million barrels of crude oil allegedly diverted
by the oil giant.
At the last hearing on March 9, the court faced three applications by the
Plaintiff AITEO and the Defendants SPDC and Others relating to its
jurisdiction, motion to discharge its ex-parte order and committal
proceedings against the three banks.
AITEO's counsel Mr. Kemi Pinheiro (SAN), leading Emeka Ozoani (SAN) prayed
the court to hear the committal proceedings first.
Pinheiro reasoned that it was "necessary that the named persons in committal
proceedings (the bank officials) be present in court" because the
proceedings "attached to their person".
He said alleged contemnors had been served "and there's proof of service,"
adding that the quasi-criminal nature of committal proceedings made their
appearance a necessity. He noted that they had not filed a response.
Adewale Atake (SAN) for SPDC, Olawale Akoni (SAN) for the banks and Chukwuka
Ikwuazom (SAN), for four Shell subsidiaries opposed them, praying the court
to instead hear applications questioning its jurisdiction and another motion
to discharge the order blocking the accounts.
When the case was called yesterday, the judge upheld Pinheiro's application
and gave primacy to the application for committal proceedings.
"The committal proceedings is the appropriate application to consider... I,
therefore, hold that the first application to be heard is the committal
proceedings," she said.
The judge further ruled that the presence of the named bank officials was
necessary.
She said: "The alleged contemnors must be present in court at the next
hearing, otherwise a warrant of arrest shall be issued against them."
Ruling on the defendants' application to vacate the Mareva injunction and
unfreeze the bank accounts, the judge held that the ex parte order subists
pending the determination of AITEO's motion on notice.
She adjourned till March 29 for hearing of the committal proceedings and
other applications.-This Day.
Nigerians Ignore CBN Warning As Bitcoin Trading Crosses $50,000 Mark
Lagos — Despite restrictions on trading in cryptocurrencies in the country,
Nigerians appear to have found new ways to continue buying and selling them.
LEADERSHIP findings revealed that weekly traded volume of bitcoin in the
country rose to N1.13billion in the first week of March, 2020.
Data by Coindance, a bitcoin trade monitoring site, showed that Nigeria's
traded volume increased by over N130million to N1.13billion last week
compared to N1billion traded volume recorded in the week ended February 27.
On February 5, 2021, the Central Bank of Nigeria (CBN) had directed that
banks and financial institutions in Nigeria should close the accounts of
persons found trading in cryptocurrency in the country.
The apex bank stood its ground despite the intervention of stakeholders in
the financial technology world who urged the Nigerian government to consider
embracing it.
In spite of this, trading in cryptocurrencies resumed after the initial
shock and panic sell off.
On cryptocurrency trading exchanges such as Luno and Binance, there are no
options for naira payments and Nigerian traders are encouraged to continue
trading using peer to peer (P2P).
The increase in volume may also not be unconnected with the volatility in
the price of bitcoin, the most popular of the cryptocurrencies in recent
times.
After soaring above $55,000 early last month, the price of bitcoin dipped
below $46,000 within a few days before picking up again.
As of Monday, the price of the cryptocurrency had crossed the $50,000 mark.
Weekly traded volume in January this year which had been within the
N1billion mark soared to N1.25billion in the week ended February 6, 2021
when the CBN announced the restrictions before dipping in the last week of
February.
The apex bank had directed that banks freeze accounts of persons found
trading in cryptocurrency, a policy that has received backlash from many
stakeholders.
The position of the CBN had been backed by the Nigeria Deposit Insurance
Corporation (NDIC), the Securities and Exchange Commission (SEC), the
Nigeria Financial Intelligence Unit (NFIU) as well as other agencies in the
financial industry which maintained that trading in cryptocurrencies will
not be allowed in the country.
According to CBN, the move was to protect the funds of Nigerians and stop it
from being used as a means of illicit transactions.
The banking sector regulator, in a statement, had said due to the lack of
transparency, "cryptocurrencies have become well-suited for conducting many
illegal activities including money laundering, terrorism financing, purchase
of small arms and light weapons, and tax evasion."
This stance of the CBN was given more credence after the United States
Treasury Secretary, Janet Yellen, warned that bitcoin is an 'extremely
inefficient' way to conduct monetary transactions.
Yellen, in an interview with CNBC, said there remain important questions
about legitimacy and stability.
But Nigeria's vice president, Yemi Osinbajo, said instead of adopting a
policy that prohibits cryptocurrency operations in the country, the country
"must act with knowledge and not fear" and develop a robust regulatory
regime that is thoughtful and knowledge-based.-Leadership.
Nigeria: Buhari Launches $3.2bn Port Harcourt-Maiduguri Railway Project
President Muhammadu Buhari yesterday launched the $3.2 billion
rehabilitation and reconstruction of Port Harcourt- Maiduguri eastern narrow
gauge railway project, Bonny Deep Sea Port and the Railway Industrial Park,
Port Harcourt, to be executed with 85 per cent loan and federal government's
15 per cent counterpart funding.
The three projects will be co-financed with loan from a syndicate of Chinese
financiers.
The rehabilitation and reconstruction of the Port Harcourt- Maiduguri
railway project, Bonny deep Sea Port and Railway Industrial Park, Port
Harcourt are being developed through direct investment by the conglomerate
led Messrs CCECC Nigeria Limited with a total investment portfolio of $3.2
billion.
Performing the virtual groundbreaking ceremony of the three projects
yesterday, Buhari said the railway project, when completed, would reactivate
the dormant economic activities on the eastern corridor.
He said: "The funding of the railway is through loan to fund 85 per cent
project cost and the federal government contribution of 15 per cent as
counterpart funding."
According to him, the rehabilitation of the Port Harcourt-Maiduguri railway
line will reactivate economic activities along the eastern corridor.
The president said the country's aspiration for nationwide transport
infrastructure and railways would be enhanced by the three projects
conceived to be integrated in their operations.
"The connection of the railway to a new seaport in Bonny Island and Railway
Industrial Park, Port Harcourt is designed to increase the viability and
boost trans-shipment of cargo and freight locally, across the West African
sub-region and in the Continental Free Trade Area.
"The sum of the socio-economic and environmental benefits of these projects
includes creation of massive employment locally. In addition, there will be
further utilisation of local contents and technology transfer, increase in
internally generated revenue and would serve as a fulcrum for the
achievement of the federal government planned integrated development master
plan," he stated.
Buhari urged Nigerians, especially industrialists, manufacturers and
businesses within the zones, to take maximum advantage of the infrastructure
in planning for expansion and building new factories.
He added that the projects, when completed, will raise Nigeria's economy to
the global stage while reaffirming its leading role in Africa.
He said the Port Harcourt to Maiduguri railway reconstruction project with
new branch lines to Owerri, Imo State and Damaturu, Yobe State, would
resuscitate the once vibrant railway transportation in the eastern railway
corridor.
He said: "We are further expanding it to achieve contemporary demand for
transport in the North-east and Southern geopolitical zones of the country.
It is also designed to link other standard gauge rail lines under
construction through the provision of trans-shipment centres."
According to him, the Bonny Deep Sea Port and the railway industrial park
are to be constructed through direct investments from Chinese partners and
international financing agencies.
He said the three projects would serve transportation and supply chain
network for domestic needs and export as well as support imports into the
hinterland through the new deep sea port in Bonny Island.
"This improved port is designed to be a regional and international transport
hub. In line with the global trends, the Railway Industrial Park will have
the capability for processing exports of raw materials with value addition
and also export of locally made goods.
"In planning this project, prudent use of resources has been given priority,
as by this endeavour, Nigeria will retrieve the old narrow gauge that has
been lying in neglect for years and bring it to full functional state
commensurate to a national railway service at a rational price," he said.
Buhari, who requested the Minister of Transportation, Hon. Rotimi Amaechi,
to cut the tape and unveil the plaque for the projects on his behalf,
assured the nation of prudent use of resources in executing the projects.
Earlier, Amaechi had said the Bonny Deep Sea Port and Railway Industrial
Park, Port Harcourt are being developed through direct investment by a
conglomerate led by Messrs CCECC Nigeria Limited with a total investment
portfolio of $700 million.
"The Bonny Deep Sea Port has a container terminal of 500,000 TEU (20 foot
equivalent unit) per annum capacity and 100,000 DWT (deadweight tonnage)
Berth.
"The Railway Industrial Park, Port Harcourt, would be supported by necessary
infrastructure including power, water, waste disposal, ICT and gas
distribution as well as transportation, logistics centres and ancillaries,"
he added.
On the railway, he said upon completion, trains on the Port Harcourt -
Maiduguri eastern narrow gauge railway would run at 60-80 kilometres per
hour and 80-100 kilometres per hour for freight and passenger respectively.
Amaechi stated that his ministry was working in line with the president's
directives to implement the Nigeria railway modernisation project and expand
the railway network.
"In this regard, the rail line connection from Enugu to Awka-Onitsha and
Abakaliki is undergoing necessary feasibility studies and preparation of
conceptual design," the minister said.-This Day.
Mozambique: PGR Has Not Withdrawn Bribery Charges Against Privinvest
Maputo — The Mozambican Attorney-General's Office (PGR) has not withdrawn
accusations of bribery against the Abu Dhabi based group, Privinvest, which
is at the heart of the scandal of Mozambique's "hidden debts".
This term refers to the loans of over two billion US dollars made in 2013
and 2014 by the banks Credit Suisse and VTB of Russia to three fraudulent
Mozambican companies, Proindicus, Ematum (Mozambican Tuna Company) and MAM
(Mozambique Assets Management).
The loans were only possible because the banks carried out no due diligence
on the three companies, which had no business record and were effectively
run by the Mozambican security service, SISE, and because the Mozambican
government of the day, under the then President, Armando Guebuza, issued
illegal loan guarantees, in violation of the 2013 and 2014 budget laws, and
of the Mozambican constitution.
The loan guarantees were signed by the then Finance Minister Manuel Chang,
who is currently languishing in South African custody, awaiting a decision
as to whether he will be extradited to Mozambique or to the United States.
Both countries wish to put him on trial for crimes concerning the fraudulent
scheme.
Massive corruption was involved in the loans, as was admitted by the three
Credit Suisse managers who negotiated them, Andrew Pearse, Detelvina Subeva,
and Surjan Singh. These three people were among those charged by American
prosecutors, who took a close interest in the case because the US financial
system had been abused, and US investors were swindled. According to the
prosecutors, at least 200 million dollars of the loan money was diverted
into bribes and kickbacks.
Privinvest was closely involved in the bribery as became clear in the 2019
trial in New York of Privinvest official Jean Boustani. Privinvest was very
much an interested party since it became the sole supplier to Proindicus,
Ematum and MAM. An independent audit into the two companies in 2017 showed
that Privinvest had vastly inflated the prices it charged for the fishing
boats and other assets it supplied. This over-invoicing was estimated at
around 700 million dollars.
The PGR began proceedings in London in 2019 against five companies in the
Privinvest group - namely Privinvest Shipbuilding S.A.L. Abu Dhabi (Branch),
Abu Dhabi Mar LLC, Privinvest Shipbuilding Investments LLC, Logistics
International SAL (Offshore), and Logistics International Investments. It is
also suing Credit Suisse and the three Credit Suisse officials who have
admitted taking Privinvest bribes, Pearse, Subeva and Singh.
The key demand from the PGR is that the London court should declare null and
void the government guarantee on the 622 million dollar loan arranged by
Credit Suisse for ProIndicus, on the grounds that this debt, along with the
rest of the loans were part of a gigantic fraud.
Privinvest's lawyers have attempted to muddy the waters, claiming that the
London court does not have jurisdiction in the case, which should instead be
heard by the International Arbitration Tribunal in Switzerland. Some of the
Mozambican press have swallowed this line with last week's issue of the
weekly paper "Canal de Mocambique" claiming that there has been an upset in
the London court proceedings and that the PGR has withdrawn its accusations
of bribery against Privinvest.
Interviewed by the German agency DW Africa, Borges Nhamirre, a researcher
for the anti-corruption NGO, the Centre for Public Integrity (CPI), who has
followed the case right from the start, stressed that, in reality, the PGR
"has not changed a single comma" in its charge sheet.
The real dispute, he said, is over where the case should be heard, in London
or in Switzerland. "Obviously the PGR maintains the accusation of bribery",
said Nhamirre.
But two quite different forms of bribery were involved. One was the illicit
payments under the procurement contracts, made to ensure that Privinvest
became the supplier. But that, contrary to claims by Privinvest lawyers, is
not the subject of the PGR's suit.
Instead, the PGR is going after the bribes that were paid to the then
finance minister Manuel Chang to ensure that he signed the loan guarantees.
Without the guarantees, the banks would never have paid the money, and the
whole corrupt scheme would have collapsed.
"What Mozambique is demanding now is that Privinvest and the other accused,
12 in all, be found guilty because there was fraud in the guarantee
contracts", said Nhamirre.
The PGR "is asking the British court that the guarantees issued for the
loans be declared null and void. It is not discussing the bribes that
happened under the supply contracts", he added.
Privinvest, said Nhamirre, had given Chang a bribe of seven million dollars,
and that was the question at stake. The issue of other bribes, paid to
secure the supply contracts, was not relevant.
Nhamirre believed that the PGR had "defended very well the interests of
Mozambican society".
"The PGR began the case in London to declare the guarantees null and void",
he continued. "What does this mean? It means that the PGR is saying that
Mozambique does not want to pay the hidden debts. The Mozambican state is
doing this, and it is doing it very well".
As for the claim that President Filipe Nyusi had put pressure on the PGR to
withdraw the accusations of bribery, Nhamirre replies "I have no grounds for
saying that the President did this. And in fact there has been no
withdrawal".
South Africa: GDP Shrinks By 7%
The South African economy contracted by 7% in 2020, Statistician-General,
Risenga Maluleke, has revealed.
Maluleke on Tuesday briefed media on the results of the Gross Domestic
Product (GDP) for the fourth quarter of 2020. The decrease was despite the
economy growing by 1.5% in the last three months of the year, giving an
annualised growth rate of 6.3%.
However, Maluleke said, the positive growth recorded in the third and fourth
quarters was not enough to offset the devastating impact of COVID-19 in the
second quarter, when lockdown restrictions were at their most stringent.
"Economic activity for the entire year decreased by 7% in 2020 compared with
2019. If we explore the historical data, this is the biggest annual fall in
economic activity the country has seen since at least 1946."
The second biggest fall was recorded in 1992 when the economy contracted by
2.1%. At that time, the country was struggling through a two-year recession,
mainly the result of a global economic downturn. During the 2008/09 global
financial crisis, the economy shrank by 1.5% in 2009.
In the last three months of 2020, the manufacturing industry increased at a
rate of 21.1% during this period, contributing 2.4 percentage points to GDP
growth.
The annual real GDP growth rate of -7% in 2020 was primarily led by
decreases in manufacturing, which contributed -1.4 percentage points, based
on growth of -11.6%; trade, catering and accommodation, which contributed
-1.3 percentage points, based on growth of -9.1%, and transport, storage and
communication, which contributed -1.3 percentage points, based on growth of
-14.8%.
The agriculture, forestry and fishing industry increased by 13.1% in 2020,
and general government increased by 0.7% in 2020.
Expenditure on GDP in 2020 decreased by 7.1% in 2020, following an increase
of 0.1% in 2019. Household final consumption expenditure (HFCE) decreased by
5.4% and contributed -3.4 percentage points.
Maluleke said the main negative contributors to growth of -5.4% in HFCE were
expenditure on transport (-10.6% and contributing -1.5 percentage points);
clothing and footwear (-21.0% and contributing -1.2 percentage points),
restaurants and hotels (-41.8% and contributing -1.1 percentage points), and
alcoholic beverages, tobacco and narcotics (-16.9% and contributing -0.8 of
a percentage point).
Stats SA said the gross fixed capital formation decreased by 17.5%,
contributing -3.4 percentage points to total growth, and changes in
inventories contributed -2,6 percentage points to total growth.
Net exports contributed 2.1 percentage points to growth in expenditure on
GDP.
"Nine of the 10 manufacturing divisions reported positive growth rates in
the fourth quarter. The four divisions with the largest contributions to the
increase were food and beverages; motor vehicles, parts and accessories and
other transport equipment; basic iron and steel, non-ferrous metal products,
metal products and machinery; and wood and wood products, paper, publishing
and printing," said Stats SA.
The trade, catering and accommodation industry increased at a rate of 9.8%,
contributing 1.3 percentage points to GDP growth.
Increased economic activity was reported for retail trade, motor trade,
catering and accommodation. The transport, storage and communication
industry increased at a rate of 6.7%, contributing 0.5 of a percentage point
to GDP growth.
Maluleke said increased economic activity was reported for land and air
transport and communication services.
"The construction industry increased at a rate of 11.2% in the fourth
quarter. Increased production was reported for residential buildings,
non-residential buildings and construction works. The personal services
industry increased at a rate of 4.8% in the fourth quarter; increased
economic activities were reported for community and other producers.
"The agriculture, forestry and fishing industry increased at a rate of 5.9%
in the fourth quarter. The increase was mainly due to increased production
of animal products."
The Statistician-General said expenditure on real gross domestic product
increased at an annualised rate of 6.5% in the fourth quarter of
2020.-SAnews.gov.za.
Kenya: New Twist in 'Secret' Nakumatt Store Operations
The Nakumatt store that has been secretly operating at Prestige Plaza,
Nairobi, has abandoned receipts and price labels branded with the fallen
retailer's logo.
This came as it emerged that the collapsed retailer could be pocketing
proceeds of sale of hundreds of items on the store's shelves.
Two days after the Nation revealed that Nakumatt is secretly running a
branch at Prestige Plaza on Ngong Road, the store stopped issuing receipts
with Nakumatt branding on the back.
By the weekend, the store was issuing receipts with a plain pink back, with
no text or images.
Most price stickers are now branded with "Parkview", replacing the Nakumatt
ones that indicated discounted cost of goods on the shelves.
Despite the document changes, the Nation has established that Nakumatt
founder Atul Shah could still be pocketing millions of shillings from
product sales through another company - Parkview Shopping Arcade Limited.
Mr Shah's portrait still stood at the store's entrance when we did a
follow-up spot check over the weekend. The store still had Nakumatt shopping
baskets.
The Nation last week revealed that a Nakumatt branch was still being run
secretly at the plaza.
At the time, Nakumatt administrator Peter Obondo Kahi denied that the
collapsed retailer runs the secret store.
But after some prodding, Mr Kahi admitted that M-Pesa payments made to the
store are deposited in a KCB Bank account that Nakumatt owns.
The store was not disclosed in books of accounts that Mr Kahi presented in
court, and to creditors.
Nakumatt financials filed in court show that the Prestige Plaza space was
sold to Naivas Supermarket.
Coupled with the revelation that a sister company is running the store and
Mr Kahi's admission on the M-Pesa number being linked to a Nakumatt account,
the destination of sales at the till remains a mystery.
But as Parkview is owned by Mr Shah, he could be one of the beneficiaries.
Mr Shah is out of the country seeking medical aid for a variety of
illnesses, including blood pressure and diabetes, and was unreachable at the
time of going to press.
"I think the receipt should be the basic because it contains the Electronic
Tax Register of the entity. The M-Pesa account is swiped to a KCB account we
hold. That's why we have in accounting what we call intercompany balances
and reconciliations," Mr Kahi said.
The Prestige Plaza store has no branding, and no name.
But the few people aware of it know the store as Nakumatt, including
security guards and other Prestige Plaza workers.
Goods sold at the store are all on steep discounts, some priced at 90 per
cent less of their actual value.
A receipt we obtained during our second spot check indicates that the store
is owned by Parkview Shopping Arcade Limited.
This means that Mr Shah may still be raking in millions from the retail
business, even as banks and suppliers try tracing his assets to plug a Sh38
billion debt hole that Nakumatt pushed them into.
At the store, the two spaces that were customised shops inside Nakumatt are
now private offices where shoppers are not allowed to enter. Nakumatt
previously occupied two floors at the plaza.
Last January, Naivas acquired six Nakumatt branches for Sh422 million,
including Presige Plaza.
But Naivas has only occupied the ground floor space. Parkview is one of
Nakumatt's sister companies being pursued by banks for payment of loans that
they guaranteed the fallen retail giant.
Interestingly, Mr Kahi and his team of corporate morticians tasked with
winding up Nakumatt have been operating from the same store since August,
2020.
The move followed an auction of Nakumatt's 10-acre headquarters along
Mombasa Road to settle a Sh700 million loan.
The headquarters were owned by Collogne Investments, a sister company to
Nakumatt, which had used the land to guarantee the retailer's Sh700 million
loan from Bank of Africa.
A search at the Business Registration Service's online portal revealed that
there is no company registered as Parkview Shopping Arcade.
While we did find a Park View Shopping Limited, the firm is listed as
unverified which means it has not disclosed crucial ownership information to
the Registrar of Companies for online publication.
But the company's listing on the website indicates that it was incorporated
some time in 2010.
Court proceedings and filings by Mr Kahi have, however, verified that Mr
Shah is the beneficial owner of Parkview Shopping Arcade.
Parkview owns a 1.7-acre plot in Westlands, opposite Westgate Shopping Mall
that UBA Bank has been targeting to offset a Sh119 million loan balance.
Parkview guaranteed Nakumatt a Sh250 million loan.-Nation.
Tanzania Gears Up to Test SGR Power System
The Tanzania Railways Corporation plans to start testing the standard gauge
railway electricity systems over three months, run by four sub-stations
along the completed 300 kilometres stretch between Dar es Salaam and
Morogoro.
The four sub-stations are 50km apart, with 19 transformers, and the test
will be done in two main stages -- the unit test and the component test.
This will ensure that the whole system is well installed and connected to
the national grid whose electricity is supplied by three main sources of
power: steam, gas and hydroelectricity generation.
Initially, the SGR testing was to be completed by end of April, after which
grand testing of the locomotives was to be carried out from May.
However, this had to be postponed to allow the main contractor to complete
sensitive and delicate works on overhead bridges along the 14km stretch
between Dar es Salaam and Pugu stations.
Speaking to The EastAfrican in Dar es Salaam recently, SGR project manager
Machibya Masanja said that once the construction of overhead structures is
complete, preparations for grand testing would take place for three months,
prior to the official inauguration of goods and passenger service towards
the end of the year.
"Contractors ought to be careful as the railway line crosses four main
roads, so they have to avoid unnecessary traffic congestion or blockade at
junction points at Nyerere Road, Kigogo, Kilwa Road, and Nelson Mandela road
junctions at Buguruni," said Mr Masanja.
These roads stretch from Dar es Salaam's central business district to the
outskirts.
Recently, Tanzania Electric Supply Company Ltd (Tanesco) said it had
dedicated 70MW of electricity to power the first phase of the SGR project
set to start operations in the next few months.
Energy Minister Medard Kalemani said that the actual construction of power
lines between Dar es Salaam (Kinyerezi) and Morogoro (Kingolwira) was
complete and that the 70MW are already available to the Tanzania Railways
Corporation.
The government has invested Tsh71.1 billion ($30.7 million) in building the
required power infrastructure for the first phase.
Dr Kalemani said the locomotives being imported have inbuilt power-saving
systems that keep them charged for almost one hour.-East African.
Invest Wisely!
Bulls n Bears
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INVESTORS DIARY 2021
Company
Event
Venue
Date & Time
Companies under Cautionary
ART
PPC
Dairibord
Starafrica
Fidelity
Turnall
Medtech
Zimre
Nampak Zimbabwe
<mailto:info at bulls.co.zw>
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
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for guideline purposes only and sourced from third parties.
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