SARS coming after PAYE, and Gauteng shutdown warning

The South African rand strengthened against a weaker dollar on Friday, buoyed by rising gold prices. 

Investors sought the safe-haven asset amid concerns over the deteriorating fiscal health of the United States. 

The rand traded at 17.88 against the dollar, which is approximately 0.7% stronger than Thursday’s closing level. The dollar index was down about 0.6% against a basket of currencies. 

As a major producer of precious metals, South Africa’s rand benefits from higher gold prices, which rose by more than 1% on Friday. 

This week, domestic investors will primarily focus on the South African Reserve Bank’s (SARB) interest rate decision. 

In March, the bank held rates steady, citing inflationary risks stemming from U.S. President Donald Trump’s global trade policies and the country’s contentious national budget.

On Monday, 26 May, the rand was trading at R17.82 to the dollar, R24.19 to the pound and R20.33 to the euro. Oil was trading slightly lower at $65.05 a barrel.

Here are five other important things happening in and affecting South Africa today:

SAPS clampdown: The South African Revenue Service (SARS) is onboarding 500 new recruits, with the potential for an additional 1,500, as part of efforts to increase compliance, targeting tax debt and outstanding returns. This project aims to generate R70 billion over the next three years and may place greater emphasis on its most reliable collection avenue: the Pay-As-You-Earn (PAYE) system. [News24]

Gauteng shutdown notice warning: A WhatsApp message circulating about a so-called shutdown in Gauteng today (Monday) is false and misleading. National Police Commissioner Fannie Masemola has urged the public to ignore and stop sharing the message. The WhatsApp message intended to mobilise communities to shut down and block highways, close schools, shut down the American embassy and Consulate, as well as close down targeted food outlets in Gauteng. [SAPS]

South Africa’s wage problem: South Africa will increase public servant salaries by 5.5%, costing R7.3 billion this year and R23.3 billion over three years. This increase has put strain on the country’s finances, as the wage bill has grown faster than inflation, now exceeding 10% of GDP. [Daily Investor]

JSE cleared of Mantengu Mining allegations: The Financial Sector Conduct Authority (FSCA) concluded its investigation and found no evidence of “naked shorting” of Mantengu Mining shares or improper conduct by the JSE or its officials. [Moneyweb]

luxury property sale warning: Allegations of fraudulent property sales at a luxury apartment complex have surfaced in court documents, implicating real estate agents and a local attorney. [Times Live]