The cost of Ivan Pillay’s R1.1m pension bonus to the JSE’s banks: R50bn
The Hawks’ decision to prosecute Finance Minister Pravin Gordhan for okaying a R1.1m early-retirement package wiped nearly R50bn off the JSE’s banking index on Tuesday. Shaun Abrahams, the director of the National Prosecuting Authority (NPA), or the Hawks, announced that he intended to prosecute Gordhan, along with former South African Revenue Service (SARS) deputy commissioner Ivan Pillay and commissioner Oupa Magashula for paying Pillay his R1.1m pension without following correct procedures. The JSE’s banking index fell as much as 5.2% in response. Worst hit was Barclays Group Africa, which tumbled 5.81%, knocking its market capitalisation down by R7.6bn to R123.8bn. READ THIS: Rand and banking shares plummet on Gordhan NPA summons Next worst was FirstRand, which lost 5.76%, equating to a R15.3bn drop in its market capitalisation to R249.6bn. Nedbank fell 5.75%, wiping R6.5bn off its market cap to R106bn. Rand Merchant Bank Holdings fell 5.72%, knocking R4.7bn off its market cap t...
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