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5 things you need to know in SA business today and the Reserve Bank governor's alarming bread price graph

1. Bosasa is going into voluntary liquidation after FNB, its banker, decided to terminate the company’s accounts. The company is at the centre of a government corruption scandal.

2. The operating model of the SAA will be changed and the company reorganised into three operating entities (national, regional and international), CEO Vuyani Jarana said yesterday. The cash-strapped airline has to pay back debt of more than R9 billion due at the end of next month, and is currently in negotiations to extend that deadline

3. Patrice Motsepe called a press conference yesterday to deny EFF claims that government favoured his company African Rainbow Energy & Power in awarding renewable energy contracts. Motsepe said these contracts were secured via a bidding process. Motsepe is the brother-in-law of President Cyril Ramaphosa. Energy Minister Jeff Radebe is married to Bridgette Motsepe, another one of Motsepe's sisters.

4. Last week, Microsoft terminated its licensing agreement with the South African IT company EOH. This wreaked complete havoc on EOH's share price. The reason for the sudden move was unclear, but now the mystery is solved: Microsoft is concerned about possible corruption in a R120 million contract between EOH and the SA department of defence. The US tech giant received an anonymous tip-off with the allegations and hired a law firm to investigate, according to a Techcentral report .

5. Anglo American Platinum declared its biggest dividend in more than a decade as the company reported full-year earnings that nearly doubled, thanks to a weaker rand and palladium price.

The Reserve Bank governor's alarming bread price graph Amid continuing pressures to nationalise the SA Reserve Bank , and criticism that it hiked interest rates unnecessarily last year, the governor of the Reserve Bank, Lesetja Kganyago, has tweeted a warning about the perils of not taking a tough, independent stance on inflation:

What inflation rate should we have? This graph shows what the price of bread would be by 2038 - at different inflation rates. It could have been the price of any good. High inflation is not good for the welfare of our society. @treasuryrsa @saresbank ? @PresidencyZA ? pic.twitter.com/2672GwaGvc

— Lesetja Kganyago (@KganyagoLesetja) February 17, 2019 The graphs shows the impact of a 15% inflation rate (the average between 1983 and 1992) on the bread price: A loaf would cost R212 by 2038.

If inflation is kept at 4.5%, it would cost only R31.

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